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Benefits of a US Company

There is not a simple answer as there is a collection of over fifty different systems of corporate law in the USA. However companies are free to incorporate in any state under the United States Constitution regardless whether they are doing business or have their headquarters there. So there is definitely an abundance of choice when choosing to incorporate a company in the USA.

The USA is the largest economy in the world with a respectable reputation for democracy and social infrastructure. The credibility of a US company and their comprehensive banking solutions make them a much sort after entity for International business. One of the main reasons that foreign businesses choose US jurisdictions to establish their company is to open a US bank account. It is much easier to open an account for a US corporation than a foreign established one as every business in the US needs an EIN (Employer ID Number), and without this you may encounter problems.

There are also many other benefits such as tax savings through their numerous double taxation treaties or structuring so as corporate profits are only taxed once. With LLC it has advantages over other corporations types in the US such as, you can have foreign or corporate shareholders and it provides limited liability.

By far the most popular jurisdiction for incorporation in the US is Delaware, this is mainly due to it being a more business friendly option than many other jurisdictions. Delaware is also a long standing jurisdiction so has experience and reputation to fall back on. 
 
Although Delaware has long had the lead when it comes to offering simple, tax efficient companies other jurisdictions are now also making improvements and becoming popular such as Nevada and Wyoming.

Here are some of the more popular jurisdictions main points briefly illustrated;

California
- Stable economy and efficient business infrastructure
- Residency for directors is not required
- 13.3% state tax

Delaware
- There are no personal residency requirement to open a Delaware Corporation so you do not have to be a US citizen
- Control does not have to be in Delaware so business and meetings can take place anywhere in the world
- There is no minimum capital requirements
- There is no limitations on ownership
- There is no corporate income taxes in Delaware providing all commercial activities are carried out outside of Delaware
- There is no sales tax providing you are not operating within the state
- Annual franchise tax of a reasonable flat fee

Florida
- Stable economic environment and progressive legislation
- Residency for directors is not required
- Abolition of taxes linked to mutual funds, stocks and bonds
- No state personal income tax

Nevada
- No requirement to hold physical board meeting in Nevada
- No corporate income tax
- No annual state franchise taxes
- Reasonable annual fees
- No Personal Income tax in the state
- Minimal reporting and disclosure requirements
- Shareholders are not Public Record

New York
- Reputation – New York is considered one of the central hubs of the world today
- Economy – New York as a central hub has many high flying industries centred there including banking and financial services
- Residency for directors is not required
- One of the lowest corporate income tax rates in the Northeast
- Property taxes imposed on real property only
- Personal property exempt from state and local taxes
- Various tax incentives for particular types of business

Wyoming
- Reputation as most business friendly tax system of any state
- Control does not have to be in Wyoming so business and meetings can take place anywhere in the world
- No Personal Income Tax
- No Corporate Income Tax
- No state taxes
- Low utility rates
- No business licence fees
- Residency for directors is not required
- Long established jurisdiction with strong protection laws
- Shareholders not publicly listed
- Easy redomicle procedures
- Minimal reporting and disclosure requirements

Each state is different when it comes to both paperwork to register a US low tax company and the continued compliance and filing requirements. Chesterfield are on hand to offer initial advice and deal with all the paperwork required for the continued operation of your US company. 

Contact us to learn more about the Benefits in USA


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