How do I incorporate a company in the USA? This article will help to clarify some of the stages that you will need to go through in order to get incorporated in the US. This can be useful for business people outside of America who are hoping to set up a company there or even business people who already reside in America but are just starting out in business.
The question “How do I incorporate a company in the USA?” is not a simple and straightforward on to answer because there are many different aspects to consider, this includes considerations like which state the company will be incorporated in and what type of operations the company will be undertaking. Here we will go through some of the basics that will hopefully set you on your way to getting incorporated in the US.
Before the question of how do I incorporate a business in the USA you may want to ask why incorporate a business in the USA? Incorporating a business has many advantages. One of the main advantages is that it separates the company from the individual who is running it. This means that the company has liability for certain thing and not the individual. In the event of the company being sued then the owner only stands to lose money that was invested into the corporation and not their personal savings.
There are of course certain things that will make the company owner liable for everything but in general if they have been acting in accordance with their corporate laws and did not intentionally defraud any creditors their personal assets cannot be used to settle any debts.
The most straightforward thing to do will be to form the corporation in the state were your business will be conducted. This attracts less complications, is more cost effective and usually quicker. It is easier to contact local offices to as specifics such as how do I incorporate a business in the USA. There are many online companies these days that can actually facilitate the incorporation for a fee. You will need to have a name for your company and get it registered with the State. You can check with the secretary of state or use some online services to check whether the name is already in use. If it isn’t in use then it is always a good idea to get it trademarked.
For those who are planning to operate cross-state or envision massive growth over the next few years they may want to consider incorporating in Nevada or Delaware because they offer preferential trading conditions. Their systems are ideally set up to make the process of incorporation that much easier. Delaware has a separate court system specifically for business purposes which helps to make sure quick and easy processes. This is generally a good source of information for answering the question “How do I incorporate a company in the USA?”
You Company Name
A company name will need to have a correct corporate indicator for the particular state that you will be incorporating in. The commonly used and widely accepted are Corporation, Limited, incorporated and company. You will need to take care to make sure that the complete name does not match or appear similar to any other company that has registered in that particular state.
The company will need to have certain officers appointed in order to get incorporated. These will be people that are appointed by the company’s board of directors and will assume responsibility of the company’s daily operations. Officers can be selected from the shareholders, employees or owners of the organization and will assume titles such as secretary, vice president, president and treasurer.
With the appointed officers in place you will then be able to list the company’s structure. This does not have to be complicated and will depend largely on the type of business you will be operating in. The company structure will need to show all the important people that are needed to run a business effectively, from the director’s right down to the administrators in the company. There is no minimum as to how many employees the company needs to have in most cases but you will need to have the necessary officers in place.
Getting incorporated will require going through some legal process to make sure that the company meets all the requirements. Asking “How do I incorporate a company in the USA?” is the first step in a long process. You will need to lodge certain papers with the secretary of state so that they can keep a record of you business. This article assumes that you will already have all the tax and merchant banking side of things already taken care of.
You should already have a tax ID number which will need to be specified on all your companies’ legal documents. A merchant bank and other banking facilities are for the purposes of your own business functions and are easier to acquire when you have a tax ID.
It is now possible to use online services to employ the services of experts in this field. They can offer a vast amount of information on the subject as well as take care of the whole process.
Running the Incorporated Company
Once you have lodged all the required applications and documents with the secretary of state and you have received the certificate of incorporation you will need to be sure that you are aware of the procedures and laws that you will need to adhere to as an incorporated company. Unlike being a sole trader you will have to now answer to other people in your company such as the board of directors.
The question of “how do I incorporate a company in the USA?” may well now be “do I want to incorporate a company in the USA?” The truth is there are many advantages to incorporating and to expand a business you are almost certain to require incorporation. This will allow you to separate the responsibilities of the business from that of your own.