Explained: Guide to incorporating company in United StatesApril 21, 2017 2017-04-21 8:11
Explained: Guide to incorporating company in United States
Recently, we have seen a demand for Indian entrepreneurs increasing through companies such as SaaS and Tech Products whom are interested in registering their companies in United States. So, we have partnered with some of top CPA Firms to help our own Indian entrepreneurs start their business ventures in the US.
Why do so many Indians want to start their entrepreneurship in the US? The answer is simple: it’s because the United States of America is the top number one business hub in the world. Foreign nationals are setting up US Businesses that range from major enterprises to small startups. The most efficient way to expand business worldwide is to register in the US Marketplace. This is seen as the key to success for any business around the world. The USA has proven to be the world’s largest, best, and most integrated market with the lowest tax rate. Registering a company in the USA as non-resident is a simple and 100% online process.
If you are Tech or SaaS Company you should consider these advantages:
- It is easier to take International Payments in a US Entity. You have access to Multiple Payment options like Stripe, Braintree and Venmo. These options are normally not available to Indian Companies. These providers have rock solid APIs, and they are loaded with lot of features that can help you to scale the American markets.
- Makes it super easy to charge for a subscription which is not available with Indian Payment Gateways.
- Makes it easier to take payments from a third party. You can receive checks, accept cash, and get wire transfers same day. You can also accept Bitcoin!
- Increases trust in your brand so you can also go ahead and get an EV SSL certificate for your brand. You can get all those trademarks like BBB, Trustee Privacy etc.
- As long as the US company is not a subsidiary of your Indian company, you don’t have to worry about the US company’s taxation here in India. Just pay taxes in the United States and relax!
Any Indian citizen can open a company in the United States. For C-Corp you will need two different directors at minimum.
LLC, C-Corp, S-Corp
You can choose any state(s) you want to operate in.
We prefer C-Corp in the state of Delaware. Delaware is home to many tech companies and has very sound corporate laws. Delaware corporations allow companies to issue stock to employees, raise funds from the angel investor or venture capitalist, and provides the stability of clear corporate rules and case law. Approximate 60% of the Fortune 500 companies in the United States are registered in Delaware. Delaware also offers lowest tax rate and has very liberal tax laws.
Once you have decided the desired name, ABC., Inc and arranged documents it generally takes 7-10 days to complete the Registration Process. Expect it to take another 15 days to apply for an EIN (Employer Identification Number), which is similar to getting a PAN in India.
You can then take a virtual address within United States to receive documents, and to be used as a registered address for your business. You will also need a registered service agent to receive documentation on your behalf.
Once you get Incorporation Certificate and EIN you can then apply for a bank account.
We have previously had great experiences with the Silicon Valley Bank. We recommend opening the bank account with the Silicon Valley Bank as they can open it online. However, approval varies on case-to-case basis. In some cases, you may need to visit the bank in person. Banks like the Silicon Valley Bank are interested in startups with a strong product and someone that has a strong vision for their future. If accepted, not only do they provide you with banking facilities, but they will also provide mentorship to raise funds, etc. From past experiences, their support is top notch!
If SVB denies your application then you can schedule an appointment with any other bank, and submit all the papers paperwork to open your account in person.
Once that is done you can sign up for services such as Braintree and Stripe Payment. These payment systems are gateways that help integrate their APIs to accept credit cards and other payment forms. Now it is easier for you to get money from international clients.
A company in the United States will open new opportunities for you and make it easier to do business with international clients. Most of the businesses that are going international in this manner can help their company grow, acquire new customers, and raise their brand equity!