In this article, we will talk about “How To Register A Company In USA As A Foreigner”. Previously, we discussed “How to register a business in Kenya online”
How to register a company in USA as a Foreigner
One of the most difficult things to do is to have the desire to establish or register an organization in another man’s land as it always comes with lots of hassles. However, when the appropriate procedures are followed, the whole process of registration will be free of hitches.
But, you should know that a foreigner who wants to do business in the United States does not need to start a U.S Company as the Internal Revenue Service of the State is ready to bill any foreign company for the domestic tax it will owe.
What To Know About registering a company in USA as a foreigner
Whenever you have the desire to establish a business in the United States, there are four major factors you must consider, and they include
Choose Your Company Structure
- LLC Corpuration
LLC and C-Corporation, most of the foreign clients prefer to choose the LLC Corporation as it looks more simple, flexible and acted upon by single taxation. Young entrepreneurs usually make use of C-Corporation aiming to obtain an Angel or VC Financing
Choose A State For Registration
Normally, the company’s business should determine where it will be located. If the business is many-states oriented, you should consider having many branches in many States.
Register a company in USA as a Foreigner
The next thing to do is to have your business registered with the relevant body.
Obtaining An Employer Identification Number(EIN)
For you to be able to hire workers, you will need an employer identification number. Also, it is required to open a bank account, pay taxes, to get a business license, etc. You can avoid many online services with the government-sounding internet; you should consider getting the number by applying from the Internal Revenue Service. But you should know that if the U.S company’s principal officer, which the Internal Revenue Service calls the “Responsible Party” has already obtained a separate Taxpayer Identification Number from the agency, you can’t apply for the EIN online. In such case, you will have to apply for it through mail or FAX.
Registration Of Your Company in the USA
Depending on the location of your business, hence the forms and other requirements for forming your business entity. The following applies whenever you wish to have your company registered in the United States as a foreigner:
You should give your company a unique name that no one has ever bear. It will be your trademark.
The institutions you consult will select a registered agent that will be able to receive legal documents for your company. You should know that in a country like California, a company with a physical address cannot serve as its agent but can serve as its agent in other States.
Then, your company will fill out a one-page certificate of incorporation that identifies the corporate name which is the name and address of its registered agent; the total amount and par value of the shares the corporation is authorized to issue and the name and mailing address of the incorporator. Normally, the fee for the incorporation starts at 89 dollars. However, it is subjected to increment based on the amount of stock issued or capital raised.
Once you have your business incorporated, you must file a report that cost about 50 dollars and pays the franchise tax, which normally starts from 175 dollars, every year.
Even though forming a United State Business as a foreigner is not a difficult issue, the tax strategies and consequences that follow it at times make the decision a very complex one. And that is why you should consult with a professional expert that specializes in tax law that will assist you throughout the whole process of establishment and registration. You should know that it is not a ‘do-it-yourself’ job.
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