Registering a business in the United States is a great way to enter the business world. For already existing companies, forming a US company is a great way to expand your business if you’re not a citizen, especially if you are interested in the US market.
You might hesitate at first. It’s the United States – where dreams become realities – as most people would say, it should be hard. But far from that, starting a business in the United States is easier than it seems. Therefore, in today’s article, we will be going over the process of registering a new business in the United States. Stay peeled.
The best structure to use when creating a business in the United States is a Limited Liability Company (LLC). With a Limited Liability Company, you don’t need US citizenship or a residence permit before you can run a business in the United States. And though operating an LLC in the United States may not be allowed without a valid work visa, you can regulate an LLC from another country. But it may only be allowed in the United States with a good work visa. As long as your US LLC adheres to and ensures that it meets all federal and state laws, you can legally create and operate a business in the US. Let’s consider the steps you can take to register a company in the US.
When selecting the state in the US to establish your LLC, It is best to form your LLC in a US state with little or no state taxes. That way, you only have to worry about handling federal taxes.
However, you need to assess if you need a physical presence for your business in a particular state. If that’s the case, you should register your LLC in that state.
2. Pick A Name For Your LLC
Every state in the US has rules guiding the type of names permitted for an LLC. As a general rule, the name of your LLC must follow these guidelines;
- Your company’s name must include the abbreviation LLC or the phrase Limited Liability Company.
- Your company name cannot have federal-based words like the FBI, CIA, etc.
- Restricted words like University, Bank, and Attorney, cannot be part of your LLC’s name. And if they must, you would need to provide the paperwork to back it up.
- Your company’s web domain must be available and not already taken by another. And if available, you need to purchase it, so someone else can’t.
You have to employ a registered agent. A good number of states oblige that all LLCs appoint a registered agent or agency, who must be a resident of the US State where your business operates. Or if it’s an agency, the agency must have a physical address in the US State where your company operates, and the agency must be authorized to carry out business in the state. You can get a professional registered agent in few hundreds of dollar.
Filing your LLC with the state is a must if you must conduct business legally in the state. To document your LLC officially, you need to record the formation document of your LLC with the state. The file of interest here is the “Articles of Organization,” also known as the C of Os (Certificate of Organization) or the certificate of formation. It illustrates the administrative structure of your corporation.
It is advisable to have an LLC operating agreement, even though it is optional in most states. An operating agreement outlines owner(s) and operating methods employed by an LLC and guarantees that all owners are on the same page, thereby reducing the chances of disputes.
You need to register and get your EIN (Employer Identification Number). The EIN serves as a tax ID for your LLC. The best part is, to get an EIN, you don’t need a US mailing address, an Individual Tax Identification Number, or a US Social Security Number. The application for the EIN is easy and can be submitted by Mail or Fax.
You need a physical address in the state you pick to form your LLC.
A physical address in the state you select to form your LLC is vital for your LLC formation. And for when you want to set up a bank account. If you don’t have a physical office address in the US State you choose to run your LLC, get a mailing address by opting for mailbox services that can get you a substantial US mailing address.
After your business has been formed in the USA, you need to have a US bank account. A bank account will enable you to access international transfers from anywhere globally.
A US bank account will also give you better business credit and access to business loans. Opening a bank account also means you get an international debit card that you can use globally.
In summary, the steps discussed above are the vital requirements for registering an LLC in the USA. However, the most important of them is for you to ensure that your LLC meets all the federal and state requirements to run an LLC in the US.