Instructions for simple and quick business registration procedures in the US

Registering a business in the United States is increasingly chosen by many investors because of the favorable investment policies of the US government as well as the easy environment for expansion and development. So, is the procedure for registering a business in the US difficult? What should be noted? The following article by Interimm will fully answer the above questions. In addition, it also provides readers with types of businesses in the US, conditions for business registration, steps for registering a business in the US as well as necessary costs and investment capital when establishing a business in the United States.

1. What types of businesses are there in the US?

To start a business in the US, you can choose one of the four basic business types below:

• Corporation : A type of business with a separate legal entity, separate from the business owner. All factors such as profits, taxes or legal responsibilities are calculated separately.
  • Advantages: Protects shareholders' personal assets in case of business dissolution.
  • Disadvantages: Need to pay taxes twice, including corporate tax and personal income tax.
• Limited Liability Company : Is a combination of a partnership and a joint stock company.
  • Advantages: Protect personal assets after company dissolution, simple tax procedures and processes
  • Cons: High fees (Around $800/year in California, may vary by state)
• Partnership: With this type of business, all members have the right to make decisions in the business process. Liability is also limited for each member.
  • Advantages: Simple procedure, just need a contract between members and register with local authorities
  • Disadvantages: Shareholders need to take personal responsibility for any problems that occur in the business.
• Sole Proprietorship: Is the simplest type of business with one owner running the entire business.
  • Advantages: Simple procedure, just need to register with local authorities
  • Disadvantages: Can affect personal assets when sued

2. Types of documents required to establish a business in the US

To complete the application for establishing a business in the US, below are the procedures that investors need to prepare:

Your home country profile includes:

• Charter, list of shareholders, information about founding members.
• Legal documents such as passports.
• Documents proving that the company has operated profitably and has not violated the law in the past

US profile includes:

• Each state in the US has its own requirements for business registration.
• Investors can choose between establishing a new company, branch or opening a representative office depending on their specific purposes and needs.
• Industries such as medicine, insurance, and law need to register with specialized regulatory agencies to obtain a practice license.
• After forming a company, it is important to register with the tax authorities and open a bank account.
• When applying for a visa or temporary business residence card in the US, you will usually be granted a B1 or L1 type depending on the specific case.

 

3. Instructions for steps to register a business in the US

3.1 Choose the type of business

You should research carefully before registering a business in the US and the first thing to note is choosing the type of company when doing business.

 

According to research, you can choose one of two types: joint stock company and limited liability company to do business. With joint stock company, charter capital can be divided fairly but must pay tax on any profits earned. With limited liability company, you will not have to pay any taxes, meaning that all profits earned by the business will go to the owner, so people usually choose this type to do business. Consider factors such as industry, scale, business goals, risk level, investment capital needs to choose the most suitable type of business.

3.2 Business naming – Trademark registration

Naming your business is the next thing you need to do when you register your business. You need to make sure that your company name is not already used by anyone else in the same state. This can be checked on the website of your state’s Department of Commerce.

If you want to register your business under a name different from your legal name, you need to register a DBA.

In order for your company to be widely known, well received and known by many investors, it is essential that you establish a representative agency when registering a business in the US.

 

Establishing a representative agency is a decisive factor in whether the company can sign many contracts or not. Moreover, all information, documents and procedures for establishing a company are also received by the representative agency, so this is very important.

3.3 State tax registration

Depending on your business and industry, you may be required to register for state taxes such as corporate income tax, sales tax, and payroll tax.

3.4 Submit application for business registration

Step 1: Prepare complete documents

• Certificate of incorporation in your country
• Personal identification
• Company charter, list of shareholders and members in the company
• Documents proving legal business activities issued by reputable agencies
• Application form for business formation in the United States

Step 2: Submit application

• The application will be submitted to the competent authority, which depending on the state may be the Department of Commerce, the Department of State, or the Office of Business Development.
• The applicant must pay the fees as prescribed by law in each state and the laws of the United States.

Application method:

Submit application directly: Bring application to competent authorities

Indirect application : Through the electronic portal

3.5 Business license registration

Once the application is approved, some specific sectors such as pharmaceuticals or healthcare will require the business owner to register with the relevant regulatory authorities. These authorities can issue a business registration certificate and allow the business to operate immediately. The next steps include registering with the tax authorities and opening a bank account.

3.6 Open a bank account for the business

When registering a business in the US, it is indispensable that you open a bank account in the US for business convenience.

If you want to open a bank account in the US for business purposes, there are very few services in the US that can help you do it. Doing it yourself will take a lot of time and money, so you need to find a better solution.

Instead of opening a corporate account, you can open a personal account, this way will be much easier so you can consider. If it is suitable for future work, you can proceed to open a personal account.

4. Necessary costs when establishing a company in the US

In general, the cost of registering a business in the US ranges from $100 to $300, depending on the specific items and the type of application, whether simple or complex, as well as the specific regulations in each state. However, the total cost usually does not exceed $500.

Business owners can apply and complete the required procedures themselves. However, if you want to save costs, you should hire a reputable immigration consulting company to assist you in the process. This will help simplify the process, ensuring that all procedures are completed quickly and accurately.

Below are some of the initial costs that need to be paid when a new business is established in the US:

• Office rent: The amount of money needed to pay for office rent.
• Telephone, fax and Internet charges: Charged based on usage.
• Equipment costs: Such as telephones, faxes or computers… In fact, these costs are often lower than in some other countries.
• Transportation costs: Related to the use of transportation, including maintenance and gas costs if using a car.
• Rental fees: Varies by area and type of accommodation.
• Employee Salary: This fee includes salary and other allowances.
• Travel and hotel expenses: This fee should be calculated when the business has business trips or travels to different locations.