Benefits of Registering a Business in the US

Last Updated at: Dec 23, 2020
Benefits of Registering a Business in the U.S.
On 27th March, Donald Trump, the U.S, President, signed the CARES (Coronavirus Aid, Relief and Economic Security) Act to provide relief to LLCs, C-Corps, and S-Corps, among others. It will benefit the new registrations as well. It has expanded the existing SBA 7(a) Loan Program to support business operations. 


Are you looking to expand your market beyond the shores of India? Are you considering starting a company in the U.S.? Do you want to register your business in the US?

Smart decision indeed! Vakilsearch will help you to register your business in the U.S. The process of starting a business in the U.S. is made much simpler these days. But, you must do due diligence for registering a company in the USA before you start operating your business. It will ensure the security of your business assets and will provide you with the much-needed stability at the beginning of your entrepreneurial journey in this country.

Advantages of registering a company in the US:

  1. It will minimise your personal liability

Registering your business is probably the best way of protecting your personal assets from business actions. When you register your business in the U.S, your company becomes a distinct legal entity and it becomes responsible and accountable for the debts arising out of the business. This means the creditors of your firm can seek payments from the business assets only and not at all from the personal assets belonging to the owners, directors, and shareholders. Therefore, you can conduct your company operations without risking your personal properties such as your home, personal savings, landed properties, and so on.

On the contrary, owners of unregistered partnership/sole proprietorship businesses face liability for both their personal and business assets. They are personally accountable for each and every aspect of their businesses, including the losses and the debts.

  1. You can have better and easier access to capital

When you register your business entity as a corporation in the U.S., you are allowed to issue shares and raise equity capital. This will give you the much-needed financial boost at the beginning of your endeavour. Being able to raise money and attract investors is essential for the expansion and development of your business. If you think from the investors’ point of view, it is preferable for them also to invest in a registered organization (rather than in partnership enterprise or a sole proprietorship) because a formal structure is in place in such an organization to accept and make profitable use of their investment.

Additionally, it is much easier for a registered company to obtain a bank loan as compared to a partnership firm or a sole proprietorship. Registered businesses usually have access to various alternative sources of capital and banks know that such businesses can repay their debts from these sources. Therefore, the banks and other creditors are always forthcoming to provide loans to registered businesses.

register your business in the USA

  1. Enhanced Credibility and brand awareness

The benefits of having your firm registered in the U.S. are extended beyond finances. Customers, suppliers, and other external stakeholders often perceive registered businesses to be more stable than unregistered businesses. The suffix of a ‘Corp’ or ‘Inc’ after your company name conveys credibility and permanence and also conveys your commitment to the success of the business venture. Clients and customers in the U.S., who have not worked with your company before, will definitely look for assurance regarding the legitimacy of your market. If your firm is not registered in the U.S., a potential client may perceive it as a ‘fly-by-night’ business and would not be too keen to spend his hard-earned money on your profession.

Registering your company in the U.S. will also give you important benefits when it comes to crucial business dealings with reputed organisations in the future. Many reputed companies in the U.S. establish business ties and engagements with registered companies only. A registered business also makes itself better-equipped to obtain supplier discounts and attractive wholesale rates, which are not usually offered to unregistered businesses. Various Government contracts are also awarded to registered businesses only.

4. Ease of hiring quality manpower

A registered enterprise gets the advantage of hiring full-time employees and paying them as per provisions mentioned in the State laws. Upon registering your business in any State in the U.S., you will obtain a State Identification Number which will allow you to route the State Taxes on behalf of your employees. It will also enable you to provide your employees with necessary health benefits, company contributions to retirement/pension plans, and other statutory benefits. Having these benefit schemes in your employee policy will make your company an attractive proposition for qualified workers in the U.S. and you will be able to hire and retain them with the utmost ease. Therefore, if you wish to have quality manpower on board, you must register your firm with any of the States in the U.S. before you start the hunt for talented workers for your business.

Click here: how to register a company

To know more about USA INC: Click here

You should also read:
Senior Executive - Content in Vakilsearch | Former TEDxSKCET Licensee | Content Marketing | Psychology | Engineering (IT) | Google Developers Group (GDG) co-organizer | WTM Ambassador