Want to know what kind of company to open in the USA?
Understanding what types of companies you can open in the US is important so you don’t make mistakes.
After all, the entrepreneur needs to be prepared for the journey of opening the company, taking advantage of his knowledge to have good results. Check it all out below.
Read more about starting your business in the US:
–[Easy Guide] How to open a company in the USA living in Brazil
–5 practical tips for starting a business in the USA
5 types of companies in the USA
The different types of companies aim to carry out the correct framework in different aspects, so that the payment of taxes and the level of requirements are correct.
Understand the main options, so you can understand how to internationalize your business:
1. Sole Proprietorship
Sole Proprietorship (SP) is the most affordable way to open a small business in the United States.
In the structure, the owner cannot have a partner and the company is an extension of the individual and it is not necessary to declare the company’s income tax.
However, if the company accumulates debts, the owner’s assets will be used to settle them.
To formalize this company you need to have a post office box, a telephone number and a bank account in the USA.
2. General Partnership
It is also an easy way to open a company in the US, as it requires little bureaucracy.
The difference between the previous model is that in the General Partnership (GP), you can have partners.
However, the responsibility for any debts of the company lies with the partners.
Therefore, it is essential to have good management to avoid losing your personal assets.
3. Limited Liability Partnership
For doctors, lawyers, accountants and self-employed professionals who wish to provide services in the USA, the LLP or Limited Liability Partnership is the best option.
Since you will be the sole owner of the company and will not need to associate with any co-workers who would be partners.
4. Limited Liability Companies (LLC)
For those who founded a startup and want to internationalize the company’s operations, the LLC is the best model.
The model is a little more bureaucratic, however, the legal structure requires little documentation, thus being a more practical process.
With regard to liabilities, each business partner has limited liability to what they invested in the business.
This means that the liabilities are proportional to the capital invested in the business.
The partners need a document called the Operating Agreement, which will establish the organizational structure of the company.
However, it is worth facing the bureaucracy to obtain good results from opening the company in this model, if it is the most viable for your business.
In this model, the partners do not contribute with their personal assets in the event of the company’s indebtedness.
5. Corporation
For larger companies, Corporation is the best option.
As in the previous model, the Corporation is an option where the partner does not contribute with his personal assets in case of company debts.
In addition, it is a structure that allows the company to go public and sell its shares on the Stock Exchange.
However, the Corporation is a company with double taxation, it is necessary to pay them initially at the corporate level involving the company’s net profit and later when the profits are distributed to the shareholders.
There are different types of companies to meet the needs
It is complex to choose which type of company your company fits into. However, the decision is important so that you can identify opportunities and eventual results.
The initial process is relatively time consuming and expensive, for all the necessary fees and documents. However, it is worth doing the internationalization of your business in order to achieve the best possible results.
After all, you need to plan ahead, have the right consultancy and count on the help of good professionals to achieve great results when opening the company properly, or internationalizing it.
Red Consulting: specialist in the opening and internationalization of your company in the USA
The internationalization of Brazilian companies requires dealing with all the bureaucracy that involves identifying what type of business you are going to open.
As well as correctly framing your company in the North American market, so that you can simplify opening as much as possible and choose a type of company in the USA that is compatible with your operation.
After all, it all depends on the initial investment amount, the market in which it will operate, the number of employees and a number of other factors.
Get in touch, find out about our solutions and take advantage of everything that Red Consulting can do to help you internationalize your company.