Steps you Need to Take to Start a Business in the United States

As a law firm that works with foreign entrepreneurs, Jurado & Farshchian, P.L. has helped hundreds of non-citizen clients like you start their business in the United States and we can definitely help you start yours.

Here is a quick guide consisting of 7 steps you need to take in order to start a business in the United States:

1 – Choose a Business Structure for your Company

The first thing you will need to start a business in the United States is to decide which business type is right for you.

Choosing the correct business structure is important because the type of business you select will have an effect on everything – from operations and taxes to how much of your personal assets are at risk.

When it comes to the best business structures for non-citizens, the LLCs and the C-Corporations are at the top of the list.

The Limited Liability Company structure is the most common business type in the United States, especially if you are not a citizen. LLCs protect your personal assets from business debts and lawsuits. What this means is that if something unexpected happens to your business, then your personal assets such as your home, your car, and your personal bank account will be protected. Additionally, LLCs have “pass-through” taxation, which means that your earnings pass through to your personal income taxes and accountants do not have to file a separate tax form for the company.

The C-Corporation structure is another great option for non-citizens. It is especially recommended for companies who wish to have “shares” and expect to have investors.

Corporations are typically better for investors because they can passively hold shares without having to worry about tax consequences until they sell them again in the future.

The downside of Corporations is double taxation, meaning that the income is taxed twice, first at the company level, then at the personal level – making the LLC a better option when it comes to taxes.

2 – Hire a Registered Agent

In the United States, LLCs and Corporations are required to have a Registered Agent who have a physical address and is available during normal business hours to receive important documents on behalf of the business. A Registered Agent is crucial to ensure that you do not miss any important documents related to state taxes or lawsuits. Business owners typically prefer to use the services of a registered agent rather than perform this task themselves.

3 – Register Your Company

Now that you have decided which type of business structure is best for you, the next step you need to take to start a business in the U.S. is to register your business by filing the necessary documents.

Whether you choose an LLC or a Corporation, at Jurado & Farshchian, P.L. you will find a lawyer who will help you prepare, draft and/or file all the necessary documents for your business registration.

Forming your LLC or C-Corporation on your own while making sure you are doing everything correctly is highly complicated and unless you have a lot of time and patience, and, most importantly, a lot of experience, it is recommended that you seek the help of professionals. Our lawyers are only a phone call away.

4 – Apply for an EIN

Every business person in the United States is required to have an Employer Identification Number (also referred to as “Tax ID number”) to start a business. The EIN is issued by the U.S. Internal Revenue Service (IRS) to identify a company. An EIN is necessary for an LLC or C-Corporation to conduct business activities lawfully in the United States.

5 – Open a Business Bank Account

Once you have obtained your EIN, you can open a business bank account in the United States. This step is usually found to be the most challenging for non-citizens who are trying to start a business in the U.S.

You will have to come to the United States and visit the bank in person in order to open a business bank account.

It is highly recommended that you contact the bank you will be visiting in advance to make sure you understand their requirements and know exactly what to bring with you to open your account.

6 – Get Insurance

Business insurance is a priceless asset because it protects you from the unexpected costs of running a company. Lawsuits, natural disasters, and accidents could cause incalculable harm to your business if you are not protected by the right insurance policy.

In some instances, your business might be legally required to have certain types of business insurance. Every company that has employees is required by the federal government to have unemployment, workers’ compensation, and disability insurance.

7 – Hire a Business Lawyer to Help You Start a Business in the United States

Starting a business is complicated, and becomes all the more so when you are doing it in a country that is not your home country. The biggest mistake foreign entrepreneurs make when attempting to start a business in the United States is never seeking the help of an experienced immigration and business attorney. This is something that you should do before you even start to consider which type of business structure is the best for your needs.

The skilled Business Attorneys at Jurado & Farshchian, P.L. have helped numerous clients start their business successfully in the United States. There is no reason why you should not be the next foreign entrepreneur to join our list of satisfied clients.

Call us today at (305) 921-0440 or send us an email to [email protected] to learn more about our services and how we can help you start a business if you are not a U.S. citizen.

Read more at 7 Crucial Steps you Need to Take to Start a Business in the United States