Overview of Company Registration in USA

The USA offers a vibrant and multicultural population which making it an attractive destination for various international businesses. With its different environment, the United States of America welcomes companies from all around the globe, providing a highly favorable market for expansion. Expanding your business in the USA can be transformative, opening up various good opportunities and a vast customer base. However, the complexities of Company Registration in USA can be very overwhelming for new entrepreneurs. That’s where Whizseed comes into the market to make the Company Registration in USA very easy. We specialize in C-Corporation Incorporation and LLC (Limited Liability Company).

Our expertise & commitment to simplifying Company Registration in USA and help you register your Indian Company in the United States of America as well and we will make it easier for you to establish your presence in the world’s largest economy. Our FastTrack Company Incorporation also includes EIN (Employer Identification Number), it is a very important requirement for business in the USA.

 Different Types of USA Company Registration

USA provides various legal business structures for Company Registration and each one has its own rules & regulations. We will discuss the main 5 different types of companies that are mainly opt to register Company in the United States of America (USA):

LLC or Limited Liability Companies: It’s a type of business structure that provides limited liability like corporations while also providing partnership benefits like tax benefits, flexibility and simplicity. Limited liability Companies or LLCs can have one or more business owners called members. The following are the advantages of an LLC:

• In LLC, the personal liability of the members is limited to their investment only;
• Protection of the members’ assets;
• LLC’s profits & losses allotted directly to the members in the proportion determined by them;
• Unlimited number of members;
• Absence of taxation at the corporative level, except if this tax option has been exclusively requested;
• No obligation for the members/managers to be US Residents/Citizens.

C-Corporation: It is the most common business structure in USA for medium or large companies. The following are the characteristics of C-Corporation:

• Unlimited number of Shareholders;
• Tax benefits;
• Separate Legal Entity;
• No obligation for the Directors/Shareholders to be US Citizens or Residents;
• Easy transfer of shares;
• Taxation of Profits& Losses at the Corporate Level.

S-Corporation: An S-Corporation or S-Corp is a type of Corporation that is designed to avoid double taxation drawback of regular C-Corps. It allows profits & some losses to be passed through directly to owners’ personal income without ever being subject to corporate tax rates. Not all states tax S Corps equally but more recognize them the same way the Federal Government in USA does & tax the shareholders accordingly. Some states tax S-Corps on profits above a specified limit & other states don’t recognize the S-Corp election at all, simply treating the business as a C-Corp. S-Corps in the USA must file with the IRS to get S-Corp Status, a different process from registering with their state.

Non-Profit Corporation: It is organized to do education, charity, religious, literary or scientific work. Because their work benefits the public, non-profits can receive tax-exempt status, meaning they do not pay state/federal income taxes on any profits it makes. Non-profits must file with the IRS to get tax exemption, a different process from registering with their state. These types of corporations need to follow organizational rules very identical to a regular C-Corp & they also need to follow special rules regarding what they do with any profits they earn. For instance, they cannot distribute profits to members or political campaigns.

Single-Person Businesses: Single-Person Businesses also known as Sole Proprietorships; these are the simplest forms of business where an individual operates & owns the business/company. While they provide zero liability protection, they are easy to set up.

Choosing the right business structure depends on your business goals, taxation preferences & personal liability considerations. It counts as one of the important parts when it comes to the Registration & obtaining the USA Company Registration Certificate.

Benefits of USA Company Registration

The USA is the 1^st largest economy in the world, and it is a global economic powerhouse & it’s a hub for entrepreneurship and innovation. Getting a USA Company Registration Certificate can provide several benefits, including access to a strong consumer market, potential investors & a favorable business environment. Whether you are registering an American-specific company or register an Indian Company in the USA, let’s discuss the benefits of USA Company Registration:

• Access to the US Market: With a US Company, you have easy access & the ability to sell directly to the US Market without any middlemen. US consumers prefer to buy from a US Company rather than a Company based in another country.
• Access to US Capital: The United States has the most respected venture capitalists in the world and there are more Venture Capitalists & deals in the investment sector here than in other nations. If you have a startup idea, then it is best to start a Company in the United States and approach investors in the United States. If you have decided to go this way, forming a C-Corp instead of LLC is the only viable option because more VCs and Angel Investors only invest in Corporations because they are more familiar with Corporation Laws. However, establishing a C-Corp would negate the tax advantage, therefore, it is important to evaluate your situation & decide whether you should form a corporation or register an LLC.
• No VATs or GSTs: If you are doing an online business, it is inevitable that you will need to market your products/services via paid advertising in some point in time depending on your Company’s growth and if you are advertising with a company registered in Delaware or Wyoming, then you don’t have to pay sales tax, VAT or GST for every dollar you advertise on Google, Facebook, etc. In China you pay 13% tax, 9% in Singapore, 18% in India and 23% in UK if you are not VAT registered because when you are not VAT registered in the United Kingdom (UK), the you cannot do a reverse charge & thus pay 23% on Ireland VAT rates.
• Low Maintenance & Setup Fees: If you choose the correct state, the United States is among the few nations where registration is affordable. The process is fast & easy without having to be physically in the United States. There is also no need for a local director, CS, or lawyer for which you will have to pay high fees.
• Easy Annual Compliance: Some countries require you to spend huge amount of money on annual compliance. Some nations even require you to have your books audited by a Certified Accountant every year, no matter how small your business is. In some instances, you may even need a local director in the country such as in Singapore. If you do not have anyone in the country then you will have to pay money just to have someone as a nominee director. But, fortunately if you register a Company in the USA, everything is so easy. If you register an LLC in the US, all you have to do is pay the annual reporting fee, annual registered agent service & file Form 5472 if you have no federal tax liabilities.
• Innovation Ecosystem: Silicon Valley & other tech hubs in the United States of America (USA) are renowned for their innovation environment, making it best location for technology-driven startups.

Documents Required for USA Company Registration

To register a Company in the USA, it requires some information and documents. The following are some important details and documents required for USA Company Registration:

Information required for Company Registration in USA

The following are some vital information required for Company Registration in USA:

• Company Name: Decide the Company Name and make sure that it is unique & not already in use. Most states in the USA require a unique business name.
• Business Type: Determine the Company Structure you want to set up like LLC, S-Corporation, C-Corporation, non-profit organization, or a single-person business.
• Physical US Address: You must provide a physical address within the US where your business is registered and this could be your place of business or a registered agent’s address.
• Business Partners Details: If you have business partners, you will need to provide their names, addresses & the percentage of ownership each partner holds in the Company.
• Registered Agent: In case you are using a registered agent’s address (a person or an entity designated to receive legal documents on behalf of the business), you need to specify whether you have one or not.

List of Documents for USA Company Registration

The following is the documents required for Company Registration in USA:

• PAN Card: For Indian entities or citizens, the PAN card is important for tax purposes & identification.
• Passport: A valid passport is necessary for identity & verification purposes.
• Incorporation Details: If your business is a branch or a subsidiary of an existing foreign company, you will need to provide incorporation details of the Parent Company.
• Other Important Details: Depending on your business structure & the state in which you are registering, additional information may be required. This could include the business purpose, the name of Directors and officers and the issuance of shares.

Process for USA Company Registration

The following is the step-by-step process for Company Registration in USA:

• First you need to decide on the legal structure of your company or business such as Sole Proprietorship, Partnership, LLC or Corporation.
• Then you need to choose a unique name for your business that complies with State Laws.
• After that, register your business with the state by filing the necessary paperwork & paying the registration fee.
• Depending on the business type you operate, you may need to get additional licenses & permits.
• Then, you need to apply for EIN or Employer Identification Number from the IRS (Internal Revenue Service);
• Set up a bank account for your business to keep your business finances separate from personal finances.
• Then, register for federal & state taxes, including income tax, sales tax & employment tax.
• Depending on your business, you may need to obtain insurance like liability or compensation insurance for the workers.
• In case you are planning to hire employees, make sure you comply with the Federal & State Employment Laws.

Additional Registrations or Licenses Based on Your Activities

Apart from the Company Registration in USA, your business may require some additional registrations/licenses based on your activities & location. The following are some common registrations required to register a Company in USA:

• EIN or Employer Identification Number: This is important for tax purposed & is typically required for most businesses operating in the United States of America (USA).
• State Business Licenses: There are some states & localities in US where you may require some specific business licenses or permits based on your industry or location.
• Sales Tax Permit: If your business sells tangible goods, you may need to get Sales tax Permit to collect & remit sales tax.
• Trademark Registration: If you are planning to run your business under a name then you need to get Trademark Registration for your Company’s Name. Not only name, you can get the same for logo also.

LLC or C-Corporation: Which is Better for Your USA Business?

When it comes to USA Company Registration, one of the most important decisions you will need to make is choosing the right business structure. At Whizseed, we specialize in LLC or Limited Liability Company and C-Corporation. Both have their advantages and disadvantages and the choice depends on your business goals, tax preferences & operational structure.

LLC: It’s a flexible business that combines the limited liability protection of a corporation with the simplicity & tax flexibility of a Partnership. Here’s, why you might consider registering your business as an LLC

• Owners of the company are generally not personally liable for the Company’s legal liabilities or debts;
• Profits & Losses “pass-through) to the members’ personal tax returns, avoiding double taxation;
• Less formalities & paperwork compared to C-Corporations, making it easier to manage.

C-Corporation: It provides various benefits:

• Limited Liability: Shareholders are generally not responsible for the Company’s legal obligations or debts
• Worldwide Expansion: Good for companies with ambitions for international or global expansion & the issuance of publicly traded stock.
• This entity structure can issue multiple classes of stock, making it easier to attracted investors & raise capital.

Our USA Company Registration Services

At Whizseed, we know the process of getting USA Company Registration Certificate can be overwhelming, especially for international entrepreneurs. Here is what our USA Company Registration services includes:

• Company Name Reservation: We help you to choose a unique name for your company that complies with state regulations;
• Documentation: Our team will prepare all the necessary documents including articles of companies or incorporation to register company in USA.
• Filing with the State: We handle the filing process with the relevant state authorities on your behalf to effectively register Company in the USA.
• Registered Agent Services: Our team also provide 1 year of registered agent services, ensuring that you meet the legal requirements to have a registered agent in the USA.
• EIN: We help in obtaining EIN for your Company which is important for taxation & banking purposes.
• FastTrack Company Incorporation: Our FastTrack Company Incorporation service is designed to expedite the Registration Process, get your USA Company Registration Certificate and set up the business quickly.