Company Registration in USA

  • No limit for registered capital

  • local partnership not required

  • Allowance of Complete Foreign Ownership

  • Allowance of Joint venture registration

  • Complete Australia market entry strategy

Company Registration

Company Registration in USA

Every day, a new business enterprise is establishing in the USA, from market giants to small-scale industries. The first and the basic requirement for establishing an enterprise is the Registration. The USA has the largest market in the world. The reason being they have the lowest tax rate. Company registration in USA is an online procedure and is very easy too. The good thing is that it is not necessary to be the citizen of USA.

Benefits for company registration in USA

  • The articles of association which must contain information about the shareholders of the company
  • Translated and notarized copies after the passports of the shareholders and the company directors
  • The forms issued by the Trade Register which must be duly completed
  • Other information requested by the Trade Register depending on the activities of the company.

Steps for company registration in USA

Decide the business form: Corporation or LLC :

Registration of your business gives various benefits like tax and financial benefits. You just need to choose the right legal configuration for the business according to your needs. Every legal configuration controls the business in a different manner, registration requirements, vulnerability to lawsuits and financial needs. For every state/local government has the different registration form for different legal configuration in the USA.

Many of the states do not require registration of the sole proprietor while in the rest, it is mandatory. The sole proprietor must use their own name for the company/business unless they formally register another name.

Once your business is well-establish and your personal liability increases, you can easily switch from the sole proprietorship to the LLC.

Registration of the business name

Owner of the company is known by the name of the company. The business name is necessary for all the government documents and forms like employer tax identifications, licenses, and permits.

In the sole proprietorship legal name is the full name of the owner. In the partnership, legal name is the last names of the partners. For the Limited Liability Corporations (LLCs), legal name is the one that is given to the state government.

Federal Tax ID:

A business having employees, business partnerships, and corporations has to acquire an Employer Identification Number (EIN) from the U.S. Internal Revenue Service. It is necessary to differentiate between different business entities.

State Revenue Agency Registration:

Sales Tax Permit or Vendor’s License is a priority requirement to sell the products which are easily available from the state or local government.

Mention below is the list of some tax liability for the company:

  • Tax Permit

It is very important to register your business with the state tax agency and complete all the relevant tax permits.

  • Income Taxes

In LLC, the tax liability is not dependent on the owners. While in the case of a sole proprietor they report their personal & business income taxes using the same form.

  • Employment Taxes

Every state and federal has the liability for employment taxes for their employees. Business owners with employees are liable to pay.

Acquire licenses and permits:

According to the need of the business or company, it is necessary for everyone has to acquire the license and the permit. Non-compliance with this rules will lead to the liability of heavy fines.

Documents required for company registration in USA

  • Incorporating Inc. / Corporation. Like Google Inc.
  • Certificate of Incorporation No.
  • Bylaws of the company.
  • Board Approval of Organizational Resolutions.
  • Employer Identification Number from the IRS.
  • Assistance in Opening a bank account.
  • Assistance in Bank Deposit Agreement

Frequently Asked Questions

1. What is Sole Proprietorship in the USA?
A sole proprietorship is an individual owns the business. The key feature of a sole proprietorship is its easy formation. It is not compulsory for the sole proprietor to be an independent legal entity. Moreover, every state has different laws regarding registration and licensing. The business license can be obtained by municipal agencies in some states while in others it is compulsory to obtained statewide business license. Licensing requirement varies according to the nature of the business and its location.

Registration

Registration is not compulsory for the sole proprietorship for every state. They may operate under an assumed or fictitious business name, known as “doing business as” or DBA so that contact information of the owner is made available to the public. Registering a DBA does not create a separate business entity.

2. What is Limited Liability Company?
LLC is the compilation of the corporation and partnership/sole proprietorship. It is a different legal entity which has its own tax identification number, separate bank account. In this corporate structure members of the company, cannot be personally liable for the debts and liabilities of the company.
3. What is the partnership?
A partnership is set when 2 or more partners start the business activities. It does not require state filing. Setting-up of a partnership is cost-effective because it does not require to pay a formation filing fee, however one has to obtain the business license. In partnership, it is not necessary to hold annual meetings, issue partnership interest. It also manages the personal assets and business assets separately.
4. What is limited liability partnership?
The main point of difference in limited liability partnership is that the members of limited liability partnership are not personally liable to satisfy business debts and liabilities. However, Limited Liability does not protect the partners or members of the company for their own personal acts or malpractice.

Reach Us

LegalRaasta will provide the assistance to register the company in USA and one can easily contact us if any help is required for Company Registration in USA.