1.Background Introduction
There are 50 states in the United States, each with different laws and regulations, including processing time, registration fees, processes, and various advantages. Therefore, investors must make comparisons and decisions based on the actual situation when choosing the state of registration.
Among many states, California, New York, Nevada, Florida and Delaware are more famous. Among these states, each state has its unique investment advantages, so investors need to have sufficient knowledge and information to make the most suitable choices.
California
California is located on the western Pacific coast of the United States, across the ocean from China, with a superior geographical location. It is the most populous state in the United States and also a gathering place for Chinese people. The world technology center, Silicon Valley, is also located here.
Registering a company name in California is relatively free, with no need for capital verification or actual funding. The minimum registered capital is $50000, which is subject to annual review every two years and a franchise tax of $800 per year. Meanwhile, there are numerous banks gathered there, making it the state with the most Chinese funded banks, so there is no need to worry about opening bank accounts.
New York
New York State is the nerve center and economic heart of the United States. It has the largest New York City and New York Harbor in the United States. It is a famous world financial center. The well-known Wall Street is located in Manhattan, New York City.
New York State has strong economic strength, good business atmosphere, low registration costs, fast registration time, and a wide range of enterprise types, which is suitable for start-ups. In addition, New York Harbor, the largest port in the United States, is very suitable for foreign trade. However, New York State has strict requirements for company names, which usually end with Limited Liability Company, Limited Company, Limited, or their abbreviations.
Nevada
Nevada is located in the western part of the US mainland, bordering California. It is an important bridge and cargo storage center between the central and western parts of the Central United States. There is also the famous "gambling city" - Las Vegas.
Nevada has low taxes, so it does not have to pay federal income tax, corporate income tax, share tax, franchise tax and Personal income tax. There is no need to disclose shareholder information, and privacy protection is extremely high.
Florida
Florida is located on a prominent peninsula on the southeastern coast of the United States, with the romantic stretch of the Gold Coast and the world-renowned Disney World. Tourism is the primary pillar of its economy.
There is no fixed state tax for establishing a company in Florida, and if there is no actual operation, it can achieve zero tax declaration. The annual review is conducted before May 1st each year.
Florida is highly innovative and known as the "Innovation Center of the United States". Its favorable technological innovation environment, high-quality professional talents, and comprehensive and thoughtful business services are conducive to the sustainable development of enterprises.
Delaware
Delaware is the first state to join the United States and has the title of "First State". According to statistics, more than 50% of the world's top 500 companies have established offices or branches in Delaware, and one-third of the companies listed on the New York Stock Exchange have also been established and registered in Delaware. Therefore, Delaware is also known as the "capital of the world's companies".
Delaware has advanced and flexible corporate laws and regulations, and the commercial arbitration efficiency is the highest in the United States. Profits from overseas operations are not subject to profit tax, and non local shareholders are not required to pay taxes to Delaware on their equity. In addition, there is no minimum capital requirement for companies registered in Delaware, and companies limited by shares are not required to submit annual returns every year. The registration process is also very simple.
2.Purposes to register American companies
- For packaging American brands: There is no need to consider issues such as account opening, tax burden, or address in the United States, just choose a state with the highest cost-effectiveness and lowest registration cost. It is recommended to register a Colorado company, as the cost is cheap and maintenance costs are not high.
- For e-commerce platforms such as Amazon: EIN is required for US tax filing, and EIN must be applied through a US company. Therefore, in order to operate Amazon formally, sellers need to register a US company. It is recommended to register a Delaware company as it is exempt from sales tax.
- Starting a business or conducting on-site operations in the United States: The most important thing is to choose which state to establish a company in, which is beneficial for customer communication, hiring employees, reducing tax burden, and later operating; At the same time, it is also necessary to consider issues such as opening a bank account for the company and conducting subsequent accounting and tax reporting. If considering labor costs, it is recommended to register a California company, as California is the state with the highest number of Chinese Americans and the closest direct distance from China, so there is no need to worry about employee employment issues; If considering accounting and tax reporting, it is recommended to register a company in Washington State, as this state is exempt from state taxes.
- Considering the company's reputation: It is recommended to register a company in New York State, as New York is the financial center of the United States and has a global reputation. And the New York State company's 2nd anniversary annual audit can save half of the annual audit fees