Thinking of starting a business in the US? If so, you’re going to want to make sure you do adequate research. There’s a lot of factors you’ll need to be aware of when starting an American based business as a non-US resident.
Here, you’ll discover everything you need to know about setting up an international business in the States.
Consider starting a C Corporation
One of the first hurdles you’ll have to overcome when setting up a business as a non-US resident, is knowing which type of company to set up. There are two main options here including a Limited Liability Company (LLC) and a Corporation. If you talk to experts in the US, they’ll typically recommend setting up a C Corporation.
C Corporation businesses tend to be much more scalable and they’re also able to be made public. You’ll also find that investors prefer to deal with C Corporations, so this is something to consider if you’ll need funding.
Know where to base the business
Another thing you’ll have to give important consideration to is where you’re going to base the business. Remember, each state has its own unique laws and regulations. From an entrepreneur’s point of view, Delaware tends to be an attractive option.
Delaware benefits from lower tax rates, plus you don’t necessarily need a Delaware bank account or physical address. The laws in Delaware also provide directors greater protection. However, ideally, you’ll want to set up your business in the state you’re planning to try and dominate.
Setting up a bank account
By far one of the most complex tasks associated with setting up a business in the US, is opening up a bank account. You’re going to need an EIN (Employer Identification Number) in order to set up a bank account. This will also be required for hiring employees, taking out loans and in order to obtain a business license.
You can apply for an EIN from the IRS and it’s completely free of charge. The only thing to note here is that opening up a US bank account can be tricky. There’s a lot of security checks and strict requirements you’ll need to meet.
Familiarise yourself with the legalities
The above are just some of the legalities associated with starting a business as a non-US resident. Due to how complex the process is, it’s highly recommended you use the services of a legal firm such as Withers. They will be able to ensure you set up the company in accordance with the relevant laws and regulations.
Overall, setting up a business in the US can potentially be a lucrative move. However, it’s vital you do adequate research and understand the legalities involved.