Registration of a company in the United States of America is a promising business solution since this jurisdiction is one of the most prestigious and developed countries with favorable conditions for doing business. Besides, the US economy is rightfully considered the largest in the world market, as it accounts for about 25% of world GDP over the past few decades.
If you want to sell your products on the US market through e-commerce, in this article, we have prepared for you information on how to register a company in the USA and what are the benefits of this decision for e-commerce business.
The United States is often called the “land of opportunities”, and there are many reasons for this. With a strong economy, attractive tax climate, progressive ideas, and many other benefits, companies like yours can thrive if you are willing to step outside your comfort zone and enter the US markets.
The United States sets development trends around the world, introduces advanced technologies, and creates the most favorable conditions for entrepreneurship development.
- 1 The main reasons for the attractiveness of the United States for starting a new business.
- 2 Establishing a company in the USA: main stages
- 3 US Enterprise Registration Forms
- 4 Registering a US company to sell products on Amazon, eBay, Shopify, Etsy, and other marketplaces
- 5 If you want to sell with Amazon FBA from another country, which type of ownership is an LLC or a Corporation?
- 6 Best US states to register a company on Amazon
- 7 Accompanying the registration of a company in the USA
The main reasons for the attractiveness of the United States for starting a new business.
- Strong economy
Entering the United States means your business has a chance to leverage a healthy and profitable economy and gain access to one of the largest markets in the world. The United States is currently the largest importer and number one market globally in terms of the volume of goods and services sold. Individual states thrive locally. For example, California state has such a high GDP that its economy is ranked sixth in the world’s ranking of public economies. All this makes expansion to America really tempting!
- The relatively low tax rate
Since 2018, the “Tax Cuts & Jobs Act” has come into force in the United States. The progressive scale of income taxation has been terminated, and the federal business tax rate has been set at a flat rate of 21%. For infrastructure development and welfare improvement, some states create preferential taxation, significantly reducing or even eliminating tax at their level.
- Registration in the USA will increase the reputation of your business
American companies instill confidence and peace of mind in everyone who works with them. The high standards of corporate law adopted in the United States, a long history, and the judicial system’s quality provide the necessary business support. There is no better jurisdiction to enhance the prestige of your business. What can be the better way to protect your assets, money, and intellectual property than the US judicial system.
Global financial corporations, venture capital funds, banks, and other financial institutions have their headquarters and offices in the United States. These institutions are happy to invest in the latest technologies and startups. Being represented in the USA, you have direct access to the debt capital market, the cost of which is significantly lower.
- Talented people and willingness to innovate
The world is full of talented people, but it seems that their concentration in the USA is very high. Take, for example, developers of new technologies and software. California’s Silicon Valley has the highest density of high-tech companies, with nearly half of all Fortune 100 companies headquartered here.
Establishing a company in the USA: main stages
It should be noted that opening a company in America is available to both residents and foreigners. The requirements for running a business can vary depending on which state you choose. Typically, the process of establishing a company in the United States includes the following steps:
- Collecting a package of documents.
- Submission of documents for consideration by the Secretariat of the State.
- Registration with the Tax Office.
- Obtaining a tax number (Federal Tax ID), which is required to carry out activities.
- Opening an account for a company in the USA.
- Business licensing in the USA (if necessary for the selected business area).
When registering a company in the USA, the founder will need to prove the financial position by depositing the minimum capital to a local bank account. Also, one of the requirements is the presence and confirmation of a legal address.
US Enterprise Registration Forms
Those who intend to register a company in the United States should take into account that the most common forms of enterprise organization are:
- Limited Liability Company (LLC).
Often, entrepreneurs choose to register an LLC in the United States. Also, organizations that have gone through the incorporation process as an LLC can subsequently apply for corporation status. To retrain an enterprise into a corporation, the founders will need to file Form 8832 no earlier than 75 days and no later than one year from the date of the company establishment in US;
They can be in the form of C-Corp and S-Corp, which differ in the institution’s tax rates and characteristics. For example, registration of an S-Corporation in the United States is only available to residents. S-Corp can carry out its activities only within one state, where the establishment procedure was completed. Only individuals can be shareholders, and a company can only issue one class of shares.
Therefore, if you are a foreign investor, you can register a C-Corporation in the United States since there are no residency requirements in such forms of enterprise organization. Besides, in this case, the owner of the enterprise has the opportunity to:
- open a corporate account in the USA (as well as personal or investment);
- get a long-term visa or Green Card.
The shareholders own the corporation, and a board of directors is elected to manage it. It is worth noting that C-Corp is subject to double taxation, as the company must first pay corporate tax on the firm’s income, and shareholders must pay taxes on dividends.
However, among the advantages of registering C-Corp in the United States are:
- unlimited number of shareholders;
- the founder can be a legal entity;
- liability of shareholders is limited to the extent of contributions.
As a rule, non-residents decide to establish a company in the USA with C-Corp’s status since such form of enterprise organization is more profitable and accessible for non-residents.
Registering a US company to sell products on Amazon, eBay, Shopify, Etsy, and other marketplaces
You do not need to be a United States citizen to sell on Amazon, but once you sell 50 or more items in the US market, you will need to have the correct tax ID. However, if you are selling through the Amazon FBA (Fulfillment By Amazon) program, then you will need to set up a company in the United States before you get started.
By starting a company in the United States, you can import and distribute products locally, for example, through the Amazon FBA – even if you are abroad.
To use the Amazon FBA program, sellers must provide a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN). Since the SSN is only applicable to US citizens, non-residents require an EIN or ITIN certificate to continue working.
If you want to sell with Amazon FBA from another country, which type of ownership is an LLC or a Corporation?
Both LLC and C-Corp forms have good and bad points. For a non-resident who will operate a company outside of America and rarely visit the United States, an LLC may be the best choice.
From a tax perspective, LLC members will be subject to income tax, become US taxpayers, and obtain an ITIN in the US to file tax reports and pay taxes.
Shareholders of a US corporation are subject to double taxation. The corporation pays corporation tax on its net income and may have to deduct withholding tax on dividends sent to its shareholders.
Best US states to register a company on Amazon
Any of the 50 states in the US will trade on Amazon, Shopify, Etsy, eBay, etc. However, there are states with zero taxation and a minimum annual maintenance cost, such as Wyoming, Florida (LLC), Nevada, and Delaware (LLC). These are some of the most popular states for registering a company with online commerce and IT business in the United States.
Accompanying the registration of a company in the USA
Suppose you are interested in registering a company in the United States of America. In that case, you can use AMZ-Expert employees’ services and sign up for a consultation on establishing a company in the United States.
Our company provides services for the registration of LLC and Corp companies in the United States. This kit includes:
- registration of a company in the United States
- EIN number
- postal address for one year
- registered agent services
- local USA phone number
- Payoneer account
From you, we only need a photo of your passport and three variants of the company’s name, and within a month, you will receive a ready-made American company.
Prices for these services are pretty competitive in the market. We can register your company in any state. Among our clients, the most popular is the tax-free states of Delaware ($ 720, up to 17 days registration), Florida ($ 775, up to 4 weeks registration), Georgia ($ 730, up to 14 days registration), New Mexico ($ 680, up to 8 days) and Wyoming ($ 780, up to 5 days)
We also provide additional services for opening an account with Transferwise, which will cost $ 150. It is also possible to register a company with our trusted person in the USA (price $ 100). A $ 100 discount from the registration amount is possible if the company is registered on a US citizen, and an additional $ 100 discount if the business address does not need to receive letters.
AMZ-Expert is ready to provide a range of necessary consulting and accompanying services at all business registration stages in the USA.
If you have any questions or need any assistance don’t hesitate to contact us: