Registration of companies in U.S.A

Company Registration in U.S.A.

CAC TAX LLC offers this service in simple registration or accompanied registration. In the USA it is relatively easy to create a company. Contrary to several countries in Latin America and Europe in the United States, you do not need a lot of money to start your business.
In counterpart it is very important to know what you want to do and what is the utility of the company in the economy. This means that every dream is possible to realize as long as you know where to go. The labor law in the United States allows many companies to develop their activities without having many expenses. You can start your business for a while without obligation to set up a business entity. It is only necessary to make your individual income and professional expenses statements. This is given the name of self-employed worker.
After your company or business already walks alone, then it is necessary to formalize your company by creating an official record of your company. And it is at this time that you should get in touch with a professional expert in accounting and tax obligations of companies. To facilitate your decision we have created the table below so that you can become aware of the differences between each type of business entity. This said we should see what is the importance of having a company and why.

• Companies offer the best protection against corporate liability for business / business owners, or shareholders. This means that there are provisions in the law in such a way that your personal assets are not in danger to satisfy the obligations of the companies, specifically by the creditors. Legally, companies are separated from their owners. Companies will pay their own taxes, can own their own assets, enter into contracts, sue and be sued, regardless of who owns them and are responsible for their own debts and actions. While your company functions entirely as a separate entity, the shareholders are not personally liable for the business’s obligations. Unless they are found guilty of mismanagement or fraud.

• If your business efforts and initiatives include seeking funding from external sources, a company offers the greatest property flexibility. There are several types of shares that can be issued and sold to finance the business. This aspect of the business structure makes companies attractive to companies with large growth plans by increasing capital. Using the structure of the corporation you can create different types of owners, those who have control, those who are entitled to the distribution of profits or both. The business structure is an attraction for foreign investors and the sale of shares is easy.

• A company has a perpetual existence, which means that, unlike other forms of business that will cease to exist in the event of bankruptcy, or the retirement, or the death of the owners, its continuity is maintained.

• When a company is registered and opened to investors, credibility is instantly gained. When you operate your business as a corporation this shows that the business is viable, which is more attractive to creditors and investors. Your customers also recognize that the word “Inc” in the name of their corporate identity as a factor that demonstrates credibility.

• Companies can be used as an excellent way to protect assets. By taking advantage of legal statutes, you can structure your assets within these legal instruments so that you can maximize the protection offered through corporations.

C Corporation (the most used in the USA):

This type of company is the most common and is assimilated to the corporation by shares in other countries. This type of entity is interesting especially for those who have an economic activity of production or sale and with ideas to develop quickly. It has certain counterparts as you can see in the comparison board.
Non-resident shareholders in the US are generally not required to file a tax return. The shareholders respond to the creditors of the company only for the value of their contributions, and the managers according to their degree of responsibility. Non-US residents are free of the occasional earning tax when they sell their shares.
This type of entity is subject to double taxation since the company pays taxes on its profits and the shareholders are also subject to the tax on their dividends. When a shareholder is non-resident, the company is obliged to withhold 30% of the dividends paid, as a tax provision.
This type of partnership is similar to Subchapter C, but all partners must be residents or citizens of the USA. The advantage of this partnership is that it does not pay taxes in general. The shareholders pay directly on the profits of the company, whether they are distributed or not. This type of company can not sell its shares on the stock exchange, it is limited to 100 maximum members, and all must be a natural person.
This type of society is a hybrid between limited Corporations and associations. It usually does not pay federal tax but must choose the tax regime
• Advantage
You can choose how you want to be registered, that is, as a Regular Corporation (Subchapter C) where non-resident / non-citizen members are generally not required to file a personal income tax return, or as an association (Partnership) where the entity does not pay taxes. and the shareholders do.
• Disadvantages
Generally non-resident / non-citizen members have to file a personal income tax return in the USA, when they choose to be registered as an association, or be willing to be registered at 39.6% of the profits in proportion to the distributions made or DO NOT.
This comparison table takes into account C corporations, LLCs and S corporations, you will find the advantages and disadvantages in these different corporate structures. Contact us for more information.