How to create a company in the USA. “10 steps”

How to create a company in the USA?

The USA is the dream of every Spanish entrepreneur. The US is the market in which every entrepreneur wants to start his business. For the most part, they go in search of fortune and business success. Why? Well, among other reasons, it is easy to get investments. In addition, the procedure for the creation of a company is extremely fast and simple.

However, creating a company in the United States requires compliance with certain requirements. So, some questions that we must ask ourselves are: What structure do I choose for my company? What budget do I need?  How much staff do I need and what type? How can I register the company and what is the cost?

Below, we show you how to create a company in the USA: “10 steps”.

1.-To create a company in the US, it is not necessary to be a citizen or an American resident.

2.-Business Visa: To start a business in the United States with physical presence, you must obtain a visa or residence permit. Some types of Business Visa are:

• B1: Short-term business visa: It is temporary and does not allow you to sign contracts, but you can negotiate them.
• EB-5 – Investor Green Card Program: To obtain this license, an investment of $ 500k – $ 1M is required. In addition, it requires the hiring of 10 US residents within 2 years. Finally, the company has to remain in the US for a minimum of 5 years.
• E-2 inverter visa. These visas have an initial validity of two years, and subsequently they must be renewed every two years.

You can apply for the Business Visa in person to a US embassy, ​​or online https://ceac.state.gov/genniv/.

3.-There is not a minimum capital requirement needed to establish the company, nor is it required for employees to be American. Only an address in the country and a telephone number is needed.

4.-You must open a bank account in a financial institution that operates in the USA.

5.-You need to choose a corporate structure according to your business idea. The US government has a body that serves as a guide to choose the type of business structure. We attach very briefly the most important ones, but we can help you if you send us an email.

Main Corporate Structures in the United States

The main corporate structures are:

•  Individual Owner (Sole proprietorship): It is the simplest and cheapest structure and does not require many requirements. The owner has unlimited liability.
•   Corporation: They are entities independent of their owners. The shareholders only have responsibility for what they have invested in the company. There are two types of corporations (Class “S” and “C”) and are differentiated by the tax obligations to which they are subject.+
• Limited liability company: It is the most flexible business structure. Thus, it is presented as a combination of corporation and limited partnership.
• Limited company (partnership): It is formed by two people or entities that own and manage the company. The partners share benefits, losses and management. In addition, taxes are the individual responsibility of the partners.

 State Jurisdiction, not Federal

6.- Companies must be created and registered at the state level. That is, the process is not the responsibility of the federal government, but instead on each of the 50 states that make up the nation. The process may vary depending on the particularities of the legislation of each state. In general, the procedure begins with the registration of the company in the state registry, and the appointment of a registered agent. The function of this figure is to act on behalf of the company. For example, the agent is in charge of receiving legal documents (demands, embargoes, citations …) The agent must have a postal address in the company’s registration status. The agent can be the owner of the business, or it can be a third party with authorization to receive legal documents on behalf of the owner.

Name of the Company

7.- There are three different ways to names for your company:

• Entity Name- an entity name protects your business at the state level. Depending on your business structure you may be required to register a legal entity name. It is important to note that you cannot have the same name as another business.
• Trademark- a trademark protects the name of your business, goods and services at a national level.
• Doing Business As (DBA) name- you might need to register you DBA with the state, country or city your business is located in. Registering your DBA name doesn’t provide legal protection, but it is often required by most states.

Taxes

8.- In general, all companies pay a federal tax of 35%. In addition, state and local governments can also impose rates on income, ranging from 1% to 12%.

Licenses

9.- You must identify the commercial licenses that are required depending on the industry to which the company will be dedicated. In addition, the type of licenses differs depending on the state in which the company is established.

Location the company

10.- The location is a key aspect for the establishment of the company. Depending on the place where the company is created, the conditions differ. For the most part, entrepreneurs choose areas in which the cost of creating the company is small. However, there are other factors to take into account, such as the tax regime. Some of the states with the best conditions to create your company are:

•  Delaware: Provides great flexibility, as well as low corporation tax for small businesses. In addition, there is no Value Added Tax. Many investors demand that the company be located in Delaware·
• Nevada: Companies from the tourism, mining, and manufacturing industries abound. It is considered a tax haven. There is no corporate tax at the state level. There are also no taxes on corporate actions. Despite the above advantages, Nevada is one of five states in which a commercial license is required.·
• California: It is ideal for many entrepreneurs, especially for the technology sector. The main advantage of this state is the flexibility in the composition of the management body of the company. The state requires that there be a president, a finance director, and a secretary. But in California, only one person can perform all the previous positions. In addition, it is not necessary to identify the shareholders of the company, being able to remain anonymous. Lastly, California’s corporate taxes are 9%.

Conclusion

In conclusion, if you are interested in creating a company in the US, you must take into account the above information. The corporate structure and location will be key aspects to take into account for the constitution of the entity.