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.
If you are unsure if your business needs an EIN, kindly reach out to our Bolder Launch team, so we can assist you.
EIN application is part of post-incorporation formalities in the USA. There are several ways to apply for an EIN: online, through fax, via mail, or telephone (for international applicants).
Online application
- Determine your eligibility for EIN
- Complete the online form
- Submit the online form
Only one responsible party per day can apply for EIN. A responsible party must be a legal entity or legal person with TIN.
Fax application
- Complete form SS-4
- Fax to IRS: 885-215-1627 (within the US) or 304-707-9471 (outside the US)
Please expect fax containing the EIN within four business days.
Mail application
- Complete SS-4
- Mail your form to the IRS address.
Please note that the mail application is processed within four weeks.
Phone call application (for international applicants)
- International applicants must call 267-941-1099 (toll fees apply) from 6 am – 11 pm EST, Monday-Friday.
- Answer questions as stated on the SS-4 form.
- Identify an authorized person to receive the EIN.
The person designated to receive the EIN will lose the authority once the EIN has been received.
Opening a bank account
Financial institutions have different requirements for opening an account with them. But generally, here is what you need to know about opening a bank account in the USA, as part of your post-incorporation considerations.
Requirements
| US Citizen | Non-US Citizen |
|---|---|
| Personal details including name, date of birth, physical address, etc. | Personal details including name, date of birth, physical address, etc. |
| Social Security Number | Individual taxpayer identification number (ITIN), in place of SSN |
| Government-issued ID (passport, driver’s license, state ID, military ID) | Original valid passport, government-issued ID from home country, alien identification number from green card, VISA, etc. |
| Minimum deposit (the amount depends on the financial institution and type of account) | Minimum deposit (the amount depends on the financial institution and type of account) |
| Proof of funds is needed if the bank determines you are transacting with a large amount of money | Proof of funds is needed if the bank determines you are transacting with a large amount of money |
How to open a bank account
Since the USA Patriot Act of 2001, banks, credit unions, and financial institutions have implemented stricter rules and verification procedures when opening accounts. Here is the typical process of opening an account:
- Choose which type of account to open, and determine with which bank you are opening an account
- Submit the requirements. Some banks allow online submission of documents.
- Comply with the bank’s know-your-customer or customer due diligence process. Some banks allow e-KYC, but generally, you must be physically present.
- Once approved, you must deposit the initial required amount.
Applying for a company checking account or a company credit card may also be a part of your post-incorporation process in the USA. With a company credit/checking account, payments made by and to the company will be named to it. This will ensure the limitations of the liability of partners or members, as opposed to using their personal accounts in business dealings.
Payrolling staff
The basic requirements when payrolling staff in the USA are:
- Payroll and accounting system
- Payroll schedule
To process your payroll:
- Calculate the employee’s gross salary
- Determine the withholding amount and deductions
- Payout distribution
- Deposit payroll taxes
- Update your payroll register
To be able to payroll staff in the USA, you must first obtain an EIN. If you have any questions about payrolling staff in the USA, please read this guide, where we elaborate on the requirements and process. Or you can reach out to our Bolder Launch crew for more information
Applying for insurance
Basic insurance gives you protection in your business affairs. To some extent, it also protects your employees (workers’ compensation). Insurance will help cover the costs of liability claims, shielding you from incurring out-of-pocket expenses due to damages and legal claims against your company. Business income insurance can also help your company ride out temporary closure due to several reasons. This makes sure there will be no payroll interruption, you can continue to pay bills, and replace lost income.
Consult with us for free so we can discuss the best insurance options for your newly incorporated company in the USA.
Are you ready to start your business in the USA? Get in touch with our Launch Crew today.
This guide is part of Company Formation in our Launch Guide.
