When it comes up to register a company in the US, the first thing to take care of is that whether the person going for registration is a US resident or he resides somewhere else but is willing to start and get his business registered in the US.
Setting up a company as a US Resident
Incorporation of a company in the US comprises of the below steps
- For a person who resides in the US and is willing to get his company registered, the first step is to choose the type of business entity that the business will be. The most common type of business entities is a sole proprietorship (company owned by one person), Limited Liability Company, LLC, (they are less formal than a corporation and also provide protection against liabilities to the owners) and the corporations (proper formal companies that require comparatively more complex requirements for their operation).
- The next step is identifying the owner of the company and deciding on the amounts to be invested by each. Also, the expected return for each of the member is to be decided.
- Once the above step has been finalized the person or people choosing to incorporate the company have to nominate the person who will manage the company. In case of corporations, the particular people are the directors whereas for an LLC there are managers.
- After above the selection of the state where the company is to be incorporated.
- Then decide on the name of the company and check whether the name you have chosen is available or not. Also for each state, there are indicators that are to be used in the name that tells the type of entity the business is.
- Once the name is decided the step that follows is the filing of incorporation papers known as the articles of incorporation in case of a corporation or articles of formation in case of LLC.
- The next requirement is regarding governance where the corporation has to formulate a shareholder agreement, and an LLC has to make an operating agreement.
- Next up is the step that fulfills the ownership requirement where each shareholder of the corporation are to be given the shareholder certificates, and the members of the LLC are to be given the membership certificate.
- After the above is done, the Employer Identification Number is to be obtained for the filing of return and for reporting to the state government.
- Finally, the bank account is to be opened and an office is designated for the smooth running of the company affairs.
- Besides all above, there is a must requirement in every state for a company to have a registered agent. The registered agent could either be a business or an individual assigned to receive all the proceedings whenever there is any lawsuit or summon against the company.
Setting up a company for a Non-US Resident
As the name indicates a nonresident US is someone who doesn’t reside in the US, but however intends to get his business registered in the US.
As for the US resident, the requirements are same in terms of where to set up the company and the type of company to be set up. However, a non-resident has to see that if he has to get additional licenses. The most important need is work visa.
Working visa requirements
A person can choose to run a US company from outside the US even if he doesn’t have a visa, but if the person going to incorporate a company is going to manage it while living in the US, then a work visa is a must. There are several types of work visas that one could select from, but this is to be noted that a work visa is vital otherwise legal action can be taken against one managing company without a work visa. The remaining steps are the same as for the resident US.