A business is more likely to succeed if it offers a product that a certain clientele needs. It's best to think before you waste time, energy, and money on going blind. The excitement of becoming your own boss can very quickly turn into a nightmare if you have forgotten the simple principles of common sense. Now that you have developed your strategy, it's time to get to the heart of the matter: the legal set-up of the business.
The legal set-up of the business:
The legal setting up of a business in theUnited States is simpler thanin France. For example, the payment of capital for a company is not mandatory. But be careful this allows you to embark on adventures that sometimes cost you a lot: the safeguards, such as the constitution of a capital, being removed.
You can create a "partnership", an association, a "joint venture" or simply do business in your own name with a pseudonym or not. There are other specific forms that we will not discuss in this article.
You can also find a company (corporation).
What are the particularities of companies?
It's quite expensive to create and a bit heavy to hold. In the context of a corporation, your personal liability is in principle protected. However, in the event of bankruptcy this is not always true. The bankruptcy judge can turn against the shareholders, and if you have own property, you may, in some cases, be personally ordered to pay.
In a classic Type C corporation, your personal tax return will be entirely separate from that of your company. If your company makes a profit and you, as a shareholder, receive dividends, you will be taxed twice on that income; indeed, you will have to pay tax on the company's profits as well as on dividends (the tax credit does not exist in the U.S.). For an "S" corporation, the screen between the shareholders and the company is more transparent since the shareholders must join with their own "tax return" that of the company (schedule K-1). In this case, the profits are taxed as part of the personal taxation of each partner, and you avoid double taxation. In any case, you can hardly do without a lawyer for the setting up of a company. It will also help you to incorporate your company and prepare the "bylaws" and "articles of incorporation". In addition, you must complete a number of formalities...
Carry out the formalities
Whichever type of company you choose, you also need to keep your company books up to date and the paperwork is more stringent. You also have a minimum to pay in taxes even if you are in loss, for example for California (this amount reaches $ 800for now) to be paid to the State of California per year.
In the opinion of several lawyers, if you want to set up a small business where you are the sole owner, you do not really have an interest in setting up a company of the classic type. On the other hand, you can very easily set up your business as an individual. There are no formalities required (unless of course it is a regulated profession). You must pay contributions to the Social Security Administration (about 15% of your income capped). But this money is recovered by the different administrations at the time you pay your income tax. Therefore, if your business does not produce any income, you will not have to pay these contributions.
You do not have to act on your behalf
Whether as part of a company or as a "self employed", you can act under a fictitious name. This is called here the "fictitious name" which allows you to operate under another name (Doing Business As). You will be able to hire staff, issue invoices, open a bank account, etc.
The owner of a "fictitious name" can be one or more individuals, a company, a "partnership", a "joint venture", a "business trust”, etc.
Get a fictitious name
You must complete a "Fictitious Business Name Statement" form for the administration of the "County" to be registered. Then the notice must be published 4 consecutive weeks in a local newspaper of the same circulation as the location of your business.
Newspapers that publish this kind of information do almost nothing but that. They take care of the steps in the County for you and will publish in their newspaper the opening of your case. Signing up for County costs $15 parking is more expensive!). Everything can be done by mail and phone with these classified ad logs.
Prices are given as an indication and are subject to change. Everything is included. Learn. Look at the addresses in the directory.
Be careful, this Fictitious Name has nothing to do with a Trademark and only allows you tooperate under any name, but with very limited protection locally. With this paper, signed by the County, you can go open a bank account under your new name in the afternoon and start your business right away. If you want to hire staff.
To hire staff:
If you want to hire staff, you must have an employer identification number that will be given to you by the I.R.S. at 800-829-1040, ask to be sent the SS-4 form (they are very nice: they do everything to help you pay taxes!). To go faster, you can also get a form in a "walking office of the I.R.S." We will give you the address at this famous phone number. For example, if you set up your business in California: oncein possession ofthe form, you can call Fresno (the number and explanations will accompany the form: it is imperative to have it to be able to call). They will ask you a few questions about your business and immediately give you an employer number (starting with 95–). You will have to send this form to Fresno, and you can, in perfect legality, hire employees right away and have the pleasure of paying the related taxes! If you are not in a hurry, you can also do everything by mail and you will receive an employer number 2 months later.
To sell products:
If you are going to sell merchandise, you need a "seller permit". You have an obligation to collect "dirty taxes" on goods sold at retail. This will also allow you to buy products in bulk without paying taxes. All you have to do is fill out a form and you will be registered. Tip: announce a reasonably low future turnover because you will have an immediate deposit to pay on the expected turnover. You can find this form at the State Board of Equalization (SBE). Don't stand in line. Take several files (in case of errors), fill one out quietly at home and send it back. You will receive your merchant number and the amount to be paid, a little later. See the addresses in the "government" pages of the white pages of the directory. That's it, you have completed the essential legal steps and as the Americans say "you are in business now".
= + = + = + = + = + = + = + = + = + = + = + = + =
We recommend the book: Create a Limited Liability Company (L.L.C.) in the United States: for a non-resident in the U.S.
It is for sale on the Amazon website.
Here is the link: https://www.amazon.fr/Create-Limited-Liability-Company-L-L-C-ebook/dp/B08P5V2WJR/ref=sr_1_1?__mk_fr_FR=%C3%85M%C3%85%C5%BD%C3%95%C3%91&crid=1IL9T13NQX3QN&keywords=Create+a+Limited+Liability+Company+%28L.L.C.%29+in+the+United+States%3A+for+a+non-resident+in+the+U.S.&qid=1641899012&s=books&sprefix=create+a+limited+liability+company+l.l.c.+in+the+united+states+for+a+non-resident+in+the+u.s.%2Cstripbooks%2C352&sr=1-1
Publisher: Amazon KDP (Nov.25 2020)
File Size: 2405 KB
Simultaneous use of the device: Unlimited
Reading comfort: On
X-Ray: Not activated
Word Wise: Enabled
Number of pages of the printed edition: 100 pages