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USA Company Registration

How to Incorporate a Business in USA | US Incorporation Services

USA Company registration is now easy as there is no need to travel to the USA or physically be present in the USA. As the process can be commenced and completed online in less than a week through IndiaFilings.

Indian Companies looking to expand or have a non-resident Indian Customer base can enjoy several USA company registration advantages.

The United States being a developed nation, is an economic superpower because of its advanced infrastructure, technology, and abundant natural resources. The economy is service-oriented, contributing 80% of its GDP, whereas manufacturing contributes about 15% of its output.

With rapid development and globalization and a substantial English-speaking population, Indian businesses are unique to exploring the American market. With the lowest corporate taxes and well-established business laws and practices, most Indian companies with global ambition think that the USA is the right choice.

Will I need to travel to the USA for incorporation?

No, you need not travel to the USA for incorporation. It can be completed without leaving India.

Will I need a passport of visa to incorporate a US LLC or Corporation?

No, any foreign national can incorporate a US LLC or Corporation without having a passport or US visa.

How many persons are required to open a US LLC or Corporation?

Just one person is sufficient to incorporate a US LLC or Corporation.

Documents required for USA Company Registration

  • Passport photocopy & Pan card
  • Address Proof and ID proof documents - Aadhar Card
  • Signed documents for Incorporation.
  • Photographs

Process of Incorporation of USA Company Registration

The first step begins for USA Company registration starts with uploading the required documents on the ICFO portal. Our business consultant will then verify the details and the documents.

Simultaneously, we try to register the name for which we check the name availability. Once the name is registered, we begin with the third next step.

Once the name gets registered, the process for preparing the AOA begins. This is to be signed by the company directors, shareholders, and secretary before registering a USA company. Throughout the process, our business consultant will keep you updated with the process of company registration.

Once the AOA is prepared, the company gets incorporated, and the next step is to apply for an Employer Identification Number (EIN) from the USA.

Registered Agent

All Delaware LLCs or Corporations are required to maintain a registered agent in the State of Delaware who would be responsible for receiving and processing all official mail on behalf of the Delaware company. Our USA registration package includes Delaware Registered Agent service for one year.

Corporate Tax Rate

The USA has two corporate income tax levels levied on LLCs and Corporations - Federal Corporate Tax and State Corporate Tax. The Federal corporate income tax rate has recently been reduced from 35% to 21% by The Tax Cuts and Jobs Act (TCJA).

State corporate income tax rate in the US differs from one state to another. The lowest being 3% in North Carolina to 12% in Iowa. Delaware corporate taxes are levied at 8.7% of net income. However, if a business is incorporated in Delaware but does not transact business in the State of Delaware, then state corporate tax would not be levied. Thus, a Delaware incorporation would be most advantageous for foreign nationals and entities seeking to do business in the USA through Delaware.

USA Entry strategies

Business in the US can be set up in sole proprietorship, general partnership, LLC, or a Corporation. However, the entries for Indian companies are limited to an LLC or a C corporation in the USA.

In the USA, the laws and the regulations relevant to the Incorporation and management of LLC or corporation differ from one state to another. We incorporate all LLC or Corporations for Indian Nationals in Delaware as Company registration in Delaware has various benefits like low taxes, minimal maintenance fees, and excellent corporate laws.

Well, incorporating in Delaware is not only a good option for Indian Nationals and companies, but even American Companies as more than half of the companies are publicly traded, and fortune 500 companies in the USA are incorporated in Delaware.

LLC (Limited Liability Company)

LLC is a type of entity that has features of both corporation and a partnership. LLC provides the owners limited liability protection in case of a lawsuit and even bankruptcy. LLCs are more flexible, and the compliance requirements for LLC are simple.

A corporation requires resolutions and shareholders meetings and the recording and filing of forms showing meetings that were held and votes. On the contrary, LLCs do not require annual shareholders' meetings.

C-Corporation

If the goal is to seek funding from the VCs and angel investors, it is better to seek a C corporation in the USA. The bankers, investors, customers, suppliers, and employees consider corporations ideal for most businesses.

C-Corporations independent legal entities that are separate from the people who own, control, and manage. Due to this, it is viewed as a regular person in tax laws and can thus be engaged in business, and contracts can initiate lawsuits and be sued.

Difference between LLC and C- Corporation

LLC C-Corporation
The owners are the members of the LLC. The owners are the shareholders of the C-Corporation
LLCs are suitable for small-scale businesses that have limited shareholders. Suitable for medium-sized businesses to substantially sizeable businesses which have many shareholders
The structures can be set up by the members as per their feasibility. The Directors choose their shareholders who manage the business.
Members have limited liability. Shareholders are not held liable in C corp.
Stakeholders from outside do not prefer LLC because they operate as partnerships. C-Corps are preferred by foreign investors because the stocks are distributed among the shareholders.

Costs of Incorporating or Forming an LLC in USA?

The cost to set up a corporation or LLC depends on what level of service you need.

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

39899

all inclusive fees

  • LLC or C-Corporation Incorporation
  • 1 Year Registered Agent

Premium

59899

all inclusive fees

  • LLC or C-Corporation Incorporation
  • 1 Year Registered Agent
  • EIN Number
  • 1 Year Mail Handling

Why is USA Company registration beneficial for Indian businesses?

We can trace the first benefit as the business laws and regulations are well-formed as well as the corporate income tax rates are meager, which is extremely favorable for the foreign business to dive in.

However, it is to be noted that every state in the USA is governed by its state and laws and regulations that differ from each other vastly. States like Delaware, Wyoming, Nevada provide the most complimenting business and taxation laws, which makes it better for companies to incorporate.

Specifically, Delaware has no state sales tax, and the state's franchise tax or small US businesses is also meager. In addition to this, there is no need for non-residents to pay separate corporate income tax in Delaware.

Besides this here are the other advantages.

  • The laws and regulations are business-friendly.
  • As there is limited liability, personal assets such as houses and savings are safe from liabilities.
  • The corporate income tax rates are low.
  • The laws do not require the disclosure of the names of the company shareholders and directors.

USA Bank Account Opening

To open a USA bank account, business incorporation documents and EIN would be required. IndiaFilings can help you open a bank Current Account in the USA for your business without having to travel to the US - at an additional cost. The business owner can also open a bank account anywhere in the USA by themselves after incorporation. We recommend Wilmington Trust, HSBC, Wells Fargo, U.S. Bank, Chase, or Citibank. Many bank branches in the State of Delaware or Vegas are well-versed in the procedure relating to setting up bank account for foreign nationals.

Further, a business account for the LLC or Corporation need not be started in the state of formation. The business owner based on incorporation documents can open a bank account from abroad or walk-in to a branch in any State and open a business account.

While, opening a bank account, a physical address must be provided in the USA for the bank to send information, chequebook, debit/credit card and other information from time to time. You can set up a forwarding service in the USA for receiving your mails and forwarding the same to you in India.

How many persons are required to open a US LLC or Corporation?

Just one person is sufficient to incorporate a US LLC or Corporation.

Will I need a passport of visa to incorporate a US LLC or Corporation?

No, any foreign national can incorporate a US LLC or Corporation without having a passport or US visa.

Will I need to travel to the USA for incorporation?

No, you need not travel to the USA for incorporation. It can be completed without leaving India.

How to open a US Bank Account?

Once a US LLC or Corporation is incorporated, you can use those documents along with the EIN to open a US Bank Account. To open a US Bank Account, physical presence of the person would be required in the bank branch in the US.

What is EIN Number?

Employer Identification Number (EIN) is a nine-digit number assigned by the IRS. EIN is required for opening a US bank account, hiring employees and filing various business tax returns.

Will IndiaFilings help me with bank account opening in USA?

Yes, IndiaFilings can help you with opening a bank account in the USA for your business without travel to the USA.

Can a Company Hold its headquarters outside Delaware?

A company that is pursuing US incorporation has no obligation to have its headquarters in Delaware.

Who is a registered agent?

All Delaware LLCs or Corporations are required to maintain a registered agent in the State of Delaware who would be responsible for receiving and processing all official mail on behalf of the Delaware company.

IndiaFilings is the market leader in India's company registration services, offering a variety of company registration like private limited company registration, one person company registration, LLP registration, and more. IndiaFilings can help you register a C-Corp or LLC in the USA right from India in less than five working days. Get a free consultation on USA company registration and business setup in the USA by scheduling an IndiaFilings Advisor appointment.

Last updated: Apr 09, 2021

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