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How to Start a Tech Company in USA As A Non Resident

Tech Company

Business creation is a myth. Value addition to a business is what is to be called real business creation.

When it is the idea to start a Tech Start-up company in the USA. An idea gives birth to a technology which comprises of creative minds ready to infuse their intellect for a software-driven project.

The one thing most important, in a tech field, is the uniqueness of idea along with the technology support & drives to run it.

Young entrepreneurs are driven towards building cloud-technology Company & building pivotal steps to support the inclined mechanism underneath.

Few Points to Be Kept In Mind for Starting Up & Registering a Tech Company:

Company registration in the USA is 100% online and paperless process.

  1. Preparation of a Business Model
  2. Team building & selection of Right human capital
  3. Development of the product
  4. Economies in the cost of production
  5. Protection of the IPR
  6. Testing the product in a limited arena
  7. Garnering public attention or fundraising

The journey of a web startup entails a plethora of research but ends with a compromise between the right amount of technology & manpower infused.

As a non-resident of the US there can be two ways a tech company can be started:

A). INCORPORATING A NEW ENTITY in USA i.e. development of software technology on own & grabbing marketplace through it.

B). FINDING A TECHNICAL EQUITY PARTNER i.e. execution of an agreement or MOU with strategic entities in the same field for technology sharing or marketing.

Registering a Company in the USA as a non-resident is a 100% online & hassle-free process. So, if a tech company needs to get registered in the US it just needs to have its product technology very clear & support systems at par so that, the startup takes its form in a smooth manner.

Henceforth, the Hub of Company Registrations are done in Delaware State which is governed by

  • Delaware General Corporation Law
  • Delaware Incorporation Handbook

More than 60% of registrations of Fortune 500 Companies are affected in the State of Delaware for the ease of setting up & Taxation incentives along with the liberal corporate policies rampant in the state.

Delaware offers a huge amount of benefits to budding entrepreneurs willing to execute their ideas which their respective home country doesn’t.

Key Highlights & Steps in The Company Formation in the USA:

  • The state of Delaware is less prone to litigation & complexities for Company formation In the USA& therefore an easy choice for budding tech investors to form a company through angel funding or venture capital.
  • Around 285,000 companies are incorporated into a single business address in Delaware Corporate Hub & most of these are traded on New York Stock Exchange& NASDAQ.
  • Unique name application from Delaware division of corporations. This website will let you know about the availability of the particular name for the erstwhile company.
  • Decision to be taken for the type of entity i.e.

C-Corporations Registration in the USA: It is a separate legal entity, recognized & incorporates under US law. It is recognized as a separate tax-paying entity. The profits of a corporation are taxed twice once when the profit is earned & secondly when it is distributed to its shareholders as a dividend. It creates a Double Tax.

S-Corporations Registration in the USA: It is a type of entity which avoids double taxation on corporate income. It has certain criteria for being incorporated as S-Corporations which are:

  • Domestic Corporation
  • Only Resident Shareholders
  • Bar of 100 Shareholders
  • One class of Stock

It entails a pass-through entity, which transfers the corporate income, losses or deductions to the shareholders for federal tax purpose.

Sole-Proprietorship Registration in the USA: A type of business in which a sole person is responsible for the conduct of an unincorporated set up by himself.

Limited Liability Company Set-up in the USA: An LLC is generally treated as a disregarded entity as it can be either treated as a Corporation, Partnership or owner’s own tax return. If there are two members, for tax purposes it has to be treated as a Partnership concern unless it declares it as a Corporation.

Partnerships Registration in the USA: A type of business model in which two or more persons collaborate & contribute to carrying on a business. It does not pay any income tax but passes through any profits /losses to its partners. Such partners have to pay the necessary tax on the profits/losses in his/her individual return from their share.

  • A registered Agent needs to be appointed who shall act as a representative in the State of Delaware & will do the necessary paperwork & filing on your behalf.
  • Application to file for incorporation of the company with necessary enclosures & documentation with the state & thereby on State being verified by the submission will issue the Certificate of Incorporation.
  • Obtaining of EIN i.e. Federal Employer Identification Number is necessary for Tax Purposes & opening of a US Bank Account. It has to be applied from the Internal Revenue Service by filling an online questionnaire.
  • The opening of Bank Account of the company in the US State by getting the compliance of documentation done.

TAX RATES in Delaware:

The US offers the lowest Tax Rates & it’s a possibility to reduce your Tax on US source income.

Following are the general prevailing rates:

Delaware: 8.7%

The other States mostly: 37%

States Sales Tax prevails in US States apart from Delaware which range from 10 – 30% depending on the type & category of goods.

Enterslice is most preferred CPA firm to start, Register & Manage Business in the USA.

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

Business Plan Consultant

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