Company Registration
in the USA
The United States has remained the world’s largest economy by GDP for many years. The entrepreneurial spirit is inextricably linked with the very philosophy and structure of the American state and society. Therefore, the conditions for incorporating a company in the USA are attractive not only for residents of the country, but also for foreigners. The American business space is characterized by reliability, transparency, and a positive reputation at the international level
Cost
of service
of service
690 USD*
Term of registration
in the registry
in the registry
1-15 days
Income
tax
tax
0%, 21%
Company
registration type
registration type
No personal visit
* The fees serve as informative indicators. Kindly reach out to the attorneys at Lawtter Solutions to ascertain the services encompassed within the registration fee.
Benefits
Company registration in the USA depends on the business structure and specific legal requirements at the federal and state levels, which our lawyers will help you deal with.
Doing business in the USA opens up broad prospects for the implementation of entrepreneurial ideas, financial growth, and attraction of American and international investments. Our specialists will advise you in detail about opening a company in the USA, help you prepare documents, and guarantee safe registration in compliance with all the requirements of American legislation
Pros for Registering a Company in the USA
Positive reputation
The country is known for its scrupulous checks and reliable legal system, so company registration in the United States gives you extra points in the eyes of your customers.
Flexibility
The American system provides various opportunities for business organization with different taxing options. Each state also has its own particularities, which expands the potential choices
Access to the world’s largest economy
When you register a company in the USA, you automatically gain access to hundreds of millions of potential customers with a high level of purchasing power.
Access to capital markets
The United States is among the largest platforms for finding investors. You will also be able to take advantage of favorable credit terms from American banks and the financial sector.
A non-resident can form a company in the USA online
To start a business in America, you do not have to come in person. Our lawyers offer their services for remote business registration in the USA.
Immigration opportunity
Having a business in the US increases your chances of obtaining an American work visa.
Company types
If you are considering registration of a company in the USA, you must first decide on the structure of your business. The choice of the type of business you intend to run will affect taxes, reporting, and other factors.
American legislation makes provision for several types of companies, and most are not limited to residents:
Sole proprietorship
This is an individual who independently engages in business and bears personal responsibility for financial obligations and court decisions. This option is exclusively available to US citizens and residents.
LLC
A limited liability company is a kind of partnership. Legally, LLC is considered a separate entity, that is, the partners are not personally liable for the obligations. Partners can be natural persons. LLC registration in the US is available to foreigners.
C corporation
Like LLCs, corporations are incorporated businesses, viewed as separate entities from their owners. A corporation is a large entity owned by its shareholders. Corporations are less flexible than LLCs in terms of management and taxes, but their shares are significantly easier to circulate than ownership rights in LLCs. When you register a corporation in America, by default it is a C corporation. Non-residents can participate in such corporations.
S corporation
This type is similar to C corporations in terms of management structure, but it has special taxing terms. An S corporation is not eligible to pay federal income tax. Instead, each shareholder independently reports their profits. Only residents of the country can register an S corporation.
Partnership
There are two basic types of partnership from the legal perspective, general and limited. A general partner is personally liable for obligations, while a limited partner is not. Partners are legal entities, usually LLCs. Such partnerships are created for a certain period and with a purpose fixed in the statute.
Organizational and Legal Requirements
If you are interested in the formation of a company in the USA, you should first understand the requirements you face in terms of organization. Our professionals will be the best help in this. The key features that a future business owner should know are summarized below.
Director
A director of an American company can be not only a resident of the United States, but a citizen of any country. Exceptions are sanctioned countries, as well as persons from sanctioned lists. Your company may have one ore more directors. The lower age limit for a director is 18 years.
Shareholder
The requirements for shareholders are the same as for directors: a resident of any country over the age of 18, and neither the country nor the individual or entity is under sanctions. The should be at least one shareholder. The best way to make sure that you, your legal entity, or your potential partners and their countries are not on the sanctions lists is to contact our lawyers and use our service for company registration.
Address
Your business address must be in the state where you plan to incorporate it. Some states require an additional mailing address for correspondence.
Company Name
To open a new business in the United States, you have to first come up with a unique company name that will distinguish it from others. Uniqueness is checked against the American company register.
Additionally, the company’s legal name must end in Inc., Corp. or Corporation if it is a C corporation, LLC for limited liability companies, and LLP or LP for limited partnerships.
Your stores, offices, website, etc. can also use a different name than the registered one — the so-called Doing Business As (DBA) name. Our lawyers will tell you more about what is needed for this.
Authorized Capital
There are no requirements for the payment of authorized capital in the legislation of the country, which significantly simplifies company registration in the USA. You can start small and then look for investors and shareholders for a business already registered in a reliable and transparent jurisdiction. The nominal value of a share can start from 0.01 USD.
Local Account
You will need a bank account to run your business. The good news is that American law does not require you to open a local bank account. You can use your tried-and-tested bank. However, having an account in a US bank offers many advantages, including access to credit and lower cost when making payments within the country or paying taxes.
Registered Agent
According to US regulations, every company is required to have a local registration agent. That is, you will need a separate agent in each state where you work. Such a local agent must have a special permit to act as a registered agent in a particular state
Reporting
Any company registered in the USA is required to prepare and submit reports no later than the established deadline. The deadline depends on the type of business (see below). The revenue service fines companies that do not submit reports on time.
Taxation
A peculiarity of the United States is the territorial principle of taxation. In short, the amount that is taxed in the case of a company or a partner depends on the service location, the source of funds, and the site of their accumulation.
Given the hierarchical federal system, taxation in the United States is divided into three levels: federal, state, and municipal. A tax may be credited at these levels, depending on the source of the funds and the nature of the business.
At the federal level, the effective income tax rate is 21%. Each state or municipality independently sets the tax rate at its own level. For example, Wyoming state legislators established a zero income tax rate. And in Delaware, this rate is 6.7%.
Note that this approach applies to C corporations. Partnerships and LLCs have a different structure and specifics of formation, where taxes have to be paid by the partners. To do this, you must have an SSN (Social Security Number) or obtain an ITIN (Individual Taxpayer Identification Number for non-residents and resident aliens without an SSN).
In the United States, a progressive approach to income tax is used. This means that the interest rate is calculated according to the gradient: the higher the net profit (profits minus losses), the higher the tax. The final rate can reach 37%.
It is also interesting that an LLC is eligible to inform the tax authorities that it will follow the taxation process provided for a C corporation. This approach is common in cases where the company’s partners are foreigners, as it is more understandable and profitable.
Reporting
There is a common misconception that some businesses in the US are not required to report to the Internal Revenue Service (IRS). It is not true. It is the responsibility of every company to prepare and submit tax returns on time. The fine for failure to report is quite significant — up to 100,000 USD.
For small and medium-sized businesses, there is no requirement for an audit of the report, but it must be prepared and signed by a certified public accountant in the United States. Failure to comply with this principle will result in a refusal to accept the report and a fine.
The Form 1120 filing deadline for C corporations is April 15 each year. The accountant serving the company can extend the deadline, for which a corresponding request should be submitted. Partnerships and individuals file Form 1090 by April 1 each year.
Registration
companies
companies
The Procedure for Registering a Company in the USA
The process of company registration in the United States can be seen as consisting of six stages:
Due diligence and KYC verification
At the preliminary stage, information about the company’s planned activities and structure is researched. Members of the future company also undergo KYC verification. KYC (know your customer) is a mandatory customer verification procedure that protects counterparties from risks associated with money laundering, sponsoring terrorism or sanctions evasion.
Choosing and checking the name
The proposed company name must be checked for uniqueness and availability in the company register.
Preparing documents
Registration forms are filled out and documentation is gathered to be submitted to the company register.
Submitting documents
The prepared documents are submitted to the register. After the documents are processed, which happens relatively quickly, information about the company is entered into the register.
Preparing constitutional documents
After the registration of the company, it is necessary to approve the founding documentation, on the basis of which the management and activities of the organization will be carried out.
Obtaining an EIN
Once the company is registered, Form SS4 must be prepared and submitted to the IRS along with the company's certificate of incorporation. Within four days, the company is assigned an employer identification number (EIN). The IRS sends a letter confirming the assignment of an EIN to the address specified in the form. Such a letter is of an official nature and is subsequently used to open a company account and submit annual reports. Please note: An EIN is required for all companies, except in certain cases where the company structure includes US residents with an SSN. Check the conditions with lawyers.
Documents for Company Registration in the United States
If you plan to incorporate a company in the US where a director, shareholder or beneficial owner is an individual, provide the following:
- Identity document: A copy of a national ID or international passport is accepted as proof of identity.
- Proof of residential address: This must be a document other than a national ID and international passport or driver’s license. A utility bill not older than three months (mobile phone bills are not accepted) or a bank statement will do.
Question — answer
FAQ
You can contact incorporation agents or lawyers. Our company Lawtter Solutions provides this service online.
The registration process may take between 1 and 15 days.
The basic service cost for registering a company in the United States starts at 690 USD.
Usually, companies indicate the registration number on their website. You can check the registration on the websites of the registration authorities (such as the state administration) or in special services such as EDGAR.
Non-residents in the United States can choose between LLC, C corporation or partnership registration. The choice depends on the scale, the preferred tax scheme, and whether you want to participate in the business as an individual or you have a legal entity that plans to become a partner in a US company. To make the right decision, consult our lawyers.
An account in a local American bank is not mandatory. However, having an account in a US bank offers many advantages and may be more convenient.