What is the best way to start a company in the US? If this question is on your mind, you are at the right place. Learn the steps to start a company in the US from India right now.
corporaHave you ever wondered what the best way to start a company in the US is? Then you are on the right track. Starting a US company can help improve your business and take it to the next level. The best part is that you can easily start a company in the US without actually being a US resident. The process of incorporating an LLC in the US is very complex.
International Company Start-up Checklist
- Choose Which Type of Business Entity to Form: Corporation or LLC
- Choose Which State to Form Your Corporation or LLC
- Requirements to Form a Corporation or LLC in the USA
- Choose a Company Name
- Hire a Registered Agent
- Provide Names and Addresses of the People/Companies Involved (Officers, Directors, Members, etc.).
- Federal Employer Identification Number (Optional)
- Apostille or Certificate of Authentication (Optional)
After Formation Checklist
- After Company Registration in US or US LLC
- Arrange a US Physical Business Address or Virtual Office
- Open a US Bank Account
- Tip #1: Always Call the Bank First
- Tip #2: Form your Company in Delaware, Nevada or Wyoming
- Tip #3: Select a bank that also has a branch in your home country.
- Open a Bank Account in Your Home Country
- Get a US Phone Number
- Build a Website and Company Logo
- Open a US Merchant Account (to Accept Credit Cards)
Opening a Company in the USA
The first step to starting a company in the US is selecting a state. Do your due diligence on the laws and local rules that support your type of business.
Normally, it is best to create an LLC in a state without state taxes or have a physical presence in any state in the USA. Most Indian companies are registered in Delaware.
As per the expert suggestion, this can drastically reduce the costs involved in establishing an LLC in the US. It is the best way to form and register an LLC. This avoids the need to hire registered agents in multiple states.
Documents Required for Online Company Registration in the United States
- LLC or S-corporation registration documents
- Employer Identification Number (EIN)
- bank account in the US.
- A trader account so you can approve payments from buyers.
- Hiring documents of a registered agent:
- Business Insurance
- US postal address
- You currently have a US phone number for your current business.
Naming Your LLC
The next step in the process is to choose the perfect name for your company. While choosing the name for your company, make sure to follow the tips given below.
- Your name should contain the phrase LLC.
- Your name cannot have any derogatory words
- Restricted words like bank, attorney, and university may need extra paperwork and a licenced individual.
How to Hire a Registered Agent
A registered agent is a person or business authority that mails and receives legal documents on behalf of the company. This is crucial for registering an LLC in the US from India. Make sure to choose the perfect registered agent for your company.
- Most states require all LLCs to appoint a registered agent.
- Your registered agent must be a resident of the state where you are starting a business.
This is where Vakilsearch can come in handy. For a year, we have provided the most reliable registered agent service. Instead of personally going through multiple registered agent services, you can choose Vakilsearch.
How to File Your LLC with the State?
After choosing the registered agent, you must file the LLC with the state.
- The most familiar name for this form is “Articles of Organisation”.
- Your LLC article summarises the administrative structure of your business.
How to Create an LLC Operating Agreement
A functional agreement is not mandatory in most states, but it is good to have one. An LLC operating agreement is a detailed statement that assures that all business owners are on the same page and reduces the risks of any future disputes.
How to Open a US Bank Account?
After filing the LLC, the next step is to open a US bank account. Creating a US bank account for your LLC will be the most difficult part of the procedure. Because of rules and regulations in the US, banks are compelled to know their customers. As a result, you should appear in person before the bank authorities.
After you have completed the LLC registration process and received your Employer Identification Number (EIN), you can open a business bank account for your company.
Things to Note While Incorporating a Company in the USA From India
- Select the exact category for your business because investors will always like corporations.
- You need to open a US bank account to get an EIN and register it with the IRS. It also sets up your corporation to pay taxes.
- Maintain your company’s decent reputation by documenting summaries. In Delaware, you are instructed to report the documents on March 1st of every year.
How to File Taxes in the US
The US Internal Revenue Service (IRS) develops the tax code and requirements for LLCs.
A foreigner-owned LLC is taxed based on the number of partners it has.
Single-member LLCs have a single partner. If you are opening a company in the US from India, then you are a non-resident LLC holder. Non-resident single-member LLC holders must file form 1040-NR, form 5472, and form 1120.
If your LLC firm has more than one member, it is called a “multi-member LLC.
- Multi-member LLCs must file forms 1040-NR, form 5472, and form 1065.
- The liability for loss to document form 5472 is a whopping $25,000 per return for each month.
- Filing this form is hard. It will be approved after a thorough checking process. It is expected to be filed before your company’s tax recovery due date.
How Can Vakilsearch Help You Start a Company in the US From India?
Incorporating a company in the USA from India is a challenging aspect. However, our experts in Vakilsearch can easily help you to receive an EIN, open a bank account and get a US visa for work to start your own business in the US from India. We do it in just three steps.
Step 1: We address all your queries regarding company incorporation in the US.
Step 2: Vakilsearch assists you in completing the entire registration and filing process.
Step 3: We assist you with post-registration paperwork and compliance.
For any queries, feel free to get in touch with our experts at Vakilsearch Remember, legal is now very simple with Vakilsearch!
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