If you’re a foreign national living in New York and interested in forming a business in the U.S., you need to know a few essentials to get your company started. In addition to registering your company in this state, you’ll also need to decide on a corporate structure and file for an Employer Identification Number.
Which company structure is best?
Most foreign nationals considering business formation and planning choose to establish a C corporation as it can help a company grow by offering unlimited stock and is also attractive to investors. This structure will shield you, as a foreigner, from direct IRS scrutiny. However, you should note that this corporation choice will subject you to double taxation, which a qualified accountant can explain.
Another popular business structure among foreign nationals is a limited partnership, depending on the tax laws in your homeland. In a business structure of this type, partners who do not have management control have limited liability. The profits are passed onto the members, who pay income tax on their individual returns.
Pay attention to the particulars
When forming a business, you’ll need to fill out myriad forms and draft the necessary documents to establish your company. Among the documents you’ll need are:
- A registered agent to receive documents
- Certificate of incorporation
- An annual franchise tax fee
Your Employer Identification Number is necessary for several reasons. Every business needs one to hire employees and open a bank account, pay taxes and, in some cases, obtain a business license depending on your chosen field. Your best option for getting an EIN is to go directly to the IRS instead of another online website. Make sure you follow the correct processes when setting up all aspects of your business.