In the United States, among other places, people are starting window business at an increasing rate. Permanent residents and foreigners run small and large businesses, provide various services and benefit from the United States economic system.
They have a fantastic opportunity to grow their businesses, attract new clients or investors, and improve their companies’ credibility. If you want to start a business in the United States, the process is not as difficult as it may appear.
Non-residents of the United States can start and grow businesses with one of the lowest tax rates in the world. This is a clear and concise guide to incorporating your business in the United States, whether permanent resident or non-resident.
What type of business should you start?
If you plan on starting window business or any other legal, LLC or a C-Corporation are the best forms. The business model you choose is determined by your tax obligations and the appropriate level of personal liability for you. There are no restrictions on the number of business owners or the countries from which they come.
Limited Liability Corporation (LLC)
An LLC is one of the most common types of business in America, with many entrepreneurs opting for it. It combines the features of a corporation and a partnership to provide its members with complete protection from lawsuits and other unforeseen events that could harm their business. Furthermore, its members are free to distribute profits in any way they see fit.
It also protects the bank accounts and personal belongings of its members. It has a straightforward taxation system known as “pass-through,” which allows business owners to pay taxes on their business income on their income tax returns.
Due to double taxation, C-Corporation is not one of the most popular options for United States citizens who are starting window business. It is, however, useful if you plan to involve investors in your business.
Because each shareholder owns a portion of the company, such a business is taxed separately from its owners, known as shareholders. The most significant disadvantage is that they are taxed twice when the Corporation earns income and again when dividends are distributed to shareholders.
Another option is to form an S-Corporation, which is only available to United States residents and allows them to avoid paying self-employment tax, which can eat up to 15% of the earnings. However, you cannot become a shareholder if you do not live in the United States. The main advantage of this system is that a company does not have to pay “double taxes.”
Steps to starting window business
First and foremost, you must decide which state you will operate your business in. Every state allows for the formation of a corporation, but the choice is based on the goals you want to achieve. Permanent residents should develop their businesses in a state where they are physically present. If you are a foreigner, you should check to see if a physical branch will be opened and if you intend to visit the country.
Look for a Registered Agent.
This is a person or business with a physical address who will sign and receive official documents on the company’s behalf. It must be registered in the same state as the company or individual, and information about the company or individual must be easily accessible. It is not a free service, and it can cost anywhere between $45 and $100 per year. All LLCs and corporations are required by law to have Registered Agents available during business hours.
Obtain a Federal Employer Identification Number (FEIN)
It is a company identification number issued by the Internal Revenue Service of the United States (IRS). It is also your tax ID, without which your business will be unable to function. It enables you to run your business legally, including opening a bank account, hiring employees, and paying taxes.
Residents with a Social Security Number can apply through the IRS’s website using an online form. Non-residents should appoint a business lawyer to act as their third-party designee, filing the application and receiving the number on their behalf.
Open a bank account in the United States
It is the most difficult part for most non-residents, as it is difficult to do without a permanent address in the country. The solution is to locate an American bank in your country and discuss what steps they should take. If you visit the United States, you can open a bank account at any bank you choose.
Just remember to bring your incorporation documents, your EIN, and two documents with photos to prove your identity. According to the Patriotic Act, all foreigners attempting to open a bank account must undergo necessary anti-laundering and anti-terrorism checks. Look out for Wells Fargo, Citibank, and Bank of America.
You must open a bank account in your own country as well. This necessitates the use of an Apostille, also known as a Certificate of Authentication, which is an agreement between two countries to accept each other’s documents.
Get a phone number in the United States. There are several options available, including a toll-free number, a Skype number, or Google voice.
To accept payments, you’ll need to open a merchant account in the United States. This account enables your company to accept Visa, MasterCard, and American Express credit cards. A United States bank account, phone number, and business address are required for this account.
Conclusion Since starting window business can be quite challenging, Window Medics offers extensive guidance throughout the process. The company does not ask for prior experience and instead advises dealers regarding all the steps required to set up the business and run it successfully. To become a successful Window Medics dealer, you can directly fill the application form available on the website or call 1-888-329-7116.