Understand the types of companies and how to establish them
Depending on the content and purpose of the business activity, either a subsidiary (local subsidiary), a branch or a representative office is selected as the type of expansion.
The establishment of a subsidiary (local corporation), branch or representative office will be selected as the mode of operation in accordance with the content and purpose of the business activity, and further considering the responsibility of the parent company, jurisdiction and tax law issues. In the case of the United States, there are some differences depending on the state, but the outline of the establishment procedure is as follows.
- Establishment of subsidiary (local subsidiary)
- Preparation of the company’s articles of incorporation (easier than in India)
- Submit the signed by-laws of the founder to the Secretary of State with the prescribed registration tax and fees
- Issuance of company establishment permit by state authorities
- Apply for ITIN
- Obtain an Employer ID Number ( EIN) (also known as Tax ID )
Types of Companies you can start in USA
- Incorporate company
In orderto register a company in USA, align the required documents of each state provisions, (there is also a fax and capable state registration of online) that registration fees and to submit along with the commission. At the same time, it is necessary to register as a taxpayer with the Internal Revenue Service (IRS) of a federal government agency and obtain an employer certification number (EIN). EIN must be obtained from IRS by all business organizations, regardless of company type.
- Limited Liability Company ( LLC)
Basically a kind of stock company. It is legally limited, and it is allowed to choose either tax as a corporation or tax as a partnership for tax purposes. (If there is one shareholder, the income tax return is the same as for a sole proprietor. Possible). The difference with LLP is that the type of business does not matter in the registration of LLC, and the transfer of partnership rights requires the consent of other partners, but the transfer of rights (shares) at LLC is easy. That there is.
- Small corporation (S Corporation)
Although it is a corporation in the form, it is actually an individual micro enterprise. There are limits on the number of shares issued and the number of shareholders. In other words, it has the same limited liability legally as LLC, and is treated as a partnership tax ally. There are some industries in which the form of a small corporation is not allowed, and financial companies and insurance companies fall under that category.
Foreign corporations can also raise funds in the United States, but there are no special incentives. Indian businessmen love to do business in America. When local companies raise funds, there are preferential treatments such as issuance and guarantee of industrial income bonds by local banks and state governments.There are no restrictions on the means of financing in the United States. However, legal and tax affairs differ depending on the funding source.