How To Register a Company in The United States

How To Register a Company in The United States

Registering your company is as important as building it because it brings a level of trust and credibility to the eye of your potential customers. Are you building a company in the United States and need help with the registration process? These steps would enlighten you on how you should go about the process.

Are you an entrepreneur looking to start a company in The United States. Here are ways for how to register a company in The United States (step by step).

In the United States, businesses come in three structures; Partnership, Corporation, and Limited Liability Company. A company registration depends on the choice of business structure the owner is building and the vision of the company,

Under the Partnership structure, there are Sole Proprietorships, Limited partnerships, and General partnerships. The sole proprietorship is owned and managed by only one person while the general partnership, similar to sole proprietors, is owned and controlled by two or more people. A limited partnership may have more partners but still, have a main partner that is fully responsible for the company These business types don’t need registration and are not considered companies.

Corporations in the United States are classified into C-Corp and S-Corp with the C-Corp being more effective. C-Corps are mostly big companies with multiple investors and shareholders. This business structure requires registration and allows non-residents to register using the C-Corp. The C & S corporations are complicated and difficult to register. One would have to first register as a C-corp and wait to be eligible to change to an S-corp. They only differ in their level of tax rates. 

The Limited Liability Company (LLC) is the most preferred option by SMEs and small business owners because it is more cost-effective and easy to register than corporations. LLC also doesn’t use personal accounts to settle business debts. According to Law & Trust International, founders that are residents pay only the company’s income tax while non-resident owners pay a 30% tax rate. It creates a legal separation between the business owners and the business itself.

A company’s name is an important part of its brand identity. Registering a business name comes in three ways and the style you choose also depends on the company’s identity.

1. Registering a unique legal entity name for the state to identify the company

2. Trademark marking company name at the national level to stop any business from using it

3. Registering name to operate under another standard business name known as Doing Business As (DBA)

To register your company in the United States, you need a registered agent to help complete the process in due time. This registered agent, person, or organization, helps the company always receive legal files and government correspondence.

This may not be compulsory as small business owners carry out all the processes themselves but it is important for non-residents and legal entities like LLCs and corporations. If the company is sued in the future, the paper goes to the address of the agent instead of the company. The registered agent office must be located in the state where the company is based.

EIN is a 9-digit number used to identify and ensure that your business is set up to pay taxes and carry out operations. Do your necessary research on your tax liability, then register for your Employer Identification Number and obtain other documents.

Documents like Articles of formation or incorporation, An official business name, An official business address, and identifying information about the company owner(s). Obtaining these documents also depends on your business type and the laws guiding the state you’re registering in.

After obtaining your EIN, opening a separate bank account is compulsory for the LLCs and corporations business types while it is optional for partnerships.

The Sole proprietors and general partners can decide to use personal bank accounts to run the business. Although they should separate personal assets from business assets.

This helps prospects trust your company to be legitimate. Then the documentation gives the bank the necessary information needed to help in the future. Having a business bank account also reduces the amount you pay for income tax.

Registering your company in the US also involves protecting your company’s intellectual property like your brand logo, brand designing of products, and another brand identity. While registering your company’s name in step 2, you were also protecting it from being used or copied by another company.

Safeguarding your intellectual property can be done in the following ways:

1. Copyright

You must have been familiar with seeing this in films, music albums, images, and other works. If your company deals with original written works, use copyright law to protect them from being copied. The beautiful thing about this is that when you sell the company, the rights can be given to the new owner.

2. Trademark

This is the registration of a sign, word, phrase, or insignia to differentiate and protect your company from your competitors. It takes about six months to complete trademark registration. With Trademark registration, you can take legal action against any company that violates the law.

3. Patent

This protection type is used on machinery and unique inventions. If your company invents a new piece of machinery, the first thing you do is to patent it which gives you exclusive rights over the product.

Although this process is very complex and takes many years, it is the best way to prevent anyone from selling or importing the product for some time.

–Can Non-Citizens Own and Register a Limited Liability Company in US?

Yes. LLC business style is flexible and allows anyone including non-residents to register a company in the United States, unlike S-Corp which allows only citizens, and C-Corp which doubles the tax fee of non-citizens. Although the process is more complex when you’re not a citizen, it’s more tedious when you are not a resident.

–What is the most suitable US state to establish and register a company?

Although Texas is favorable for entrepreneurs, Delaware has proven to be the best with favorable tax laws and company protections.

–Is it possible to register a company in America without being physically present?

Yes. You can register your corporation even when you’re not a resident or citizen of US. Just pick a state with favorable laws to enroll and hire a registered agent with an office in that state.

–As a foreigner, how do I go about Trademark Registrations in US?

Foreigners can also apply for trademark in US even though you’ve already applied and registered for trademark in your country. All you need to do is to hire a verified US trademark attorney, send your required documents and have the attorney represent you at USPTO Appeal Board Proceedings.

–As a non-citizen, can owning a Company in US earn me a Visa?

Well, it can but doesn’t necessarily guarantee you obtaining a Visa. However, there are every possibility that when you own a company in US and employ citizens, you can apply for an investor visa which gives you permission to relocate and work in your company in US.

–What kind of Visa is given to Foreign Entrepreneurs in US?

In US, 2 kind of work visas for foreign investors; E-2 Visa and L-1 Visa. The E-2 Visa, also called Investors visa, is a visa granted to foreign entrepreneurs that have shown evidence of improving the US economy with their establishment. It isn’t made available to citizens of all countries but to citizens of treaty countries

Then the L-1 Visa is also called Intracompany Transferee Visa and it is given to employees of a foreign company that has a branch in U.S. This individual must have worked for years in the company in an executive or managerial position.

–Are there Platforms that Help with the Registration Process?

Since registration can be overwhelming, some platforms offer services that help handle all the registration steps above and the paperwork making it easier for companies. These platforms help set up your company in the US, select your business structure, fill out the form, and save time and money for companies.

Some of the platforms are as follows;

• Swyftfilings
• FileNow
• ZenBusiness
• DelawareInc
• Incfile
• ClevverCompany
• MyCompanyWorks

Having your company registered in the US comes with loads of benefits. Your company gets to gain loads of benefits and its reputation enhances. The most beneficial aspect of registering a company in the United States is that the company gains access to funds from financial banks. The company can now be granted loans because it is perceived to be legitimate. Then your company will be able to leverage capital markets and make more sales in the US market.

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