Knowing what Inc. means is essential if you want to open a company in the US The United States is an economically very prosperous country, it is currently the largest economy in the world, with a considerably large population, which makes it a very attractive to entrepreneurs.
The United States has great diversity in economic terms, in addition to being very business-friendly, all due to the free market economy and legal certainty that Americans have.
In this post, you will learn what Inc. stands for and how it works.
What does Incorporation mean?
Inc. is short for Incorporation, which stands for Incorporation. Incorporation is a company whose assets cannot be associated with those of the partners, directors and shareholders, that is, the liability of the business is limited.
The fact that it is a limited liability symbolizes that, although the partners have the possibility of obtaining benefits through dividends or by valuing the company, they cannot be held responsible for the damages caused by the mismanagement of the company.
Benefits of an Inc.
An Incorporation is a business modality that offers some advantages for the company and for the partners, some advantages are:
• Transfer of ownership more spontaneously.
• Preservation of the partners’ assets, when the company faces a dispute.
• Softer tax restrictions, which make it impossible for the entity to have large losses.
• The organization has the possibility of carrying out an initial public offering and offering its shares on the capital market.
Although the partners are not responsible for the inconvenient actions of the company management, in cases of fraud, this protection does not exist.
With an Incorporation it is easier to take on greater risks, since the partners will not be affected by any financial loss.
Alternative mode for an Incorporation
Limited Liability Company – LLC
Limited Liability Company, is also a limited liability company and is one of the most popular types for small American entrepreneurs, as this category allows some tax incentives.
The partners of an entity classified under the LLC modality do not need to reside in the USA, they can be foreigners, and they have greater freedom for the composition of the corporate structure.
In the organizational structure of the company, the partners can delegate the management of the company to a third party that is not a partner of the entity, but in most cases it is the partner who does the management.
To open a company in LLC mode, the foreigner can generally do so through an accountant resident in the United States or through a virtual office.
Any of the modalities can be transferred to other people, in accordance with state laws. All the modalities do not have an expiration date, and can be assumed normally by the heirs.
The US economy is highly coveted, moving trillions of dollars each year and has a huge diversity of highly profitable industries.
This can be a great opportunity for those who want to undertake, however, it is necessary to pay attention to the competition, which can be very high depending on the chosen industry.
Many foreigners also seek patrimonial protection when opening a company in the US, since some modalities have limited liability, since the partners of the entity have the assets totally dissociated from the entity.
Starting a business should be considered seriously, preferably with the help of a qualified professional. If the goal is simply to become an investor, there may be other more interesting alternatives.
Did you like this post about Incorporation? Have you thought about opening a company in the United States?
Leave a comment and share your opinion and ideas with us and our readers!