More and more foreign companies contemplate establishing operations in the U.S. due to American consumers spending money on every kind of product and service, the availability of capital and the attractive acquisition opportunities. Once you have made the decision to set up operations in the U.S., there are some things to consider to help you prepare and navigate potential issues and risks.
Steps to starting a business in the United States:
- Establish and organize a subsidiary
- Clear name for use as corporate name in state
- File organizational documents with the state
- Establish registered office
- Appoint officers and directors
- Capitalize the entity (issue stock to parent)
- Consider U.S. trademarks for the name and logo
- Apply for local business licenses
- Initiate separate recordkeeping for U.S. business
- Establish banking relationship for U.S. business
- Obtain business insurance
- Qualify to do business in other states as needed
- U.S. Department of Commerce reporting (10% or greater foreign ownership)
- Obtain Employer Identification Number (EIN) – Form SS-4
- Register for employee payroll withholding
- Register for sales and use taxes – state by state
- Register for income and/or franchise taxes – state by state (done along with qualifying to do business in other states)
