How to Remotely Establish a Company in the USA: A Detailed Guide
Publication date/update: 04.06.2024
Starting a business in a foreign country can be driven by various motivations. Entrepreneurs may seek to avoid sanctions and operate internationally from the outset, or they may aim to penetrate global markets. The USA remains one of the most sought-after countries for company registration. Importantly, it is not necessary to travel to the United States to establish your business; it can be done remotely. This article will elucidate how to achieve this.
What Should You Know About Doing Business in the USA?
Many perceive the USA as an expensive and complex option. However, this is one of the most enduring myths. Establishing a company in the USA often proves simpler, cheaper, and more promising for startups than in other countries. Additionally, having a company in the States allows the owner to comfortably engage with any investor for attracting investments. Americans are much more inclined to invest in domestic businesses than in companies from other countries.
It is essential to understand that the USA is a vast market and the primary market for many IT projects. Thus, it is far more effective to test a product directly in the primary market. Trust in the business will be higher for several reasons:
It is essential to understand that the USA is a vast market and the primary market for many IT projects. Thus, it is far more effective to test a product directly in the primary market. Trust in the business will be higher for several reasons:
- The company can be verified on the website of the American state.
- Having a firm indicates serious intentions to operate long-term.
- The Russian owners of the company will not be visible, alleviating tension under sanction conditions.
- You can work in the format of actual offers rather than just research.
- The number of payments from real clients will increase.
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Advantages of Operating in the USA:
- Strong banking infrastructure. This includes inexpensive account services, stable currency, and fast transfers to almost any country. While banking in the USA is not perfect, there are many advantages. Most digital banking products, along with credit cards, work internationally.
- Affordable fees. In other countries, registering a new company can be very expensive due to numerous fees. The USA is a country where registration and renewal of business permits are financially and legally accessible.
- Excellent reputation of nearly all American companies. One can provide quality services but often lose potential clients due to being registered in an unattractive country. Operating through an LLC, you gain the trust inherent in American business.
- Easy payment processing. You can access a budget-friendly, reliable, and easily integrable payment processing system.
- Simple document processing. In some countries, founders spend a lot of time on paperwork. In the USA, despite reports of bureaucracy, the process is not as daunting as it seems.
How to Best Register a Company: Independently or Through a Third Party?
Self-registration often involves many complexities and nuances. Any mistake during registration will subsequently require additional costs, negating any initial savings. If you want everything done properly, it is advisable to use the services of intermediaries or partners. Establishing a company in the USA on your own entails risks and additional time spent researching all aspects. Ultimately, it turns out to be better to engage a paid partner. How to choose one?
- 1Look for intermediaries in the state where you will be registering your company. Local intermediaries are more familiar with the state's specifics and can be very helpful in the future. It is important to understand that registration intermediaries who open companies in any state may not be able to or willing to provide consulting services later.
- 2The company should have its own website, and representatives should be ready to communicate. The representative must be prepared to answer any questions. However, it is crucial to note that many companies in the USA respond very slowly due to the widespread use of email communication.
- 3The service should be provided "turnkey." Otherwise, there is no point in working with this company if you are in Russia. When looking for a partner to establish a company, pay attention to the fact that starting a business requires obtaining an EIN – the company's taxpayer identification number. If the service cost does not include obtaining an EIN for non-resident owners in a C-Corp or LLC, you will only pay for registration but won't be able to operate. Registering a company in any state is quick. However, only an American can obtain an EIN quickly. Foreigners receive the document in at least 30 days, sometimes up to 50 if there are delays. It may be more practical to use services for purchasing ready-made companies where the name can be changed. This will be much faster. Additionally, without a bank account, commercial activity cannot commence.
Procedure for Remote Company Formation in the USA
Step 1: Open a Delaware Corporation
Delaware is the most popular state for remotely registering a C-Corporation. Why? Delaware laws are conducive to the smooth operation of various startups, allowing the issuance of millions of shares. This is an excellent option for attracting investments and going public. A company in Delaware can be established remotely by filling out a form on the website and paying the fee online.
Step 2: Choose a Company Name
It's important to ensure that the name is not already taken. This can be checked on the state’s website. Corporate names typically end with Inc. or Corporation.
Step 3: Determine Your Stake in the Company
This is defined by the number of issued shares.
Step 4: Set the Price of Each Share
Typically, the price is set at a cent per share if millions of shares are issued. This way, the company's value will be around $100-$150, reducing tax liability.
Delaware is the most popular state for remotely registering a C-Corporation. Why? Delaware laws are conducive to the smooth operation of various startups, allowing the issuance of millions of shares. This is an excellent option for attracting investments and going public. A company in Delaware can be established remotely by filling out a form on the website and paying the fee online.
Step 2: Choose a Company Name
It's important to ensure that the name is not already taken. This can be checked on the state’s website. Corporate names typically end with Inc. or Corporation.
Step 3: Determine Your Stake in the Company
This is defined by the number of issued shares.
Step 4: Set the Price of Each Share
Typically, the price is set at a cent per share if millions of shares are issued. This way, the company's value will be around $100-$150, reducing tax liability.
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Step 5: Pay for the Services of a Registered Agent
This is mandatory when opening a company in Delaware. The fee is paid automatically upon the company’s establishment for one year and needs to be renewed annually. The agent acts as an intermediary between the state and your company.
Step 6: Choose a Mailing Address
Special services can provide a registered address in any US state. This address, akin to a legal address in Russia, will receive mail from clients, partners, tax authorities, and other notifications. The service costs $10 per month. Complete the form, pay the fee, and receive a certificate of incorporation in Delaware within a couple of weeks.
Step 7: Obtain an EIN (Employer Identification Number)
This can be done by filling out an online form. However, it requires an SSN, which Russian citizens do not have. Thus, you must fill out form SS-4, fax it, or call the IRS using an American VPN.
Step 8: Open an Account in a US Bank
This is the most challenging step to complete remotely. Typically, personal presence is required. However, there are ways to circumvent this rule. The only bank allowing remote account opening is Silicon Valley Bank, which requires company accreditation by an investor—difficult without revenue. Alternatively, use Stripe Atlas, which helps open a Delaware C-Corp, an account in SVB, and process some documents. Note the strict selection process. The simplest and surest method to get a bank account is through Payoneer. Register, receive a letter, and get the necessary details in your account. This temporary solution facilitates receiving payments and revenue from clients until you can open an account in Silicon Valley Bank.
This is mandatory when opening a company in Delaware. The fee is paid automatically upon the company’s establishment for one year and needs to be renewed annually. The agent acts as an intermediary between the state and your company.
Step 6: Choose a Mailing Address
Special services can provide a registered address in any US state. This address, akin to a legal address in Russia, will receive mail from clients, partners, tax authorities, and other notifications. The service costs $10 per month. Complete the form, pay the fee, and receive a certificate of incorporation in Delaware within a couple of weeks.
Step 7: Obtain an EIN (Employer Identification Number)
This can be done by filling out an online form. However, it requires an SSN, which Russian citizens do not have. Thus, you must fill out form SS-4, fax it, or call the IRS using an American VPN.
Step 8: Open an Account in a US Bank
This is the most challenging step to complete remotely. Typically, personal presence is required. However, there are ways to circumvent this rule. The only bank allowing remote account opening is Silicon Valley Bank, which requires company accreditation by an investor—difficult without revenue. Alternatively, use Stripe Atlas, which helps open a Delaware C-Corp, an account in SVB, and process some documents. Note the strict selection process. The simplest and surest method to get a bank account is through Payoneer. Register, receive a letter, and get the necessary details in your account. This temporary solution facilitates receiving payments and revenue from clients until you can open an account in Silicon Valley Bank.
Costs of Starting a Business in the USA
The total expenses for starting a business depend on several factors, including:
- Type of Business
Opening a food delivery business is more expensive than a boutique due to the need for licenses, insurance, vehicle maintenance, website updates, and monthly marketing expenses. - Business Location
Operating in California is undoubtedly more costly than in Oregon. - Company Structure
An LLC is a more budget-friendly option compared to a C-Corp. - Additional Fees
You will also need to pay for registration and verification in payment systems and marketplaces if required.
Frequently Asked Questions
Yes, Amazon provides this opportunity. You will need a valid Russian international passport with at least six months remaining before expiration. Additionally, you must open an account in the Payoneer payment system or a bank account outside of Russia to receive payments for goods sold on Amazon. It's important to note that Payoneer accounts for Russian users were previously blocked, but now Russian citizens can register with Payoneer through one of the CIS countries without visiting them.
To register on the marketplace, follow these steps:
1. Fill out the registration form, specifying an address outside Russia (rented).
2. Upload a scan of your international passport and a bank statement.
3. Complete verification with a support representative at the scheduled date and time.
4. Wait for a physical letter from Amazon to arrive at the rented address and obtain the PIN code.
After completing these steps, your account will be activated.
To register on the marketplace, follow these steps:
1. Fill out the registration form, specifying an address outside Russia (rented).
2. Upload a scan of your international passport and a bank statement.
3. Complete verification with a support representative at the scheduled date and time.
4. Wait for a physical letter from Amazon to arrive at the rented address and obtain the PIN code.
After completing these steps, your account will be activated.
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ООО „Dr. Voigt & Partner"
Duchovskoy per. 17/10, 115191 Moscow, Russia
info@partnery-audit.com
+7 495 690 92 62
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DVP Audit GmbH Wirtschaftsprüfungsgesellschaft
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DVP Audit GmbH Wirtschaftsprüfungsgesellschaft
Erik-Blumenfeld-Platz 27 b, 22587 Hamburg, Germany
info@partnery-audit.com
Tel. +49 40 866 6740 Fax +49 40 866 67444
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