In the United States, each business structure has its own set of benefits and drawbacks. Here is some information on the advantages and disadvantages of each company structure. The data assists firms in determining the best business structure to create in the United States.
1. Overview of business form
1.1 Sole proprietorship
Sole proprietorship is one of the most basic business forms accessible in the United States. The director is one of the company’s owners and operators. The company is run by a single person and is appropriate for a variety of business formats, including restaurants and retail businesses.
There might be two or more owners in a partnership. A partnership’s participants are jointly and severally liable (unlimited liability) for the business’s obligations. This is a common type of business for Law Offices, etc.
1.3 Limited partnership
In the United States, limited partnership partners are divided into two categories:
- General Partners will be individually accountable for the company’s obligations (unlimited liability).
- Limited Partners are investors who provide capital with limited responsibility. Money contributors are only accountable for the company’s debts up to the amount of capital they provided, and they have no control over the partnership’s commercial activities. This limited partnership structure is commonly used in the real estate industry.
1.4 C-Corp (Corporation)
A C-Corp is a separate legal entity from the business owner. This business type is subject to a number of tax laws, which the firm must follow. In each state, the procedure of incorporation and the cost of incorporation are different.
1.5 S-Corp (Corporation)
Business owners might choose the S-Corp structure to avoid some of the drawbacks of running a traditional C-Corp. The profit or loss of the company will impact the dividend paid to the shareholders in this type of business.
1.6 Limited Liability Company
A limited liability company (LLC) is a hybrid of a partnership and a corporation. Businesses can avoid paying taxes twice by using this company form.
1.7 What documents are required?
The following documents are typically required to open a company in the US:
- Business name
- Business location
- Business activity
- Ownership, management structure, or directors
- Registered agent information
- Number and value of shares (if you’re a corporation)
Note that any non-English documents must be accompanied by official certified translated copies.
2. Business form you should choose
By providing some basic facts as well as the benefits and drawbacks of various business forms in the United States, companies have been able to better comprehend and make the best decision for their company.
Among the six business forms available in the United States, international investors should examine the following three primary types when forming a corporation in the United States:
- C-Corporation (also known as Corporation or Regular Corporation)
- Limited Liability Corporation (LLC) (LLC)
Keep in mind that each state in the United States may have its own set of rules governing these business organizations. The rates of state business taxes may also vary. As a result, if you need to start a business in the United States but don’t understand the rules or are having trouble completing the application, it’s advisable to get professional help to prevent wasting time and money.
The service providers will assist firms with registering in the state in which they wish to do business and will give training on the processes, paperwork preparation, and submission. Global Link Asia Consulting, which specializes in assisting businesses in establishing new enterprises in other countries, can assist you in making the best option possible.
3. Global Link Incorporation will support you open a company in US profesional, one-stop service
- Consulting, supporting to open a company in the US from preparing the application to open the company until operating the business
- Provide the service of renting US addresses in the states and states
- Serve your company at every level of their business development with one- stop services such as: tax – accounting service, retail Quickbooks License and Quickbook training service, payment solution consulting service (PayPal, Stripe, etc.)
- Assist to open a bank account in Singapore (or an online bank account in the United States (“the US”).