How to Register a Company in the USA?

 The United States has been one of the world's largest economies since the late 19th century. The current economy is valued at $20 trillion, which is almost 14 times the size of India's economy, making the United States an economic superpower. In addition to a declining backward economy, the United States is also endowed with advanced infrastructure, technology, and abundant natural resources. The U.S. economy is primarily service-based, accounting for 80% of GDP, but manufacturing accounts for about 15% of output.

With the lowest corporate tax rate and established business laws and practices, the United States is the right choice for most Indian companies with global ambitions and foreign customer bases. A US company can be incorporated in a number of ways. This includes sole proprietorships, general partnerships, LLP\LLCs, or corporations. However, the entry route for Indian citizens or Indian companies is limited to LLCs, known as C-Corps in the United States.

In addition, United States laws and regulations regarding the formation and management of LLCs or corporations vary from state to state. However, all LLCs or corporations for Indian citizens are incorporated in states like Delaware due to various advantages such as low tax rates, minimal maintenance fees, and good corporate law.

Delaware is a good choice not only for Indian citizens and corporations but also for US companies as more than half of all US publicly traded and Fortune 500 companies are incorporated in Delaware.

Learn more about Company Registration In USA

US Corporation Formation Details

US LLC Formation

A LLC or Limited Liability Company is a legal entity that has the characteristics of both a corporation and a partnership. LLCs provide owners with limited liability protection in the event of litigation or bankruptcy. However,

LLC has operational flexibility and simple compliance requirements. For example, companies need to record and submit resolutions and shareholder meetings, as well as forms showing that the meeting was held. This is not the case for LLCs.

C-Corporation

If you are looking for angel or venture capitalist funding, consider forming a C-Corporation in the United States. A C-corporation is considered much more professional by bankers, investors, customers, suppliers, and employees, making it an ideal choice for most businesses. C-Corporations are considered "corporations" for tax purposes because they are separate legal entities from the individuals who own them. Therefore, we may enter into a transaction or agreement, sue or be sued.

Registered Agent

Every LLC or corporation incorporated in Delaware must maintain a registered agent in the state. This registered agent is responsible for receiving and processing official emails on behalf of the Company.

Corporate Income Tax Rates

State corporate income tax rates vary from state to state. The lowest is 3% in North Carolina to 12% in Iowa. Delaware corporate income tax is charged at 8.7% of net income. However, if a corporation is incorporated in Delaware but does not do business in Delaware, it is not subject to state corporate income tax. Incorporation in Delaware is therefore most advantageous for foreigners and companies wishing to do business in the United States through Delaware.

Our staff at Vakilsearch provides you with a number of company registration alternatives, including private company registration, LLP registration, one-person company registration, etc. Vakilsearch is India's largest professional platform for attorneys, chartered accountants, and company secretaries with years of expertise behind us. We also have a lot of experience setting up businesses of all shapes and sizes in the USA. By utilizing our technical skills and the knowledge of our team of legal professionals, we carry out legal work for thousands of organizations every month.