1. Choose the Right Business Structure
Selecting between an LLC and a C-Corporation is critical. An LLC offers pass-through taxation and operational flexibility, ideal for small businesses, while a C-Corp suits ventures aiming to scale globally or attract investors through stock issuance. Non-residents cannot form S-Corps or sole proprietorships, making LLCs (starting at $50 in filing fees) and C-Corps (with higher compliance costs) the primary options. Evaluate liability protection, tax implications, and long-term goals with a US tax consultant in India to align your choice with IRS requirements.
2. Prioritize State Selection Strategically
Delaware and Wyoming are popular for their business-friendly laws and low fees. Delaware’s Court of Chancery specializes in corporate disputes, while Wyoming offers privacy and no state income tax for LLCs. Research state-specific annual fees (e.g., Delaware’s $300 franchise tax for LLCs) and compliance demands before finalizing your how to register company in USA from Indiastrategy.
3. Appoint a Reliable Registered Agent
A registered agent with a physical US address is mandatory to receive legal notices. Services cost 0–300 annually, depending on the state, and ensure you never miss critical deadlines. Some providers bundle this service with incorporation packages, streamlining the process for remote entrepreneurs.
See also: 5 Benefits of Hiring a Market Intelligence Consultant
4. Secure an EIN and ITIN for Tax Compliance
An Employer Identification Number (EIN) is essential for banking, hiring, and federal taxes. Apply online via the IRS after registration, but note that non-residents may need an Individual Taxpayer Identification Number (ITIN) if lacking a Social Security Number. Partner with a US tax consultant in India to navigate Form W-7 submissions and avoid delays.
5. Collaborate with a US Tax Consultant
US-India tax treaties and complex filings (e.g., FBAR for foreign accounts over $10,000) demand expertise. Consultants assist with:
- Double Taxation Avoidance: Claim credits for taxes paid in India.
- State-Specific Compliance: Manage varying sales tax or franchise obligations.
- FATCA Reporting: Disclose foreign assets exceeding $50,000.
Their guidance minimizes penalties and optimizes deductions, especially for high-net-worth individuals or businesses with cross-border transactions.
6. Navigate Banking and Payment Challenges
Opening a US business account remotely is tough post-9/11 regulations. Options include:
- Traveling to the US: Visit banks like Chase or Bank of America in person.
- Digital Solutions: Use platforms like Wise for multi-currency accounts.
- High-Risk Merchant Accounts: For sectors like IT services, expect higher fees (3–5% per transaction) and slower settlements.
Budget $2,600–$3,000 for initial banking setup, including managed services or travel costs.
7. Plan for Long-Term Compliance and Growth
Factor in recurring costs like annual reports (25–4,500), registered agent fees, and potential CPA charges (300–500 for basic tax filings). Explore visas like the E-2 (requires 100,000+investment) or EB−5 (100,000+investment) or (900,000+ in targeted employment areas) if relocating. Regularly update licenses and consider expansion into adjacent markets using the USA’s innovation ecosystems.
Conclusion: Build Your US Business with Confidence
Starting a business in the USA as an Indian entrepreneur may seem complex, but with the right strategy and expert guidance, it becomes a rewarding venture. From choosing the ideal business structure and state to ensuring tax compliance and managing banking challenges, each step plays a crucial role in setting a strong foundation. Partnering with experienced US tax consultants and leveraging digital tools can significantly ease the process. By planning proactively and staying compliant, you not only protect your business legally and financially but also position it for sustainable growth in one of the world’s most dynamic markets.
