In the United States, company registration is a necessary first step for any business owner. Company registration grants you the legitimacy to conduct business in accordance with local, state, and federal regulations. This article will walk you through the steps to register company in USA from India from start to finish, covering everything from the different legal structures available to you to the paperwork you’ll need.
How to Decide What Kind of Company to Form?
The future of your company hinges on your decision of business structure. The liability, taxation, and management of your business will all be significantly affected by the structure you select. Sole proprietorships, for example, may be the least expensive and simplest to establish, but they also leave their owners open to unlimited personal liability. However, while corporations offer limited liability protection, they are more difficult to form and maintain.
Listed below are the most common types of companies found throughout the United States:
- Sole Proprietorship: A company in which one person acts as both owner and manager. All of the company’s debts and obligations are the owner’s personal responsibility.
- Partnership: A company in which the ownership is split between three or more people. Each partner’s personal assets will be used to pay off the business’s debts.
- Limited Liability Company (LLC): An entity that enjoys the tax advantages of a partnership while also enjoying the liability protections of a corporation. Members of a limited liability company (LLC) own the business but are shielded from personal responsibility for its debts and obligations.
- Corporation: A corporation is a legal entity distinct from its owners (the shareholders). The company’s debts and obligations are not the responsibility of the shareholders. Depending on its tax situation, a company can register as either a C corporation or an S corporation.
The liability, taxation, and management of each of these business structures is unique. So, before deciding on a business structure, it’s important to think about what you hope to accomplish with your company.
Starting a Company in the United States
USA company registration follows the selection of the appropriate business entity. The registration process is different in each state where you intend to do business. Nonetheless, the standard procedure for forming a company in the United States includes:
- Choose a Business Name: If you want to be successful, your company needs a name that stands out from the crowd. Business names can be checked for availability through the Secretary of State’s website.
- File Articles of Incorporation or Organization: The Secretary of State in the state where your business will be based will need to see either your Articles of Incorporation (for corporations) or your Articles of Organization (for limited liability companies).
- Obtain an Employer Identification Number (EIN): The Internal Revenue Service (IRS) will issue a nine-digit number known as an Employer Identification Number (EIN) to your company. Getting a bank account, hiring workers, and filing taxes all require an EIN.
- Register for State and Local Taxes: State and local tax registration requirements can vary widely from industry to industry. If you need to know what your tax obligations are, contact the Department of Revenue in your state.
- Obtain Licenses and Permits: Licenses and permits from state and local governments may be required for your business. To learn what licenses and permits you need, you should contact the relevant authorities in your area.