|October 5th, 2021|
If you’re a non-US resident, planning to start a business in the U.S., confused with the process, and wondering if you are eligible for the same, then this is your start to finish guide. Firstly, no U.S. state laws are restricting a non- U.S. resident from owning a business in the U.S. The American marketplace welcomes everyone.
To incorporate a business in the U.S., you need to travel a long route, but the country makes it easy for you. Moreover, the process of incorporating a business in the U.S. is similar for the U.S. and non-US residents. Both parties have to travel the same path of documentation. The first step towards incorporation is learning the country’s language, filing for your Employer Identification Number (E.I.N.), choosing the type of company you wish to own, etc.
Reports predict that every day, a number of entrepreneurs around the world invest in the U.S. market for many reasons. The United States offers better banking benefits, comparatively low registration or renewal fees, quality reputation, a reliable payment processing system, reasonable taxes, and most importantly, ease of operation.
When you plan to incorporate a business in the U.S., you should collect information about everything like owning a bank account, applying for a local business license, and other details. Let’s divide the process for you into steps-
1. Step 1- The first most important step to incorporating a business in the U.S. is choosing the type of entity you wish to have. What type of business entity is suitable for your business.
The United States of America offers a set of different business entities to choose from like General corporations, Non-stock corporations, closed corporations, limited liability companies, limited partnerships, etc.
Completing this step perfectly actually determines the pathway of your business. Also, it maximizes the chances of financial and operational success. Here we have provided a list of all available options, a detailed comparison available along with all the information you need to learn about limited partnerships, L.L.C.s, and general and exempt corporations. For more information, check the below points:
● Limited Liability Company (L.L.C.)
● Non-Profit Corporation (I.N.C.)
● General Corporation (I.N.C.)
● Limited Partnership (L.P.)
● Close Corporation(INC)
● S-Corporation (I.N.C.)
● Delaware Corporation 101
● Compare Business Entities(I.N.C.)
2. Step 2- After you have decided on the entity, move towards the second step. Choose the business formation package that suits the best you as per your business needs. The business formation package includes all state filing fees, registered agent fees, and shipping costs. Also, while doing the second step, keep in mind there would be no hidden fees.
Step 3- Once you have chosen the package, the next step is to select a name for your business and a suffix that describes the type of business entity. After choosing the package, the next step is to select the name and the suffix that describes the type of business entity. As described above, the common suffixes include Incorporated (Inc.), Corporation (Corp.), or Company (Co.). For L.L.C.s, the only allowable suffixes are L.L.C., L.L.C., or Limited Liability Company. Please keep in mind that while choosing a name, you should avoid using words like “bank,” insurance,” “trust,” “university,” or “college” in the name of your company.
To help you choose the name, let’s be briefer-
In the United States, many businesses start as solo operations, freelancers, and partnerships. When choosing the business name, you should be careful because it’s the only way for others to recognize you. In many cases, the name of the business doesn’t represent the work that impacts the brand awareness or lowers a professional image.
Below we have mentioned some points that should consider while choosing your business name-
Before creating a name, think about how will it look?
Don’t be in a hurry; brainstorm a list of names.
Discuss options with your family & friends.
Choose the word that best describes your business.
Does the name reflect your business type, culture, and philosophy?
Very important, do not forget to test your name.
We hope the above steps help you incorporate your business in the U.S. If you need assistance, give Paycron a call!