It would not be wrong to assume that the ideal of every entrepreneur who has already reached the stage of establishing a company, is to make their business international.
The first step is to establish a company abroad, mostly in the USA. The USA, which is a popular country for entrepreneurs and even investors, has been very popular in recent years with its entrepreneurial incentives and legal and tax related conveniences. On the other hand, the size of the market, its proximity to the South American market of 425 million people and the presence of sector leaders in the USA make it even more popular. However, it is known that entrepreneurs should use financial resources cautiously. Therefore, it is useful to carefully examine the bureaucratic processes and requirements before setting up a company abroad, especially in the USA.
Incorporation and tax identification
There are two issues that entrepreneurs must decide on before setting up a company in the USA: The state of incorporation and the type of company.
If the company to be established in the USA will be actively operated from the USA, that is, if there will be a physical presence there, the state where the work will be carried out is the best place to establish the company. Delaware and Wyoming are more advantageous than other states in terms business. Both of these states offer great opportunities to entrepreneurs in terms of tax. Although Delaware is slightly more expensive than Wyoming in terms of taxes, it is more preferable due to the state's pro-employer laws. Plus, upon request, you can personally visit the state and reduce the processing time to 1 hour.
The type of company is the second issue. If the purpose of establishing a company is to receive investment and to open the company to the stock exchange in the long term, it is best to establish a 'corporation'. Because this type of company has opportunities such as share trading. The 'LLC' is more suitable for people who will trade directly.
On the other hand, it is very important to obtain EIN (Employer Identification Number) and ITIN (Individual Taxpayer Identification Number). The long processes and the inability to start trading without these increase their importance. It is essential to obtain these numbers from the IRS through an authorised agent.
Accounting and tax
'Nothing is certain except death and taxes.' Although 250 years have passed since this quote attributed to Benjamin Franklin, not much has changed. The US is still very sensitive and quite ruthless about taxes. Because companies and company owners who do not submit their tax returns on time or submit incomplete or incorrect tax returns may face tax penalties of up to 500 thousand dollars.
Actually, we can clarify the issue as follows. There are three main types of taxes in the US: income tax, sales tax and state tax. Apart from these taxes, some products may also be subject to special additional taxes. Income tax is a tax paid directly to the IRS and the forms to be filled out differ according to the type of company and the number of partners, and the tax declaration date varies according to the type of company and the number of partners. Sales tax and state tax are taxes paid to the state. State taxes are called 'franchise tax' or 'annual report'.
I explain sales tax as follows: Let's say you own an electronics store in New York and a customer comes and buys a product from your store. In this case, you will need to add 8.875% sales tax rate to the price of the product. Subsequently, you must file a sales tax return with the state of New York.
After your business reaches a certain volume, you can apply for an E2 investor visa and obtain the right to work in your own business and live in the USA. This visa, which is usually granted for a period of five years in the first stage, can be renewed in the second period as a result of the payment of taxes, the development of the business and the upward acceleration of financial reports. Of course, there are many issues that need to be detailed in this regard. Because there are many factors affecting the visa status, from the amount of investment to the share ratio in the company, from taxation to the number of employees.
This adventure, which starts with the establishment of a company, is a time-consuming process with stages such as monthly accounting, annual tax declarations, investment in Silicon Valley, and then the investor visa.