Registration of companies in United States
The USA is a country with wide opportunities for business that allows you to work in a transparent, stable environment. Among the common reasons for company formation in the USA, there is a desire to enter the extensive US market and business emigration. Prifinance specialists will help you with this. If you are interested in the USA as your destination, your commercial presence may be established in one of these forms.
Major Forms of Legal and Business Presence
If you wish to launch a business in the USA, it is possible to do that in one of these registration forms:
- Limited Liability Company – a body corporate suitable for carrying out a small and medium business. The members of this enterprise are legally separated from this entity. Their financial responsibilities don't exceed the funds invested in this enterprise. The value of chartered capital is not legally determined but it has to be sufficient to the types and scope of operations that will be conducted.
- C Corporation – a legal entity that is suitable for involving large external financing. The number of shareholders is not limited. The financial liability of its investors is restricted also to the funds contributed. There are no severe restrictions applied for the transfers of shares in this case. The form enables flexible profit sharing between its shareholders but double taxation at corporate and personal levels (while paying dividends) is possible.
- S Corporation – a body corporate separated from its members (individuals only) who bear the financial liability within the amounts of funds contributed also. The number of investors is limited to 100. But, this form enables flexibility of reporting, accounting, and dealing with employees. Profits are reported and taxed at an individual (shareholder's) level only.
Peculiarities of the incorporation process vary from state to state. Contact Prifinance lawyers for getting more details on each option that interests you.
Registration Requirements and Steps
Company formation in the USA requires passing through these business registration steps:
- Deciding on the type of business structure you need (depends on the business goals you have, the scope of business transactions you wish to carry out, amount of target investments, etc.)
- Appointing an authorized representative agent who will be responsible for the submission of documents and communication with registration authorities.
- Choosing and checking a business name for a future enterprise.
- Picking a registered business address for the future US body corporate.
- Gathering legally required details and documents about the future enterprise (about its members (shareholders), directors, chartered documents, etc.).
- Registration for tax and employment purposes.
- Opening an entity’s corporate bank account.
- Applying for and getting permits and licenses (for certain types of activities).
Legal and Regulatory Framework
In the United States, the rules governing the process of creating private business vary depending on the state and nature of the activity, and choosing the appropriate jurisdiction is not an easy task.
Considering the United States as a country, where one can register an offshore company, Delaware is the first option that comes to mind. This is the most popular location in America to create a foreign representative office or company. The offshore zone of Delaware has its own specifics. Prifinance lawyers will be glad to consult you about that.
The legal company registration in Delaware assumes the existence of at least one shareholder and one director. They may be legal entities. The state does not impose strict requirements on minimum capital. It is better to use the nominee service as the level of confidentiality in Delaware is rather low – information about companies is public. If you need more details and solutions about company incorporation in the USA, including in Delaware, contact our lawyers for help.
Tax System of the USA
An option of company incorporation in the USA should be considered along with these tax highlights:
- Corporate income tax (CIT) rates – (i) federal – 21%, and (ii) state CIT rates vary from 1% to 12% (some states don't impose such a tax)
- Personal income tax rate (headline) – 37%
- Value-added tax – not applicable
- Withholding tax (for non-residents) rates – (i) dividends – 30%, (ii) interests – 30%, (iii) royalties – 30%
- Capital gains tax (for non-residents) rates – (i) corporate – 21%, (ii) personal – 20%
Advantages of the Jurisdiction
Among the definite benefits of company registration in the USA are these ones:
- reliable jurisdiction with strict compliance standards and lots of opportunities for doing business at the same time
- highly integrated economy to the major world’s markets
- laws encouraging making investments
- easy procedure to start and dispose of a company later
- favorable taxation system
- ease of getting a visa for an investor
Some US business areas may be of great interest to an entrepreneur. For instance, if you decide to buy an offshore company in Delaware, you should understand all the benefits of incorporating a company in this US state. Among the main advantages there are:
- low license fee;
- stable legislation which is being improved all the time in matters of business incorporation;
- transparent and clear rules of corporate law due to which the registration of a company in Delaware and its further activities take place without difficulty;
- flexible terms to protect assets from speculative creditors.
How Prifinance Specialists May Help You
Prifinance experts will help you with arranging many business-related things, including:
- select the name and form of activities: LLC (analog of Ltd.), individual business activity, corporation, or partnership;
- to determine the state of registration: classic Nevada or Delaware, California with rich business life, Wyoming where there is no need to issue a List of Officers, etc;
- submit registration papers to the secretariat of the state administration;
- open a bank account in the USA.
We offer prompt company registration and bank account opening services in the United States and worldwide. New registration and ready-made options. Call the Prifinance Company: ☎ +372-602-65-11: 24/7 customer support.