If you are a US citizen or non-resident thinking of starting a company in the USA, this article will tell you everything you need to know. Forming a company in the United States can expand the credibility of your organization, enable you to enter the US market and get access to the world’s biggest investors. It can be quite hard to open a US business branch or bank account if you are situated outside the United States, read on to get a clear and precise procedure on things you require. To make a corporation, you need to file “Articles of Incorporation” documents. But you file “Articles of Organization” documents if you will be forming a Limited Liability Company (LLC). Click here to read more.
Checklist of things to do
- Decide if your Business Entity will be a corporation or LLC
If the company owners (LLC’s members or corporation’s shareholders) are not US Citizens, you have to form a regular corporation, otherwise known as LLC. But if they are all US Citizens, then you can form an “S-Corporation”.
For an LLC, no restriction exists on the nationality of the owners, the number of owners or whether they are people or different organizations (overseas or local companies, LLC’s, and so forth). However, there might be restrictions on which US companies might operate in your home country. So, it is essential that you go through your local laws and you might have to contact a lawyer who is used to the system and US law in order to guide you.
- Pick a state where your company will be based
You can form a company in any of the 50 states in the US. The state you pick will rely upon why you are starting the company. For example, some US states are more diverse and business-friendly than others, in particular, Wyoming, Nevada, and Delaware.
- Things required to Form an LLC or Corporation in the USA
When you have chosen what sort of company you would like to start and the state where the company will be based, there are just a couple of fundamental necessities you need to consider.
These include:
- Pick a name for your company: once you choose a name after brainstorming sessions, you need to check if that name is available in the state you choose. If it isn’t, you think of other names till you find one that is available.
- Get a Registered Agent: The Registered Agent is an individual or organization that have a physical location in the chosen US state. The agent has to be accessible during business hours and will sign for state and legal documents for your company. You should contact a business formation agency to handle this for you.
- Compile a list of names and addresses of the People/Companies Involved: these members can be members, directors, officers, and so on.
- Get Employer Identification Number (EIN) from the government: this is optional. The “EIN” is also known as the “Tax ID Number” and it is issued to companies by the US Internal Revenue Service (IRS). After filing your company with the state, you can then proceed to get this number from the IRS. You need this number, for instance, to open a bank account in the US or your home country. Check with your nearby bank to check whether they require this number to open an account.
Visit this website for details: https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin.
- Certificate of Authentication (CoA): it is also called Apostille. You need this document to confirm that you registered your company in the US. The banks in your home country might ask for it before they open an account for you. An Apostille is an understanding between nations to acknowledge each other’s documents and you can only get it if your nation is part of the Hague Convention. If your nation isn’t a part of it, your home country may require a CoA from either the state where the company is based and/or the US State Department. While submitting any document, it would be ideal if you clarify things that are not clear to you so you don’t submit the wrong one.
When you’ve gathered all the required information, you are ready to get started on forming your corporation. Along with the articles of incorporation, you will need bylaws that will guide the way your corporation works.
