Borders are reopening, trade is resuming, and businesses are looking for their next move in an evolved landscape. The COVID-19 pandemic will leave a legacy well into the next generation, which is why recovery is all the more important, and it is for this reason that the United States becomes a key figure in today’s article. The nation, despite widespread distribution and impacts due to the virus, has been able to continue operating, and not only that, but is also reopening routes between other countries that have been shut off for quite some time. This presents an opportunity, and it is key to make the most of opportunity in times like this, so if you own a business outside of the US, perhaps the market has appeared elusive and prevented you from expanding overseas, however, with these recent developments and a temptingly large market size, maybe now is the right time for you to make the move.
There is evidently going to be a lot of research involved in an undertaking such as this, which is not to say the process is any less exciting or will not yield fantastic rewards for your company, only that it is important to bear in mind your personal workload in making a move to the US for company establishment. One good place to start is the requirements, and the good news is that any foreign citizen or company is eligible to set up an LLC within the United States! Another thing to clear up at this stage is that part of the research will involve deciding if you want to set up a C-Corporation or register an LLC, as the two are different and will dictate the pathway to company establishment for your business.
Do not worry if you are unfamiliar with the term ‘corporation’ or ‘LLC’, below you can find a definition of each of these, as well as what a C-Corporation is (the kind of corporation foreign nationals are able to establish in the US):
Corporation: “a large company or group of companies authorised to act as a single entity and recognised as such in law”
C-Corporation: Legal structure for a corporation which taxes owners and shareholders outside of the entity itself
LLC: Limited Liability Corporation, which is a US business structure and is a hybrid between a corporation and a partnership, protecting owners from personal responsibility for debts and liabilities
With these terms understood, hopefully you can gather a clearer idea of what exactly you are needing to set up in the US. We can now move on to more of a sequence of events, this again will be found below:
1. Decide which business entity you need to establish (this is what we have just talked about)
2. Choose the state where you intend to incorporate your business (an important step as each state is individual and may mean your process is slightly different)
3. Set up a corporate bank account (the hardest step, but also pivotal to the process)
During step two, obtaining an EIN Tax ID and filing the information regarding your company to the Secretary of State will be necessary. At this stage, you will also need to submit the name of your LLC (should this be the option you select). Furthermore, the reason we have highlighted the bank account as the difficult part is due to the physical presence required within the bank to complete the process.
In terms of the benefits to be found by getting involved with this process, low-cost banks and stable currency is certainly a good place to start, furthered by the affordable nature of the fees in terms of initially and also should there ever be a need for renewal. Delaware and Wyoming often come up as good states to settle on, Wyoming, for example, where aside from filing an annual compliance report, renewing the agent service, and filing a specific annual form, there is nothing else you need to do in terms of maintenance, keeping the ease of upkeep as a persistent benefit to your business.
If you want to establish a business in the US and have any questions, please feel free to contact us today. At Creimerman, our team of global citizens provide a bespoke service to our clients, and we would love to explore your opportunities in the US and be by your side on your professional journey.