If you wish to register a business in the USA as an Indian national as you need to do is consider the following pointers mentioned in the article that follows.
| As of September 2019, there were 583,420 H-1B authorised work permit holders in the United States, according to data released by the United States Citizenship and Immigration Services (USCIS). |
If you are an Indian entrepreneur looking to start a business in the United States, you must first learn how to register a business in the United States. When you register a business name in the United States, it becomes a legal entity, and your business assets are thereafter legally protected. Read more to register a business in the USA.
| Foreign workers in the United States typically hold H-1B, L-1, or O-1 visas, each with its own set of rules. |
Benefits of Registering a Business in the USA:
Registering your business is probably the best way of protecting your personal assets from legal action. When you register your business in the US your company becomes a distinct legal entity and is 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 property such as your home, personal savings, landed properties, and so on.
Registration will also provide you with much-needed stability at the start of your business in the country where dreams come true. However, if you have never registered a business in the United States as a foreigner before, you may find the process intimidating.
But don’t worry! Vakilsearch incorporation experts are here to make it easier for you! All you need to do is consider the following points with our corporate lawyers before registering your business in the USA:
Registering the Name of your Business
Deciding on an appropriate name for your business and registering the name is the first major step towards registering your business in the USA. You need to come up with a ‘catchy’ name so that you can leave a lasting impression on your audience. Moreover, you will be required to choose a name that is not registered already with the USPTO (the United States Patent and Trademark Office).
You can ensure this by having our experts check the local business directory for any reference to your chosen business name. You can also manually check the availability of your chosen business name with the free online tool available on the USPTO site. But that would not be completely foolproof.
Make your Business Name Future Proof
After you’ve checked the availability of your business name with the USPTO, take a moment to consider whether it will stand the test of time and whether it aligns with your long-term business objectives. Remember that changing the name of your company after it has been registered will be inconvenient. It will also cause significant confusion for your customers in the future. As a result, before registering your business name, you should always consider its longevity.
Select the Form of Your Business Entity
You have two options for registering your business entity: as an LLC (Limited Liability Company) or as a corporation. Registering as an LLC is less expensive and requires less paperwork. Furthermore, if you register your company as an LLC, you will not be personally liable for any debts incurred by your company. In the event that something goes wrong with your business, later on, your personal assets will be completely safe.
If you choose to incorporate your company as a corporation, you can do so as a ‘C’ corporation or an ‘S’ corporation. Registering as an ‘S’ corporation allows you to choose ‘Pass-through taxation,’ which means your company will not be taxed at the corporate level.
However, you will pay income tax only on the revenue generated by your business, not on the business itself. In this case, however, the government will not allow non-citizens to own any shares. On the contrary, ‘C’ corporations are entitled to what is known as ‘Double Taxation.’ It means you’ll be taxed on both your business profits and your personal income.
Choose the State You Wish to Register In
Please note that in the US it is not necessary to register your business in the state that you operate in. Moreover, since the tax rates differ from state to state, you may decide to register in a state that has low sales tax rates and can save a lot of money for your business.
Obtain the Federal Tax Number for Your Business
You need to get a Federal Tax Number or Employer Identification Number (EIN) to register your business at the federal level. It is equivalent to the SSN (Social Security Number) for your business. The EIN will also be required when you will file your tax returns to the State or Federal Government in the future.
Documents Required to Register a Business in the US
The process of starting a business in the US is made much simpler these days. One can start his business in the U.S. even if he does not have a valid visa and is not planning to come to the US any time soon. However, you should take care to have a few basic legal documents in place to ensure the success of your business. Documents play a crucial role to protect your business interests throughout your business in the US.
Register your Business
Now that you have completed the prerequisites to register your business in the U.S., you should go ahead and complete the registration process. The processing period varies from state to state. Moreover, foreign nationals may need to wait at least 30 days to receive their EINs.
Note that when you need to get a Tax ID and your owners/directors are not U.S. citizens, you must submit your incorporation application to a special IRS unit. These additional formalities may cause delays unless you have experts such as Vakilsearch working for behind the scenes.
To get help from our experts at Vakilsearch click on the free consultation button on our website today!
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