Company Formation

Why should you launch a business in the United States?

The first stage in developing a global brand is establishing a business in the United States. As the American economy grows, so do product sales and service demand. Aside from this, the country has a highly developed higher education system that gives businesses access to qualified people they might not find in their own country. Entrepreneurs from all spheres of life can benefit greatly from conducting business in the United States. Now, the question is: why launch a business in the USA? We discuss below.

7 reasons you should launch a business in the USA

Strong entrepreneurial spirit is present.  

The USA is the place to be for entrepreneurship since it is firmly business-friendly. The nation offers a diverse, inventive, and business-friendly atmosphere, regardless of your project.  

A study indicates that among the top ten cities in the world for entrepreneurship are five American cities: New York, San Francisco, Los Angeles, Boston, and Chicago. The study evaluated the entrepreneurial ecosystem in 75 cities throughout the world.   

How to Start Your Business in the US

It's exciting to launch a business. This Launch Guide on how to start a business in the US offers to accompany you as you complete the necessary government papers to turn your entrepreneurial flair into a legitimate company.

Overview 

This guide is about the government paperwork required to start a business. It will walk you through the process of registering your company with the state and federal governments. For new business owners, the maze of incorporation, licensing, and taxation can be daunting. But don't worry, we will walk you through the process step by step.

When you want to start your business in the US, you should know that you need to do the following: 

• File your business name
• Form an LLC or corporation (maybe)
• Get a federal tax ID from the IRS
• Get state and local tax IDs
• Get business licenses (maybe)
• Set up your business records
• Open a business bank account, and probably some other things too

Why start a company in Delaware

More than 250,000 new firms registered in Delaware in 2020, bringing the state's total number of businesses to over 1.6 million. With companies like Amazon, Google, Tesla, Walmart, American Express, and Disney, Delaware has earned a reputation as a corporate paradise on a global scale. The Delaware Division of Corporations reports that 67.8% of Fortune 500 companies were founded in the First State. The question: why do companies go to Delaware to start a company?

Delaware's rise to prominence as a commercial hub while being the second-smallest state (by area) and one of the least populous may seem strange, but from the early 1900s, the state has encouraged enterprises to stay because of favorable tax rules, fewer regulations, and streamlined corporate statutes.   

Why start a company in Florida 

Why is Florida a popular destination in the USA? Florida is well-known for its beaches, amusement parks, scenic views, and orange groves. The Florida Everglades, which are in this region on the East Coast, are well-known for their natural splendor. Due to its profusion of sunshine and generally milder subtropical temperature, it is known as the Sunshine State. But beyond these, there are a lot more to look forward to especially in the business sector. So, why start a company in Florida?

Businesses in Florida benefit from tax breaks and have access to a lot of venture capital and angel funding. Although the cost of living in Florida is higher than in some other states, it is still less expensive than in other significant U.S. economic centers. In addition, according to data from the Bureau of Economic Analysis, the state has the fourth-largest economy in the country.

What legal entities are available in the USA?  

Before you start or incorporate a company in the USA, it is important to carefully choose the best type of legal entity. Finding the best business structure for the desired firm is one of the first concerns that comes to mind when someone decides to start a business. Making this choice is crucial for tax reasons and aids an entrepreneur in making plans for future business growth.  

Understanding the variations between the various types of legal entities in the USA is crucial for a non-resident starting a new firm. In creating a new business in the USA, state laws, and not federal laws, are applied. This is why corporate laws vary from state to state.  

Which of the legal entities in the USA is best for you? This guide will assist you in making that choice.  

How to form a Delaware LLC: the benefits and process 

A limited liability company or LLC is one of the most commonly used business structures in the US. LLC allows the company to enjoy a number of benefits usually afforded to different legal entities; for example, the simplicity of the operations of sole proprietorship and pass-through taxation granted to limited liability partnerships. In this article, we will talk about LLC, its benefits, the process and requirements to establish it, and particularly, how to form a Delaware LLC.  

Any entity or individual can be considered a member of an LLC. An entity or a person is an LLC member, no matter if they own 100 percent or less than 1 percent of the company. Even foreign nationals can be LLC members as the US does not impose citizenship or residency requirements when forming an LLC.  (Please take note that when a foreign person forms a Delaware LLC with at least $10,000 connected to the company, they must register with the US FBAR; in some cases, they may also be required to submit government compliance documents from their home country). Financial institutions like banks or companies cannot be LLC members.  

How to form a Delaware LLP: an overview

An LLP or a Limited Liability Partnership is a legal entity in the United States whereby the partnership structure allows for limited liabilities between all partners. LLP allows spreading the risks of the partners, who are, at the same time, leveraging their individual expertise. As this is a strategic division of labor and the liabilities are limited, partners can also benefit from economies of scale. In this article, we talk about the advantages of an LLP and, particularly, how to form a Delaware LLP, including the process and requirements. 

Benefits of an LLP  

1. Partners can benefit financially from each member’s profession, experience, and expertise. Professionals like lawyers, accountants, wealth managers, and architects normally form an LLP to effectively delegate responsibilities and bring business to the partnership. 

2. Because the partners are most likely experienced and have connections and existing clients, the partnership can benefit from pooling and maximizing resources, like employees, technology, and office space, etc. 

The differences between LLC, LLP, and corporation 

The USA is among the top business destinations in the world, due to its competitiveness, creativity, and ease of doing business. It also helps that it encourages free enterprise, rivalry, and economic expansion, according to a Bolder Group blog. It also has different business structures that suit the needs and goals of entrepreneurs across the country. Some of the most common legal entities in the USA are sole proprietorship, limited liability company, limited liability partnership, general partnership, and corporation. In this article, we break down the differences between LLC, LLP, and corporation, so you can decide if one of these is the best for you.  

How much does it cost to start a business in the USA?  

With 50 states in the US and Washington DC, there are also different tax structures and legal entities. This means, there are different laws to follow and fees to pay. There is no single figure for the cost to start a business in the USA. Of course, there are many factors to consider, regulations to abide by, taxes to pay to the state of your choice, and documents to submit. Each business is also unique; therefore, it has distinct requirements and needs. In this article, let’s go over the typical fees you need to keep in mind if you wish to enter the American market.  

Office Address Registration in the US 

In this environment of booming enterprises, your business address might help you get a lot more sales in the US market. The best thing you can do for your business is to obtain a US physical address. A new company address is a great idea to set up in the United States of America. This Guide will help you learn about office address registration in the US.

You might be asking if you need a physical U.S. address if you run a non-resident firm and don't need a physical place, such as an office or a job site. 

For non-resident-owned enterprises, having a US mailing address is advantageous for several reasons, including creating a company bank account, building credibility, and removing the uncertainty of whether services ship overseas. 

Post-incorporation in the USA: The next steps  

Whether you started a limited liability company, limited liability partnership, or a corporation in the USA, your next steps will be crucial to running your newly-formed company and ensuring compliance. Here is what you need to know about post-incorporation formalities in the USA. 

EIN Application 

Businesses in the USA need an Employer Identification Number (EIN) or what is also called a Federal Tax Identification Number. The EIN serves as the distinctive identity of a US corporation. You need an EIN if: 

• You have employees 
• You will need employees 
• You operate as a corporation or partnership 
• You file employment, excise, and firearms tax returns 
• You are involved in trusts, estates, non-profit organizations, farmers’ cooperatives, etc.