The Guide to Starting a Business in the United States

1. Symbol or Company corpseedservices : Blog : The Guide to Starting a Business in the United States BLOG The Guide to Starting a Business in the United States Posted By corpseedservices Posted On: February 3, 2020 10:46:03 PM PST 0 Comment(s) - Post a Comment Rating This guide is intended for people who want to start their business in the United States. However, if you do not live in the United States, be aware that we will soon be publishing similar guides for other countries. Many online store owners do not know all of the business structures available to them, do not know what it means to establish themselves as a legal person and incorporate a business, and may not even not know the steps necessary to create a company. Subscribe To The SmallCap Network 

2. Full Name: Email Address: Subscribe Subscribe This guide is a complete manual on setting up a business, which will explain to you the advantages and disadvantages associated with “incorporation” (“Business Incorporation”), which will explain the different options available to you. to officially start a business in the United States, which will show you some very easy to follow first steps. What does the Constitution in Society Mean? Incorporation, also known as "incorporation", signifies the creation of a new corporate structure where this enterprise becomes a legally recognized entity. Once created, this new legal entity can be dealt with separately from its founders or shareholders, thereby potentially reducing shareholder / founder liability, and providing other benefits that could help the business of the business to grow and prosper. In the long term. In the United States, companies must pay fees between $ 30 and $ 1,000, depending on the state, and choose an operating name or business name . A company name must have a legal purpose, such as "Inc.", "Corp." ", Or" Ltd. ", Which mean" Incorporated "," Corporation ", and" Limited "respectively. The process of registering your business as one of the legal structures that we will introduce below will vary in each state. Benefits of incorporation There are several advantages associated with incorporation. Here are some of the most important: 1.Protection of personal property 2.Transferable property 3.Pay less tax 4.Increased durability 5.Separate credit score, independent of owners' personal scores Subscribe To The SmallCap Network  6.Easier to create retirement plans.

3. Each of the 6 main business structures that we will present below has advantages, and we will describe them in more detail, after presenting some disadvantages of incorporation. Full Name: Disadvantages of incorporation Email Address: There are of course also disadvantages associated with incorporation - especially for small business owners. Here are a few that you should consider: Subscribe Subscribe 1.Lots of paperwork 2.You will have to pay a fee 3.Limitation of liability is not guaranteed Now that you know the pros and cons of incorporating, let's analyze your options. 6 Possible Business Structures Note: Even if certain business structures in the United States have some similarities with those available in India and in the Indian-speaking world, some have notable differences. We have translated the names of these structures into French so that you can make the connection, but do not be surprised to see that there are still important differences. There are 6 business models or structures for starting a business in the United States. They include the sole proprietorship, the "LLC", the association, the cooperative, the corporation, and the S corporation. Here is an overview of all of your options: The Individual Company Sole proprietorship is by far the most common type of business in the United States - especially because it is easy to start and manage. To put it simply, a sole proprietorship is an unincorporated business, where there is no distinction between the business and the individual who owns it. This is the business model that e-commerce merchants use. This type of business is especially interesting for new e-commerce USA business setup from India that have a low risk of liability. The business is not required to report taxes, start-up costs are very low, and the owner has complete control over the business . You will only need to obtain a business license from your local state or county, and register a name in some cases; and the company will be ready to start its activity. The sole proprietorship may evolve to another type of enterprise later; but, we can consider that it is the easiest and quickest way to start. It should be borne in mind, however, that taxes must be declared by the owner of the sole proprietorship. The risk here is that, since there is no difference between the individual and the business, the individual is personally responsible for everything that the business undertakes. Also, if the business develops with more than one person, it can no longer maintain the status of a one-person business. The "LLC" Subscribe To The SmallCap Network 

4. Note: The “LLC” is a structure which has no equivalent in French law. It is close to SARL (Limited Liability Company), but has some differences, since it is a hybrid structure between a partnership and a capital company. Full Name: Many people do not know what an LLC is, or how to form an LLC. It would be useful to note that LLCs may differ from state to state, but generally it is a hybrid business structure, which combines the simplicity of association with the limitation of corporate liability . The owners, usually called members, pay taxes directly on the profits of the LLC, and the LLC does not report taxes as a separate legal entity. Email Address: Subscribe Subscribe LLCs require far less record keeping than capital companies, offer some protection for members' personal property, and have fewer distribution of profits obligations than capital companies. Conversely, LLC members must file additional forms for state and federal taxes depending on the number of members, local laws, or even articles of LLC statutes. Often, members of an LLC also pay payroll tax. Depending on the state, LLCs may have a limited lifespan. In some jurisdictions, when a member leaves an LLC, the LLC in question is dissolved. Creating an LLC requires much more effort than creating a partnership, and it is often recommended that you hire a lawyer or consult at least one chartered accountant before creating one. The partnership A partnership is a business that is operated by 2 or more owners. Each of these owners contributes, whether in the form of finance, goods, labor, skills, or other similar means. In the case of a general partnership, the company is divided equally; in the case of a partnership agreement, specific percentages of possession are documented. A limited partnership may limit both the control and the liability of the specified partners. Registration is required for partnerships, but they are still very easy to set up. Partners share responsibility and benefits. Each state has slightly different requirements for forming a partnership, but in many, if not most, cases, you just have to fill out a form and pay a small amount. Cooperative It is very rare to find an e-commerce merchant with an online store that operates as a cooperative, but it is not impossible. Cooperatives are businesses that are formed to provide service and benefit to owners. In other words, its customers are its owners. An example illustrating this case would be that of a union operating an online uniform store; so that union members can buy work uniforms at a wholesale price (or close to the wholesale price). The society The company, called “corporation” in English, is a legal entity distinct from any physical person; which means that its owners are generally free from personal liability - which could protect you if things go wrong. Subscribe To The SmallCap Network 

5. Each state has different rules for corporations; but in general, it is compulsory to follow the process of incorporation of a company to benefit from the statute. Once incorporated, companies will have to pay local, federal and state taxes which are declared separately from their shareholders (unlike LLCs). They will also need to obtain a tax identification number, and comply with all rules, regulations and laws relating to their sector of activity or industry. Full Name: Email Address: The main advantage of the incorporation of a company is that the personal property of a shareholder is protected and is not considered as an asset of the company, when the latter has debts. Subscribe Subscribe Example: If a customer sues a company that operates in the retail sector, and wins, the company will be forced to pay. However, if the company does not have enough money, the partners will not have to pay the difference. Companies can also be transferred more easily than other corporate structures, can sell shares to raise capital, and may be more attractive to employees, since they may be compensated - in part - by company shares . Companies are more difficult to create and maintain compared to other options. If the company records are not kept properly, it is possible to lose limited liability. When lawyers sue companies and show that the company records were not properly maintained, they "pierce the corporate veil", and the protection of personal property is lost. Corporations may or may not pay less tax than individuals; it differs depending on the state. Therefore, it would be a good idea to compare the individual tax rates, which would be applied in the case of a sole proprietorship, partnership, or "LLC", with the tax rates of business corporations. In many cases, the corporation will pay less. What is an S company? A company S is formed through a tax choice proposed by the American tax authority (IRS or Internal Revenue Service); and generally, this corporate structure avoids the problem of double taxation. The owner of a company S always enjoys a limited responsibility, to an extent all the same less in comparison with that of a normal capital company; but the advantage is that taxes are paid only once. Company S is subject to regulatory restrictions identical or comparable to those of normal company with regard to record keeping, which may cause difficulties for some retailers. Which Company Structure to Choose? Unfortunately, there is no obvious answer or single formula that every entrepreneur could follow when choosing a business structure. Most e- commerce entrepreneurs choose the sole proprietorship or the partnership to start, and decide to form a separate legal entity only when they want to protect their personal property by using limited liability; or, when they want to sell company shares to help it grow. Currently, over 70% of American businesses are sole proprietorships that operate successfully; and whose owners have therefore not chosen to constitute a legal person. We can therefore say that most e-commerce Subscribe To The SmallCap Network 

6. merchants will most likely not have to create a joint stock company. But if you have the willpower, and if your business grows more and more, then you should start weighing your options now - and contacting a lawyer will be the safest way to choose the right structure. Company best suited to your situation and your activity. Full Name: Email Address: Rate It : 0 Comment(s) - Post a Comment Subscribe Subscribe Comments (0 Total) Add Your Comment Please sign-in to post a comment, or register for a free SmallCap Network account. CORPSEEDSERVICES Home Analysis (0) Articles (0) Blogs (1) Files (0) Picks (0) SEND MESSAGE ADD TO CONTACTS FOLLOW Subscribe To The SmallCap Network 

7. Full Name: GO PREMIUM: SmallCap Network's Premium Subscription Service For Serious Stock Market Traders and Investors Learn More Email Address: Subscribe Subscribe Home About Us Contributors Subscribe Archives Stock Quotes Privacy Policy Terms of Use Disclaimer SEC Rule 17b Disclosure Contact Us Copyright © 2020 SmallCapNetwork.com. All Rights Reserved. v2.0. Subscribe To The SmallCap Network 