Every day, new businesses spring up in the USA. Both foreigners and permanent residents are building successful businesses in USA. Everyone indeed wants to enjoy the advantages the US business system offers.
Opening a business in USA gives you a great opportunity to attract new customers, expand your business, and enhance the credibility of your company. However, unlike what many people believe, opening a business in USA is not as tiresome. With just a few steps, you can open your own business in a country with one of the lowest tax rates in the world.
In this article are the steps you need to take to open your own business in USA – regardless of the type of business it is. Consider it as the concise and efficient manual you have been looking everywhere for.
Steps to Start Your Own Business in USA
#1: Decide which business type is best for you
This is a very important step and that is why it came first on this list. The type of business you choose will influence everything about your business. So choose wisely. Below are some options you can choose from:
Limited Liability Company (LLC)
This is possibly the most common type of business in USA and used by a large percentage of entrepreneurs in the country. If you are looking for how to start a business in USA as a non-citizen, this is probably your best option.
LLC offers a great level of protection to your personal assets against business debts and lawsuits. That means in the situation something happens to your business in the USA, your personal assets will be fully protected.
You will need to sign an LLC operating agreement. Without a written LLC Operating Agreement, a company may appear to be a sole proprietorship or partnership for tax and lawful purposes.
C-Corporation
If you are not a US citizen and looking to open a company where you can sell shares of your company or have investors come to invest, this is the most recommended business type for you. This type of business is better for investors because it allows them to passively hold shares without the fear of being taxed for that. They will only be taxed when they are ready to sell the share again.
S-Corporation
This is another business option you can open in the United States. But this is only suitable for US residents. In fact, it is not available for non-citizens. But it a good one as it allows you to avoid some taxes such as the self-employment tax which can eat approximately 15% of your income. With S-Corporation, your business does not pay double taxes, a great chance to help you save more on taxes.
#2: Find a registered agent
An agent here is a company or person with a physical address who can sign and receive official documents on behalf of your company. Such a company or person must be situated in the same state you are looking to open your business in USA and must be easy to locate.
However, you will need to pay for the agent’s service. This can cost anywhere from $45 to $100 per year. If you will be opening an LLC business type, the law states that your agent must be one that will be available to reach during working hours.
#3: Get an Employer Identification Number (EIN)
This is usually issued to your company by the U.S. Internal Revenue Service. Your EIN is also your tax ID and that is what will allow your company to start operations. Without your tax ID, your company cannot start. It allows you access to so many things, including opening a bank account, hiring employees, and paying taxes.
#4: Create a U.S bank account
This can be a tedious task for non-residents because they will need a permanent address in the country to do this. But for residents, you only need to work into any bank of your choice and create your bank account. Easy and simple!
But don’t forget you will be required to present your EIN and two documents with photos to prove your identity. If you are a foreigner looking to open an account, you will have to undergo some anti-terrorism and anti-laundry checks before you can have a bank account.
#5: Get a U.S mailing address
This is the next step after having your bank account. You will need a U.S mailing address. It can use your business address if you already have one or use some companies that provide US mail addresses. Such companies include USAMail1.com, TravelingMailBox.com, and EarthClassMail.com. However, the services of these companies are not free. You may need to pay up to $100 every year for it.
#6: Open a merchant account to accept payments
Opening a merchant account will make it possible for your company to accept credit cards like MasterCard, Visa, America Express. You will need the account to successfully run a business in USA. However, you will need a U.S. bank account, business address, and phone number to open a merchant account for your business.
#7: Apply for licenses and permits
You will need to ensure the smooth running of your company by staying legally compliant. You will need to obtain the necessary licenses and permits to keep your company on the good side of the book of the law. These would vary based on your business type, industry, location, state, and other factors.
Now you see that opening a business in USA is not as difficult as most people assumed it. Therefore, if you are planning to start a company in the country, now is the time for you to take action. Get a good business name for your business and have a well-written business plan to help you run a successful business.
