Learn the steps to register and incorporate a company in the USA from India with this detailed guide. Understand legal requirements, gather essential documents, and follow expert tips for successful incorporation.
When incorporating a company in the USA from India, you need to follow specific legal requirements, choose a suitable business structure, and understand the costs involved. Each step is crucial to ensure your business is compliant with U.S. laws.
The first step involves selecting a state for registration. Delaware, Wyoming, and New Mexico are popular choices due to their business-friendly regulations. You'll need a unique business name and a physical address in the chosen state.
Next, file the necessary documents. Most businesses require filing Articles of Incorporation or Articles of Organization. Obtaining an Employer Identification Number (EIN) from the IRS is mandatory for tax purposes and opening a bank account.
Checklist:
Choosing the correct business structure is essential for legal protection and tax purposes. A Limited Liability Company (LLC) offers liability protection and is ideal for small businesses. A C-Corporation (C-Corp) suits larger businesses planning to issue stock and have more shareholders.
An S-Corporation (S-Corp) provides tax benefits but has restrictions like a limited number of shareholders. Sole Proprietorships and Partnerships are simpler but offer less legal protection. Each structure has unique features, so consider the growth and scale of your business.
For detailed guidance, this how-to guide offers in-depth insights.
Costs vary by state and the type of business entity. Filing fees usually range from $50 to $300. Delaware, known for its favorable corporate laws, has higher fees but offers significant benefits. Annual fees and franchise taxes also apply, depending on the state and business structure.
Consulting with a registered agent service is recommended for non-residents. Agents can assist with filings and maintaining a physical address in the chosen state.
Summary of Costs:
For a comprehensive guide on this process, Tetraconsultants provides detailed cost breakdowns.
This guide will explain the initial steps to incorporate a company, how to file the necessary incorporation documents, and what happens after the incorporation process is complete. Each subtopic gives specific details needed to navigate the complexities of starting a business in the USA from India.
To start, choose a business structure. Foreign entrepreneurs typically select between a C Corporation or a Limited Liability Company (LLC). Next, identify a state where you want to register the company. Delaware is popular due to its business-friendly laws.
Select a unique business name and verify its availability with the Secretary of State’s office. You also need a registered agent with a physical US address. This agent handles legal documents and correspondence.
Arrange a US business address and phone number. You may use a virtual office service if you're not physically present in the USA. This ensures privacy protection and helps establish your business presence.
File the Articles of Incorporation (for C Corporations) or Articles of Organization (for LLCs) with the Secretary of State in your chosen state. These legal documents outline basic company details and may incur a filing fee.
Appoint a registered agent and provide their details in your filings. Apply for a Federal Employer Identification Number (FEIN) from the IRS. The FEIN, similar to a social security number, is necessary for tax purposes and opening a business bank account.
Submit a Certificate of Authentication if required by your state. Ensure compliance with state-specific permits and licenses. Pay any necessary fees to complete the incorporation process.
Once your incorporation documents are approved, you will receive a Certificate of Incorporation from the state. This certificate legally recognizes your company as a business entity.
Open a US bank account to handle business finances. Some banks may require you to have a personal meeting, while others allow remote setup for foreign owners. Be prepared to provide your FEIN, incorporation documents, and proof of identity.
Maintain compliance by filing an annual report and paying franchise taxes or annual fees as required by your state. Stay up-to-date with legal requirements to avoid penalties. Consider drafting an operating agreement for LLCs to clearly outline the business operations and management structure.
Registering and incorporating a company in the USA from India involves specific steps, processes, costs, and assistance from various services. Indian citizens can successfully establish their business presence in the US market with proper guidance.
Indian citizens must choose a business entity type such as an LLC or C-Corp, select a state for registration, and hire a registered agent. They need to comply with state and federal regulations including applying for a Federal Employer Identification Number (FEIN). More details can be found in this step-by-step guide.
The online process includes selecting a business name, hiring a registered agent, and completing the necessary paperwork. Applications such as the FEIN can be done online. Services like Firstbase offer streamlined assistance for online incorporation, handling most of the documentation and filings.
Costs can include state fees for filing, registered agent fees, and any legal or consultancy fees for guidance. Services like Stripe Atlas provide a clear breakdown of these expenses. Entrepreneurs should budget for ongoing compliance costs as well.
Yes, an Indian citizen can open an LLC. The procedure involves selecting an LLC as the business entity, choosing a state to register, appointing a registered agent, and filing the Articles of Organization. It is important to hire a registered agent who resides in the state where the LLC is formed.
Services like Stripe Atlas and Firstbase provide end-to-end assistance including company formation, tax and legal guidance, and compliance tools. They simplify the incorporation process by handling paperwork, offering banking solutions, and providing ongoing support.
Technology startups, e-commerce businesses, and consulting services have shown high success rates for Indian investors. The growing demand for tech-based solutions and online services presents significant opportunities. Exploring state-specific incentives and favorable tax policies can also enhance success.
Founder Exclusive Deal:
Up to 3,500 bonus and 3% cash-back on all card spend [3], 6 months off payroll, and 50% off bookkeeping for 6 months, free R&D credit
Get StartedFounder Exclusive Deal: Up to 3,500 bonus and 3% cash-back on all card spend [3], 6 months off payroll, and 50% off bookkeeping for 6 months, free R&D credit
*Every is not a bank. Banking services provided by Thread Bank, Member FDIC. The Every Visa Business Debit Card is issued by Thread Bank, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.
For Every customers with deposit accounts on Thread Bank, your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at go.thread.bank/sweepdisclosure and a list of program banks at go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions on the sweep program.”
**Terms and conditions apply to the Cashback rewards program. Cashback earned will be credited to your account daily. ATM transactions, the purchase of money orders or cash equivalents, and account funding made with your debit card are not eligible for Cashback. Please refer to the Rewards Terms and Conditions for more details. No minimum opening deposit or minimum balance required.
***Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions regarding the sweep program.
[1]Yield is an annualized 4-week T-bill rate when held to maturity as of [08/21/24] [date must be within the last 7 days] . The rate shown is subject to price fluctuation and is net of fees. T-bills are purchased at a discount to par (par= $1,000), with the price being subject to market fluctuation. The amount of T-Bills available at a particular yield will depend upon the sellers’ offer size; any remaining cash balance after the purchase may not earn the same yield. In general the bond market is volatile, and fixed income securities carry interest rate risk. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income securities also carry other risks, including inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties.
[2]Yield as of [08/21/24]. The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous 7 days. You should consider the investment objectives, risks, charges, and expenses of a money market fund carefully before investing. This and other information is found in the fund’s prospectus. Please read the prospectus before investing. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Yields fluctuate and past performance is no guarantee of future results.
[3] Atomic Invest LLC (“Atomic”), through a clearing relationship with Pershing LLC (“Pershing”) offers a cash sweep program. Funds in transit to or from Program Banks are generally not FDIC-insured. The Sweep Program is administered by Pershing, LLC. Deposits at each Program Bank are insured by the FDIC up to $250,000 for each insurable capacity. Based on eligibility criteria, the two FDIC-insured programs (“Bank Deposit Programs”) offered are 1) Dreyfus Insured Deposits (DIDI) and 2) Liquid Insured Deposits. Funds deposited into each sweep program, in aggregate, are eligible for up to $2,500,000 of FDIC insurance. The sweep programs can be configured so that once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity at up to ten Program Banks), then the next Bank Deposit Program is initiated. Although certain types of accounts, such as trust accounts may be eligible for additional FDIC insurance based on the number of beneficiaries, funds will be allocated to each Program Bank in such a way that provides up to $250,000 of FDIC insurance for individual accounts and $250,000 of FDIC insurance for trust and other corporate account types, in each case per Program Bank. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through the Atomic Invest account may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of the Atomic Invest account, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see Pershing’s Terms and Conditions and the Atomic Invest Form ADV Part 2A.
Every, Inc. has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Every, Inc.. Every, Inc. is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Neither Atomic Invest nor Atomic Brokerage, LLC (FINRA registered broker-dealer and member of SIPC), nor any of their affiliates is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal.
Before investing, consider your investment objectives and the fees and expenses charged by Atomic Invest and/or Atomic Brokerage. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest and/or Atomic Brokerage, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Custodial and clearing services are provided to Atomic Invest and Atomic Brokerage by Pershing LLC.
