Introduction
A company is any business organization, whether incorporated or not, that manufactures goods or renders services as an economic venture.
The initial and most crucial prerequisite in setting up a company is registering the company in the country of operation. Registering a company is the process by which a prospective company files required documents with the appropriate statutory authority of the country following corporate and security law.
The US has about 50 states, and each American state has its specific regulations or requirements concerning the registration of companies. Fortunately, irrespective of the state you want to establish your company in the US, there are still a lot of standard requirements.
Importantly, company registration is open to citizens and non-residents of the country.
The statutory authority responsible for registering companies in the US is the Secretary of State’s office of the business location. After submitting all the required registration documents, the government will process and review the records before approving them.
The Benefits of Company Registration in the US
- Company registration gives easy access to capital. This is because registration gives companies their reputation, enabling them to issue shares and raise capital. Additionally, investors will have more confidence in your company.
- Company registration reduces personal liability because the registration of a company confers a distinct legal personality to the new entity, which is separate from the founders. Consequently, this allows one to perform company operations without risk on personal assets.
- When a company is registered as a corporation in the US, it enhances credibility and brand awareness. Furthermore, customers and other essential stakeholders believe registered businesses are more stable than unregistered businesses.
- Registering a company in the US offers some incentives, such as reduced tax liability in most states, especially if a foreigner owns the company.
Documents Required for Company Registration in the US
The required documents for company registration in the US include
- The name of the company
- The type of business
- The US Address of the Registered Business
- The details of the registered agent
- The names of all the business partners
- The addresses of all the business partners
- The percentage of ownership
- Incorporation Number Certificate of the Business;
- The By-laws of the Company
- The copy of the Board approval of the Resolutions of the organization
- The Employer Identification Number from the IRS
- Details of Opening a Bank Account
Procedures for Company Registration in the US
- Determine the appropriate business organization that is right for your business. This could be a partnership, limited liability company, or corporation.
- Choose a unique name for the company. The chosen name should not match any pre-existing name.
. - Obtain the required licenses and permits to run your business in the state of your choice.
- Find a local registered agent. Although company registration is an online procedure in the USA, only a licensed person or agent can register a company.
- Provision of personal data of one or more founders and appointed directors of the company by the owner.
- Apply for an Employer Identification Number, also called a Tax Number. The EIN is a 9-digit number that helps identify your business for tax purposes. An EIN must commence the company registration process as an LLC or corporation. The IRS provides a free registration service for all applicants that can be completed online.
- Draft the required documents, such as company bye-laws.
- Preparation of forms to be filled.
- Online Filing of registration application
- Registration of your LLC or S-corporation.
How long does it take to register a new company in the US?
How long the registration takes depends on the registration state and the circumstances surrounding the registration. Conventionally, registration in most states in the USA can take 4 to 6 weeks for the Secretary of State to approve an application. Fast-tracking is also available in some states, such as New York. The processing time to fast-track takes between 2 and 3 business days.