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At Taxhint Advisor Offers's USA Company Registration

Company Registration in the USA

Things you should know

The USA is considered to be a world-class economy and first business hub. The US economy is nearly 20 trillion dollars which is nearly 14 times the size of the Indian economy. Hence, setting up a company in the USA gives global class benefit. Further being a developed nation, rules and regulations for Company Registration in USA are much regularized, and corporate tax rates are much lower.

There are two types of companies that Indians may register in the USA. One is C- Corporation and the other is LLC.

1. C-Corporation (C-Corp): A C-Corporation (C-Corp) is a legal business entity in the United States that is separate from its owners (shareholders). It is the most common type of corporation, particularly for businesses seeking growth, investment, and limited liability protection. A C-Corp is recognized as an independent taxpayer, meaning it is subject to corporate income tax on its profits. Additionally, if profits are distributed as dividends to shareholders, they are taxed again at the individual level, leading to what is known as double taxation.

2. Limited Liability Company: A Limited Liability Company (LLC) is a flexible business structure in the United States that combines the benefits of a corporation and a partnership. It provides limited liability protection, meaning the owners (called members) are not personally responsible for the company’s debts and liabilities. At the same time, an LLC offers pass-through taxation, where business profits are reported on the owners’ personal tax returns, avoiding corporate-level taxation.



Benefits of USA Campany registration

  • Business owners (shareholders or members) are protected from personal liability for business debts and legal issues.
  • The USA has one of the world’s largest consumer markets, making it an ideal place for business expansion.
  • Ensures that personal assets remain separate from business liabilities.
  •  Registering a company allows foreign entrepreneurs to do business in the U.S. legally
  • U.S.-registered companies, especially C-Corporations, can raise capital through venture capital firms and angel investors.
  • The U.S. has a well-developed legal framework that supports business growth.
  • Many states provide simple and fast online company registration processes.

Disadvantages of USA Campany registration

  • Double Taxation for C-Corps: Profits are taxed at both the corporate level and again when distributed to shareholders.
  • State & Federal Taxes: Depending on the state of incorporation, companies may have to pay additional taxes beyond federal taxes.
  • Foreign Tax Obligations: Indian entrepreneurs may still need to comply with tax laws in India, leading to dual taxation concerns.
  • Registering a U.S. company involves expenses such as state filing fees, registered agent fees, and annual renewal fees.
  • Registering a U.S. company does not automatically grant a work visa to foreign owner
  • Opening a U.S. bank account can be difficult without a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
  • Foreign-owned U.S. companies are subject to FIRPTA (Foreign Investment in Real Property Tax Act) and additional reporting requirements.


Documents required for company registration in the USA

  • A Certified Copy of Passport
  • Existing Foreign Tax Id Number (Pan Card)
  • Original Voter I’D and Driving License (Incase Certified Passport is not available)

How to register a company in the USA?

Company Registration in the USA Process in 5 steps

  •  step1: Fill in the simple check list 
  • step2: Registration of business name
  • step3: Filing of AOA
  • step4: Sales tax permit
  • step5: Federal indentification number

Fill Simple Check List

The first step towards the Company Formation in the USA is to fill in a simple checklist with the details and documents required for company registration. Our compliance manager will verify the details. Also we will check the name availability for your company and register the same. Once the name is registered we will proceed with the next step.

Prepare AOA

Once the name is registered we will prepare the AOA. These documents formalize how the company will run. They need to be signed by the company director(s), shareholder(s) and secretary before you register for a company in the USA. Throughout the process our compliance manager will keep you updated with the process of company registration.

Tax ID And Permission

Once we have prepared the AOA for your company, we will apply for the Employer Identification Number (EIN) from the USA. Also we will apply for the Sales Tax Permit or vendor’s license which is a priority requirement to sell the products which are easily available from the state or local government. We will inform you once your company is registered in the USA.

FAQ for USA Company Registration

Simple yet effective Elementor FAQ widget. 

1. Can a non-U.S. citizen or non-resident register a company in the USA?

Yes, non-U.S. citizens and non-residents can register a company in the USA. There is no requirement to be a U.S. resident or citizen to own a business.

2. What are the main types of business entities available for foreign entrepreneurs?

The two most common business structures are: C-Corporation (C-Corp) – Ideal for businesses seeking venture capital, scalability, and public funding. Limited Liability Company (LLC) – A flexible structure with pass-through taxation and limited liability.

3. Which U.S. state is best for company registration?

The best state depends on your business needs: Delaware – Preferred for startups and corporations due to strong legal protections. Wyoming – Offers privacy protection, no state income tax, and low maintenance fees. Nevada – No corporate or personal income tax, making it tax-friendly.

4. How long does it take to register a company in the USA?

The registration process usually takes 1 to 2 weeks, depending on the state. Some states like Delaware offer expedited processing for an additional fee.