Every day thousands of entrepreneurs are registering their businesses in the land of opportunity, the United States. Well, if you are the next entrepreneur and thinking of starting your business in the USA, then you have landed to the right place.
In this article, you will learn the steps to take for successfully starting your own business in the USA.
Before you start;
What are the benefits of starting a business in the USA?
- Access to a Large Market: The USA has a vast and diverse consumer base, providing businesses with significant opportunities to reach a broad audience.
- Strong Legal Framework: The country boasts a robust legal system that protects intellectual property and enforces contracts, ensuring business operations run smoothly.
- Access to Capital: Entrepreneurs have access to various funding sources, including venture capital, angel investors, and government grants, facilitating growth and innovation.
- Skilled Workforce: The USA has a highly skilled and educated workforce, enabling businesses to find the talent they need to thrive.
- Innovation Hub: With numerous tech hubs and a culture of innovation, the USA provides an environment that encourages research and development.
- Global Trade Opportunities: The USA’s extensive trade networks and agreements facilitate international business expansion and partnerships.
- Supportive Infrastructure: The country has advanced infrastructure, including transportation, telecommunications, and utilities, that supports business operations.
- Quality of Life: A high standard of living and diverse cultural experiences attract global talent and make the USA a desirable location for business leaders and employees alike.
How to Start Your Business in the USA
Step 1: Choose Your State of Formation
The first step would be to choose the state where your business would have more potential growth.
Delaware and Wyoming are the two best states where you can start your business. So, why Delaware or Wyoming?
Why Delaware?
- Known for its business-friendly laws and well-established Chancery Court
- Offers strong legal protections for business owners and investors
- Transparent and predictable legal environment
- Higher annual fees and franchise taxes
- Ideal for large corporations with complex structures
Why Wyoming?
- Lower formation and maintenance costs
- No state income tax and low annual fees
- Enhanced privacy protections with minimal disclosure requirements
- The less established legal system compared to Delaware is suitable for small to medium-sized businesses seeking affordability and privacy
Step 2: Name Your Business
After choosing the state, make sure you have your business name and business domain available. Check the availability of the domain name in your state from the state website.
Step 3: Appoint a Registered Agent
Registered agents are those individuals who look after your business’s legal documents for company registration. Registered agents can be your friends or family members who have residency in the United States. Hiring a registered agent makes your business formation process smooth and streamlined.
Step 4: File Articles of Organization
You need to file articles of organization that present:
- The Name of Your Company
- Name and address of your registered agent
- Statement of Acceptance by your registered agent
- Purpose of your organization
- Statement of limited liability company
After filing the article, you can submit it on the state’s website. You will receive the filing receipt after a couple of weeks.
Step 5: Create an Operating Agreement
Operating Agreement is the document that sets certain rules for your company.
Here are things that are included in the operating agreement:
- Purpose of the LLC
- Membership and Ownership
- Management Structure
- Meetings and Voting
- Distribution of Profits and Losses
- Tax Matters
- Transfer of Membership
- Interests Dissolution and Termination
- Miscellaneous Provisions
Step 6: Obtain an EIN
To start your company in the US, you need to obtain an EIN. To obtain an EIN, you have to apply for an EIN (Employer Identification Number) from the IRS website.
How to apply for an EIN?
- Apply online through the IRS website where you need to fill up an Internet EIN application (Only Support If you have SSN or ITIN )
- Apply by Fax filling up the Form SS-4. A Fax will be sent back with the EIN within four business days.
- Apply by Mail filling up the Form SS-4. The processing time via mail will take around four weeks.
- Apply by Telephone, international applicants can make a call on 267-941-1099 from (6 am to 11 pm).
Step 7: Open a US Business Bank Account
After obtaining the EIN, it’s time to apply for a US business bank account for smooth financial transactions. If you are a non-US resident, you have fewer bank to open your account which are, Mercury Bank, Brex, Wise, Novel Bank, and Relay Fi.
Conclusion
Following the above points shall help you start your dream business in the United States. Also, you can connect with EasyFiling to guide you through every step of your business registration.
