Establishing a company in America is among the interests of people or companies who want to have prestige in the corporate field. Because America has the largest economy in the world, its role in the market brings it to the forefront among the countries to establish a business. However, it is necessary to have information about many other issues such as the advantages, disadvantages, company types, company formation costs, etc. of establishing a company in America. So, how to set up a company in America?
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How to Set Up a Company in America?
Those wishing to incorporate a company in America must obtain the services of legal representatives authorized to incorporate a business in the United States of America. The legal representative can be thought of as the company representative in the state where the company will be incorporated in America. Because state laws stipulate that every company must have a legal representative.
The legal representative provides certain services on behalf of the individual or business, such as opening a bank account, obtaining a tax identification number, issuing legal reports, filing taxes, and setting up a company in the US.
What are the Advantages of Establishing a Company in America?
There are several advantages of company formation in America. The first advantage is that those who form a company in America pay lower taxes. Therefore, company formation fees are cheaper than in other countries. Natural persons or legal entities can operate in America as well as trade in Europe and other countries.
The company formation process in America can be completed in about 6 days. In addition, brands can register their brands in America at more economical prices. Companies that operate legally in this country can also easily obtain a Green Card. Supporting new entrepreneurs, America also provides many grants or support programs to people and businesses that establish companies.
What are the Disadvantages of Company Formation in America?
Setting up a company in America has some disadvantages as well as advantages. The first disadvantage is that those who want to set up a company in America must have a certain amount of capital. In addition, since many brands operate in the country, competition is quite high. In addition, since many languages are spoken in the country, especially English, it is necessary to know the language. Since the company formation process should be carried out in a professional manner, it is important to deal with a reliable and expert consultant.
What are the Types of Companies You Can Establish in America?
There are several types of companies that individuals and legal entities can choose to incorporate in the United States. These include the following:
Sole Proprietorship
The simplest type of company in America is the sole proprietorship, which is established by many people. The American equivalent is SP, short for Sole Proprietorship. It is commonly known as LLC.
Partnership Company
A partnership company, known as a General Partnership in the United States, is established by people who make an agreement between themselves and decide on the structure of the partnership. In this type of company, partners are responsible for both profits and losses. Partnership LLC
Limited Company
One type of company that can be formed in some states of the United States is a limited liability company. This type of company usually includes a corporation and an ordinary partnership. On the other hand, it is possible to carry out multiple business activities together.
Joint Stock Company
Another company that can be established in America, the joint stock company, is established by one or more people coming together. This type of company can be established for commercial purposes, as well as joint stock companies can be established by non-profit organizations.
How Much Does It Cost to Start a Company in the USA?
The cost of company formation in America varies according to the type and size of the company to be established. While this cost is higher for joint stock and limited liability companies, it may be slightly lower for partnership and sole proprietorships. In addition, the state in which the company will be established in America has an impact on the cost. Because the annual state tax, trademark registration fee and company formation fee are subject to different fees in each state. Therefore, it is not possible to talk about a clear cost.
How Can I Do E-Commerce in America?
Those who want to do e-commerce in America must first set up an LLC company in the country. Then, remote online company formation in America, obtaining an EIN number, opening a remote bank account and connecting the e-commerce site to a virtual POS are required. As a result of the aforementioned situations, e-commerce in America is possible.
What are C Corporation and S Corporation?
Joint stock companies are divided into C corporation and S Corporation in terms of taxation in the USA.
- C Corporation
A type C joint stock company is a company that consists of a simple structure and is established in accordance with the obligations of corporate income tax. Moreover, it is treated independently of its owners and therefore tax is payable according to income. Shareholders are likewise liable for their own taxes. As can be understood, taxes are separated in the C Corporation.
- S Corporation
In a type C joint stock company, the partnership is taxed according to IRS rules. In other words, instead of the shareholders and the company paying tax separately, tax is paid as a result of the income of the company and the salary received. Those who will operate in the C Corporation type must obtain US citizenship or residence permit. On the other hand, they must not have a relationship with another company.
Can a Company be Incorporated in the USA via the Internet?
It is not possible to incorporate a company in the United States of America through online registration. Although internet registration is part of the company formation process, it is not sufficient. In order for the company formation process to be carried out legally, other procedures must also be physically fulfilled.
Sky Accounting is Ready to Help Your Company!
At Sky Accounting, we provide services for setting up a business in the USA from scratch and managing all the post-establishment processes. We assist in the perfect execution of many services such as company formation in America, obtaining a legal address, online pre-accounting program and bank account opening.
Frequently Asked Questions
If you want to start a new company in the United States, you need to obtain a residence visa or settle in the country. Therefore, the two types of visas to apply for to start a business are L-1 and E-2.
Company formation in the USA is extremely advantageous. Because in this country, taxes are low, company formation fees are cheap and company formation time is very short.
It is recommended that those who want to start a new company in America should have at least $100,000. However, this figure varies depending on the type of company to be established. Those planning a large-scale business should start the process with a capital of 1,000,000 dollars.
In order to start a business in the USA, the company must first be registered. Company registration can be done through the website of the state to be established or via FAX. The process is to register the company in the state where the certificate of incorporation is located.
