Company Registration in USA
The United States is consistently ranked among the best internationally for its overall competitiveness and ease of doing business. Backed by a regulatory environment that is particularly conducive to starting and operating a business, U.S. business culture encourages free enterprise and competition. As a stable democracy with a transparent and predictable legal system, all companies regardless of national origin, compete on an even playing field.
As a stable democracy with a transparent and predictable legal system, the United States treats foreign and domestic firms equally under the law. U.S. state and local economic development organizations promote and encourage business growth, while the regulatory system provides predictability and ample operational freedom.
The United States welcomes free enterprise and encourages economic growth – a new business is born about every minute. From location to business structure, it is entirely up to each investor how they would like to form a business in the United States. Additionally, while the procedures for incorporating and registering a business varies by state/territory, the process is typically straightforward, fast, and inexpensive.
Types of Businesses one can open in USA:
When a person plans to set up a business, one of the first questions that crosses one's mind is to determine what business structure is suitable for the intended business. That is to say what business identity one wants to adopt for one's business out of the various options available under law. Taking this decision is necessary for tax purposes and also helps an entrepreneur to plan for the future business expansion. While there are many different forms of business entities, there are four main types in the United States:
(1) Sole Proprietorship,
(3) Limited Liability Company (LLC),
(4) Business Corporation.
Let us go through one by one.
Sole proprietorship is the simplest form of business type. It is a business owned and controlled exclusively by one person. This person is responsible for the business, including all liability and any profit or loss. Profits and losses of the business are of the owner's personal income and the proprietorship firm is disregarded for tax purposes. However, since legally the firm is nothing more than an individual using a trade name, there is no limit to the owner's liability for the firm's obligations.
Features: Inexpensive to form, Easy to dissolve, Generally have no tax aspects, Virtually no formalities to be observed except basic bookkeeping, Firm's liabilities are treated as personal liabilities of the owner and On death of the owner sole proprietorship immediately ceases to exist.
It is an association of two or more persons (persons being people, corporations, other partnerships, LLC's, trusts or others) to carry on, as co-owners, a business for profit. These individuals are responsible for the business, including all liability and any profit or loss. The persons intending to enter into a partnership make an agreement to share profits and losses. The partnership is required to file an informational return to the government to report what the profits and losses of the partnership were and how these were allocated to the partners. Since the liability of partners is joint and several, any particular partner can be made to pay the entire debts of the partnership, regardless of the allocation of profits and losses, or capital contributions made into the partnership. Partnership can be as simple or complex in structure and administration as the partners want it to be. A partnership ceases to exist when certain criteria are met, such as the death or bankruptcy of a partner; or if the partners decide to end the partnership.
Features: Relatively inexpensive to form, Each partner has joint and several liability to the partnership and Taxation is a bit complex, but the partnership itself pays no taxes.
Limited Liability Company (LLC)
LLC's are extremely flexible, and can be used for a very wide range of businesses. Like partnerships, LLC's can be as simple or complex as the members desire. Depending on state law, an LLC can have the same limited liability for members as a corporation, or have some members with limited liability and some without limited liability (like a limited partnership), or even have no limited liability for any members (like a general partnership).
A LLC functions as a limited liability corporation, but is taxed and operated in a way that is most consistent with a Partnership. However, one must ensure that a Limited Liability business does not have more than two of the four qualities that characterize a corporation (limited liability concerning assets; continuity of life; centralization of management; the ability to transfer ownership interests). If more than two of these qualities are met, the Limited Liability becomes a Corporation and is taxed accordingly.
LLC's are extremely flexible, and can be used for a very wide range of businesses. The members (equivalent to shareholders or partners) can, but need not, have limited liability; can, but need not have, managers (equivalent to directors and officers) and can elect to be taxed either as corporations, or as partners (if they have two or more members) or be disregarded for tax purposes like a sole proprietorship.
Features: A hybrid of a corporation (with an ability to limit personal liability) and a partnership (with an ability to assess profits and losses to individuals), this type of organization provides a flexible structure to achieve these ends.
A business corporation is a legal entity established by individual(s) under the laws of a state to conduct particular types of business or transactions. Taxation of corporations is much more complex than sole proprietorships or partnerships. Depending on the number of, residency of and type of shareholders, a corporation can elect to be treated for tax purposes as if it were a partnership (an S corporation), and therefore not pay taxes itself, or it can be treated as a taxable entity (a C corporation). An S Corp allows its shareholders to treat profits as distributions and to pass them through to their personal tax return.
Features: The corporation exists separately from its shareholders, directors and employees, The corporation may make contracts, assume liabilities, sue and be sued, Liability of shareholders is limited to the amount of shares held by them and Shareholders can transfer ownership interests.
Advantages: Relatively cheaper to register, Simple Compliance, Limited Liability, Scaleup by increasing paid-up capital and issuing shares to investors and Can be 100% foreign owned.
Which type of Business and what state to Choose:
Company Registration differs from state to state in USA and Federal tax rates too. The only option for foreigners to establish a business in USA is LLC or Corporation. The corporate tax is collected both by State and Federal Governments in USA. LLC is most favourable option for an enterprenuer to establish a place of business in USA and the Delaware State is best option to incorporate. The following are some of the key features of Delaware Company Incorporation:
There is no Delaware income tax for Delaware corporations or limited liability companies that do not do business in Delaware.
The 85% of the revenue of Delaware State is generated through Company Incorporations only. For over a century, Delaware has been the home for America’s premier corporations.
More than half of the Fortune 500 are incorporated in Delaware.
You can form a Delaware corporation, limited liability company, or business entity without coming to Delaware.
The owners and operators of a Delaware corporation or limited liability company are not required to be identified in the public records of the State.
Delaware LLC Formation Requirements:
Details required for Delaware LLC Incorporation
- International Passport (for foreigner).
- Email Address.
- Telephone Number.
- Address Proof such as Aadhar Card.
- Shipping & Billing Address.
- Method of Payment.
Delaware Incorporation Process
- Decide on a name for your LLC.
- Provide your Details.
- After you file your new business entity with our online form, we will file it with the Delaware Secretary of State through our Associate Company Registered Agent in USA. You will receive a Certificate of Formation within 2 - 3 business days, indicating your LLC has been approved by the Delaware Secretary of State.
- Obtain your LLC's Federal Tax ID Number (also known as an EIN).
- Create an LLC Operating Agreement, which will serve as the primary governing document for your company.
CompaniesHouse - The MCA:
As an Official Company Registration Agent, we have built strong ties with the Ministry of Corporate Affairs, Govt of India since our own formation. Since we began, our goal has been to provide a seamless incorporation process that is quick and simple to use. Today, our company registration system is one of the most effective and efficient in India. In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered. We also keep our company formation pricing competitive, while always exploring innovative ways to provide value to our customers. We are pleased to be one of the most affordable ways to start a company in India.
We have the expertise to advise which is the correct corporate structure they need to put in place. Most customers come to us for help registering a company limited by shares. The limited company structure is popular as it allows profits to be distributed amongst the shareholders while at the same time protecting them through the limited liability aspect. Our team has well over 20-years of combined expertise forming companies and providing corporate and secretarial services that help thousands of our clients grow their businesses each year.
We are incredibly passionate about the quality of our service, and we are incredibly proud of our customer feedback, as shown by our excellent reviews and ratings. Time and time again, we are selected for the value and expertise that our team is known for. We have helped shape the industry by providing innovative business services and bundled packages that have evolved alongside the needs of our customers.
Our clients have access to free support from an expert team. We are always on standby to help. If you need assistance at any point before, during, and after the registration of your company, you will be able to reach us by telephone or email.
No Hidden Charges:
We believe in clear and transparent pricing. The price advertised is the price you pay. There are no additional costs to register your business.
In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered.
20+ Years of Exp:
We are experts in our field, our team has over 20 years of experience. Take the hassle out of setting up your business, rest assured that you are backed with the support you need to succeed.
Today our clients expect outstanding service. That's why we are so proud that 99% of our clients rate us "Great" and "Excellent" on Google.
The whole process, from ordering to using your company registration license, is made as simple and easy as possible to help you build your business.
Privacy & Security:
Customer privacy and security is paramount. We ensure your payment, company and personal information is protected at the highest level.
What Client Says?
You are truly experienced in Company Registrations. Keep it up!
Ram Kumar Chilukuri
Director, Anewa Engineering Pvt Ltd
Thanks for your continuous support. God bless you!
CFO, Blujay Solutions Private Limited
Thank you CompaniesHouse for saving in Income Tax!
Managing Partner, Chetak Transporters
We are surprised to get our Company registered in one day. Thanks.
Director, Avidus Engineering Pvt Ltd
Thank you for the initial discussion as we choose best business format!
Lakshmi Keerthi Reddy
Director, Lavanar Sea Food Farming Private Limited
Thank you CompaniesHouse for reminding on timely statutory compliance!
Director, Cybervillage Solutions Pvt ltd
Let's Clear Your Doubts
Can a foreigner incorporate a company in USA?
Can a foreigner own 100% of the equity?
Can I register Oner Person Company in USA?
Yes. A company can be owned and operated by a single person; i.e., a person can be the sole shareholder and director of a company.
What is the minimum share capital requirement for registering a USA Company?
What are the requirements to a foreigner to register a Company in Delaware State?
The company must approach a Company Registered Agent,
The company must have a minimum share capital of S$1.
I am a foreigner and do I need to physically present in USA to register my Company?
How long will it take to incorporate my Delaware Company?