USA company registration
Summary table of USA company registration
| Summary | C-Corp | Multi-Member LLC | Single Member LLC | Fast business solution | Free zone LLC | LLP | Representative office | S-Corp |
|---|---|---|---|---|---|---|---|---|
| Best use of company? | All purposes | Trading/holding | All purposes | Close a deal now | Manufacturing and export trading | Professional services | Marketing & research | Family Business |
| How soon can you invoice Clients/sign sales contracts? | 1 week | 1 week | 1 week | 2 days | 1 week | 1 week | No | 1 week |
| How soon can you hire staff? | 1 week | 1 week | 1 week | 2 days | 1 week | 1 week | 1 week | 1 week |
| How soon can you sign a lease agreement? | 1 week | 1 week | 1 week | 2 days | 1 week | 1 week | 1 week | 1 week |
| How long to supply corporate bank account numbers? | 5 weeks | 1 month | 1 month | 2 days | 1 month | 1 month | 1 month | 5 weeks |
| How long to supply company registration numbers? | 1 week | 1 week | 1 week | 2 days | 1 week | 1 week | 1 week | 1 week |
| Corporate tax rate on annual net profits? | 15% – 40% | 0% | 0% | 0% | 0% | 0% | 0% | 15% – 40% |
| Limited liability entity? | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Government grants available? | Yes | No | No | No | No | No | No | Yes |
| Government approval required for foreign owners? | No | No | No | No | No | No | No | No |
| Resident director/manager/ legal representative required? | No | No | No | No | No | No | Yes | Yes |
| Minimum paid up share capital? | US$1 | US$1 | US$1 | US$1 | US$1 | US$1 | None | US$1 |
| Can bid for Government contracts? | Yes | No | No | No | Yes | No | No | Yes |
| Corporate bank account location? | Illinois | Singapore | Hong Kong | Illinois | North Carolina | Flordia | California | New York |
| Can secure trade finance? | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| VAT payable on sales to local customers? | 0% – 7.5% | No sales in the US | No sales in the US | No sales in the US | 0% – 7.5% | No sales in the US | No sales in the US | 0% – 7.5% |
| Average total business set up engagement costs? | US$6,860 | US$6,700 | US$6,700 | US$11,340 | US$10,020 | US$6,500 | US$6,750 | US$6,860 |
| Average total engagement period? | 6 weeks | 5 weeks | 5 weeks | 3 months | 1 year | 5 weeks | 5 weeks | 6 weeks |
| Accounting and tax considerations | C-Corp | Multi-Member LLC | Single Member LLC | Fast business solution | Free zone LLC | LLP | Representative office | S-Corp |
| Statutory corporate tax payable? | 15% – 40% | 0% | 0% | 0% | 0% | 0% | 0% | 15% – 40% |
| Legally tax exempt if properly structured? | No | Yes | Yes | Yes | No | Yes | Yes | No |
| Must file an annual company tax return? | Yes | Yes | No | No | Yes | Yes | Yes | Yes |
| Shareholders must file an annual personal tax return? | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Must file annual financial statements? | No | No | No | No | No | No | Yes | No |
| Must appoint an auditor? | No | No | No | No | No | No | No | No |
| Access to double taxation treaties? | Yes | No | No | No | Yes | No | No | Yes |
| Withholding tax on payments to foreign shareholders? | 35% | 0% (if services rendered abroad) | 0% (if services rendered abroad) | 0% (if services rendered abroad) | 35% | 0% (if services rendered abroad) | None | None |
| Company Registration | C-Corp | Multi-Member LLC | Single Member LLC | Fast business solution | Free zone LLC | LLP | Representative office | S-Corp |
| Resident director/manager/ legal representative required? | No | No | No | No | No | No | Yes | Yes |
| Minimum number of shareholders/partners? | 1 | 1 | 1 | 1 | 1 | 1 | Parent company | 1 |
| Maximum shareholding for foreigners? | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 0% |
| Minimum statutory paid up share capital? | US$1 | US$1 | US$1 | US$1 | US$1 | US$1 | None | US$1 |
| Shelf companies available? | Yes | Yes | Yes | Yes | No | No | No | Yes |
| Time to incorporate a new entity? | 1 week | 1 week | 1 week | None | 1 week | 1 week | 1 week | 1 week |
| Can easily convert to a PLC? | Yes | Yes | Yes | Yes | Yes | No | No | No |
| Public registrar including directors and shareholders? | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Can have preference shareholders? | Yes | Yes | No | Yes | Yes | No | No | Yes |
| Business Considerations | C-Corp | Multi-Member LLC | Single Member LLC | Fast business solution | Free zone LLC | LLP | Representative office | S-Corp |
| Good entity for trademark registration? | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Can secure an import and export license? | Yes | No sales in the US | No sales in the US | No sales in the US | Yes | Yes | No | Yes |
| Sponsorship by a local citizen required? | No |
| Our Client needs to travel to US for business set up? | No |
| Temporary physical office solutions available? | Yes |
| You need a local resident as bank signatory? | No |
| Can be wholly foreign owned? | Yes |
| The entity will likely be regulated by? | “Secretary of State” in state of incorporation |
| Security deposit to be kept with Government? | No |
| Minimum number of directors/managers? | 1 |
| Monthly VAT reporting to the Government? | Depends on the State of registration |
| Must sign an office lease agreement during incorporation? | No |
| Shareholders & directors documents to be attested/translated? | Yes |
| Each foreign director needs a personal income tax number? | No |
| Foreign non resident director needs a work permit? | No |
| Maximum number of staff allowed? | None |
| Expatriate to local staff ratio? | None |
| Can secure residence visa for business owner? | Yes |
| Group HQ tax incentives available? | No |
| Other useful information | |
| What will be included in my customer sales invoice? | Click here |
| This country has signed free trade agreements? | Yes |
| This country is a member of WIPO/TRIPS? | Yes |
| This country is a member of the ICSID? | Yes |
| Average custom duties suffered? | 2% |
| Government foreign investment approval required? | No |
| Average monthly office rental? (US$ per sq m) | US$45 |
| Minimum statutory monthly salary? (federal minimum wage) | US$1,257 |
| Average monthly US$ salary for local skilled employees? | US$3,700 |
| US$ deposit interest rate? (1 year average) | 1% |
| Overseas remittance currency controls? | None |
| Banking considerations | |
| Multi-currency bank accounts available? | Yes |
| Corporate visa debit cards available? | Yes |
| Quality of e-banking platform? | Excellent |
| Crowd funding available in this country? | Yes |