Everything You Need To Know About US Company Formation
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- November 19, 2022
The United States is one of the most diverse places to live in. Besides, the US experiences the highest number of immigrants per year than any other region in the world. In a 202 research, the US has over 40 million people living there but born out of the US. Therefore, this shows you how many people in the US are immigrants. Specifically, the 40 million number represents a firth of the total population. Most of these immigrants access working visas and apply for residents’ permits. However, besides living, these foreigners have equal rights to form companies and corporations are conduct business within the US and out of the US. Importantly even foreigners outside the US can develop corporations in the US and conduct business.
Nonetheless, the only thing to remember always is that the US is a nation guided by the rule of law. Therefore, if you desire to open a company or a corporation in the US, you will be required to follow the due diligence to the latter. Little attempts to use other shortcuts can land you serious legal issues. Nonetheless, if you want to open a company in the US, here is all you need to know about Us Company Formation.
- Determine which type of company you want to open in the US
The first thing you need to do to start opening a company in the US is determined which kind of a company you need. You may choose to make different categories of companies depending on your intentions. However, you may form a corporation of stakeholders who do not need to be US citizens. Additionally, you can also start a Limited Liability company. However, the S-corporation is limited to US stakeholders. Therefore, anyone wishing to open such a company must have US citizens as the stakeholders.
- Chose the state you want to operate in
The US has fifty states and Washington DC. Therefore, you are required to choose the state you want to operate in. The choice of the state depends on a variety of issues. The biggest one is the intention of opening the US Company. If you do not intend to have a physical presence in the US, you can choose the state that promises cheaper annual fees for the service. However, if you need to open a company to obtain business access or start a new venture, your preference of the business set up will point to the state you will operate. Moreover, some people open companies in the US to obtain a US bank account without any intensions for business or physical presence. Again if these are the intentions, you need to check the states that offer the best value in taxes and annual fees.
- Organize the filling documents and submit them for consideration.
When you are all set to open the US Company and are sure of the state and company type you want, it is your high time now to gather the required documents. As mentioned here, the US is a nation of record, and for sure, you will need to present several documentation to open the US Company. The following order shows what you will need.
- Choose a company name
You will need to develop a company name for your corporation. The name should be anonymous and not belong to other companies with patents. However, suppose you cannot verify whether the name is exciting. In that case, you will always get a referral informing that the name is already after the thorough search during the assessment period after submitting your application for consideration.
- Hire services of a Registered Agent
For every foreigner applying for a company in the US, you will need to have a registered agent who will sign the document for you. They must be registered and have physical contact addresses. There are various agents online, and you can just contact one seamlessly.
- Provide your biodata and that of stakeholders
For every company, you will need to submit your stakeholders’ names, addresses, and documentation. If they are US citizens, and if they are not, their addresses and biodata must be submitted with the application.
- Federal employer identification number
Though this step is optional, what you intend to do with the company will determine whether you need the FEIN. However, because you will need a US bank account for your transactions, you will need to apply for the FEIN.
- Certificate of Authentification
Again this is not optional. It is only required by applicants who need permission to submit documents for opening a company outside their country. In some cases, your country may need the certificate of authentication and the US department if your country is not listed in the Apostle convention list.
The above steps are what you need to know to open a company in the US. However, you can get your company registered without the Federal employer identification number and the authentication certificate.