How To Register A Company In The United States

The registered company is because the company is limited liability, and if the customer is involved in a lawsuit, only the company loses money, and the individual will not assume any responsibility.

And if the company does not do business in the name of a private company, it will be difficult to compensate for the loss of the house.

Therefore, the biggest advantage of a registered company is to avoid responsibility.

Some people think that registered companies can be used to save taxes.

This is actually the idea of putting the cart before the horse.

Companies are used to do business, not just for use.

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Registered companies may not be able to save taxes.

Let's talk about the situation and common problems of registered companies in the United States.

First, let's talk about the categories of American companies.

Major categories are Unlimited Company and limited liability companies.

The Unlimited Company includes:

-Sole Proprietorship (sole proprietorship): generally do independent contractor, consultant or freelancer, you can choose this.

No need to submit anything.

Then we can start our business.

Tax returns are reported on the personal Form 1040 Schedule C.

This form of company setup is the simplest and the easiest to withdraw. (if it is single-member LLC, it also returns according to sole proprietor, which is the same as Schedule C).

-General Partnership (two or more people)

Limited liability companies mainly include:

-LLC: this type of company is very simple and clear. For small business, this is a more suitable form. LLC is also very suitable for foreigners to register.

LLC has no restrictions on owner, foreigners can also be owner.

LLC can be member managed, which can be manager managed.

In this way, owner can manage LLC directly by member, without the need for boards and other troublesome things.

In addition, LLC does not need to hire people.

One can do that.

1) default, as pass through entity, directly pays taxes to individuals, that is, corporate income is regarded as personal income.

Fill in Form 1040 Schedule C.

2) choose to declare tax as S Corp.

3) choose to declare tax as C Corp.

-C Corporation: if you want to set up a corporation, by default is C Corp, unless we choose IRS file Form 2553, we need to pay attention to the fact that it is only a distinction between federal tax and tax.

In every state tax, not every state admits S Corp.

Small scale new companies, the cost of opening LLC is small, and the operating cost is relatively low.

But if the company's income or net profit will be high, then C-Corp may be a better choice, because C Corp's earnings can be placed in the company, and the tax rate is lower according to the company.

And if you hand in together with personal income tax, you may have a higher tax.

-S Corporation: does not exceed 100 shareholders at most. S Corp can be registered only for US citizens or resident foreign residents (resident alien).

This understanding is somewhat ambiguous, for example, green card is a permanent resident, but if H1B in the United States for many years, from the point of view of tax return, it is also a resident foreign resident.