The United States of America has the largest and appreciated economy in the world, an influential culture, and history, with a gross domestic product per capita which can surpass $18 trillion (as registered for 2016) in just one year. International and local investors have varied business opportunities for opening a company in USA and can set up companies in domains like tourism, technology, engineering, finance and many more. First of all, a business form should be accepted once the company is ready to be incorporated in one of the 50 states in America. There are three major entities for those interested in US company formation, such as:
Types of companies
- limited liability company
- limited or general partnership
Minimum share capital for LTD Company
Minimum number of shareholders for Limited Company
Time frame for the incorporation (approx.)
Around 2 weeks
Corporate tax rate
Dividend tax rate
Between 0% and 20%
Number of double taxation treaties (approx.)
Do you supply a registered address?
Local director required
Annual meeting required
Is accounting/annual return required?
Any tax exemptions available?
Tax exemption for dividend incomes, depending on revenues
•limited liability company (the most popular business structure in USA);
•corporation (destined for experienced and professional business persons in USA);
•limited partnership (this can transform into general partnerships under certain conditions);
•sole proprietorships seeking to develop small and medium-sized businesses in the USA.
The business presence can be suitably developed in America once the appropriate form is selected, considering the regulations and the civil law jurisdictions in this matter. In compliance with the legislation related to the company formation in USA, our team of company incorporation specialists in USAcan provide business persons the necessary support when drafting the paperwork for a future enterprise and can offer tax advice on request. Below you can find the main reasons why you should open a company in USA.
What is a virtual office in USA?
A virtual office in USA is a dedicated service for business persons who want to open a company in USA and who do not want to consider a traditional office for their activities. Deciding for a virtual office in USA comes with the following services:
• a respected and notable business address in any chosen state in USA;
• dedicated fax services besides phone call forwarding and related communication facilities;
• a local phone number linked to the business’s future clients in USA;
• mail and correspondence collection at the request of the business person;
• a private local phone number for the business owner in USA.
Those who are interested in company formation in USA and want a virtual office should contact our agents.
How can I open a company in USA?
A limited liability company can be set up under certain conditions and with less bureaucracy if you choose US company formation. A preferred form of business in USA is the limited liability company for citizens non-US citizens but also for local businessmen. Delaware, Wyoming, and Nevada are among the business-friendly states in which entrepreneurs can focus on and can establish a limited liability company. It is good to know that there are no restrictions regarding the numbers of the owners of an LLC in USA, the minimum share capital and the nationality of the shareholders. Here are the main requirements for opening a limited liability company in USA:
Choose and reserve the name of the company ( a verification in this sense is necessary).
Appoint a representative agent if you want to incorporate the company from abroad.
Offer information about the company’s owners (name, address, residency).
Apply for FEIN (Federal Employer Identification Number) with the IRS.
Open a bank account for your company (for future financial operations).
Provide the Articles of Association with information about the owners, the activities, the liabilities.
Please consider that if your home country is part of The Hague Convention, you will need to provide to the authorities an Apostille or a Certificate of Authentication of your company which is necessary for opening a bank account in the country you live, for your company in the USA. We remind that US company formation requires lots of attention to the legislation of the state in which the incorporation will take place. In this matter, among many others, our agents can offer complete support and guidance for those who want to open a company in USA.
Document requirements for company formation in USA
The following table comprises information about the necessary documents for opening a company in USA:
Limited Liability Company
The Articles of Organization
The Articles of Incorporation
The managing agreement
A shareholder agreement
Member certificate for each partner
The share certificate for each member of the business
IRS Form SS4
IRS Form SS4
Citizens from Cuba, North Korea, Irak or Iran cannot own US companies
Citizens from Cuba, North Korea, Irak or Iran cannot own US companies
What is a C corporation in USA?
Citizens from overseas interested in starting a business in USA can choose to form a C Corporation which is also known as a regular corporation. Besides opening an LLC in the USA, foreign investors can also consider registering a C Corporation which offers limited liability to the stockholders, managers, and employees. A C Corporation has unlimited development potential through the sale of shares which can attract investors worldwide. Furthermore, a C Corporation in USA inputs no limits on the shareholders, but if there are, for instance, 500 stockholders and valuable assets of $ 10 million, the C Corporation must be registered with the Securities and Exchange Commission in the USA.
How to open a branch in USA
If you want to open a branch in USA, legal entity which reports all the operations to the parent company, you should observe the requirements of the business division of the institutions in charge of such incorporation in USA. This can be set up as a corporation after the name of the owners, the representative agents, the board of managers and the activities are set out. Contact us for company formation in USA.
How to open a subsidiary in USA
The registration process of a subsidiary, also known as the U.S. subsidiary starts with the Business Division of the Secretary of State (Delaware, Oklahoma, Rhode Island, South Dakota, etc.) and a set of documents with full information about the parent company and the owners. Please bear in mind that a registered agent is necessary, and besides that, the company must apply for EIN (Employer Identification Number) before commencing any activities. We can offer all the required details about US company formation.
FAQ about LLCs in USA
What is the management of an LLC in USA?
The management of an LLC in USAinvolves the board of managers in charge of the daily decisions, in complete agreement with the owners' business matters and purposes.
What are the taxes for LLCs?
An LLC is seen as a pass-through entity and the taxes involved are applicable to each share of profits assigned to each member forming the company. In other words, each LLC member will have to pay the taxes of the distributive shares in the firm. It is good to know that a single-member LLC must pay the taxes in the same way a sole trader does.
How long does it take to register an LLC?
Most of the states offer the possibility of incorporating a limited liability company within three or four working days. However, if all the documents are correctly drafted and submitted, the process of incorporation might be short. We remind that our team can act in a fast and reliable manner when it comes to opening a company in USA.
What are the name conditions for an LLC in USA?
It is good to know that the name of your company in USA must comprise the following additional information: L.L.C., Limited Liability Company, Limited Company, Ltd. Co. or LLC.
What is the LLC seal?
The LLC seal is a device that is used as the official emblem of the company on documents, papers, and certificates. It is good to know that the seal of your company can be requested when opening a bank account in USA.
Can I remove an LLC member?
The operating agreement is normally created by the members of an LLC in USA which contains information about the owners, their responsibilities and also the ways in which a member of the firm can be removed. The annual report must contain information about the changes in the company, including the ones regarding the removal of a member of an LLC.
What is the annual report for LLCs in USA?
The annual report or the Statement of Information must be submitted to the registration office in the state where your limited liability company is formed. This is a document that states any of the updates made in the firm, if there is a new member involved or not. We mention that our team can handle your annual report after completing the US company formation.
How do I close an LLC in USA?
An LLC in USA can be easily closed by filing the Articles of Dissolution which need to mention the amount of capital that it is returned for each member who formed the company. The Internal Revenue Service is the institution which needs to be informed by the dissolution of the LLC. The IRS will cancel the EIN, the company’s tax identification number and will inform the owners about the final tax return. The after-filing tasks are just simple formalities which can be easily explained by our team of consultants. We offer support for opening a company in USA and liquidating it.
Short facts about US business visas
A business established in USA by a foreign investor from abroad is permitted as long as the owner controls it outside the borders. However, if you plan to open a company in USA and perform the activities as the shareholder or as the manager of the company, you should apply for an US business visa. For example, a B1 visa available for six months allows you to negotiate with future partners but restricts you to sign contracts or work in the company. As for the E-1 visa, also known as the treaty trader visa, this is issued for citizens from countries that have signed treaties with the USA. The validity of such visa will depend on the length of the business you develop in USA. Another important visa is the E-2 visa which is mostly known as the treaty investor visa which allows a foreigner to come to US only if his/her country signed a treaty. This is also a temporary visa that can be renewed until the business is closed. The EB-5 visa is the Investor Green Card Program which is granted for investments between USD 500,000 and USD 1 million and offers permanent residence after the probation period in USA.
Foreign investors who are interested in opening companies in USA and start their operations should seek support and information about the necessary types of visas. We are at your disposal if you want assistance and details about company formation in USA and the available business visas in USA.
What states are preferred for opening a company in USA?
Delaware, Wyoming, and Nevada are among states with suitable and relaxed regulations for setting up a company in the USA. For instance, Delaware has less restrictive business laws and it is open for all kinds of startups among many others. All companies in Delaware must be registered with the Delaware Department of State Division of Corporations, and please keep in mind that a registered agent with a physical address in Delaware must be hired for your company in the state. The same is available for Wyoming, Nevada or any other state in USA. Regarding the business environment and the legislation in Wyoming, we mention that US company formation in this statecomes with no franchise taxes, no need for nominee directors and privacy regarding the stockholders of the enterprise. No matter which of the 50 states in USA you would like to incorporate your business in, our advisors can help in drafting the documents, in tax matters or when applying for special licenses and permits.
Nevada, another great place for business in USA
Nevada is another American state where many foreign entrepreneurs interested in setting up a company in the US already have successful businesses. The benefits offered by the business climate are numerous, and among them, we mention the various programs that offer incentives for hiring staff, no state franchise tax, and no state individual income tax. In addition, the ease with which a business can be opened is another important advantage that foreign investors take into account. They can choose general or limited partnerships, sole proprietorships, limited liability companies, domestic or close corporations, cooperative corporations. Here are other things to keep in mind when choosing to start a business in Nevada:
Self-employment taxes are imposed for a sole proprietorship in Nevada.
Personal assets are protected for LLC owners in Nevada.
C Corporations are suitable for fundraising but also for selling shares.
A registered agent is required for LLCs and C Corporations in Nevada.
Licenses and permits are required to operate in Nevada and can be easily obtained.
It is important to choose the name of the company in Nevada, and verifications are necessary for this process. One of our agents can help you.
Obtaining an EIN shows that the business in Nevada is registered for taxes.
Every business needs a bank account, and it can be easily opened in Nevada.
Nevada is among the preferences of foreign entrepreneurs who want to benefit from an advantageous taxation system, but also from accessing local and international markets without too much effort. So, if Nevada is on the list of the next investments, do not hesitate to talk to our team of specialists in company formation in USA and find out what are the steps in opening a company in this state.
Why invest in the USA
The US offers a multitude of business opportunities to all foreign investors who want to generate substantial profits. Being the strongest economy in the world, the USA is appreciated for its stable business climate and supported by a number of important factors, among which we mention:
Possibility to open a business in any field, with 100% ownership.
Openness and diversity offered by local markets.
Easy access to major financial markets in the world.
Support provided by advanced technology.
Very well-developed infrastructure.
Experienced and multilingual workforce.
The protection offered in the innovative field.
The ease with which you can open a business.
A transparent legal system.
Possibility to open a business regardless of the country of origin.
Excellent conditions for a decent living.
These are some of the attributes that describe, broadly speaking, what the US means in terms of foreign investments and business climate. However, there are other aspects and statistical data that underline the US business direction:
According to the 2020 Doing Business report, the United States ranked 6th out of 190 world economies in terms of how easily a business can be opened.
In the current context, the US continues to remain the largest FDI recipient in the world, closely followed by China.
More than USD 9.465 billion represented the total FDI for the USA in 2019.
In 2020, the USA FDI stock will exceed USD 10,800 billion.
Germany, Canada, the UK, Japan, France, and Ireland are among the largest foreign investors in the United States.
Most foreign investment in the United States is absorbed by sectors such as financial and insurance, manufacturing, trade, and maintenance.
So, if the USA is on your list of investments and business start-ups, then do not hesitate to ask for the help of our specialists and find out what the conditions are and details about company formation in USA.
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Why work with our agents in the USA
Entrepreneurs know how important the support provided by specialists with experience in business and investment is. Avoiding the problems related to the documents and registering with the relevant authorities does nothing but offer a good start on the market, in a fast way. Therefore, our clients can rely on all our support, confidentiality, transparency, and trust when collaborating with us.
In addition, it is very easy to get in touch with us, requesting free case evaluation and submitting your business requirements related to setting up a company in the US.
For a better and complete understanding of how a local or a foreigner can open a company in USA, we invite you to get in touch with our team of experts in company incorporation in USAwho stands at your disposal with information.