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Company Creation Overview

Skyscrapers

Company Registration in the USA

Things you should know

The USA is considered to be a world-class economy and the first business hub. The US economy is nearly 20 trillion dollars which is nearly 14 times the size of the Indian economy. Hence, setting up a company in the USA gives global class benefits. Further being a developed nation, rules, and regulations for Company Registration in the USA are much more regularized, and corporate tax rates are much lower.

 

There are two types of companies that Indians may register in the USA. One is C- Corporation and the other is LLC.

 

C- Corporation: 

  • C-Corporations are independent legal entities separate from those who own, control, and manage them.

  • Due to this recognition as an individual entity, it is viewed as a legal “person” in the view of tax laws.

  • It can be engaged in business and contracts, initiate lawsuits, and be sued.

LLC (Limited Liability Corporation): 

  • LLC is a type of entity that has features of both a Corporation and a Partnership.

  • LLC provides the owners with limited liability protection in case of a lawsuit or bankruptcy.

  • LLCs are also operationally flexible and the compliance requirements for an LLC are simple.

Type of business:

Considering the most options, companies are set up in America to address three situations of business opportunities:

  • The company would be set up in the USA, but the operation would be carried out in India.

  • The company is set up in the USA for marketing and brand building, and the rest of the operation is carried out in India.

  • The company would be a subsidiary of an Indian business firm but would conduct full-fledged operations in the USA.

 

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