How To Create a Company in the U.S. from Another Country
May 17, 2022
Opening a business in the U.S. is a common goal for many entrepreneurs worldwide. The U.S. has one of the most influential markets globally, offering endless investment opportunities and creating a fertile space for the expansion of foreign businesses.
Since this market is filled with opportunities, many people from all parts of the world feel drawn to the prospect of making an investment inside the U.S. With this in mind, our business and finance consultants will walk you through the process of creating a company in the U.S. from another country so that you can start your own business inside the country if that's one of your goals as an investor living outside of the U.S. territory.
Steps to Create a Company in the U.S. from Another Country
As an investor, you may be wondering how exactly you can create a company in the U.S. from your country. The answer to this question starts with a series of steps that we will list below:
Step 1: Hire an Authorized Agent: If you want to open a business in the U.S., you need to reach out to an authorized agent for logistic support through each commercial registry procedure and the tax obligations that will follow. In these cases, some companies help foreign investors create their own businesses inside the country. It would be best if you still made sure that the company or authorized agent has the required experience before you trust them with an expansion project on American soil. To create a company, your authorized agent should have a local address that will be validated and verified to become the official point of contact that will receive all legal and tax-related documents issued on your company's behalf.
Step 2: Design a Business Plan: This is a crucial step because it will determine whether the creation of a company in the U.S. represents a cost-effective approach. You need to design a business plan to define your new company's commercial, financial, and marketing goals. At this point, your authorized agent can provide a clear picture of the American market where you plan on opening your company. This plan's design will also serve as a guide for the development of all the stages of the business creation process. Moreover, you can constantly adjust the plan to satisfy the new requirements that come along the way.
It's important to note that a business plan works as a presentation card for potential allies and investors if they show interest in your business proposal. It can also work on financial entities whenever you need to apply for a credit to expand your investment capital.
Step 3: Select a State Where You Want to Establish Your Company: As you probably know, the United States is a federal country with 50 states, each of them ruled by different legislation. This makes the selection process all the more important. You need to select a state while considering the state's procedures and requirements, along with the taxes you'd have to pay. Your authorized agent or a local ally should register the establishment with a verifiable address of your choice.
Keep in mind that the country has over 300 million citizens, 45 million of which are of Hispanic descent. On the other hand, states like Nevada, Delaware, and Florida are an excellent choice for those who want to create a company in the U.S. because they simplify many of the mechanisms involved in the process, providing financial and property privacy, as well as low tax rates in Florida's case.
Step 4: Select a Name and a Structure for Your Company: At this point, you need to pick a name for your company and check if it's available for registration. Name selection should be part of the first step (design business plan); your company's name is supposed to convey and represent its goals. As a foreign investor, you should register the name as an internet domain to make way for the expansion of your business on a global scale through the digital market.
You should also consider the business structure that better matches your company's commercial goals. To create a company in the U.S., this is an essential aspect that you must take into account.
There are four primary business structures in the United States:
- Sole Proprietorship: It's the simplest structure, as well as the most affordable. Its primary advantage is that id doesn't demand too many requirements. The proprietor has limited responsibility, which means that they need to personally respond for any losses that the company might suffer. For this reason, this structure is not recommended to foreign business owners.
- Corporation: This structure type works independently from its proprietors. Shareholders are in control according to how much they've invested in the company. This structure has two types of corporations: Class "S" and Class "C," with differences stemming from the tax obligations that each type of corporation is bound to. Class S is recommended for a single proprietor, while corporations with multiple partners and potential investors are better off with Class C.
- Limited Liability Company LLC: This is the most flexible structure for a business since it works like a mix between a corporation and a limited partnership. This combination allows one or more shareholders/partners to take part in the company's management without taking personal responsibility for the impositions set for it as an American company. Earnings are transferred to each of its members, who in turn register said earnings as personal income on their individual tax returns. We also need to point out that this is the most appealing commercial structure for those who wish to start a company in the U.S. from another country.
- Partnerships: This commercial structure involves two or more partners or entities as owners in charge of the company's management. These partners share all the benefits, losses, and administration tasks. On another note, their tax obligations fall on each member individually.
Step 5: Register the Company into the Department of State and Acquire a Tax Identification: Once you've defined your company's name and structure, you need to file a form or incorporation registry to the Department of State or the corresponding State Division of Corporations. This form should display clearly and accurately the company's name, its business structure, physical address, name and address of the authorized agent, the nominal value of the shares that the corporation is authorized to issue, and the name of all members and managers, to then make the payments corresponding to the type of registration.
On the other hand, you also need to secure a tax identification number for the company. This is granted by the IRS (Internal Revenue Service) after fulfilling all its demands. You also need to complete a registration with the local and state tax departments in order to make the tax payments generated by the company's incorporation. Lastly, you need to request all the licenses and permits that the company needs to be properly established and to conduct its commercial operations.
We also need to mention that you can open bank accounts in your company's name once all the registrations for its creation have been secured.
Your Authorized Agent To Create a Company in the U.S. from Another Country
United Tax & Accounting Group is an accounting firm with over ten years of experience supporting foreign investors in the creation of a company in the United States. We harness the latest technology, and our specialized team has all it takes when it comes to business creation and partnership fusion. We can help you make your way into the American market.
Our authorized agents guarantee optimal procedural management to help you create a company in the U.S. from another country. You can count on allies that will counsel you in business, finances, and anything pertaining to the incorporation of a company on American soil. You'll also have the best accounting services at your disposal because United Tax & Accounting Group ensures you stay on schedule with all your payments (individual income taxes, state taxes, local taxes, commercial permit taxes, etc.), maximizing deductions and minimizing your company's tax obligations.
With our professionals in your corner, you'll get the authorized agent you need to create a company in the U.S. from another country. To get more information about opening a company in the U.S. from abroad, call
(786) 431-5576 or fill out our webiste's
contact form. We'll be happy to provide our timely assistance to help you build your business with all the logistical support you need to make your commercial goals a reality in this country of opportunities.