As ranked among the best countries in the world for its overall competitiveness and ease to start a business, the United States of America (USA) is genuinely one of the ideal countries for startups. With firm democracy, freedom to introduce new ideas, the equitable legal system, and openness to the entrepreneurs and investors; regardless of the origin and nationality, everyone can compete in the playing field in the US business industry.
The country promotes economic growth and every enterprise is free to choose what business they want to begin with. As a startup, you may be thinking about what steps you should do first. Although the methods and procedures for registration of incorporations vary from one state to another, the general process is however fast, convenient, and straightforward for all. Here’s a quick guide for you:
- Determine the Type of Your Business
Know the type of business you want to establish first. Doing some research could help but to make it easy for you, here’s the overview:
- Limited Liability Company (LLC)
LLC is a type of legally-recognized business company. Meaning, it is a business operation that secures personal liability security from any debt, tax claims, lawsuits, bankruptcy, and other potential business negligence issues.
- Sole Proprietorship
It is a type of individually-run establishment from which the owner sells a service or product without building entity status with the state.
- General Partnership
Offering the same ease with sole proprietorship but, it is now with the other people’s partnership. Primarily, a general partnership has a resemblant operating structure with sole proprietorship.
A type of legal business entity that can protect the shareholders or owners from personal liability and company debt.
Just like C corporation, this business entity allows owners to receive an identical corporate veil of liability assurance and own stock. Likewise, it demands an election for the board of directors for structural operations.
- Register Your Business
If you’re an LLC, there is a need for you to register your business in the state. Each state has its own rules, policies, regulations, and cost. For example, if you’re launching a startup in Vermont, the Vermont LLC cost is different from other states such as Virginia, Minnesota, and Utah. Despite that, you should know if there is indeed a need for you to register your business. If you will be using your legal name as the business yourself, then you won’t need to register at all in any state. Doing so, however, will refrain you from receiving some legal benefits such as liability protection.
- Acquire the Essentials
Federal ID, business account, and other necessary permits and licenses are the vital things that you crucially needed for your business. Federal Employer Identification Number (EIN) will allow you to file taxes, bank accounts, and handle payroll, most especially if you will be having an LLC. Opening a bank account will enable you to file taxes. Lastly, licenses and permits are the core documents, especially for self-run businesses.
- Pick the Most Strategic Location
You might think that the location where you live is the best place to start a business in the US but don’t lose the chance to choose among the pool of ideal states in the country. To help you, consider these things: the convenience of the location for the local clients; the potential competitors in the area; as well as, the current economy of the vicinity.
By just having a business in the US, you got the best chances and opportunities to start per se. Just always remember, keep your goals with you and have courage.