In the USA, one can register for the protection of copyright through the Copyright Office. The registration of copyright is not compulsory but is required if one wants to file a lawsuit for the infringement of copyright.
Company Formation and Registration in USA
The United States of America (USA), known commonly as the United States (US) or simply America, is one of the most developed countries in the world, both economically and industrially. It is the world’s largest economy by nominal gross domestic product (GDP). Having the largest share of wealth in a single country, the USA is ranked highly on human development index and per capita GDP. The country is a founding member of the World Bank, the United Nations (UN) and the International Monetary Fund (IMF), besides being a part of most of the major international organizations.
The USA harbours a population from various ethnicities and cultures, because of extensive and sustained immigration, as the country has a reputation of welcoming diversity and ambition. Since the 21st century, the country has transitioned from a manufacturing to a service-based economy. However, the manufacturing industry continues to hold strong, with the US being the second-largest exporter of goods, and the largest importer. The US is also the largest producer of electricity and nuclear energy in the world. It is also known for being the home of Hollywood. All in all, the US is a country that abounds in opportunities and resources, attracting the largest horde of people every year that see the nation as a place to fulfil their dreams.
Company Formation in the USA
To open a company in the USA, one of the following legal entity types can be chosen, depending upon the nature of your business.
- Sole Proprietorship: A sole proprietorship in the USA is a company that is owned by 1 person, and is not separate from its owner in terms of legal representation. The owner, also called a sole proprietor, bears unlimited liability for the business, that is, he/she is responsible, in personal capacity, for any debts or obligations of the company. He/she also enjoys the totality of profit derived from the company, with all the income from the business being added on the owner’s personal tax returns (pass-through taxation).
- Partnership: A partnership in the USA is similar to a sole proprietorship, with the only difference that the former has more than 1 owner.
- Limited Liability Company: A limited liability company (LLC) in the USA is a company that can have multiple owners, called members. The LLC is a separate legal entity from its members. The document governing the administration of an LLC is known as the ‘operating agreement’, and is similar to the Articles of Association in purpose. This document delineates the rules as to how the LLC would be operated, and can be modified as the business grows or changes. An LLC is the most flexible business structure under the US corporate law, providing for easy management and pass-through taxation.
- C-Corporation: A C-Corporation, also known as a regular corporation, in the USA is a legal entity separate from its owners. It can raise money through the listing of shares. The shareholders, who need not necessarily be American residents, own the stock of the company and elect its Board of Directors. The tax by C-Corporations is paid at the corporate level, and shareholders are taxed on their dividend income. A C-Corporation is ideal for medium to large businesses looking to procure outside venture funding through share instruments, there being no limit to share ownership or transfer for such a business structure.
- S-Corporation: A corporation in the USA may choose to file for S-Corporation status by submitting a form to the Internal Revenue Service (IRS). Once this filing is complete, the corporation is taxed on a pass-through basis, i.e., the income from the business is passed through to the shareholders for purposes of tax computation. The rationale behind this is that the profits and losses can be added to the shareholders’ personal tax returns so that they have to pay taxes on profits only once, and not again when the profits are given back to the shareholders as dividend. The advantage of an S-Corporation over a C-Corporation is that it does away with double taxation. By the US corporate law, an S-Corporation cannot have over 100 shareholders, all of whom are required to be US citizens or residents.
Business types are set by states in the US, through the state business division or corporations office. Some states may allow certain types of businesses, and many have different regulations and limitations on the company type that can be established there, and who can form each business type. You may check with the respective state secretary and business division to ascertain if the legal entity you are wishing to establish is allowed in that particular state. All states allow LLCs, partnerships and corporations but certain variations on these basic business types may or may not be available.
Benefits of Company Registration in the USA
Setting up a company in the USA is advantageous from the following standpoints:
- The USA is the world’s largest consumer of goods and services, and hence a preferred market to set up a business in.
- The USA is the world’s largest corporate finance market. As such, procuring loans at agreeable interest rates is very convenient for small and medium businesses.
- The USA abounds in natural resources and a skilled workforce from around the globe. These add to the ease of doing business in the country.
- The infrastructure in the USA is one of the most advanced and developed in the world. Everything ranging from office space to business outsourcing is readily available.
- The American government offers tax incentives and grants for nearly every industry, especially green energy, health, education, research, etc. It is pro businesses that are deemed to create jobs in the nation.
- The USA has over 60 double taxation treaties with over 60 major countries, saving companies here the burden of paying undue tax.
Who We Are
Business Setup Worldwide is a platform to help you set up a business in the USA. We help you with company incorporation, registration, corporate secretarial services, business consultation and tax advisory, if you planning to register a business in the USA.
Business Setup Worldwide's proprietary business design techniques, combined with its regional know-how and global reach, enable companies to anticipate changes in customer priorities and the economic market, and then mould their businesses and improve operations to make use of opportunities created by those changes.
Business Setup Worldwide helps entrepreneurs and investors establish their company in the USA through incorporation, registration and legal consulting services. Our experts take care of the entire Banking, Visa, Legal, and Licensing formalities, in accordance with the US laws. We guide you through your company formation, with your business objectives at the centre of our ecosystem, all the way.
Our commitment to professionalism, exhaustive capability spanning different industries, proactive learning in the ever-changing global environment, and the ability to conceive innovative strategies and provide comprehensive support in executing such strategies distinguish Business Setup Worldwide, and provide the competitive edge in ensuring business growth. If you are wondering how to start a company in the USA, do reach out to us.
1. How can I get an EIN?
The nine-digit Employer Identification Number (EIN) lets tax authorities identify your company. Before beginning the LLC or corporation company registration procedure, an EIN is necessary. All candidates are eligible for a free registration service from the IRS, which may be finished online
2. How long does it take to incorporate a company in the USA?
3. Can a foreigner own an LLC in the USA?
4. What is the cost of company incorporation in the USA?
$100 to $250.
5. What are the legal entities in the USA?
Limited Liability Company