Being a non-resident requires additional steps to set up a firm in the US compared to being a resident. One may face a different set of challenges from opening a bank account to getting a work visa, individual have to deal with many complicated issues like income tax and corporate laws.
Crucial steps that must be accomplished before a business can be launched:-
- Nature of company being set up.
- Place of Incorporation.
- Main centre of conducting business in the US.
- Basic requirements like registration, permit license, etc.
Different Stages in Setting up A Company in the US
- Determination Stage
First step where you need to address a question like, where to establish your US business? Safeguarding your intellectual property like logos, patents, and trade secrets. Requirement of staff within your budget. You have to ensure access to the capital market, supply chain, and other basic infrastructure. A Few factors you need to consider are as follows:-
- Demographics of your customers/ staff.
- Need for supply chain
- Local requirement
- Other incentives like utilities, Labor, and corporate taxes.
Licensing regime is very wide across the US, considering this factor is crucial among all, as there is an increase in Professional Limited liability corporations.
- Planning Stage
This Stage encompasses factors like determining the capitalization of the company, shareholders, officers, and directors. You will require a full legal search before incorporating any business. Conduct a trade mark search for your company name, determine relevant URLs, Reach out to the intended audience, Delegation of responsibility to company employees, Some of the important highlights of this Stage are:-
- Finalizing whether to be a corporation or limited liability company.
- Place of Incorporation of your company
- Determining the size of shareholders
- Considering important dignitaries like the Board of directors, officers in charge.
- Action Stage
This Stage is much easier if the previous two Stages’ procedures diligently follow. Factors you need to consider in this Stage are:-
- Provide the necessary documents, which include, a certificate of Incorporation, Articles of organization, operating agreement, and share certificate of each shareholder.
- Conducting organizational meetings, appointing the directors and other officials for the company, issuing shares to shareholders and other important actions as required.
- You must have a federal Employer Identification Number.
- Open your bank account, you need to ensure that you can timely document your financial transactions for tax return purposes, and in event of a tax audit, you can produce all documents within a stipulated time.
Bank account for Non-resident- As there is no residential requirement, opening a bank account should not cause any issues, documents like, photo ID, Articles of Incorporation, Proof of business address is required.
EIN application process- An unique Nine digit number is assigned by revenue authorities, It includes steps like, identification of legal structure, authentication of responsible party, confirmation of the number generated.
What are the Other Costs Associated While Setting up a Company in USA?
There are several costs associated when you are setting up a company in US that you must be aware of. You need to pay for the accounting, legal services and government filings, labor laws and compliance with US tax that are included. No doubt the filing fees can be expensive with government and hence you need to work with a professional accountant and lawyer to ensure that all the filings have been made. There are several other compliance costs that are need to be paid on annual basis. These additional costs are in the form of filing taxes and workers compensation insurance. All this shows that you are ready to set up your company in world’s largest economy.