What is the best way to start a company in the US? If this question is on your mind then you are at the right place. Learn the steps to start a company in the US from India right now.
What Is the Best Way to Start a Company in the US? : Introduction
Have you ever wondered what the best way to start a company in the US is? Then you are on the right track. Starting a company in the US can help to improve your business and take it to the next level. The best part is 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. Go through these steps described by Vakilsearch experts.
How to Open a Company in the USA
The very first step to opening a company in the US is to select a state. Do your due diligence on the laws and local rules that support your type of business.
Vakilsearch expert tip: Normally it is good to create an LLC in a state without state taxes or have a manual existence 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 setting up an LLC in the US. It is the best way to form and register the LLC. This avoids the need to hire registered agents in multiple states.
What Is the Best Way to Start a Company in the US? : Name Your LLC
The next step in the process is to choose a 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 words that are derogatory
- Restricted words like Bank, Attorney, University may need extra paperwork and a licensed individual.
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 a crucial step for registering an LLC in the US from India. Make sure to choose a perfect registered agent for your company.
- Most states demand all the 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. We provide the most reliable registered agent service for a year, instead of personally going through multiple registered agent services you can choose Vakilsearch.
File Your LLC with the State
After choosing the registered agent you will have to 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.
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 sheet and reduces the risks of any future disputes.
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 to the bank authorities.
Creating a business bank account for your company can be done once you have completed the LLC registration process and received your Employer Identification Number (EIN).
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 the LLC 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 then it is termed 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, this will be approved after a thorough checking process. It is expected to be filed before your company tax recovery due date.
Things to Note While Incorporating a Company in the USA From India
- Select the exact category for your business because the 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 with a decent reputation by documenting summaries. In Delaware, you are instructed to report the documents on 1 March every year.
Documents Required to Register a Company in USA Online
- 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 mailing address
- Provincial US phone number for your current business.
How Vakilsearch Can Help You in Starting 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 helps you to get the entire process of registration and filing completed
Step 3: We help you with post-registration formalities and compliance
For any queries feel free to get in touch with our experts on vakilsearch.com. Remember, legal is now very simple with Vakilsearch!