Global Economy News
I.Types of foreign company registration
- A foreign company can register as a limited liability company (LLC), which is an independent entity but provides convenient management (no director or senior staff required) and taxation.
- Liability is limited to the scope of the company, organization, management and finance are very flexible, suitable for individuals or multi-person cooperation in various industries, whether it is a small shop, real estate investment, or high-tech company, you can consider this form at the beginning of the company establishment.
- A limited liability company can have multiple levels of stocks, and its members can be foreigners. It is excellent for estate planning and has the advantages of saving taxes and protecting property.
II.Registered agent system
American companies require that every LLC company must have a registered agent. Once you have appointed a registered agent, they can receive official statements and documents on your business. The registration agent can be an individual or another specialized registration agent service company.
A registered agent is appointed when the company is registered. The main function of the registered agent is to accept official documents and letters from the state secretary of state. Include:
- Letter from the State Secretary of State.
- Government notice (for example, if your company is accused or required to appear in court).
- Official letters and notices from the state and federal governments.
- Tax forms and filling permits, company filing and reporting requirements.
III.The following is the basic introduction of California company and Colorado company registration
- California company registration
California is the largest and richest state in the USA. The main industries include technology (Silicon Valley), entertainment (Hollywood), agriculture and millions of small businesses, including international companies such as Google and Apple.
California is one of the most popular company registration states. After the company is established, you can protect your personal assets from any behavior that may affect your business. Because it has a thriving business community and provides important business benefits. The main benefits of California companies are:
The state requires the company to have only three positions:president, chief financial officer, and secretary, and they can be held concurrently by the same person. This will give you great flexibility when arranging a company leadership team in the future.
The anonymity of shareholders and management
The state only requires the disclosure of directors and permanent agents, so that shareholders can avoid their names appearing in public records.
Low tax burden
California’s corporate tax is only 9%, and there are other important advantages depending on the type of company formed.
- How to set up a company in California
The following is an overview of the steps:
1.Confirm that the company name you choose is available under California regulations.
2.Select company members: If there is only one shareholder, there is only one director. Two shareholders need two directors. Three or more shareholders means that your company should have three directors. The state does not have specific qualification requirements for directors.
3.Hold an organizational meeting and formulate the company’s articles of association.
4.Obtain your Federal Employer Identification Number (FEIN) and open a company bank account.
5.Obtain a business license from the county and/or city where you want to do business.
6.Submit your initial report within 90 days, called a statement of information.
- In addition, you will need a registered agent to list your California company documents. The agent will receive legal documents on behalf of the company. We are also happy to help you. We will forward any state or legal documents received to you quickly and efficiently.
- Colorado company established
Colorado’s gross state product is 315 billion U.S. dollars, ranking eighth in Forbes’ “Best Business State” list. In terms of “economic climate”, Forbes also ranked the state third. Preferential state taxes can help companies’ future development. Colorado offers numerous business incentives. The Colorado company basically has the following advantages:
Flexible profit distribution:
Registered as a limited liability company in a start-up company in Colorado, its a dvantage lies in the ability to choose different profit distribution methods.
As the owner of Colorado LLC, you will be able to have limited liability protection similar to the company's rights.
When you register a new company in Colorado, the limited liability company can benefit from the tax flow process, which will ensure that there is no double taxation.
No meeting records:
Unlike companies, LLC startups in Colorado do not need to keep any meeting or resolution records.
- How to set up a company in Colorado
There are 7 steps required to start a business in Colorado:
1.Select company name.
2.Confirm company members.
3.Submit registration to the Secretary of State of Colorado.
4.Obtain a federal tax number.
5.Open a bank account.
6.Register with the tax bureau.
7.Obtain any necessary permits.
- The basic tax burden of a Colorado company:
1. The owner of a Colorado LLC pays self-employment tax on business profits.
2. The owner of a Colorado LLC pays state taxes for any profit (minus state allowances or deductions). The Colorado tax rate is 4.63%.
3. All owners of limited liability companies must pay federal income tax on any profit minus federal subsidies or deductions.
4. Local sales of products pay Colorado sales tax.