Friday, April 28, 2017

HOW TO SET UP A COMPANY IN THE USA

HOW TO SET UP A COMPANY IN THE USA


United States of America is the largest economy in the world, holding the global leadership the past 100 years. For the American government it is highly important the development of the private sector in the context of maintaining the stability of the economy. Reliability of the economic system, the hardness of laws and preferential treatment to business is the foundation of the entrepreneurial spirit of the Americans. It is for these reasons the businessmen from all over the world try to set up a business in the United States.

In a rating Ease of Doing Business 2015 the United States take the fourth seat in the world. Business registration in the United States, according to the year 2015, consists of six procedures for processing of which takes at average about five days. This is considerably larger in comparison with the countries heading the list in the ranking. Nevertheless the USA leads the sub-ratings В«Investor Protection and Credit Provision.

The most profitable industries in the USA, according to estimates of financial company Sageworks are accounting profession, legal services, rent and plant leasing, oil-and-gas branch, medicine (in particular stomatological services, outpatient maintenance), as well as funeral services. In the United States there are a number of approachable programs by provision of assistance to burgeoning entrepreneurs. These programs are designed for eco-friendly business, home-based business, Internet business, self-employment, as well as on businesses that provide the persons belonging to national minorities (in particular Native Americans), veterans and women. 

Registration procedure

In the USA there is no the national institutional body which is engaged business registration. Each state has its own laws relating to the registration and the conduct of business, in each particular state the registration is carried out specially made by office department the Secretary of State. Register the business it is necessary in the state where it will be carried out its activities.

In the USA there is no need officially to register the individual enterprise. To other types of entrepreneurial business are applied the special conditions of registration (depends on staff). In particular this applies to corporations, non-profit organizations, limited companies and partnerships. The registration procedure begins with the moment filing of pleadings to the Secretary of State wherein is pointed out the company name and registered address whereby all official correspondence will be sent (you can use your home address or to open a virtual office).

The name of the company should not duplicate the name of an existing company in the state. If for business name is used owner's real name it does not require any formal registration. If the company name will be differ from the name then the name must register with local authorities by filling out a special form known as DBA (doing business as). The name of the company is considered to be fictitious if it contains other words such as Company, &Son, &Associates, etc.

If to generalize features of business registration in each state then the registration of firm in the USA will consist of the following steps:

  • Official filing of application to the secretary of relevant state
  • Registration of a company in tax office IRS with the purpose of reception the registered number of  taxpayers
  • Opening of an account in bank of the USA

Forms of business

Sole proprietorship. The individual enterprise is the base organizational-legal form of business in the USA. The founder individually owns the company and bears the full responsibility for property and obligations of the company. Expenses are minimal, spending on registration are limited by the reception of necessary licenses or permits (which list depends on branch and state). Private entrepreneur pays income tax, as a self-employed worker, estimated tax, social security taxes and Medicare program, a tax of unemployment payments  and the excise tax (if necessary).

Partnership. Under the partnership are expected participation two and more persons. Each partner contributes in all respects of business by money, property, labor or skills. In turn, each of the partners assumes get revenue share or percentage of losses from business activities. Most often in partnership co-operates highly-skilled professionals in the field of legal and financial services, medicine, etc.
SET UP A COMPANY IN THE USA

In the USA there are some various types of partnership which depend on the agreement and the partner responsibility: 

General Partnerships. Profit, responsibility and management duties are shared equally between partners.

Limited Partnerships. Partners answer for obligations of the partnership only to the extent of its contribution. Such partnerships are the most attractive to investors of short-term projects.

Joint Venture. Joint venture companies operate as partnerships, but only for a limited period of time or for a single project.
Partnerships are obliged to file an annual tax declaration for the income of accounting after employment taxes (Social Security taxes and Medicare program, as well as the tax deductions from salary, taxes in fund for unemployment payments).

Corporation. The corporation is a more complex structure and is generally suitable for bigger, strong companies with a large staff of employees. The corporation is a separate legal entity owned by shareholders. This means that the corporation and not the shareholders, has legal responsibility for the actions and debts of the enterprise. 
Corporations are obliged to pay federal, national, and in some cases the local taxes. The majority of the enterprises should be registered in IRS, the national and local tax departments and receive tax identification number or permit. The income received by corporation is bared tax in an instant of its reception, and then the dividends divided between shareholders are bared tax in an instant of their distribution.
Limited Liability Company, LLC. A limited liability company is the most effective in terms business dealing in the US. The number of members is not limited - they can be individuals, corporations, and other limited liability companies and foreign organizations.  LLC owners limit their personal liability for the debts and actions. All the companies with limited liability should file a tax returns as corporations, partnership or private entrepreneurs. From the company the co-owners of which are non-residents and which does not carry out activity in a US territory, the taxes are not raised.
The list of paid taxes and tax rate in the USA depends on state in which the company is registered. Taxes are basically divided into federal and local (in particular state) and industry (e.g. gaming business additionally is taxed). On average the American companies pay 11 taxes and contributions. Income tax is 27.9%, tax and payment of salaries is 9.9%.

Restrictions 
Restrictions to some kinds of entrepreneurial business depend on state to state. For example, in Nevada, special licenses and registration are need such types of business as medicine, banking business, insurance business, game business, hotel business, special civil work, advocation, weapons sales, sale of cigarettes and alcohol.

Facts about the country
In the ranking Easy of Doing Business 2015 the United States take the fourth place in the world after Singapore, Hong Kong and New Zealand. And in a rating of the world on an index of innovations the USA takes the sixth seat.
90% of the US population lives on credit. The average American family pays of a mortgage, loan for tuition and uses credit cards. Every seventh American has at least 10 credit cards.

The average cost of annual training in the American College equals 27 293 dollars. More than two-thirds of the students use a credits for payment their studies. About 14% of them pay for maintenance loans up to retirement age. The sum of all credits for higher education exceeds $ 1 trillion.
Forbes magazine in 2015 estimated the combined wealth of the 400 richest people in the US about $ 2.29 trillion. This amount is roughly equal to the annual GDP of Brazil or Russia. Co-founder of Microsoft Bill Gates in the 21st time in a row topped the rating with $ 81.2 billion.

The American cities such as Chicago, San Francisco, New York and Los Angeles were included into the list of the most attractive cities for crossing made by consulting company .
Disclaimer : We have made every effort to make sure that information on this website is up to date and accurate. However, we still cannot guarantee the accuracy or validity of the information. Please consult a Professional in person to get valid details

No comments:
Write comments