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Guide On How To Register A Business In The USA

by Artyom Kopylov,
register-an-online-business-in-the-usa

Would you like to launch your own business? Don’t you know how to register an online business in the USA? Follow the step-by-step instructions from Sellvia for a smooth start in ecommerce!

One of the aspects Sellvia aims at is to provide you and your online business with a reliable dropshipping supplier with fast US shipping, top-quality & trending products, and marketing materials. So Sellvia is supposed to become a perfect solution for your dropshipping business if you’re targeting the USA.

And this is the very point most people are really afraid of. Despite the fact that targeting the US citizens doesn’t necessarily require you to register an online business in the United States, it’s a lot more advantageous to launch a company in the US.

Why? Actually, a US-registered business provides its owner with lots of benefits such as access to Stripe, for example. Meantime, your business will seem a lot more credible to your clients.

But how to register an online business in the USA? How to do this right? How much time and money does it take?

Actually, you don’t need to be scared. With a step-by-step guide on how to register an online business in the USA, there’s nothing challenging to get your venture started. But first things first.

Disclaimer: the article is for informational purposes only; Sellvia itself doesn’t provide legal advice and registration or taxation services.

How to register an online business in the USA: the basics

a picture showing a man completing the business registration

Actually, if you live outside the United States and decide to register your business in the US to target its citizens, here are two main aspects you have to pay attention to: business registration and taxation. Today we’re going to speak about how to register an online business in the USA.

NOTE: If you’re a US citizen willing to register a small business in the United States, the process of business registration is pretty similar to the one for those who live outside the country. Your main advantage is your physical presence in the country.

In fact, there’s absolutely nothing challenging about registering a business in the USA. If you are eager to register an online business in the US, but you’re afraid that it’s an impossible task, please take it easy.

  • A person from any country can launch a business in the US
  • You don’t have to travel to the US to register a business
  • Registering a business in the US doesn’t take a lot of time
  • It won’t take you lots of money to launch a company in the US

Is it becoming more and more tempting to start a business in the USA? In fact, this is the idea we would like to bring you.

Is the US opened for entrepreneurs from other countries?

✅  If you are not a US resident, but you’re eager to launch a company in the United States, here is good news for you: wherever you live, it absolutely doesn’t matter – you are able to register a business in the USA.

Neither residency nor citizenship matters if you’re going to start a small business in the United States.

Can I register an online business in the US remotely?

✅  In a nutshell: yes, you can. Registering a business in the US doesn’t require your physical presence in the United States of America.

To effortlessly register a company in the US, you need to apply to companies that provide business registration services. Such companies will do everything for you.

How much time does it take to register an online business in the US?

The process of registering a company in the United States is not very long. In case you apply to the firms that specialize in registering businesses, all you need to do is to prepare the necessary documents and relax – such a company will do everything for you.

Registration takes about 10-20 days, depending on the state you register your business in. After you’ve registered your venture, you need to apply to EIN. According to the IRS official guideline issued in December 2019, you can receive your EIN by fax generally within 4 business days.

But please keep in mind that the time limit for receiving the EIN may be extended because of the COVID-19 issues.

✅  As a result, you will get an LLC registered in the United States in approximately three weeks.

How much does it cost to register an online business in the USA?

✅  In most cases, registering a small business in the US will take about $500.

However, it depends on the way you’re going to register a business and the state you’re going to register in.

Registering a business in the United States: step-by-step instructions

So what are the steps you need to take in order to register a business in the United States?

1. Apply for a business registration in the United States

First of all, wherever you are, you need to apply for a business registration in the United States.

And here is a catch: if you’re not a US resident, you need to find a registered agent that has a physical address in the US. This is a must. That’s why this is a great idea to let a professional firm do all for you, so you won’t have to worry about any legal issues regarding the business registration.

One more important issue you need to consider wisely is the place of registration. The point is that, generally, US entrepreneurs are recommended to register a business in the state they live and work in.

However, if you’re not a US resident, and you deal with ecommerce, you don’t have to link your business to a state. Beyond this, all the states have their own taxation systems. So there are states that are favorable in terms of business registration. Meantime, there’re states that you’d better to avoid when choosing the one to register your business in.

2. Get an EIN

EIN stands for an employee identification number. Each entrepreneur, whatever type of business they have, has to get an EIN. This number is used on all your business-related documents. To get an EIN, you or your attorney will need to fill out IRS Form SS-4.

As a rule, the first two steps take you 14-24 business days.

3. Open a bank account

After you’ve registered your business in the US and got an EIN, the last but not the least measure you need to take before starting to operate fully is opening a bank account.

In fact, there’s nothing challenging about opening a bank account. However, here is one more catch.

❗Please note that the majority of the US banks open bank accounts only in case of your personal presence. It means you’ll need to travel to the USA in order to do that. But, actually, there is a way out to open a bank account remotely. Stay tuned.

Actually, that’s it.

What you need to know about business registration in the US: secrets from Sellvia

Our team has been dealing with registering businesses in the US for more than 10 years. We know this process firsthand. So we have accumulated the tips and tricks we are ready to share with you to let you get a smooth start with your business. Here they come!

How to register an online store in the US with no effort?

Actually, there are lots of companies that provide business registration services. It’s up to you with whom to deal with.

One of the firms we can consider as a reliable partner is SVS.

a screenshot of a website of the company providing business registration services

You may visit their website or email them at info@svs-cpa.com.

You can also consider such companies as BizFilings and MyUSACorporation.

All these companies are reliable. Meantime, prices and terms are similar, so it’s up to you which one to choose and partner with.

Which states to choose for a business registration?

We have already mentioned that there are states that are unfavorable in terms of the business registration. Here they are!

❌ Tennessee, Louisiana, Arkansas, Alabama, California

Meantime, there are ones with minimum taxation or total lack of different income taxes. Check the list of the most favorable states to register an online business in. Here are the states where tax systems offer advantageous terms to do business!

✅  Delaware, Wyoming, Nevada

How to open a bank account remotely?

We’ve mentioned that the majority of banks in the USA won’t let you open a bank account without your personal presence. However, there are a number of banks that provide an option of opening a bank account remotely. One of them is Mercury.

❗If you live outside the US, and you need to open a bank account in the United States for your business, we recommend you consider Mercury.

a screenshot of a website of the bank that opens bank accounts remotely

Beyond the option of opening a bank account remotely, this bank welcomes startups, online business businesses, etc. Meanwhile, Mercury meets the international banking standards, so you won’t have to worry about your funds.

It remains for you only to go to their website and click ‘Open account’. After it, you need to fill out the suggested forms, attach the necessary documents, and that’s it. Your bank account is to be opened within several days.

Final thoughts on launching a company in the United States of America

As you can see, there’s nothing challenging about launching a business in the USA. Fortunately, since the US government has not imposed any restrictions on entrepreneur’s citizenship or residency, a person from any country can easily get his startup registered in the United States.

It will take you about 3 weeks to register an online business in the US and 3-5 days to open a bank account. All these actions can be performed remotely and require about $500 dollars only. After that you’re able to start operating fully!

For this money, you will get an LLC registered in the US, so you can count on each benefit the LLC provides you with: it prevents business owners from being personally liable for things related to business and ensures pass-through tax status.
So we hope all the tips we’ve managed to accumulate for years of experience will help you get a smooth start in ecommerce!

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by Artyom Kopylov
Artyom is a copywriter at Sellvia. BA degree in International Communication and MA degree in Advertising let him start his career working in a multinational petrochemical enterprise as a marketing specialist. For a number of years now, Artyom has been creating educational materials to help people worldwide start their profitable ecommerce ventures.

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