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Choose Which State to Form Your Corporation or LLC in USA

Update Date:2021-9-9 16:06:39     Source:www.3737580.com     Views:107

In the United States, you can form a Corporation or LLC in any of the 50 States or Washington DC. Which
state you choose will depend on why you are forming the company. Some US states are more “business-
friendly” or “international-friendly” than others, especially Delaware, Nevada and Wyoming.


For example:
a. If you simply want to form a US company because you need to open a US bank account and/or
merchant account (to accept credit cards) and will not be opening a US branch or have a physical
presence, then you might choose Wyoming which has lower annual state fees than Delaware or
Nevada. Also Delaware, Nevada and Wyoming banks are more familiar with dealing with international
clients without a local office than are many other states. This can make opening a bank account much
easier.


b. If you will be opening a US branch with a physical office (or home-based employee), you may want to
choose the state where you will be opening the office. Note that if your office will be operating in, for
example, Florida, then you may still choose to form the company in another state like Delaware,
however, the state where you are opening the office will want you to “re-register” that Delaware
company in Florida. This process is called “foreign qualification” which means you are qualifying the
Delaware entity to open a physical business in Florida. Of course, we can assist with foreign
qualification as well if necessary.


c. If you want to form a company for the purpose of obtaining US investment or venture capital, you
may consider a Delaware Corporation as this is the entity that is required by the vast majority of US
investors and venture capitalists.


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