How To Register a Company in The US from Pakistan?
How to register your company in the US from Pakistan?
Everyone wants to expand to the US if their company is doing well. The US is the ultimate market for any business to explore and enter; it’s like the last slice of a pizza everyone wants!
With GDP in trillions, the people in the US are from everywhere and exposure to the US will not just help to meet customers from different parts of the world but will also help you to connect with an ever-growing market.
This is why forming a company within the US is a great way for any Pakistani company to expand its business within the US without being a US citizen. Although this will surely help you to become a US citizen.
In this article, we will look into how a Pakistani business or a company can register in the US without being a US citizen.
The benefits of moving your business to the US:
As mentioned earlier, there are plenty of benefits for you to open your business within the United States. Some of the benefits are:
- Your business is exposed to people from all over the world. This can include some big names too because everyone travels to the US.
- It will help you to expand your business. Such an expansion will not help with more sales but will also help with learning from the best, giving your business a boost.
- Knowing more about your product. Whatever the product or service your company provides, the US is the ultimate powerhouse, thus helping you know the latest trends within the product or the service you offer. Such gained knowledge and experience will surely help you in the long run.
- Finding new investors. As more people learn about your business or company, the more investment it will attract, thus giving you much-needed capital for you to expand your business.
How to structure your business for it to be registered in the US:
While there are plenty of ways you can structure your business when opening in the United States, however, the best possible solution is through the help of an LLC or a Limited Liability Company.
This is because as per the US laws, anyone from any part of the world if they are from a country that has diplomatic relations with the US can register an LLC in the USA which is also known as US LLC.
Steps to form a US LLC:
The following are the steps to form a Limited Liability Company in the USA. These steps include:
We have discussed the whole process of forming a US company from Pakistan or hiring a consultant who would take all the responsibilities for you and help you with it.
I hired Consultisor for forming a US company:
Consultisor is a Karachi based company that helped me start a US company while being living in Pakistan. They go through all the hard things for me and make the process easy for me. I already have an idea about the process but it was hard to focus on my business as well as going through the legal work that can be easily outsourced. You can contact Consultisor here.
1. Selecting a State:
The US has over 50 states. Each state has a different kind of taxes that they collect so your worry may be towards handling the US Federal Taxes. The three states with the easiest state taxes are Wyoming, Delaware, and Nevada.
However, while the taxes are low in these states, the market is also not as diverse as it is in the other states. Therefore, you should know what service or product your business provides and then see what state fits the best for you. Avoiding state taxes may be a good solution but not in all cases.
2. Naming your LLC:
While it is most likely that you will continue to name your business or company as it was in your hometown, however, there are some guidelines before you register an LLC in the United States and these guidelines include:
- Your name must include the phrase “limited liability company” with abbreviations such as LLC or L.L.C.
- Your name is to not be confused with any US government agency such as CIA, FBI, SEC, etc.
- For licensed professions, you will need to provide additional certifications for you to register your LLC. This could include an engineering firm, law firm, dental clinic, and so on. Any professional that requires a license to operate.
- You have to make sure a domain name is available, and this can be done through the help of a simple domain name search. Registering your website is a must when signing up for LLC.
3. File your LLC with the State:
All the documents of your company or business need to be submitted and filed officially with the LLC name with the state of your choice. This document will be called the “Articles of Organization.”
If you are registered in your home country, or any other country with formal ties to the United States, this would not be a big issue as you will already have the necessary paperwork.
4. Getting an EIN
EIN or Employer Identification Number is important to acquire as this acts as the tax ID for your LLC. However, beyond this, you do not need anything else including the US’s Social Security Number (SSN), or Individual Tax Identification Number (ITIN).
You have to make sure this is verified — it can be done by double-checking with your agent or the authority where you will register your business or company’s name. If not done correctly, it can cause some serious hurdles later.
EIN does the job for an LLC.
Read: How to get EIN for your Business in Pakistan?
5. Getting a physical mailing address:
This is necessary for you, and the easiest way is for you to open a small office in the US for your business. If not then, there are several online services that you will pay for and they will register your name under the property that they own. Services such as Earth Class Mail will give you a US address that you can use to register your business and a bank account.
The online services that you may use will range from $50 to $250 per/month. You can also ask someone you know who is a US resident to use their permanent address, however, the process can take some time.
6. Opening a US Bank Account:
Due to several money laundering-related concerns, there are some hurdles in this process. However, once your address is verified, your LLC is registered to the State you will possibly open your business in, and you have received your EIN number, this process will run smoothly.
However, depending upon the kind of business or service that your company provides, you can use an online service like PayPal.
Should a Pakistani business or company owner register their business in the US?
As mentioned earlier in this article, there are several benefits for doing so and the process is not that difficult.
The simplest answer to this question is that, if you want to grow your business and let it gain exposure to the world’s leading market, then your business needs to have operations in the United States, otherwise your business can grow within the domestic market.
How much money do you need to register your company in the US?
This is subjective, and there are no defined rates.
However, people have reported having registered their business or company as an LLC within the price range of $1500 to $5000. This can range from which state you choose, what kind of an agent you hire or not, how many trips you will have to do to and fro from Pakistan, and so on.
If you are looking to give your business international exposure, there is no better way to do it than registering a company in the US. By doing so, there will be some initial costs, however, it will be worth it. The US market is very diverse and offers an exceptional growth opportunity for your business.
I hope this helps you start a US company from Pakistan.
