How to Establish a Company in the U.S.? What are the Requirements and Benefits?

By Asim Kilinc, Immigration Attorney at CK Law Firm

The United States offers a dynamic and global economy with vast opportunities for entrepreneurs looking to start a business. Establishing a company in the U.S. is not only an attractive option for local entrepreneurs but also for foreign investors. With its large market, strong business infrastructure, and investor-friendly laws, the U.S. is a prime destination for those who wish to start and grow a business. However, the process of forming a company and the legal and financial obligations that come with it require careful attention to specific steps.

• General Steps to Starting a Business in the U.S.
• Requirements for Starting a Business in the U.S.
• Benefits of Starting a Business in the U.S.
• Important Considerations When Starting a Business in the U.S.

If you have any questions not covered here, feel free to leave a comment below, send me a message on LinkedIn, or contact me through the website of CK Law Firm, a firm specializing in immigration law, where I am a co-founder.

General Steps to Starting a Business in the U.S.

The process of starting a business in the U.S. is open to everyone, including non-U.S. citizens. However, several steps need to be followed:

1. Decide on the Type of Company

Before starting a business in the U.S., you need to determine which type of company best suits your needs. The most common types of companies in the U.S. are:

• Limited Liability Company (LLC): One of the most popular business structures in the U.S., an LLC offers limited liability and flexible management. Owners (members) are not personally liable for the company’s debts. Additionally, LLCs may offer tax advantages, as income can be passed directly to owners’ personal income.
• Corporation (C-Corp and S-Corp): A C-Corporation is ideal for large-scale businesses, where owners can grow the company through shares. S-Corporations are usually preferred by smaller businesses and offer tax benefits.
• Sole Proprietorship: A simple structure for individuals, offering full control to the owner. However, personal assets may be at risk for business debts.

2. Choose the State

You must decide which state you will operate in. Each state has different laws on taxation, business management, and regulations.

3. Choose a Business Name

Selecting your company’s name is important for both business identity and legal requirements. You must ensure that the name is not already used by another business in your state. After registering your business, you can protect this name.

4. Obtain a Tax ID Number (EIN)

When forming a company in the U.S., you must obtain an Employer Identification Number (EIN) from the IRS. The EIN is required for tax filing and to identify your business on a federal level.

5. Prepare Company Agreements and Documents

During the setup process, legal documents such as the Operating Agreement (for LLCs) or Bylaws (for corporations) need to be prepared. These documents outline the company’s management rules and operations. Additionally, you must submit the necessary documents to the state authorities to officially form your company.

6. Open a Bank Account

Opening a business bank account in the U.S. is essential for managing company finances. It also helps to separate personal expenses from business expenses, which is important for accounting and tax purposes.

7. Obtain Licenses and Permits

Depending on your business sector, you may need to obtain various licenses and permits at the local, state, or federal level. For example, if you plan to open a restaurant, you will need health and safety permits.

Requirements for Starting a Business in the U.S.

There are certain legal and financial requirements to start a business in the U.S.:

• Investor Visa (E-2 and L-1 Visa): Foreign entrepreneurs can apply for a non-immigrant work visa such as the E-2 Investor Visa or the L-1 Intracompany Transfer Visa to start and operate a business in the U.S. The E-2 visa is for citizens of countries with which the U.S. has a trade treaty, while the L-1 visa allows international companies to open a branch or subsidiary in the U.S.

You can find detailed information about E-2 and L-1 visas on our blog!

• Local and State Taxes: You will need to obtain a federal tax ID number to do business in the U.S. Additionally, you will be taxed according to the state laws where you operate. Tax rates and obligations vary from state to state.
• Registration Fees: You must pay a registration fee to officially register your company. These fees vary depending on the company structure and the state in which you operate.
• Employment Laws: If you plan to hire employees, there are many U.S. labor laws and employee rights regulations that you must comply with, including wage, work conditions, and social security obligations.

Benefits of Starting a Business in the U.S.

Starting a business in the U.S. offers various rights and benefits to entrepreneurs:

1. Limited Liability: In structures such as LLCs and Corporations, business owners are not personally liable for the company’s debts and obligations, protecting personal assets.

2. Tax Advantages: Certain states and business structures offer tax advantages. The LLC structure is commonly chosen because of the flexibility it provides in income tax distribution.

3. Global Market Access: A U.S.-based company offers significant opportunities for global market access. With a broad customer base and advanced infrastructure, the U.S. is an ideal hub for international business development.

4. U.S. Residency and Work Rights: Foreign entrepreneurs who start a business in the U.S. may obtain work and residency rights through visas such as E-2 or L-1. These visas allow entrepreneurs to live and work in the U.S. while their business operates.

5. Access to Trade Agreements: The U.S. has numerous free trade agreements with other countries, offering lower customs duties and broader trade networks. Entrepreneurs with U.S.-based companies can benefit from these agreements.

Important Considerations When Starting a Business in the U.S.

While the process of starting a company in the U.S. is full of opportunities, there are certain challenges and risks to keep in mind:

• Immigration Rules: Foreign entrepreneurs planning to establish a business in the U.S. must have the proper visas and work permits. Professional legal support is essential to ensure the application process goes smoothly.
• Compliance with Regulations: It is essential to fully comply with federal, state, and local regulations when doing business in the U.S. These regulations vary by sector.
• Competitive Market: The U.S. has a highly developed and competitive business environment, requiring careful planning and strategy. Preparing a solid business plan and conducting market research are important steps for a successful start.

Given the complexity of the application process and the annual visa quotas, it is important to manage the process carefully. For more information and consultation, contact us at cklawfirm.org, info@cklawfirm.org, or on LinkedIn.

Who is Attorney Asım Kılınç?

Attorney Asım Kılınç is the co-founder of CK Law Firm and is recognized for his expertise in immigration law and U.S. asylum applications. Kılınç completed his Master’s degree at Southern Methodist University Dedman School of Law and is a member of the Missouri Bar Association, with a focus on U.S. immigration law.

Attorney Kılınç’s extensive knowledge and experience in immigration law have significantly contributed to CK Law Firm’s success in this field. He has actively participated in the preparation of over 1,000 cases, demonstrating his expertise in this area. By providing comprehensive and professional legal support to his clients, he helps them adapt to their new lives in the U.S.

Attorney Kılınç is also well-versed in U.S. asylum applications. He meticulously guides his clients through the process and ensures they receive the best legal advice. He provides top-quality service to clients in matters of citizenship, Green Card, work permits, and other immigration processes, supporting them from start to finish on their journey to U.S. citizenship.

Attorney Asım Kılınç, who solidifies CK Law Firm’s leadership in immigration law and U.S. asylum applications, offers reliable and effective legal consultancy services to clients, assisting them in building a new life in the U.S.