The United States represents a gateway to the world's largest consumer market, a hub for innovation and a symbol of business credibility. For international entrepreneurs, establishing a company in the USA is a strategic move to access a robust economy, attract global investors and build a brand with international recognition. While the process may seem daunting from abroad, firms like Praman Advisors Private Limited specialize in simplifying it, providing expert guidance every step of the way.
1. Overview:
Incorporating a business in the USA as a non-resident involves navigating a few key decisions, primarily regarding the business structure and the state of incorporation. The two most common structures for foreign-owned businesses are:-
- Limited Liability Company (LLC): An LLC offers liability protection, separating personal assets from business liabilities. It also provides "pass-through" taxation, where business profits are taxed only once at the personal level, avoiding "double taxation."
- C Corporation (C-Corp): A C-Corp is a separate legal entity from its owners (shareholders). It is a popular choice for businesses that plan to raise capital from investors or eventually go public, as it can issue an unlimited number of shares. However, it is subject to "double taxation."
Praman Advisors will help you analyze your business goals and determine the most suitable structure and the ideal state for your incorporation, considering factors like state-specific laws, taxes and business-friendly regulations.
2. Benefits:
Incorporating in the USA offers a multitude of benefits and doing so with the right partner enhances them:-
- Enhanced Credibility: A US based company is often perceived as more trustworthy and professional by customers, suppliers and investors worldwide.
- Access to the US Market: Gain direct entry to a vast consumer base and leverage a stable economic and legal environment.
- Access to Capital: US incorporation can make it significantly easier to attract funding from American and international investors, who are often more comfortable investing in a US entity.
- Limited Liability Protection: Separate personal assets from business debt and liabilities, a crucial safeguard for any entrepreneur.
- Global Reach: A US company can serve as a Launchpad for global expansion, facilitating international trade and partnerships.
- Expert Guidance: Praman Advisors provides end-to-end support from initial consultation to post-incorporation compliance, ensuring you avoid common pitfalls and navigate complex regulations with ease.
3. Documents Required:
While specific requirements may vary by state and business structure, the core documents you will need to provide for a remote incorporation typically include:-
- Passport copies of all directors and shareholders.
- Proof of address for all directors and shareholders.
- Memorandum of Association (MoA) or Articles of Association (AoA) (for C-Corp).
- Operating Agreement (for LLC).
- Business plan (sometimes required for specific activities or visas).
- Completed power of attorney, authorizing Praman Advisors to act on your behalf.
Praman Advisors' team will guide you through the preparation and submission of these documents, ensuring everything is in order before filing.
4. Process to Apply:
Praman Advisors follows a streamlined process for a remote USA company formation:-
- Consultation & Planning: You will have an initial consultation to discuss your business and choose the best structure and state.
- Name Search & Reservation: The team will search for and reserve your desired business name with the relevant state authority.
- Document Preparation: Praman Advisors prepares all the necessary legal documents, such as the Articles of Organization or Articles of Incorporation.
- Filing & Registration: The prepared documents are filed with the Secretary of State in the chosen state.
- Obtaining an EIN: The team assists in applying for an Employer Identification Number (EIN) from the IRS which is mandatory for opening a bank account and for tax purposes.
- Corporate Bank Account: Praman Advisors helps you navigate the process of opening a US corporate bank account, a critical step that can be a challenge for non-residents.
- Post-Incorporation Compliance: We provide ongoing support for annual reports, franchise taxes and other regulatory filings to ensure your business remains in good standing.
5. Fees and Timelines:
The total cost and timeline for US incorporation vary widely depending on the state, business structure and additional services required.
- State Filing Fees: These range from a few dozen to several hundred dollars, depending on the state.
- Registered Agent Fees: A registered agent, who must have a physical address in the state of incorporation is a legal requirement. These fees are typically annual.
- Professional Service Fees: Praman Advisors' fees cover their expertise in handling the entire process including document preparation, filing and obtaining the EIN.
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The typical timeline for a complete setup, from filing to receiving the EIN, can take 02-04 weeks with the process of opening a bank account taking a bit longer. Praman Advisors provides a transparent, customized fee structure after understanding your specific needs.
Frequently Asked Questions
No, you do not. You can form a US company remotely as a non-resident. However, if you plan to live and work in the US for your business, you will need to apply for a visa.
A Registered Agent is a person or service with a physical address in the state of incorporation who is authorized to receive legal documents and official government correspondence on your company's behalf. It is a legal requirement for all US businesses.
Yes, but it can be challenging. Many US banks require a physical presence. Praman Advisors can guide you toward banks that are friendly to international clients and help you prepare the necessary documents for a smoother process.
Yes, a US company must file and pay federal and potentially state taxes. An LLC with a single non-resident owner is typically not subject to corporate tax as the owner pays income tax on the profits in their home country. However, a C-Corp is subject to corporate income tax in the US. It is essential to consult with a tax professional to understand your specific obligations.
