The 6 First Steps to Starting a Business in the USA

1. Create a name for your company

The first step is to define the name of your business. At this point, be creative and be sure to check the state website to see if there is already someone using the term you chose. You can check using this tool.

In the United States you can also use a trade name. The English terminology for this is DBA (Doing Business As), which would be, in literal translation, “doing business as”.

2. Choose between LLC or CORP

Once you have a name, you must decide what your business category will be. The most common types are LLC and CORP. Understand better:

What are the benefits of LLC?

LLC is a limited liability company format. That way, you protect your assets in case you have any kind of business loss.

Plus, with an LLC you don’t have to pay corporate-level taxes.

This means that all profits are automatically distributed to partners at the end of a fiscal year, with no need to pay taxes.

Here, an important point is worth: if the partners do not live in the USA,

will likely need to report the company’s revenue quarterly and withhold some of it (Tax Withholding) as a guarantee that all necessary taxes will be paid.

What are the benefits of CORP?

By choosing the CORP (Corporation) model, it is possible to receive investments and sell shares. If, in the future,

If you want to sell a stake in your company or receive money from funds and investors, this model is for you.

With CORP, you don’t necessarily have to distribute all profits at the end of a fiscal year, as you do with LLC. With it, it is possible to take only a fraction of that money. Although,

you will have double taxation: initially on a business level and then on a personal level at a reduced rate.

When opting for an LLC, all partners must file tax in the United States. In CORP, this will only be necessary if there is profit distribution to shareholders. This fact, specifically,

makes most foreigners opt for the second option.

Also read: Know the main taxes for companies in the USA.

3. Set a business address

As we have already mentioned, it is essential that your company has an address in the United States. For this,

you can count on a virtual address service to receive important correspondence sent by the US government, mainly concerning your company.

4. Register in the state in which you want to operate

Once you have a name, choose whether your company is LLC or CORP and have a business address,

It’s time to register your company with the State Department of Corporations and create a legal entity.

You can check this post for more information and tips on how to choose a state to open your business.

5. Ensure the necessary documents

To record all transactions carried out by your company and ensure that all taxes are properly paid, you will need to apply for the EIN (Federal Employer Identification Number). This number is provided by the US Internal Revenue Service (IRS).

In addition to having an EIN,

your company will also need to create some internal contracts: Operating Agreement, in the case of an LLC, or the Bylaws, Minutes of First Organizational Meeting and Shares Certificates, for CORP companies. You can count on the support of Company Combo in case of doubts.

6. Open a US bank account

The next step is to open an account for your company in an American bank. This process is usually very simple and quick. It is worth remembering that all financial transactions related to the company must be carried out through this account.

7. Secure a Sales Tax

If your business is product trading,

your company will also need a Sales Tax Certificate, which is nothing more than a document that enables the collection and transfer of taxes on your sales. Few states, like Delaware, don’t have a Sales Tax, Florida does.

Other relevant information:

To carry out this whole process you do not necessarily need to have a partner.

The fact that the enterprise has only foreign partners does not pose problems for the leasing of properties and the purchase of equipment.

In most American states, you do not necessarily need to define the company’s field of activity,

as it is done in Brazil. In the state, it is possible to define a business only as “any and all lawful business”, which literally means “any and all legal business”. This fact ensures that when opening a business in Orlando or Miami, for example, you can offer multiple products and even services using the same operation.

For more information, contact our team of experts. You schedule a free chat and ask your questions.