Your US Company

Your Gate Into The American Market

Registering Your Company In The U.S.

Many international entrepreneurs are looking to create or expand their business into the U.S. market. Your US Company specializes in helping those entrepreneurs, and we would like to present you with several ideas to consider first.

What Documents Are Needed?

First of all, to register a company in the U.S. you don't need to present any documents - only information. Documents would be necessary in case you want a US address or need to open a bank account, but not for company registration.

Do I Need To Be In The U.S. To Open My Company?

Not at all. All filings can be done remotely, with us serving as your proxy in the U.S. In almost all cases when we need a signature from our clients this can be done electronically.

Choice of State

If you plan to buy real estate property, or open a "brick and mortar" store in the U.S. it is recommended to form your company in the state where this property or store is physically located.

Majority of our clients choose either Delaware or Wyoming, due to more expensive fees in Nevada. You can see the comparison between those 3 states here: DE vs. NV vs. WY.

Choice of Entity

Limited Liability Company (LLC)

LLC combines the limited liability protection of a corporation (hence the name) with the flexibility and pass-through taxation of a partnership/sole proprietorship. Like the shareholders of a corporation, the owners (members) of an LLC are not personally responsible for the debts or liabilities of the LLC.

The LLC has no limitations on who may be involved, and it can be managed by its members or by managers. It is often more flexible than a corporation and it is well-suited for companies with a single owner.

Advantages:

  • Limited Liability - owners of the business are not personally responsible for the business's debts.
  • No limits on number of members;.
  • Flexibility in tax designation - LLC can be taxed as disregarded entity/partnership (default), or as S Corp or C corp (requires filing additional election documents with IRS and some states).
  • No double taxation, when elected to be taxed as disregarded entity/partnership, or S Corp.

Disadvantages:

  • In some states (e.g. New York, Illinois) more expensive to form and/or renew than corporation.
  • If your business is looking for major investment, your investors might be reluctant to invest in an LLC.

Click to learn more about Limited Liability Companies.

C Corporation

A corporation is a type of business entity that is organized under specific provisions of the General Corporation Law. A corporation must have shareholders, directors and corporate officers, and must be registered with the state. In addition, the corporation will be taxed at the state and Federal level on its earnings.

A corporation offers the protection from personal liability for the owners (shareholders). This corporate veil of protection does not offer protection from liability in the case of fraud, failure to pay taxes, under capitalization of the corporation, or commingling of personal and corporate funds.

The "C" part of "C Corporation" refers to the designation of the corporation for tax purposes. Most major companies (and many smaller companies) are treated as C corporations for Federal income tax purposes. Keep in mind, since "C Corporation" is a tax designation, and not an entity type, some entities other than corporation (such as LLC) can elect to be taxed as "C Corporation". For corporations "C Corporation" is a default designation, and does not require any additional filings with the IRS or the state.

Advantages:

  • Limited Liability - owners of the business are not personally responsible for the business's debts.
  • A corporation may qualify as a C corporation without regard to any limit on the number of shareholders, foreign or domestic.

Disadvantages:

  • Double taxation - C Corporations are subject to corporate taxes, therefore creating the effect of double taxation (first on corporative level, and then on shareholders' personal level).

Click to learn more about C Corporations.

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