Doing Business in U.S.(I)
In recent years, with the vigorous development of international trade, more and more domestic enterprises continue to open up the international market through various ways. The United States, as a global trading power, has been favored by investors, and many companies have done business in the United States, hoping to achieve further development on this larger and more advanced platform. But doing business in the United States is not a simple process, and there are many legal and policy issues involved that investors need to consider in advance.
I. Issues to be aware of when entering the United States
First of all, to establish a company or conduct business in the United States, investors must contact a U.S. bank to open a company account in order to meet future business activities collection, payment and even financing needs. With a local bank account in the United States, the remittance and remittance of funds to start business with American customers is very convenient, especially after the opening of the "online cross-border transfer" function of the local bank in the United States, it is easy to smoothly remit money to countries around the world, not only free of service fees and without any restrictions. As a result, many foreign companies or foreigners open U.S. bank accounts for cross-border business. In this way, a local bank account in the United States is convenient for receiving remittances from foreign business customers, and it is also convenient for their own cross-border funds. When opening a company account in the Bank of America, it is necessary to provide the US company registration certificate, the company tax number document, the account opening information form, the Chinese and English signature of the company's shareholders and the activation payment. The company's bank account can be used normally about one week after the bank reviews all the documents and confirms the activation payment.
Secondly, enterprises engaged in business activities in the United States should generally have a business place. This can be achieved by renting an office in an office building, space in a startup park, sharing an office area with others, and many other ways. In practice, many leases are prepared in advance and are beneficial to the landlord. Companies that need L-1 visas for their employees must rent office space. Therefore, the selection and signing of the lease must be done with the assistance of a U.S. attorney, who can help the company review the lease and negotiate with the landlord on related matters.
Third, when enterprises need to hire employees, they should pay attention to the various protection measures of federal, state and local governments for employees' rights, and ensure that employees' benefits and benefits comply with the provisions of the Social Insurance Act and the Federal Social Insurance Contribution Act. If companies need to hire foreign workers, they need to make careful arrangements for the visa required at the time of entry and the deduction of wages in the work after entry, so as not to inadvertently violate the relevant legal provisions.
Finally, to establish a business in the United States, it needs to meet the administrative requirements of federal, state and local governments. For example, to engage in the import and export trade of fireworks, weapons and ammunition, Chinese herbal medicine and other products, you need to obtain the permission of the relevant government agencies in the United States. There are many institutions and procedures involved in the above matters, and the professionalism is strong. It is recommended that enterprises choose law firms to provide assessment and assistance on the above matters when entering the United States, so as to smoothly enter the United States and carry out business activities.
II. Corporate type
When setting up a company in the United States, the choice of company form is very important. The most important factors to consider when choosing a business form are as follows: Limited liability (i.e. the extent to which the investor's personal liability for the debts, taxes and other liabilities of the new U.S. entity should be limited so that creditors can only claim against the assets of the U.S. entity), management and control, capital and credit requirements, tax considerations, ease of organization and operation, transferability of ownership and continuity of existence.
Many foreign companies in the United States choose the form of Corporation because it is easier for them to bring in new investors and because they may take the company public in the future. The Corporation is subject to corporate tax, and the shareholders are also subject to personal income tax on the dividends of the company, which makes them liable for double taxation.
Another common type of Company is a Limited Liability Company (LLC). LLC requires only the owner of the company to pay taxes, the company is not required to pay taxes, but may bear other maintenance costs in the state in which it is located.
At the same time, due to the different tax arrangements between China and the United States, enterprises need to set up overseas shareholding companies to achieve possible tax relief.
Most people choose the state of their residence as the place of registration and can save on related costs. But others choose to register in the most "business-friendly" or tax-friendly state. There are usually three factors to consider before deciding which state you should choose to register in:
1. The actual place of operation of the company
2. Analysis of operating costs in registered and non-registered places
3. Compare the strengths and weaknesses of state laws and tax systems.
The four most popular states for setting up a company in the United States are California, Terawa, Nevada and New York. Terawa's laws favor companies, Nevada has many tax advantages, and California and New York, for their part, are not only the commercial centers of the United States but also the transportation centers.
The state of Tava has established an internationally renowned Chancery court, which specializes in corporate law matters. With over two hundred years of court cases, the Terava Law system is considered the best corporate law system in the country, and courts in other states often use the Terava Company Law as a standard for corporate law.
The registration and maintenance costs of setting up a company for the first time in Tava are very cheap, and there are currently no regulations such as due diligence.
Limited companies must pay their annual franchise tax by March 1 each year, while limited liability companies must pay their annual franchise tax by June 1 each year. Limited companies holding the standard minimum share capital must pay $35 per year to franchise owners, plus an annual franchise tax report filing fee of $25. The franchise tax on a limited liability company is two hundred dollars.
In addition to government-licensed insurance and banking, limited liability companies can engage in any other form of business activities Limited companies, on the other hand, are not restricted and can engage in any legitimate business activities.
New York State also has a number of policies and laws that are beneficial to company formation. An 8% tax on small businesses with annual net income of less than $200,000. Net income above $200,000, up to $290,000 is taxed at $16,000, plus $200,000 to $250,000 is taxed at 9%, and the portion above $250,000 is taxed at 5%. Medium and large companies are taxed at 9%.
In 1995, the New York State Corporate Tax rate was reduced from 9.675% in 1990 to 9%, and manufacturers who make significant investments in New York State can receive an Investment Tax Credit. The Effective Tax Rate can be significantly reduced to as low as 3.5%.
New York State sales tax of 4% is subject to a 4% local sales tax in most areas and an additional 0.25% sales tax in areas covered by the New York Metropolitan Mass Transit system (New York City's sales tax is 8.25%). As of March 1, 2000, purchases of clothing and footwear under $110 per unit in New York City are exempt from state and city sales tax, and outside New York City are exempt from state sales tax by only 4%, but still subject to local sales tax.
Terawa state does not collect business tax, for the company's executives, the board of directors are very few requirements and constraints, so for the consideration of capital operation, set up a company in Terawa State is a good choice If you need to operate in New York State, you can also directly establish a New York State company to facilitate business activities.
From entering the United States, to setting up and successfully operating a company, the entire process is highly professional and legally bound, and often requires the assistance of lawyers and accountants to complete it successfully. In the choice of law and accounting firms, the "Big Four" and joint venture firms are usually the first choice. However, the United States is mainly pragmatic, and there may be problems of expensive fees and excessive division of labor, which will lead to low economic benefits. Unless the company is preparing to go public, consider a small or medium-sized firm with moderate fees and professional services.
