United States of America

Company Formation in United States of America

United States of America (USA) is the largest market in the world and a presence in this market is essential. YourGlobalPro can assist in USA for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

About the Country

The United States of America, commonly known as the United States (US), a constitutional federal republic composed of 50 states, a federal district, five major self-governing territories and having extremely diverse geography, climate and wildlife. The below content will explain you in detail about the requirements for the company formation in United States of America (USA), know more about the process of trademark registration in United States of America (USA) and understand the United States of America (USA) Legal Compliance requirements.

United States of America

Doing Business Introduction

The Country is having a capitalist mixed economy supported by abundant natural resources and high productivity. It is the largest importer of goods and second-largest exporter with Agriculture accounting for just less than 1% of GDP – the country is the primary developer and grower of genetically modified food. Also, it ranks first in the ease of hiring and firing workers as per World Bank report. As per Doing business report of The World Bank –United States of America ranks 8 for 2017 survey.

YourGlobalPro professionals are able to assist with any type of company formation in United States of America (USA), trademark registration in United States of America (USA) and other recurring services for your business in United States of America.

Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in United States of America are as mentioned below:

  • Corporations
  • Limited liability companies (LLC)
  • Sole Proprietorship
  • Partnership
  • Cooperatives

Time Frame for Incorporation of Company in United States of America varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for the process of Company formation in United States of America (USA) to be completed is 3-4 working days.

Benefits of Registration of a Company

The US market attracts the attention of businesses from around the globe. Below are the advantages of company formation in United States of America (USA):

  • Business etiquette and deadlines are strictly adhered to
  • The employees are hardworking and dedicated
  • Conducive to innovation and improvement
  • Immigration from virtually every corner of the world has assured the unique cultural diversity
  • Consists of many different geographic and demographic consumer markets.
  • A major commerce centre, the South attracts foreign investment
  • Important hubs for advanced manufacturing and agriculture
  • A global leader in energy and chemicals and a global technology hub

Tax Registration and Filing

In United States of America, US corporations are subject to federal taxes on their worldwide income, including income of foreign branches.

Corporate Income Tax Rate 15 to 39%
Capital Gains Tax Rate 15 to 39%
Branch Tax Rate 15 to 39%
Dividends 30%
Interest 30%
Royalties from Patents, Know-how 30%
Branch Remittance Tax 30%
Annual Tax Returns Due by 15th day of the third month after the close of the companyu2019s fiscal year.
Estimated Tax Payments Due on the 15th day of the 4th, 6th, 9th and 12th months of the companyu2019s fiscal year.
Tax Credit Allowed for foreign income taxes paid, or deemed paid, by US corporations.
Accounts Reporting To select between reporting on a calendar year or a fiscal year basis

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. United States of America has double taxation treaties with over 70 countries.

Trademark registration

For trademark registration in United States of America (USA), an application needs to be made to the U.S. Patent and Trademark Office (USPTO). It takes approximately 10-12 months’ timeframe to complete the process of trademark registration in United States of America (USA).  The Trademark Registration in United States of America (USA) is valid ten years from the date of filing trademark and is renewable for ten years period by paying the renewal fee by the expiration date for an unlimited number of times.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in United States of America (USA) for your business. For assistance or advise in the matter of the trademark registration United States of America (USA) or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in United States of America (USA):

  • Maintain the Statutory Register and Minutes Book.
  • To do statutory filing requirements
  • Maintaining control of corporate statutory compliance filing deadlines
  • To prepare and maintain proper books of Accounts for the business
  • The Public companies must have an annual financial statement audit conducted by an independent Certified Public Accountant (CPA)
  • An in-country director is not a requirement in US.

Accounting Services

The Entities in United States of America are required to maintain proper accounting records as per accrual accounting. The Generally Accepted Accounting Principles (US GAAP), is the accounting standard adopted by business. The accounting requirement enables full and fair disclosure of the financial condition in compliance with applicable accounting principles, laws, rules and regulations.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your United States of America Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In United States of America, the audit requirements are different, depending on whether your business is public or private and the term of auditor appointments are generally not subject to legislative or regulatory requirements, so an auditor can usually be appointed or terminated at any time.  The financial reports are to be prepared as per appropriate U.S. or international accounting and reporting standards. Although no audit requirement, companies wishing to do business in the United States, the banks and other lending institutions often require specific financial information from their clients and may require a client to undergo an annual audit by an independent accounting firm.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals can provide you auditing services as required by your business.

Banking

The Federal Reserve System is the central bank in United States of America regulating the Banks in the Country. The accounts can be opened and maintained in multi-currency and is available for all major currencies with the Banks.

The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.  The five major banks in United States of America are JP Morgan Chase &Co., Bank of America (BoA), Wells Fargo, Citigroup, Goldman Sachs Group. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals can facilitates all the paper work in relation to banking need and can assist you in opening bank account for your business plan in United States of America.

Legal and Compliance

In United States of America, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various United States of America (USA) legal and compliance requirement to be followed by incorporated entities:

  • Currently has no foreign-exchange control restrictions
  • To comply with all applicable laws and regulations, including those concerning hours, compensation, opportunity, human rights and working conditions.
  • To comply with required by the Securities Laws of the United States to disclose to the public important information regarding the Company
  • Compliance with the applicable anti-bribery laws and regulations such as, but not limited to, the U.S. Foreign Corrupt Practices Act, the Organization for Economic Cooperation and Development (“OECD”)
  • Employers to hire those who can legally work in the United States and must maintain up-to-date I-9 forms for all employees.
  • To adhere to rules and guidelines that your US business counterparts must also follow. Company policy and business procedures such as legally binding contracts, are aspects of American business culture that require strict compliancy

YourGlobalPro professionals can assist you with Legal and compliance requirements in the United States of America (USA).

HR and Employment Law and Immigration / VISA

In United States of America, the foreigners are allowed to work on work visas and work permit. Below are some of the important points in relation to HR & employment law in United States of America:

  • Maximum work hour standard 40-hour-week.
  • To withhold and pay the federal government a set percentage of employee wages for the federal government and a set percentage of employee wages for Social Security and Medicare.
  • Must pay male and female employees the same wage for the same job and not discriminate against employees or applicants on the basis of race, color, religion, sex, or national origin.
  • Must permit employees to be absent from work for military duty and retain reemployment rights for up to five year.
  • Social security tax is imposed on wages or salaries received by individual employees to fund retirement benefits paid by the federal government.
  • Foreign nationals who wish to be admitted to the United States generally must first obtain authorization, and in many instances, must obtain visas from a US consulate or embassy.
  • If the employee wishes to remain in the United States on a permanent basis, the immigrant application process may begin while the employee is in the United States
  • Permanent resident or immigrant visas, which are commonly referred to as “green cards,” are issued to those intending to reside permanently in the United States.
  • Permanent residents may also lose their status if they commit a prohibited act, including conviction for certain crimes.

Country Statistics

Capital Washington, D.C.
Largest City New York City
Area Total 3,796,742 Sq. Miles
Population 325,145,963
Density 90.6 / Sq. Mile
Currency United States Dollar ($) (USD)
Government Federal Presidential Constitutional Republic
Official Language English
Religion Christian: 70.6%
Jewish: 1.9%
Muslim: 0.9%
Buddhist: 0.7%
Hindu: 0.7%
Other faiths: 1.8%
Irreligious: 22.8%
Government Offices Hours Monday to Friday 8 a.m. to 5 p.m.
Business Offices Hours Monday to Friday from 9:00 am to 6:00 pm, with one hour for lunch and, usually, two breaks of 15 minutes.
Banks and Exchange Houses Hours Monday to Friday from 8 a.m. to 5 p.m.

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