Setting up a company in the US
Overview about establish a company in the US
Subject
For the type of limited liability company, investors should note that in the membership, there must be at least 01 (one) member who is a US citizen or is a permanent resident or is permitted to reside and other lawfully employed in the United States and that citizen must reside in the state in which the limited liability company’s headquarters is located.
Determine members, shareholders contributing capital or will invest by themselves
This is an important issue to determine because the number of members will affect the type of company when established. Capital-contributing members/shareholders are those who have the right to decide the existence, development or dissolution of the enterprise. Cooperation with members/shareholders of the same opinion and ideas will be one of the decisive factors for the existence and operation of the company. Therefore, before deciding to proceed with the establishment of a company, investors need to carefully consider this issue.
Type of business
When setting up a company in the US, investors can choose one of the following four popular types of businesses:
- Sole Proprietorship;
- Partnership company (Partnership);
- Limited Liability Company (LLC);
- Joint Stock Company (Corporation)
- Among the above types of businesses, the limited liability company is the type of business chosen by many foreign investors when setting up a company in the US due to its tax advantages and appropriate liability. with foreign businesses
Choose a state to establish a company in the US
In the process of considering and selecting a state to establish a company, investors need to consider the following factors:
- Tax policy in the state intending to establish the US company;
- The process of setting up a business in the state;
- Determine the criteria in accordance with the business needs and goals of the enterprise;
- Convenient geographical location for trade, sales, hiring staff.
Company name
It is a need to register a legal name to include in the company’s incorporation documents in the US. The legal name is the name used officially when applying to form a company in the US. The name must meet the state’s business naming requirements for the company’s type of business and must be distinguishable. In addition, the company name needs to contain the required words to represent the business type of the business. For example, a Limited Liability Company needs to contain words like Limited Liability Company, Limited Company or acronyms like L.L.C., LLC, L.C., LC, etc.
The company name cannot contain prohibited or restricted words. Many states also ban certain words from business names, and each state has its own rules about naming companies in the US. Therefore, investors need to understand the regulations when naming a company.
In addition, in the US, copyright law on trademarks and trademarks is highly respected by the US government and there are strict laws for businesses that infringe on trademarks and trademarks. Therefore, when choosing a name for a company established in the US, investors need to ensure that the name does not coincide with businesses operating in the market. A lookup of a company name can be done by comparing it with a list of company names registered with the United States Patent and Trademark Office – USPTO.
Prepare documents
Documents to be prepared to establish a company include the following documents:
- Company’s name;
- Place of business, state of incorporation;
- Type of company;
- Information about directors, members/shareholders, ownership percentage;
- Charter of establishment, list of shareholders, founders, business license;
- Papers proving that business activities are good, not illegal, and effective, provided by reputable departments and agencies.
Register a company number – federal tax code
Registering a Company Number – The federal tax identification number (EIN) is a 9-digit string that needs to be registered with the Internal Revenue Service (IRS). EIN registration helps the company to be on file with the US Internal Revenue Service, creating credibility when working with partners who are international customers. In addition, businesses need to register for a tax code to pay employees, file year-end tax returns, declare and transact with a US company.
Procedures to establish companies
After preparing all necessary documents, the business owner will submit the application to the competent authorities and pay the registration fee as prescribed by law. Depending on the state, the authority to register a business is different, it may be the Department of Commerce or the Department of State or the Office of Business and Economic Development. Business owners can choose to submit directly to the competent authority or submit via the portal.
After checking the valid dossier, the competent authority will issue the Enterprise Registration Certificate within 30 days from the date of receipt of the complete dossier.
Procedures after setting up a company in the US
After establishing a company in the US, investors need to consider the following procedures:
- Apply for a business license for conditional business lines issued by a specialized management agency.
- Open a bank account. Investors when setting up a company in the US can choose to open a physical or online bank account. However, in order to open a physical bank account for a company in the US, the director and members/shareholders of the company are required to go directly to the bank in the US to open a bank account.
- Pay taxes in accordance with US law.
Tax, accounting and annual financial reporting matters
The accounting tax procedures, financial statements that companies established in the US need to perform: US state tax and US federal tax.
Investors who set up a company in the US are required to submit financial statements to the federal government and the US Internal Revenue Service (IRS). Financial statements of US companies must follow the Generally Accepted Accounting Principles (GAAP). The annual report includes:
- Corporate income tax return, personal income tax return for the US state where the company is incorporated;
- Corporate income tax returns, personal income tax returns to the Internal Revenue Service (IRS);
- Sales tax returns for the US states where the company does business;
- The return of contractor tax or other taxes depends on the type of business and its business products and services.
Service of registering a business in the US of law firm Siglaw
Currently, Siglaw provides a service to register a company in the US, if you have a need to establish a company in the US but do know deeply about the procedures and have no experience in completing documents, please Please contact us for advice and support.
The process of implementing consulting services of Siglaw
Receiving and processing information
Siglaw’s investment-business legal specialist will receive the information provided by the client. Next, we will clarify and collect information for the business establishment consulting process in the US.
Specific legal advice
Then, Siglaw’s experts will advise specifically on procedures, working processes, and optimal solutions to handle your request to establish a company in the US as quickly as possible.
Contract Negotiation and Signing
After the expert consultation, if you decide to use our US company formation service, Siglaw will sign a contract with you.
Service performance
- Siglaw’s specialists will provide specific advice and specific instructions for the customer’s case.
- Answer and advise on legal provisions related to investment law in the US, corporate law.
- Guide customers to prepare necessary documents and information necessary to carry out investment activities.
- Advising customers on issues related to tax regulations, insurance… related to investment in the US.
For a free comprehensive consultation on the establishment of a foreign-invested study abroad counseling company, please contact:
Phone: (+84) 961 366 238
Email:
- vphn@siglaw.com.vn
- vphcm@siglaw.com.vn
Headquarters: No.44/A32, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi.
Southern branch: 6G4 Tran Nao Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
Facebook: https://www.facebook.com/hangluatSiglaw
