When starting a company in the US, you need to know the field of operation of your company and whether you will need exclusive permits for your operations. For example, banking, insurance, or aerospace fields are subject to exclusive permits. Thus, the establishment of a company that will operate in such fields should proceed accordingly. Besides these, there are also fields of operation that require a license, such as medicine, dentistry, and architecture.
Before initiating the company establishment process, you need to decide on your company type, who will be the owner(s) of the company, who will manage the company, in which state your company will be established, and the name of your company.
Company types in the US
Corporations or LLCs are the most preferred types when setting up a company in the US. The titles of company owners and managers vary depending on these company types. If you own a corporation, your title would be shareholder. On the other hand, if your company type is an LLC, then your title would be member. As for the executive title, it is called director for corporations and manager for LLCs.
How to determine the name of your company in the US
Choosing the name of your company in the US also differs based on the state in which your company will be established. Therefore, it would be better to choose the state in which you will set up your company first. When selecting a state, you can decide in which state you plan on doing business or whether a state, such as Delaware, has exclusive legal advantages. After determining the state in which you will establish your company, you need to name your company according to the naming rules of that state. Moreover, the name of your company should include an abbreviation depending on your company type.
Appointing a registered agent for your company in the US
Following these procedures, you may need to appoint a registered agent located in the state where your company is formed. Nearly every state requires a registered agent within its borders for the admission of legal procedures, annual reports, annual tax forms, or the submission of other essential correspondence. Thus, choosing a registered agent is of great importance.
Details to consider when setting up a company in the US
The general goal of incorporating a business or starting a company in the US is to protect the shareholders from business responsibilities. The liabilities of shareholders or investors are legally held separate from their company, no matter whether the company type is a corporation or an LLC. Moreover, incorporating a business has many benefits, such as tax advantages, reputation, and protecting the company name.
As we mentioned, there are many company types in the US. However, the most common company types are corporations and LLCs (limited liability companies). While a corporation is regarded as a separate entity from its stakeholders, LLCs combine both the corporation and partnership features.
How long does it take to establish a company in the US?
Establishing a company in the US varies depending on the state you choose to form your company and the type of service you receive. Each state has different processing times. Besides, most states don’t offer accelerated services, making it hard to clearly predict the US company registration period. You can contact us to learn more about setting up a company in the US, the establishment period, and service content, or check out our website.
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