MyUSACorporation

U.S. Taxation for Foreign Entrepreneurs Let’s start from a little disclaimer: U.S. taxation of nonresidents can be a fairly complex issue and involves many specific fact points that determine if the non-residents are subject to US taxation or not. This article attempts to capture the most typical scenarios and analyze them in the context of current (2014-2016) U.S. taxation rules. It is impossible to know your specific tax obligations without a lot more information about your U.S. related business, so please use the information presented here for reference only. If you need more specific tax advice refer to the information at the end of this article. Ok, now that we have cleared this very important point, let’s move on and analyze a few of the most common cases. If you don’t find your case among those listed here no worries - just ask your questions here and we will try to help. https://myusacorporation.eu/taxation-of-foreign-entrepreneurs #MyUSACorporation

What is Limited Liability? The best way to explain limited liability is this - you risk what you put in. In other words, limited liability is a way to make sure that a person who is engaging in business does not risk his or her personal possessions in case the business fails. Any investor, partner, or member of the company that by law has limited liability cannot be made responsible for any unfulfilled company obligations and debts that are more than the amount that the person has invested. Jack and Jill Here is a simple comparison. Jack and Jill are friends. Jack is a handy guy and Jill is a great cook. To earn money from their talents, both start their own business. Jack earns his living by doing renovations. He bought his own equipment and simply advertises his services under his own name. Jack is a sole proprietor. Jill decided to open a bakeshop. Before going into business, however, Jill has formed a small corporation (an S-Corporation), called Jill's Cakes, Inc. Jill invested her savings into Jill's Cakes, Inc. as a starting capital and then bought her baking equipment and leased her shop on behalf of her corporation. So long as things go well for Jack and Jill there are almost no differences between the two ways of doing business. As soon as things turn sour though, the differences become apparent. One day, Jack mopped the floor right before leaving the apartment he just painted, but forgot to put up a sign. The owner walked in, slid on the wet floor and broke an ankle. He is suing Jack for medical expenses and lost wages. Jill accidentally dropped a peanut in a wrong batch of batter and caused a severe allergy attack in one of her customer. That customer is suing her for medical bills and pain and suffering. What is at risk for Jack and Jill? Jack is risking everything he owns - his work equipment, his truck, his house, his personal belongings. So long as there is a judgment against him, Jack must sell anything he owns to pay it. Jill is risking only her business assets - her cooking equipment, her cash reserves, and anything else owned by Jill's Cakes, Inc. But her personal things, such as her car and her apartment, are safe. Her business may become bankrupt, but her life will not be (completely) destroyed. Of course, this story describes a worst case scenario. Many businesses prosper without many troubles. But many also fail, and it is so easy for a business owner to take advantage of limited liability that everyone should do it. https://myusacorporation.eu/what-is-limited-liability-and-why-it-is-important MyUSACorporation is your reliable partner since 2009.

A Limited Liability Company, or an LLC, is a relatively new business structure, that first appeared in Wyoming in 1977, and is now recognized by every State's statute and the IRS. An LLC is neither a partnership nor a corporation, but a distinct type of business structure that offers an alternative to those two traditional entities by combining the corporate advantages of limited liability with the advantages of pass-through taxation usually associated with partnerships. Limited Liability Companies are becoming more and more popular, and it is easy to see why. In addition to combining the best features of partnerships and corporations, LLCs avoid the main disadvantages of both of those business structures. Limited liability companies are much more flexible and require less ongoing paperwork than corporations to maintain them, while avoiding the dangers of personal liability that come with the partnership. Some examples of famous LLCs may surprise you - both Amazon and Chrysler are organized as limited liability companies. https://myusacorporation.eu/services/form-llc/ MyUSACorporation is your reliable partner since 2009.

Do you know that you can form your company in the USA from anywhere in the World? Completely remote - You don't need to visit the United States. Yes, it is real. Just visit our website: https://www.myusacorporation.eu Please select "Start an LLC" or "Incorporate" button: Learn everything about this business entity type and press "Start here" button to get a price quote and to form your LLC or Corporation. Just select the State, Owners are non U.S. persons/companies) and desired package (Recommended is the best choice) and you will get a Price Quote on the next step. Just go forward and fill our online Order form to set up your Company. Yes, it's easy.

Do you know that you can form your company in the USA from anywhere in the World? Completely remote - You don't need to visit the United States. Yes, it is real. Just visit our website: https://www.myusacorporation.eu Please select "Start an LLC" or "Incorporate" button: Learn everything about this business entity type and press "Start here" button to get a price quote and to form your LLC or Corporation. Just select the State, Owners are non U.S. persons/companies) and desired package (Recommended is the best choice) and you will get a Price Quote on the next step. Just go forward and fill our online Order form to set up your Company. Yes, it's easy. MyUSACorporation is your reliable partner since 2009. #MyUSACorporation #LLC #Corporation #Incorporate

If you decided to open a new business that will be based in Illinois you can choose from several options: Sole Proprietorship: Sole owners of Illinois-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Illinois Secretary of State is necessary, but it is recommended to register an Assumed Business Name (DBA), and if you plan to hire employees then also obtain an EIN. REMEMBER: Illinois requires to publish the Assumed Business Name Certificate of Registration Notice in a general circulation newspaper in the county of registration. Learn more about Illinois publication requirements here. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Illinois here. KEEP IN MIND: Illinois is one of the two states (the other is New York) where the cost of forming LLC is much higher than cost of forming a corporaiton. The reason for such price difference in Illinois is simply the difference in state filing fees - $325 as of this writing. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Illinois you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. Partners General Partnership: Like sole proprietorship, this entity type does not require registration with the Illinois Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register an Assumed Business Name (DBA), and obtain an EIN. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner. Corporation: Since corporation can have many shareholders, and transferring ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners. Keep in mind though - S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships. https://myusacorporation.eu/states/illinois/ MyUSACorporation is your reliable partner since 2009.

Registering Your Company In The U.S. Many international entrepreneurs are looking to create or expand their business into the U.S. market. MyUSACorporation Europe specializes in helping those entrepreneurs, and we would like to present you with several ideas to consider first. What Documents Are Needed? First of all, to register a company in the U.S. you don't need to present any documents - only information. Documents would be necessary in case you want a US address or need to open a bank account, but not for company registration. Do I Need To Be In The U.S. To Open My Company? Not at all. All filings can be done remotely, with us serving as your proxy in the U.S. In almost all cases when we need a signature from our clients this can be done electronically. Choice of State If you plan to buy real estate property, or open a "brick and mortar" store in the U.S. it is recommended to form your company in the state where this property or store is physically located. Majority of our clients choose either Delaware or Wyoming, due to more expensive fees in Nevada. You can see the comparison between those 3 states here: DE vs. NV vs. WY. Choice of Entity Foreigners can choose primarily between two types of entities: LLC and C-Corporation. LLC is the most common type of entity chosen by our foreign clients due to its simplicity, flexibility and single taxation. C-Corporation mostly chosen by young entrepreneurs looking to obtain Angel or VC financing. You can see a comparison between LLC and C-Corporation here: LLC vs. Corporation also Which Business Entity Is Right For Me?. Restrictions and Things to Consider First of all, as a foreigner you are not required to have Social Security Number to open your company and obtain EIN (company tax ID). You also don’t need to have a U.S. address or phone number, however if you like to have U.S. address and/or phone it’s possible to obtain them from specializing vendors (see phone vendors here, and our U.S. address solutions here). Banking in the US is a more complicated topic. There are some companies on the internet that promise international clients help in opening a bank account remotely, but we warn our clients to be careful with those who claim they can help that way. To learn more about banking in the U.S., associated problems, and possible solutions please read our article "Opening a Bank Account in the United States". Drop-shipping is a very popular modern business concept, and U.S.-based drop-shipping businesses became the driving force of the "location-independent entrepreneur" phenomenon. Much has been written on the mechanics of the drop-shipping business itself, so this article will only cover the aspect of U.S. company registration, taxation, banking, and other related business filings: U.S. Company Registration for a Drop-Shipping Business. Finally, international clients would need help filing their U.S. company taxes. We addressed this issue in our article U.S. Taxation for Foreign Entrepreneurs. So you’ve got a brilliant idea that you want to turn into a business. You want to save every penny possible as you get things going, so you file the papers to create your own business entity. It’s pretty simple, after all. You find some forms online, fill them out, and you you should be in business in no time flat. Read our article One Of The Biggest Mistakes Many New Business Owners Make (And How To Avoid It). https://www.myusacorporation.eu MyUSACorporation is your reliable partner since 2009.

If you decided to open a new business that will be based in Colorado you can choose from several options: Sole Proprietorship: Sole owners of Colorado-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Colorado Secretary of State is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Colorado you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. Partners General Partnership: Like sole proprietorship, this entity type does not require registration with the Colorado Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register a trade name (DBA), and obtain an EIN. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners. Keep in mind though - S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships. https://www.myusacorporation.eu/colorado.html MyUSACorporation is your reliable partner since 2009.

If you decided to open a new business that will be based in Arkansas you can choose from several options: Sole Proprietorship: Sole owners of Arkansas-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Arkansas Secretary of State is necessary, but it is recommended to register an assumed name (DBA), and if you plan to hire employees then also obtain an EIN. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Arkansas here. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Arkansas you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. Learn more about corporations here, and about the details of incorporating in Arkansas here. Partners General Partnership: Like sole proprietorship, this entity type does not require registration with the Arkansas Secretary of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to register an assumed name (DBA), and obtain an EIN. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners. Keep in mind though - S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead. Limited Partnerships: Limited partnerships come in different forms, depending on the state (LP, LLP, LLLP). Though Limited Partnerships have their own purpose and place, for most cases we believe an LLC would serve its owners well enough, therefore at this point we do not cover Limited Partnerships. Existing Out-of-State Companies An existing company registered in another state or country (called "foreign corporation", "foreign LLC", etc) looking to conduct business in Arkansas might be required to foreign qualify in Arkansas. This rule typically applies to companies looking to open a physical branch in Arkansas, lease an office or warehouse, hire employees, etc. https://www.myusacorporation.eu/arkansas.html MyUSACorporation is your reliable partner since 2009.

If you decided to open a new business that will be based in Arizona you can choose from several options: Sole Proprietorship: Sole owners of Arizona-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Arizona Corporation Commission is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Arizona here. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Arizona you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. https://www.myusacorporation.eu/arizona.html MyUSACorporation is your reliable partner since 2009.

If you decided to open a new business that will be based in Alaska you can choose from several options: Sole Proprietorship: Sole owners of Alaska-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Alaska Department of Commerce, Community and Economic Development is necessary, but it is recommended to register a business name (DBA), and if you plan to hire employees then also obtain an EIN. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Alaska you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. https://www.myusacorporation.eu/alaska.html MyUSACorporation is your reliable partner since 2009.

If you decided to open a new business that will be based in Alabama you can choose from several options: Sole Proprietorship: Sole owners of Alabama-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Alabama Secretary of State is necessary, but it is recommended to register a trade name (DBA), and if you plan to hire employees then also obtain an EIN. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Alabama you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, y.ou can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. https://www.myusacorporation.eu/alabama.html MyUSACorporation is your reliable partner since

If you decided to open a new business that will be based in California you can choose from several options: Sole Owners Sole Proprietorship: Sole owners of California-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with California Secretary of State is necessary, but it is recommended to register a fictitious business name statement (DBA), and if you plan to hire employees then also obtain an EIN. REMEMBER: Whenever you file a fictitious business name statement in California you are required to do newspaper publication within 30 days after filing. Learn more about California publication requirements here. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in California here. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in California you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. Learn more about corporations here, and about the details of incorporating in California here. One of the major drawbacks of refistering a corporation or an LLC in California is the state's notorious $800 minimum annual Franchise Tax for organized entities. Franchise Tax makes California the most expensive state to register your business in (in terms of annual cost), which is the reason many Californian businesses choose to operate as unorganized entities (sole proprietors and general partnerships) as long as they can. As much as the Franchise Tax is high, in our opinion the value a California business receives from organizing as limited liability entity would often outweigh the added annual cost. We do recommend you to consult your legal and tax advisors whenever deciding on the type of entity for your business. https://www.myusacorporation.eu/california.html

If you decided to open a new business that will be based in Florida you can choose from several options: Sole Owners Sole Proprietorship: Sole owners of Florida-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with Florida Secretary of State is necessary, but it is recommended to register a Fictitious Name (DBA), and if you plan to hire employees then also obtain an E I N. REMEMBER: Florida requires advertising the intention to register a fictitious name at least once in a newspaper in the county in which the principal place of business will be located. Learn more about Florida publication requirements here. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in Florida here. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in Florida you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. https://www.myusacorporation.eu/florida.html MyUSACorporation is your reliable partner since 2009.

If you decided to open a new business that will be based in New York you can choose from several options: Sole Owners Sole Proprietorship: Sole owners of New York-based businesses could opt for sole proprietorship as the easiest form of business organization. Not the most recommended, given the liability a sole proprietor assumes as a result of owning a business. No registration with New York State Department of State is necessary, but it is recommended to obtain a Business Certificate (DBA), and if you plan to hire employees then also obtain an EIN. Single Member LLC: Limited liability company, as the name suggests, is an entity that allows its owners to limit the liability of the business to the entity itself, shielding the owners' personal assets. This type of entity is recommended for most small businesses. By default your LLC will be taxed as "disregarded entity", meaning you will file your LLC tax return as part of your personal tax return. Keep in mind though - LLC is a flexible entity, which means you have the option of electing it to be taxed as S-Corp (assuming you are a U.S. person) or C-Corp. Learn more about LLC here, and about the details of forming LLC in New York here. KEEP IN MIND: New York is one of the two states (the other is Illinois) where the cost of forming LLC is significantly higher than cost of forming a corporaiton, especially in the lower portion of the state (greater NYC). The reason for such price difference is the fact that New York requires every domestic and foreign LLC (but not corporaiton) to publish a legal notice of its formation. We have developed a system where LLCs formed (or foreign qualified) by our company can save hundreds of dollars in publication costs, regardless of the county where their office is physically located. You can learn more by clicking the help icon (?) next to the publication item on the NY LLC form. Corporation: You can also form a corporation and be a sole shareholder with 100% of all shares. Corporations have more formalities than LLCs (for example in New York you are required to have bylaws and maintain minutes of meetings in corporate records), but provide similar limited liability protection. That's one of the reasons this entity type is often more suitable for bigger companies, or those who seek major investment. Corporations can be taxed as S-Corp or C-Corp, with each form of taxation having its pros and cons. Keep in mind, you can elect your corporation to be S-Corp only if you, as the sole shareholder, are a U.S. person. Partners General Partnership: Like sole proprietorship, this entity type does not require registration with the New York State Department of State, but it also does not protect the owners from business liability, and therefore is usually not recommended. A General Partnership needs to obtain a Business Certificate (DBA), and obtain an EIN. Multiple Member LLC: like Single Member LLC for sole owner, Multiple Member LLC is often the entity of choice for small and new businesses with more than one partner. Corporation: Since corporation can have many shareholders, and transfering ownership is relatively easy (though share transfer) corporation might be a good choice of entity for business with partners. Keep in mind though - S Corporations are limited to 100 shareholders who must be physical U.S. persons. That means corporations owned (partially or fully) by non-U.S. persons or legal entities, cannot be elected as S-Corp, and therefore subject to double taxation of an C-Corp. In cases like that it would be recommended to consider choosing LLC instead. https://www.myusacorporation.eu/new-york.html

Doing Business The Right Way In today's complex and competitive world there is no greater way to protect yourself and your personal assets from the threat of lawsuits than by incorporating, whether you're a small business owner with no employees, or run a serious business establishment with hundreds. Incorporating is also a simple and legal way to cut your taxes, protect your privacy, lower your audit risk, raise capital, and much more. What is a "corporation"? Simply put, a corporation is a legal "person" created by state statute that can be used as your "shadow" for the purpose of running a business, or several businesses. This is a "person" whom you control completely, yet cannot be held accountable for its actions. Indeed, it is a powerful concept! For that reason roughly a million of corporations are formed each year, and that number is growing from year to year. In other words, establishing a corporation can provide a simple and inexpensive foundation if you operate a business, contemplate starting a business, wish to protect your personal assets or are thinking about estate planning. It is true even if you have or plan to have a home based or part-time business! How Can Incorporation Help Protect Assets? We all know that in the United States the risk of a law suit is quite high, or, in other words, people love suing other people. Statistics show that an average person in the United States today goes through five lawsuits in his or her lifetime, with at least one being devastating. Sheltering your assets from lawsuits is possible, and you must do so before a lawsuit strikes. In today's world of political and financial interests, every person is vulnerable, including yourself, and you must recognize and come to grips with that reality. Only then will you have the sense of urgency necessary to take action to protect yourself and your assets from the virtually inevitable. REMEMBER: The law deals quite harshly with those who seek last minute transfers of assets in an attempt to defraud creditors. That means its important to realize NOW that you might run into financial problems in the future, and take appropriate action to protect your assets, while at the same time enjoying the benefits of lowered tax liability. https://myusacorporation.eu/who-should-incorporate MyUSACorporation is your reliable partner since 2009.

Wyoming is known as one of the three incorporation-friendly states, the other two being Nevada and Delaware. The popularity of Wyoming as a "corporate heaven" in enhanced by the very liberal Corporation Law which enables companies to be established quickly and with the broadest possible powers permitted under the law. There are little or no restrictions on any consequent business activities. To learn more about specific advantages of incorporation in Wyoming please consult our article Advantages of Incorporating in Wyoming. Who Should Register a Company in Wyoming It is safe to assume that vast majority of companies registered in Wyoming have no physical connection to the state whatsoever. As far as our statistics go, Wyoming holds the record of new entities being formed, and it is popular both amongs domestic and foreign clients. In fact, Wyoming is perfect for foreign clients, looking to establish remote business in the U.S. (one with no physical connection), and is one most our foreign client indeed choose. Wyoming entities can be useful tools for internet (e-commerce) businesses, remote technical support and outsourcing, export/import, etc., especially if such businesses have only virtual presence in the U.S., and they can be used for the purpose of asset holding (especially intellectual property), and generally as holding companies for other business entities. Migration From Nevada To Wyoming For years Nevada was extremely popular state to form companies with wide range of purposes, rivaling Delaware as the incorporation heaven of America. However, recent political and fiscal developments in Nevada, which brough introduction of expensive Business License and Initial List filing requirements, as well as outrageous renewal fees and rough treatement of delinquient businesses, have significantly reduced the attractiveness of the state. As a result for the last several years there was a steady outflow of companies from Nevada through the process of domestication, with Wyoming being the primary beneficiary of this process. No positive change is expected any time soon, and this is one of the reasons we often recommend our clients, looking to incorporate in Nevada, to consider Wyoming instead. Who Should Not Register a Company in Wyoming Not everyone would benefit from registering their company in Wyoming. First, most technology companies would benefit from registering in Delaware, since professional investors such as VCs always prefer the familiar laws of Delaware over any other state. Then there is a question of nexus - if your business is physically located in another state, and you think that by registering it in Wyoming you can escape registration in your state (for example, notoriously expensive California), we have to disappoint you. Even though your business will be organized under the Wyoming law, you will still have to foreign qualify it in your state, which in other words means you will have to maintain two entities instead of one. https://myusacorporation.eu/incorporating-in-wyoming

What is a Series LLC? Series Limited Liability Company (LLC) is a business entity that was introduced by the State of Delaware nearly nine years ago. The concept is innovative and based on the fact that several series or "cells" may be created within a single LLC. Basically, a Series LLC possesses the ability to divide its assets and liabilities into various sub-LLCs or series while still controlling them from one umbrella company. The closest analogy in the business world would be a corporation with several subsidiaries. What are the advantages of a Series LLC? A Series LLC eliminates the expense and administrative duties related to forming multiple LLCs. A Series LLC is preferred to a corporation with subsidiaries because it does not have the taxation, expense or formalities associated with a parent-and-subsidiary corporate structure. Each cell in a Series LLC has its own profits, losses and liabilities and is legally separate from the other series. These sub-LLCs also have their own economic structures, members, managers and assets. The assets in a sub-LLC are protected from legal enforcement against the assets of another LLC. Another, lesser-known advantage is that a Series LLC may not be required to pay sales tax on rent paid by the operating series. The business must own the real estate and the rent must be paid to the sub-LLC owning the real estate series. In this respect, the Series LLC may also be compared to an S-Corporation with Q-subsidiaries. What States Currently Offer the Series LLC Option? Though Delaware was the first to form the Series LLC, other states are also adopting the practice. Currently, District of Columbia, Illinois, Iowa, Kansas, Minnesota, Montana, Nevada, North Dakota, Oklahoma, Tennessee, Texas, Utah, Wisconsin and Puerto Rico also allow the formation of Series LLC. How to Form a Series LLC Forming a Series LLC is similar to forming an LLC or corporation in any state. Today, only Illinois requires a different application and charges higher registration fees for forming a Series LLC rather than a simple LLC. Once the company is formed with the state, a Series LLC will require some extra documentation compared to an LLC. A 50 or more page Operating Agreement must be prepared to establish a Series LLC. This document must be signed and created according to the rules and regulations governing the Series LLC. In most instances, an attorney is needed to draft the Operating Agreement and an accountant will be needed to explain related tax laws governing the Series LLC. Each sub-LLC will have to create a separate Series Agreement. Each sub-LLC will have its own asset name, bank account and a separate EIN (Federal Tax ID) number. While the Operating Agreement will be amended as series are added or deleted, the Certificate of Formation (also called Articled of Organization) filed with the state does not require amendment. How to Add and Delete a Series https://www.myusacorporation.eu/series-llc.html

Choosing The Right Name Choose the name of your legal entity carefully. It is important for the chosen name to portray the image you want for your new company. Legally, the name you select must not be "deceptively similar" to any existing company, or must be "distinguishable on the record" of your state. For example, if a company named "Glow LLC" exists in your state, you probably would not be allowed to name your business "Glove LLC". Sometimes the name you select will not be available. This is the reason we ask our clients to submit a second and a third choice of company name when forming a new entity. Additionally, most states require you to add the words "Limited Liability Company," or the abbreviation "LLC" to the end of the name (for LLCs), or "Inc." , "Corp." or "Incorporate", "Corporation", etc. for corporations. Sticking To Your Name Once you choose the name (including the appendix, also called entity identifier) you should stick with it. For example, if your company name is "MyCompany Inc." then all your official letterheads, correspondence, domain names, business cards, and any other company related documents and sales collateral would have to include the use of "MyCompany Inc." as opposed to "MyCompany Corp" and such. Reserving Your Business Name If you are not ready to form your company, but want to protect the name you want to do business under, you can reserve that name with the Secretary of State in which you plan to form your business entity. The process of company name reservation is simple and very much similar to the process of forming the actual entity. Keep in mind that name reservations are often limited to a specific period of time, so you might need to renew the reservation or risk loosing the name you have reserved. What if My Business Needs to Operate Under Several Names? Your business entity can only have one name, however you can file as many assumed names (also called trade name, fictitious name, "Doing Business As", DBA, or d.b.a.) as you like, as long as they are available in the state or county where you plan to use them. Creating DBA is the easiest and most cost effective way to do business under a new business name without having to create an entirely new business entity. With DBA you can accept payments, advertise, and otherwise present yourself under that name. https://myusacorporation.eu/naming-your-company MyUSACorporation is your reliable partner since 2009.

Данная статья адресована предпринимателям, которые думали или думают о расширении существующего бизнеса или собираются открыть бизнес на самом большом в мире рынке - рынке США, но еще не приняли решения и не предприняли никаких шагов по причине того что это кажется очень сложным. Видимая сложность вызвана недостатком достоверной информации, и, если она находится, то она исходит от людей, которые прошли этот процесс самостоятельно, методом "научного тыка", проб и ошибок, и не всегда удачно. Итак: кому стоит открывать компанию в США? Прежде всего людям, обладающим конкурентноспособными товарами или услугами, желающими продать их на живом и активном, а не депрессивном рынке, и по справедливой цене, которую зачастую не готовы платить за качественный продукт в своей стране. В первую очередь это касается сферы IT и смежных областей, таких как цифровой маркетинг, SEO, SMM, веб-дизайн и прочие направления. Также очень часто компании открывают предприниматели, торгующие на Amazon и желающие это делать официально и в американском правовом поле. Для стартапов, кто желает выйти на краудфаундинг или получить финансирование "Ангела" или венчурного капитала, - обязательное условие - наличие корпорации. Будучи фрилансером или имея местную компанию ваши шансы получить хорошие заказы и вообще заказы, стремятся к нулю по той простой причине что американский бизнес не очень доверяет чужим. Для большинства американских компаний и бизнесменов американский проверенный бизнес аккаунт PayPal является основным платежным средством и они с очень большой опаской проводят расчеты с иностранцами, даже если их компании зарегистрированы в ЕС, я молчу о странах СНГ. Но это было отступление, сейчас я буду развеивать стереотипы о сложности регистрации американских компаний. На самом деле открыть LLC или Корпорацию в США достаточно легко и быстро - это займет порядка 3-4 недель включая получение EIN и обойдется в районе $ 700 -1000 с предоставлением американского юридического адреса. Под ключ, онлайн, не вставая с дивана, воспользовавшись услугами американских профессионалов, которые 9 лет занимаются регистрацией и сопровождением компаний в США. Предварительно вам дадут исчерпывающую и совершенно бесплатную консультацию о том, какую форму организации вам лучше выбрать, в каком штате и почему зарегистрировать компанию и ответят на все ваши вопросы. Итак, компанию в США стоит открывать людям, которые хотят: честно и легально работать и хорошо зарабатывать; людям, которые планируют иммиграцию, бизнес в США - плюс к карме; людям, которые хотят стабильности и предсказуемости; людям, которые приветствуют снижение налогов на бизнес, что недавно сделал Конгресс. Наша задача - сделать процесс регистрации вашего бизнеса максимально грамотным и простым для вас как 1-2-3. Положитесь на профессионалов. MyUSACorporation Europe - ваш надежный партнер с 2009 года. https://www.myusacorporation.eu