How to start a company in the US

Friday, June 6, 2014

How to start a company in the US

It is significant to understand the US norms and tax laws in particular before you decide to open a firm in the United States, or start selling to the US customers. There are 50 states in the US, and many of these states have their own set of instructions and criteria for start-ups, and businesses. The US has a tiered tax structure, which makes it all the more important to know all the details. Here are few pointers to help you out.

 Copyright: iqoncept / 123RF Stock Photo

Registration may not be important

If you operate as an individual, then don’t register your company, instead wait for your business to grow, till it attains an absolute growth. However, in such cases, manage your business with your own name, till the time you register your business. Check with the states, as some may let you, away and you can have other names as well. 

Employer identification number

You must get employer identification number (EIN). It is mandatory that you have it. There are two benefits attached to it. To pay taxes, you need EIN, and secondly, banks ask for EIN when you open an account for your business. You can choose to apply online. Try searching for ‘US internal revenue service’ on Google, and in all likelihood, you will find the instructions on how to get EIN. 

You are advised to have a comprehensive knowledge about state tax laws. In the United States of America, states have the freedom to form their own tax laws, and some of these states can be very easy to start your businesses. Check the laws thoroughly, and choose the state according to your convenience. 

Know about the license you need to have 

Apart from the employer identification number, there are also other licenses that you might be required to get hold of, depending upon the businesses. Once you get beyond sole proprietorship, and expand your business, these state and federal licenses are a must. Check with the states where you open your business, and know the details.

Filing 83 (b) election form

Once you incorporate your business and run for profits, you will be required to fill 83 (b) election forms. You need to complete the formality of filing the form within 30 days, which will help you save taxes. Remember to tell all your company shareholders to fill 83(b) form, or else pay heavy taxes.

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