COMPANY FORMATION LANDSCAPE

The BIG Picture for Foreign Entities

Step 1 - Business Goals of your US Company

Step 2 - Structure of your US Company

Step 3 - State of Incorporation

Step 4 - Ownership Structure

From the top view, why do you want to open a US company?

  • B2B selling of products
  • B2C selling: eComm selling like on Amazon, Walmart and others
  • Sell services like software development, BPO, or manpower supply
  • Raise funds from investors like VC
  • Manufacture for Made-in-US Stamp
  • Company acquisition for expansion
  • Get L1A to expand your business
  • Export products from the US to other countries like India.
  • Invest in real estate

If you are a foreign entity, there are only 2 options for you: 

  • Limited Liability Company (LLC)
  • C-Corporation

To select which structure is most suitable for you, together with business goals from Step 1, consider:

  • Flexibility in operations
  • Tax obligations
  • Transferability of ownership interests
  • Size of your foreign holding company
  • Business continuity

Click here for a snapshot

In a State where you have or will have the following then that is the State most suitable to register your company in:

  • Office
  • Warehouse
  • Employees
  • Your US partner
  • Reaching a certain sales threshold

* Delaware State if you want to raise venture money.
* You may have to register in multiple states in case you've employees, offices, and warehouses in different states.

Now, in case you have none of the above as yet:

Calling New Jersey your Business Home

  • Entry USA's whole team is NJ based
  • 8,000 sq. ft. office building - business center

Read more

  • Deciding on an ownership structure from the perspective of taxation in the US and your home country and also for getting an L1A visa in the US.

 

    1. Will your US company be a subsidiary of your foreign company?
    2. If you will own the US company as individual owner/s, then will you keep the percentage of ownership the same in both companies?

 

  • Maybe your new US company will hold your Indian company?

* If Yes (to both 1 and 2), you are eligible for L1A Visa.
** Individual owners refer to foreign nationals with no Social Security Number