IR Global

Country Profile

Official name:  The United States of America
Capital city:   Washington, DC.
Population:  307,212,123
Official language: English 82.1%, Spanish 10.7%

Religion: %75 of USA is Christian

Climate: Weather varies widely across the continental USA, as well as in Alaska and Hawaii. In general terms, summers are hot and humid in the plains and southern states, while the southwest is very hot and quite dry.

Time Zone: Chicago (GMT-6) / Denver (GMT-7) / Phoenix (GMT-7) / Los Angeles (GMT-8)

Currency: United States dollar (USD)

Telephone:  +1

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Why Start a Business in USA?

In order to do business or make investments in the United States, you do not have to start a U.S. company. But in accordance with laws and tax regulations, it’s easier to manage with a U.S. subsidiary.

Types of Companies

General Corporation (C Corporation)

The most common corporate structure for medium and large companies. There are too many benefits about this type of company like; unlimited numbers of shareholders; taxation of profits & losses at the corporate level; possibility to raise the capital with sales of shares; tax benefits and etc.

Close Corporation

It is similar to C Corporation except; number of shareholders being limited to 30; transfer of shares conditional to directors’ prior approval and prohibition to trade shades on the stock exchange.

S Corporation

It is very similar to C Corporation except a special tax status from the Internal Revenue Service. The corporation must apply to obtain this special status within a certain time after its incorporation.

Limited Liability Company (LLC)

LLC is a profitable mix of a Corporation and a Partnership. As a general rule, the revenues and losses of an LLC are allotted to its Members (the equivalent of Shareholders) which avoids double taxation. It is similar to S Corporation but without some restrictions.

Taxation in USA

Income Tax

Except partnerships, all businesses must file and pay taxes on any income earned or received during the year. And partnerships file an annual information return to report income, gains, losses and other important tax information. Every state has its own tax laws.

Employment Taxes

For the employees, there are federal tax requirements for what must be paid and the forms to be filed. These employment taxes include Social Security and Medicare taxes, federal tax witholding and federal unemployment tax.

Excise Tax

The federal government taxes businesses that manufacture or sell certain products.

Property Tax

Each state have different definitions of what property is taxable. Some states collect property tax from businesses in commercial real estate locations. Certain states also collect property tax for business assets, such as vehichles, computer equipment and periherals. The amount of tax you pay is calculated by the total value of the property or on a certain percentage of the value.

Sales and Use Tax

States may impose a tax on the sale of goods and services. States may also tax your business on the use of goods and services when sales tax has not been collected.

VAT Registration

The United States uses a sales tax system instead of VAT.

Employment of foreigners

Foreign nationals who are not American citizens or lawful permanent residents of the US need a work visa, as well as a permit to work, officially known as an Employment Authorization Document (EAD), in order to work in the USA.

 

There are several types of work visas available for foreign nationals who want to work in the United States including temporary work visas, seasonal work visas, and exchange worker visas.