Starting your own company in the US can be an excellent option to improve your income. If you have already made the decision to start a business, but you do not know the legal and/or tax requirements that you must meet to do so, this guide is for you! We will indicate the necessary documents to register your business, the steps to follow and we will give you some recommendations to make this process as simple as possible. Read on to find out how to register a business in the United States!
Keys to register a business in the United States
There are several considerations to take into account before registering your business. Some of the most important that we have detected are:
Many people in our community think that starting a legal business in the United States requires a specific visa. But we have good news for you! In general, it is not necessary to be a resident or have any specific visa to register a business in this country. The only thing you need is a valid passport and to comply with the other regulations that are imposed on your specific business. However, there are some types of business visas that can be useful for this process:
- E-1 visa. This type of document is issued to importers and exporters from countries with which the US has a treaty and who wish to enter the country to conduct their business.
- E-2 visa. It is granted to people who have the necessary means to demonstrate that they can start a successful business in the country or to those who plan to acquire an already established business within the United States.
- L-1 visa. These visas are granted so that international companies can make intra-company transfers of employees in managerial positions or with specialized knowledge.
According to data from the World Bank , opening a business in the US takes between four and five days on average. However, this period depends on the state where you establish your company, whether you have all the necessary documents and data and, in general, on your experience. Due to these factors, we recommend that you allow a period of at least 20 to 25 days to complete this process.
The cost of the procedures to register a business varies depending on factors such as the state where it is established, the type of business to start and the permits that are required by law. In general, the expected cost for this type of process is between $500 and $2,000.
You do not have to be a resident of the United States to open a business in the country. In fact, it is not even mandatory that you be in national territory to carry out this procedure. What is necessary is to have an official address within the country, but thanks to virtual office services , it is very easy to obtain one at a low cost.
Tips for opening a business for the first time
Starting a business can be an arduous process, but we assure you that it is worth it. To increase your chances of success, here are five tips to help you start a profitable business:
- Do a market study. A market study will help you understand the commercial and social landscape within which your new business will develop. This will allow you to develop strategies appropriate to your environment and maximize the chances of success for your company.
- Develop a business plan. A business plan is the roadmap your company will take to operate. The business plan should detail both the main objectives of the company and the resources necessary to start and maintain the operation of the same.
- Adapt your business to new markets. Innovation is one of the most relevant elements for the success of a company. Based on your market research and business plan, adjust your strategies so that your business offers products that are relevant to your target market.
- Do your research. The main characteristic of a successful entrepreneur is to stay informed. Take courses relevant to your area of business, find out about best practices in general and in your specific industry, and generally never stop learning. Remember that at trompeta.net we always seek to give our readers the most relevant information of the moment, so continuing to read our articles can be your first step towards success.
Seek help from experts. Another common characteristic of a successful entrepreneur is that they almost always have the help and advice of other people who have traveled a similar path. Find people who have experience in the line of business you want to focus on and ask them for help. You will see how the experience of these people makes your own experience easier.
LLC or CORP?
There are various tax schemes under which you can register your new company. The two most common are limited liability companies and corporations. Your choice between these two figures will depend on many factors, so below we present the characteristics of each one to help you make the best decision:
What is an LLC and what characteristics does it have?
Structuring a company as an LLC ( Limited Liability Company or Limited Liability Company) means that its assets are completely separate from the personal assets of each of its members. This separation of assets is attractive mainly for two reasons :
- In the event of a company bankruptcy or lawsuit against the company, members’ personal assets will be protected and may not be claimed as payment of company debts.
- Company profits can be transferred to members’ personal income without taxation to the company. This means that, in general, the tax rates paid by having an LLC are lower than those of corporations.
What is a Corporation and what characteristics does it have?
Unlike LLCs, corporations (also known as C corps ) pay taxes directly on their profits before they can be transferred to the personal income of their partners. The main advantage of this type of scheme is that it allows you to receive investments and you can sell company shares.
Steps to create your business in the United States
The US Small Business Administration (SBA) recommends that you follow the steps listed below to register a business in the country:
1. Choose the state in which you are going to register your company
Where you register your new company will influence many aspects of your operations, as the business and tax regulations of each state of the federation vary. Remember that you must pay state taxes in the location where your business is registered, so the tax rates that apply to you will be those set by the local government. There are also states that offer incentives to certain types of companies to establish themselves in their territory. Take a look at these considerations and choose the state that is most favorable for your specific case.
2. Choose the structure that suits you best
Earlier we mentioned the difference between an LLC and a corporation, which are generally the most common structures used to organize a business. There are variants of these schemes, such as sole proprietorships (which have a single owner), S corps (corporations with special considerations to avoid double taxation), B corps (for-profit charitable corporations) and non-profit corporations. profit. Study all your options and choose the one that best suits your preferences and the needs of your business.
3. Choose a name for your company
There are four ways you can register your business name. It is not mandatory that you make all four registrations, but it is important that you consider them all:
- Entity name. This name is registered with the state government of the place where your company is registered. Each state has different rules for these names, so you should review the applicable regulation. This registration protects you from other businesses operating under the same name within the state and is required in most jurisdictions.
- Commercial brand. By registering your business name with the United States Patent and Trademark Office, you can ensure that no other business in the same industry does business under the same name. This protection is effective at the national level.
- Name under which it operates (DBA, for its acronym in English). On some occasions, companies operate under names other than the official name of the legal entity, in which case it will be necessary to register a DBA. DBA registration may be required by states, counties or cities, but this is not always the case. It is worth mentioning that although registration of a DBA is not required in your case, having one will help you when you want to get a business bank account.
- Web domain. Web domains, also known as URLs, are the addresses that identify a site on the Internet and through which users enter them (for example, the domain of our page is: saberespoder.com). If you plan to develop a website for your business, consider registering your domain as soon as possible. Once it’s registered in your name, no one else can use it unless you stop paying for it or voluntarily transfer it.