There is no such thing as “”creating a company”” in the U.S. The process of forming a company is called “”incorporating.”” Creating a corporation (or LLC) enables you to limit your liability, maintain control over your assets, and provide continuity of existence if you go bankrupt or die without liquidating your company and paying any tax on capital gains or profits. Incorporating means setting up your formal legal entity – so that it legally exists as if it were a separate person, with its name and address – by filing Articles of Incorporation with the appropriate state authority when you elect to incorporate your business. You have two options for incorporation: registering with the states (sometimes called “doing business” or “doing business under the laws”.
Choosing Your Business Structure
Choosing which type of business entity to form is a difficult decision. You need to weigh the pros and cons of each structure, including tax considerations, managerial control, asset protection, public disclosure requirements, and any registration requirements.
The first option for starting your company is registering with the states as a “doing business” or “doing business under the laws.” This means that you are doing business in a particular state and that the state’s laws will govern your activities unless you elect otherwise. If you choose this option, you should check out the following resources:
- – Doing Business in Your State
- – Doing Business Under the Laws
- – Incorporating Outside Your State
- – Choosing an Entity Type
Choosing Your Location
The first step to forming your company is deciding where you will incorporate. It’sIt’s important to understand that each state has its own set of rules and regulations, so it’sit’s best to determine which state is the best fit for your business. You can find information about the incorporation requirements in each state by visiting the Secretary of State or U.S. Internal Revenue Service website.
There are two primary types of incorporation: “doing business” and “doing business under the laws.”
If you’re “doing business,” you must register with the states to do business in them – this requires registering with a Secretary of State office and getting an Employer Identification Number (EIN). If you’re doing business under the laws. You can skip registering yourself with any particular state but must still file Articles of Incorporation with the appropriate governing body for that state at the time of organization. Typically, this means filing Articles with a Secretary of State office before incorporating your company with that state’s attorney general’s office for legal purposes only.
How to Form a Corporation in USA
To form a corporation in the U.S., you need to decide on a corporate name and file Articles of Incorporation with the appropriate state authority. Once your entity is formed, you’ll have to register with the states your business will operate.
Incorporating also includes filing for a federal tax I.D. number (EIN). This allows your company to open bank accounts, pay employees, and otherwise function as an independent legal entity.
Generally speaking, it takes about 3-5 months from start to finish to incorporate a company in the U.S. The process entails three steps:
1) deciding on a corporate name
2) filing Articles of Incorporation with the appropriate state authority
3) registering with the states in which your business will operate.
Conclusion
Forming a company in the United States can be complex and expensive, but the rewards are worth it.
For those who want to start a company in the U.S., this comprehensive guide will take you through all the steps, from choosing your business structure to your location.