Starting a business in the United States is not very expensive. But beware: taxes differ from state to state! The duration of setting up a startup there is about 6 weeks.
There are about 2.71 million Indians in the US, the average income in India is around INR 3,93,600 / year, in America the average income is $48,672 dollars per year, which more than 9 times to the average annual income of an Indian.
Unfortunately, we no longer produce much in India; we are an economy based on consumption. So, we buy things, we buy services and that keeps the economy moving. We rely on the idea that we have more consumers who spend more money.
What are the main steps that an Indian startup has to go through in order to open a company in the USA?
There are many people around the world willing to pay others to help them set up a business on paper. But how will this help them? Not with much. Okay, you have a paper business in America. But your goal should be to be able to make money from American customers, the over 320 million people who are willing to pay for a service.
So, you will need a bank account in America for a local business and all the legal measures by which you can hold such an account. So, first of all, the company must be set up, most of the Indian businessmen prefer to start a business in either Delaware or Wyoming – which are tax-free states and is considered one of the states that encourages the most entrepreneurial environment, among the 50 states US.
So, if you set up a business in Delaware or Wyoming, you have to apply for an Employer Identification Number, which means an employer identification number, which is also the identification number of the state tax service.
After obtaining the EIN number successfully, you will get the personal tax number. Whenever an American citizen born, he automatically obtained a personal numerical code but for Indian or anyone in the world who come to open a business in America will need an individual identification and tax code called ITIN, which does not give you the right to be an employee in America. So, you can have a company in America, but you will not able to move there, get a job, and receive a salary and benefits from social insurance.
Then you will open a bank account. This is the most significant part of the entire process. Most of the People have to hit the wall for months, because the biggest obstacle is to open a bank account in America, from distance.
Let’s talk a little about costs. How expensive is it to open a company in the USA?
It depends on the services they need. In short, it takes about $ 1,300 for a complete package and it takes 6 weeks. But if you already own an ITIN, the period of setting up the company is only 2 weeks.
Concrete steps and costs:
- submitting an application for the establishment of the company – Limited Liability Company (equivalent to an LLC) – approval takes about an hour, or “Corporation” (corporate type) – approval takes about 5 working days
- register as legally responsible for your company (cost $ 100 / year)
- registration of a physical address of the company in the state in which you set up your company
- apply for EIN
- payment of a tax to the Secretary of State (of the state in which you set up your company) 100 dollars (similar to a stamp duty)
- obtaining ITIN
- opening a bank account in a US bank – an initial deposit of $ 100 is required