Opening a business in the United States

Main types of US companies:

1. Sole Proprietorship

• This is the simplest form of company and is owned by one individual who bears all risks and responsibilities.

• No separate legal entity required, corporate and personal taxation combined.

2. Partnership

• A partnership of two or more persons, with liability depending on the type of partnership (general partnership or limited partnership).

• All partners in a general partnership bear full liability; limited partners in a limited partnership are only liable to the extent of their investment.

3. Limited Liability Company (LLC)

• An LLC provides limited liability protection, and the owners (members) are only liable for the company's debts and obligations.

• Flexible structure and diverse tax options, you can choose partnership taxation or corporate taxation.

4. Corporation

• C Corporation: Legal entity with limited liability for shareholders, additional compliance requirements and double taxation (corporate and individual shareholders).

• S Corporation: Allows corporate profits, losses and taxes to be distributed to shareholders to avoid double taxation, but there are restrictions on the number and identity of shareholders.

Advantages of establishing a US company:

• Strong market size: The United States has the world’s largest single market, making it ideal for expanding its international influence.

• Stable legal environment: The legal system is transparent and fair, and corporate compliance is guaranteed.

• Flexible corporate structure: The United States offers a variety of corporate structures, and companies can choose the most suitable business model based on their needs.

• Rich in technology and innovative resources: As a global technology center, the United States has attracted a large amount of innovative technology and resources.

Requirements for establishing a company:

1. Company Name

• The company name must be checked with the local state corporate registry (such as the Secretary's Office) to ensure there are no duplicates.

2. Registered Agent

• Must designate a registered agent in the state to receive corporate legal documents.

3. Articles of Association

• Submit Articles of Incorporation or Articles of Organization, which contain basic company information.

4. Company Directors

• At least one director is required, and there are no mandatory requirements for the director’s nationality and residence in different states.

5. Registered capital

• There is no minimum capital requirement, but company shareholders should determine the appropriate amount of capital based on the nature of the business.

6. Employer Identification Number (EIN)

• Apply for an EIN from the Internal Revenue Service (IRS), which serves as your company’s tax identification number.