There are various reasons people decide to incorporate their businesses, and these include the fact that it allows your business to operate as a standalone entity from you, also making you less prone to risks.
Protecting your personal life from any attack targeted at your business. Also, because a corporation’s ownership is contained in shares that are easy to transfer from one owner to another, a corporation is a good choice if you are planning to sell the business or attract investors.
Why You Should Incorporate Your Business In The US.
The location of your business also determines how viable such a business can be, have you ever wondered why people rush off to own a business in the US? Of course, it is the economic capital of the world, you have access to a booming global market.
There are so many reasons why people set up businesses in the US and some of these reasons are stated below.
1. Access Top Legal Framework.
Establishing and running a business in the US enables you to create and accumulate business assets. Which can be in form of money, intellectual property and even real estate, etc.
To this end, your company requires a legal framework where it will exist and operate and One of the best incorporation jurisdictions in the world is the United States.
In this respect, the U.S. law enforcement and court systems shield your company registration, ownership, and management.
2. Your business becomes reputable globally.
Most people holding offshore companies now run into huge problems opening a bank account anywhere in the world.
Reputation is one factor that you should consider when deciding what jurisdiction you want your business to reside in.
In contrast, corporate America is certainly way more attractive than any other offshore company jurisdiction.
Moreover, American companies are generally more reputable than companies from other startup jurisdictions, including those in Europe and Asia.
3. Americans only trust Made-in-America.
The truth remains clear, Americans usually prefer to deal with American companies, rather than any company incorporated anywhere in the world.
Americans prefer to conclude contracts with companies in the States, so that, if something goes wrong, they could resolve a dispute at home, rather than somewhere abroad. This is a major reason why your company should be incorporated in the US.
4. US Bank Account Only for American Company.
If you are an alien on American soil, without an American company, it’s become impossible for you to open a business bank account in the US.
Without a US bank account, you may be unable to receive payments from Amazon, or even still, do business in the US. One of the most viable ways to go about this is to create a company in the USA.
5. Gain access to Loans.
In the long run, your business might need help and You may eventually need to borrow money from an American bank.
In so doing, the bank would certainly request your US business credit history.
Most times, the bank policy may, for instance, require an American company to exist for at least a couple of years.
This means one thing, the sooner you incorporate your American company, the sooner you create your business credit history.
There are more than many benefits of getting your business registered in the US that could not be listed here, you can drop off others in the comment section below, so that others may be enlightened.
6. Access To US Immigration.
There are many ways to ease migration in the US just in case you intend to move to the USA as a legal immigrant and not the other way round.
In this case, your American company registration and US business immigration would help you a long way.
Having formed a US company, for instance, you may become a US treaty investor and get an E-2 visa (aka a US investor visa).
In the long run, having a US registered business may help you get an EB-5 visa (aka investment green card in the USA).
Which State Is Best to Register an LLC for an Online Business?
When you want to register your business in the US, you are left with two locations and they are Delaware or Wyoming, or even more. These states have become popular because of the reputation that was built over the years.
To help you to make better decisions, I am going to do a breakdown of what makes the difference between the two. I’m going to oversimplify this so as not to confuse you.
If you know your business is going to be taking funds from investors chances are that Delaware will be the best place to start. This is essentially due to the legal system in Delaware.
The truth is Delaware’s laws are very business-friendly, and the court is known to be quick in reaching decisions. Though there is no income tax in Delaware, there is a “franchise tax” of $300 per year (flat fee).
If your business is designed around Small Partnerships and Single Members Wyoming is a better option for you.
Wyoming comes with most of the benefits of Delaware, the difference is that cheaper to set up, cheaper to renew, involves less paperwork and In conclusion, Wyoming is cheaper and easier to register and operate.
This is just a fraction of what I was able to uncover, I recommend that you do your research as to how these states operate both business and tax laws.
If you found this article online, and you have a better understanding of how these states operate then feel free to share your knowledge in the section below.
How To Set up a Business In The US as a Non-Resident
The good news is that the steps to incorporating as a non-citizen are fairly simple making it easy for anyone around the world to do the same. This guide will help break down the complexities of opening your US company.
1. Get Your Business Name ready.
Your business needs to identify, and can only be done by having a unique name. You should also know that rules about business names vary from state to state, but most include these general guidelines.
Your business name must be different from the name of any other business entity registered to do business in your state. Most states have an online search tool that allows you to check for similar business names.
You are restricted from using certain words in your names, such as obscene words or the word “bank,” unless you are a financial institution.
The name of your business must end with “Incorporated,” “Company,” “Corporation” or an abbreviation for one of those words.
There is an additional option, S-Corporations, which are often recommended to foreigners. I recommend you do an In-depth study as to how these entities operate.
2. Get a valid Business Address.
Your business address is simply the place where your business receives mail. As a non-US resident you might have not found footings in the US already, but need someone on the ground to do that for you.
A physical location is needed to represent your business to make your business genuine. It is usually acceptable to use a P.O. Box as your business address.
The address is sometimes referred to as a registered office. In most states, your business location can serve as the registered office, and a corporation or anyone aged 18 or over can be the registered agent.
However, if you don’t have an office in the state where you incorporate or prefer to have someone else act as an agent for you, you can hire a professional registered agent to act on your behalf.
3. Go with an online Incorporation Broker.
Incorporating your business in the US requires so much that you may eventually get worn out in the process, but with the advent of technology, the process only got easier.
I am happy to tell you that you don’t need an active presence in the US to start your company as you have third-party solutions created to address these challenges on your behalf.
With these online incorporation brokers, you can sit anywhere in a remote country in Africa and get your business incorporated in the United States. You only have to pay a token to get it all sorted out.
In this section, I am going to make a full list of services that can help you achieve this in just a few clicks from anywhere around the world.
Firstbase is one out of many companies that allows a non-US resident to register a business in the US.
Firstbase.io was founded in 2018 making it a relatively new establishment.
It has helped thousands of businesses from over one hundred and twenty countries register their businesses in the US just within three years of establishment.
It’s different from many of the incorporation services available because it helps founders worldwide incorporate a business in the United States.
When signing up with Firstbase.io, you get to choose the category you want your business to operate, also choose the desired location as mentioned above such as Delaware or Wyoming.
It also helps with getting an EIN, opening a business bank account, and provides tens of thousands of dollars in perks to clients.
Incorporating your business with Firstbase.io comes with the following perks such as.
1. US business address set up.
2. US bank account.
3. Obtaining an Employer’s Identification Number (EIN) for newly formed companies and thousands of dollars in perks.
TRY IT NOW – firstbase.io
Have you ever thought about the bottleneck involved in starting a business in the US? first of all, you need to get yourself a visa from whatever country you are to the US, this can also become a gruesome process because you have to convince the US embassy to grant you a visa in the first place.
StartGlobal makes it easier than ever to start a new business by removing lengthy paperwork, legal complexity, and numerous fees.
StartGlobal handles company formation, business bank account, taxes, accounting, compliance, all in one place.
All you need to get started is an active internet connection, log in to the official website (startupglobal. co), complete the simple signup process with all your information like name, current address and business name, get verified with your passport or national ID, and that solves it all.
You also will be given a time frame of nothing less than one month to complete the process.
Some of the perks that come with using this service include.
1. Preparation filings of all Documents in state and federal
2. State Incorporation with Secretary of State.
3. All state government and any other fees associated with filings.
4. One Complete Year (12 Full Months) of Registered Agent Service.
5. Name Check, Clearance and same-day electronic filing.
6. A local address in the US with mail forwarding mail scanning services.
7. Certificate of Incorporation.
8. A US phone number wherein the calls are forwarded to your local number.
9. Obtain a Tax ID or Employer Identification Number (EIN)
10. Business Bank account with Debit card.
TRY IT NOW – Startupglobal. co
e-Delaware makes it easy for founders to incorporate in the US and get access to start-up infrastructure, venture capital, seamless payment processing, and other benefits no matter where you are located globally.
e-Delaware will help you in obtaining your tax ID numbers, EIN, and ITIN, provide you with a US SimCard and a US address you can use for your business and get your documents authenticated with the State of Delaware only.
You already should know that there are separate business laws across the states in the US, most people prefer Delaware because it is a tax haven for businesses.
e-Delaware offers you the following after successful registration.
1. US Company Formation.
2. Employer Identification Number (US EIN Tax ID).
3. Individual Tax Identification Number.
4. US Sim Card
5. E-Delaware LLC will be your registered agent in the State of Delaware.
6. virtual addresses for Companies may be provided by the registered agent, making your business financially compliant.
TRY IT NOW – e-Delaware.com
4. Stripe Atlas.
Stripe is a powerful payments processing startup that allows online businesses to accept payments online.
It also comes bundled with other services that help tech startups register a business in the US, and that service is called Stripe Atlas.
Stripe Atlas is part of the stripe company group that helps you establish a business in the US from anywhere in the world in the state of Delaware.
Stripe Atlas makes it easy for non-US citizens to remotely corporate their company in Delaware. That means you don’t need to physically travel to the State of Delaware in the US to sign all the documents, as all can be done online.
That’s the unique value proposition offer that no one else has except the Stripe Atlas and other companies as mentioned in this article.
Subscribing to Stripe Atlas gives you additional value such as.
1. Setting up your new company in the state of Delaware and also creating the needed legal documents, filing the paperwork, and applying for your Tax ID number.
2. Activate your Stripe account to start accepting payments from customers in 100+ currencies from various regions of the world.
TRY IT NOW – Stripe.com/Atlas.
Doola allows anyone from the world to form their company in the US from any part of the world.
Doola works like the previous solution mentioned before now, the only different service you get when using Doola is the fact that you get to register your LLC business in any chosen state in the US, your preference is not just limited to Wyoming and Delaware alone.
Doola comes with tons of perks, most of which includes;
1. US company formation.
2. EIN application.
3. Express US bank setup.
4. Stripe payment gateway.
5. Registered agents.
6. Register your business in more than one state.
7. Digital documentation access.
8. Amazon starter pack
TRY IT NOW – Doola.com
5. Choose a Reliable Global Payroll System.
You need to ensure that you are 100% compliant once you set up a business in the US. Taxes should be serious business if you want to build a reputable business in the US.
Also, chances are you will hire from various parts of the world if you are running a software company, that needs to be 100% compliant with US laws guiding employment.
Doing this on your own can be a pain-in-the-butt, hence you need to source out a solution to ease the process.
International hiring can be messy.,With confusing local laws, complicated taxes, the bottom line is that you need a whole new solution to guide this process.
In this section, I will make a full list of payroll software that eases the whole process attached to international recruitment.
Deel is the payroll platform for remote teams that links localized compliance and payments in one system.
It also helps businesses hire anyone anywhere, either as independent contractors or full-time employees as stated on their website.
Using Deel saves you tons of stress when it comes to recruitment, management of remote teams and total compliance with tax laws.
Deel helps you hire employees globally, hire contractors, and run a global payroll system in one platform.
TRY IT NOW – Deel.com
Pilot was designed to carry out payroll, benefits, and compliance for US-based companies with remote teams just as other startups mentioned in this section before now.
Pilot makes it easy to onboard and pay employees in 160+ countries and contractors in 240+ countries and more.
With Pilot, you get the following features such as
1. local compliance contracts.
2. Insurance and other benefits.
3. Integrated eSignature.
4. W-8 (BEN and BEN-E) and W-9 tax forms.
5. Local currency payments and bank transfers are available for contractors.
6. Contractors can submit payment requests and check their payment status.
7. Get help with visas, work permits, and other immigration processes for your global employees.
8. Contract amendments and more.
TRY IT NOW – Pilot.co