The Right First Steps for Your Start Up
When a foreign company is considering expanding its business into the United States (U.S.), there are many steps to take to ease the process. While the U.S. has been home to many startups, the political and economic landscape can change rapidly. This is why it is essential to ensure you are taking the right steps to protect your investment, your company, and yourself.
Choosing your entity type is the foundation of your business’s structure. How do you determine which entity type is best for you? Depending on the type of business, there are many variables that can weigh into this decision. The four most common entities are Limited Liability Companies (LLC), Partnerships, Permanent Establishments (PE) and C Corporations (C-Corp).
Partnering with U.S. advisors can ease stress and ensure you are making an educated decision for your business endeavors when choosing your entity type. A legal counsel and an accounting/tax team can provide substantial support to the startup of your business.
An Employer Identification Number (EIN) is your business’s tax identification number. This nine-digit number is directly attached to your business’s name and is utilized for multiple purposes, including income and payroll tax reporting. An EIN is also required for items such as banking, hiring employees, and obtaining credit.
Having a U.S. bank account is essential to operating a business in the U.S. To ease the process of opening a U.S. bank account, it is important to have the right documentation. These documents include:
In addition, the bank will provide formal documents for completion.
While the U.S. has many federal business laws , there are also laws that may vary from state to state. Because of this, it is imperative to register your business with state and local authorities and also understand how the different laws may impact your business.
Entrusting your accounting services with a professional partner can decrease the stress of tax compliance. It is vital that you are knowledgeable and understand local and federal tax laws and regulations. Additionally, laws and regulations may change. At BGBC, we ensure that our clients are aware of any changes and how the changes may affect their business.
Payroll and employment regulations can be complex in the U.S. From taxability of benefits to social security and Medicare, the employer and employee have a variety of responsibilities when it comes to taxes. The responsibilities and capabilities vary depending on the number of employees within the organization, so there are many different factors to consider when setting up your payroll model.
Insurance is vital. When owning a business, expect the unexpected. There are many liabilities associated with ownership. Without insurance, business owners could incur out-of-pocket expenses for damages or legal claims. Your insurance protects your employees and property from liabilities that may be found with unknown risks.
The steps to a successful startup can be overwhelming. Establishing a strong team of trusted professionals, such as a Public Accounting Firm and Law Firm can help alleviate stress. At BGBC, we offer advisory and tax services designed to provide you with a smooth process and a lasting professional relationship. We have a trusted referral network and work with a variety of service providers that can assist in a smooth process. For more information, contact us today.
Steven A. Eichenberger, CPA
Director, Launchpad USA
+358 45 140 4911