HOW TO START A BUSINESS IN USA - GUIDE FOR NON-US CITIZENS

CORPORATION GUIDE FOR NON US CITIZENS, www.usatradevisa.com

Can a non-US citizen start a company in the USA?

According to the US tax law, a non-U.S. citizen can own shares in a "C corporation", as a common US citizen but may not be a  shareholder in any "S corporation". For these reasons, non-U.S. citizens regularly choose "C corporate" when they start a business in the United States. C corporation has LLC.

"Inc." type company is not flexible as LLC, mostly small business companies choose LLC for some tax advantages and easy company procedures but if you think bigger, if you start up a big company and your business sector or business type have some risks, its better to choose "inc" for its liability protection, tax advantages and raising capital ways.

Inc. found in the USA

Similar to a GmbH in Germany is basically an Incorporation, abbreviated "Inc."

There are two different types of Incorporation in the USA. The most popular and common is the so-called "C Corporation".

In this case, the Incorporation is a separate entity. This means that Inc. is like a person - it is a separate tax return due, it requires its own bank account, and then all income and losses are also accordingly on the Inc. from. The shareholders have not attributed to these revenues and losses. 

For example, if "Inc". earns a million dollars in profits, the money is taxed normally through Inc. The shareholder or the shareholders themselves do not have to pay any taxes first. Profits and losses thus remain in the Inc. The shareholders are only taxable if they pay off the incorporation money - ie in the jargon make a dividend (dividend payout).

check our related article: Types Of Companies In USA

Before establishing a company in the USA, it will be useful to clarify the issues we have listed below, both to ensure the fast and a problem-free phase of the establishment of your business and not to encounter problems that you cannot foresee in the future.

  • What kind of company would you like to establish?
  • Did you search C-Corporation Versus LLC Tax Comparison?
  • In which state do you want to establish a company? Have you studied the laws and tax rates in that state?
  • The company you established will only operate the state in which it was founded.
  • Are there permissions and licenses to be obtained according to your business area?
  • Do you need to be a US citizen for the company you want to establish, do you need a work permit or a residence permit?
  • Did you have enough knowledge to documentation process and related papers?
New Company Document Requirements
CORPORATION GUIDE FOR NON US CITIZENS, www.usatradevisa.com

Selection of the company name

When choosing the name you have to make sure that you do not hurt the trademarks of others. Here are some sources to look at before deciding on a name:

The United States Patent and Trademark Office (USPTO)

In the US Patent Office (the United States Patent and Trademark Office) you should first look under "Search Trademark Database" under "Trademark Electronic Search System (TESS)" which brands or names are already registered. It also depends on which class certain names are registered. Basically, however, you should not register a registered brand name as LLC or Inc. because you risk a legal dispute with the trademark holder.

LLC Register - Inc. Register

In addition, one must look in each state, whether the name is already registered as LLC or Inc. If you register a similar name, you risk again that the first-time registrant is legally against it. In California, for example, this research is called "Name Availability" and is provided by the California Secretary of State. Even if the name is available as an LLC you risk a warning from an Inc - so you should search for LLC and Inc. to be 100% sure that neither of them has registered the name.

CORPORATION GUIDE FOR NON US CITIZENS, www.usatradevisa.com

Search a Company Name via Google

Even if the name does not appear in the LLC / Inc. register or is registered in the Patent Office, you can legally address problems by using a name that has gained notoriety. From a legal point of view, trademark applications and a registered company name are no guarantee that names may be protected. 

In the US, a name can be protected without being logged in anywhere. This can be the case if someone with a certain name in a certain area is so well-known that it no longer needs registration - for example, a well-known bakery in the city. In this case, Google helps. One should look that on the Internet nobody uses this name for the state or for the country the USA so much and dominant, that one risks a legal dispute.

Find An Unprotected Company Names

There is an easy way to find a name for your company.
You simply choose a name that you can not legally protect.
So if you choose a common name, you usually do not risk legal consequences. If you want to open a bakery, these names would not be protected and anyone could use them:
  • French Bakery
  • The Baking Oven
  • Funny Baking
  • Bakery House

Or for an art & advertisement company:
  • Red design
  • Kentucky art
  • Innovative advertisement

These names are too general and have no unique selling point, so no protection can be granted in US law. That is, he may call himself that.

The downside, of course, is that any other competitor could theoretically call themselves that, and then you can not do anything about it. But at least you have the certainty that no one can complain about it.

Select Your Company Domain Name

The selection of the domain is also a hurdle. Most of  ".com" domains are usually taken. sO .org .net, domains are seen as charitable companies especially in the U.S and are therefore not recommended. Other ".net" and other domains are often not popular but are often available. Who still swears on a .com domain, I recommend the following.

Just add prefixes to the domain like "go", "connect" etc., so gogermanbakery.com. But also suffixes work quite well like "planet", "media", "star" etc, so: yellowdesignmedia.com, yellowdesignstar.com or yellowdesignmedia.com.

Useful are concatenation tools such as the Concatenation Tool. For example, GoDaddy also offers a bulk domain search and calls its tool bulk domain search.

In this section, we tried to answer the questions listed below. If you have detailed questions, please specify them in the comments section;
  • How to Start a Company in the USA
  • How to Register a company in the USA
  • Setting Up a US company as a Non-Resident 
  • Can a Foreign Citizen Start a Business in the United States
  • How much does it cost to register a company in USA
  • A guide to starting a business in The US
  • U.S. Incorporation for Foreign Business Owners 
  • How to start a business in the USA for non-citizens
  • Can a non-US citizen own a business in us
  • How to open a company in USA non-resident
  • Company registration in the USA for foreign
  • Can I start a business with a work permit in the USA
  • LLC for non-US residents
  • How to Start a Business in the U.S. as a Foreigner

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usatradevisa: HOW TO START A BUSINESS IN USA - GUIDE FOR NON-US CITIZENS
HOW TO START A BUSINESS IN USA - GUIDE FOR NON-US CITIZENS
According to the US tax law, a non-U.S. citizen can own shares in a "C corporation", as a common US citizen but may not be a shareholder in any "S corporation". For these reasons, non-U.S. citizens regularly choose "C corporate" when they start a business in the United States. C corporation has LLC. "Inc." type company is not flexible as LLC, mostly small business companies choose LLC for some tax advantages and easy company procedures but if you think bigger, if you start up a big company and your business sector or business type have some risks, its better to choose "inc" for its liability protection, tax advantages and raising capital ways.
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