Registering a company in the US

Last week I told you how to register a company within the UK. As mentioned last week, without yet revealing my business, my main market is in the US, and because I’m moving to the US at some point (as fast as possible) I would like to register a company in the US as well.

Because I’m a non-American resident at this point in time and I do not have any kind of Work Visa or Green Card I will have to go through a system that will be both time consuming and I will probably meet some obstacle on my way. It might not run as smoothly as I wish at first. Therefore to make it run smoother it is useful to know the rules or at least the loopholes. Lets just face it; it’s just too much information. For a person who was born in the US etc this process is obviously much easier, but even for an American citizen it can get complicated. A couple of things that is important to considere is what type of company you want to form and it what state.

The most common company types in the US are LLCs (Limited liability company) and corporation. The reason why is because both corporations and LLCs limit the liability of the owners/shareholders from the debts of the business and against lawsuits against the business, just like the Ltd in the UK.

The difference between these two companies is how they are taxed, but it depends on what type of corporation you chose. In a standard corporation or a C corporation the net business income is subjected to corporate income tax, and the monies remaining after the corporate income tax are taxed a second time when they are distributed as dividends to its owners who must then pay personal income tax, however a S corporation and LLCs are similar in that they are both ¨pass-trough¨ entities FOR TAX PURPOSES; the income of these companies are passed through their owners and reported on the owners personal tax returns, that way eliminating the double taxation incurred by owners of a standard corporation or a C corporation.

When this is said hiring a lawyer to examine your situation and help you determine your needs is a good idea. This all depends on your situations. If you are looking to save employment tax and your situation warrants it an S corporation is probably the best option. LLC is a good choice if operational ease and flexibility is important to you. Go to this website for more information on how to register your company, taxes, licenses and permits http://www.business.gov/register/steps-to-register.html (Best website). 

When it comes to what state that is the best to register in, I have to admit that don’t have a clue, but I know that Florida and Delaware are good places to register a company. Anyone who can recommend a good state; tax beneficial and other advantages?

Next week I will look at the different possibilities of forming an American company for a non-resident and WHAT state. Stay tuned.