In the United States, forming a limited company involves several major steps to meet the legal requirements and establish an operation correctly. We, at Najla Law Firm, guide our clients through this complex process, strictly adhering to all legal requirements.
1. Select the Proper Business Structure
The proper business entity is essential. The most common structures include:
● LLC: Offers flexibility and protects personal assets from business liabilities.
■ C Corporation (C-Corp): Good for business if they want to attract investors or go public. Can have as many as any number of shareholders.Your choice affects tax, liability and flexibility in managing your business activities.
2. Select a State of Incorporation
■ States vary by their laws, taxes and incentives.
■ Delaware is great because it is corporately friendly by being lenient with corporate legislations while keeping your company anonymous.
● Wyoming is preferred because it has a very affordable registration fee, and there’s no state income tax.
3. Select Business Name
■ The business name should be new and must satisfy the state guidelines on naming
■ Check for the availability of your preferred name in the business register of that state
■ Trademark registration for your product
4. Select Registered Agent
■ A registered agent will receive all official correspondence for your business.
■ Must be a resident of the state where the corporation is incorporated and must be accessible during business hours.
■ Hiring a reliable registered agent ensures that all state regulations will be met.
5. File Formation Documents
■ File the formation documents by which the state’s Secretary of State office will be contacted.
■ For an LLC: Articles of Organization
■ For a corporation: Articles of Incorporation.
■ These documents will have all details about your business name, address and organizational structure.
6. Get an Employer Identification Number
■ An EIN is the tax number assigned to a business by the IRS for opening up a bank account, hiring employees, and other tax-related activities.
■ You can apply for an EIN on the website of the IRS.
7. Develop Internal Governance Documents
■ No law requires having one, but it is always a good practice to have an Operating Agreement (for LLCs) or Bylaws (for corporations).
■ These outline the ownership structure, the general operation, and the management.
■ They can also prevent future disputes.
8. Be Aware of Any Regulation Changes
It is very important to be aware of any regulation changes that may affect your business.
For example, the Corporate Transparency Act said that some corporation has to submit a report before the FinCEN.
Still, appeals that are against this Act are already giving more complex situations for it to be applied, so try to stay current with the updated trends.
Conclusion
In planning and legal requirements, a US company registration becomes pertinent to navigate its complexity. With Najla Law Firm, clients can be supported in every way possible to assure the smooth establishment of your business and compliance under the law.
