Full business support: registration, licenses, bank accounts.
Who are we?
LFT Advisors is a team of international business specialists who help entrepreneurs efficiently establish and develop their operations. Our lawyers, auditors, accountants, and tax consultants work at all stages of business, providing reliable solutions and professional support.
What do we do?
We consolidate key services in one place to minimize costs and avoid unnecessary bureaucracy. Our “one-stop-shop” approach allows for quick resolution of legal and financial issues—from company formation to obtaining permits and banking services.
Why do clients trust us?
- Transparent solutions tailored to specific business needs.
- Comprehensive company support at all stages.
- Deep expertise in tax and legal matters.
- Experience working with international businesses and startups.
How do we work?
- Analyze business goals and develop a strategy.
- Assess the client’s current situation and propose an optimal action plan.
- Register the company, open accounts, and assist with licensing.
- Provide ongoing legal and consulting support.
- Adjust strategies, evaluate results, and suggest growth opportunities.
Why Doing Business in the USA Is Profitable
Doing business in the USA is attractive for several reasons.
- Clear regulations and support for entrepreneurs
- Favorable taxation
- Access to a large consumer market
- Diverse business practices and cultural variety
- Support for small and medium-sized businesses
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Clear regulations and support for entrepreneurs
The USA has established transparent and understandable business regulations. Government agencies aim to simplify processes, allowing interaction by mail or online, which makes administrative tasks much easier.
Favorable taxation
Some states, such as Delaware, offer tax benefits for businesses. More than half of all public companies in the USA and 63% of Fortune 500 companies are registered in Delaware, which proves the state’s appeal to entrepreneurs.
Access to a large consumer market
The USA has one of the largest consumer markets in the world, giving businesses vast opportunities to sell products and services.
Diverse business practices and cultural variety
Running a business in the USA means exposure to different business approaches and methods, helping develop various skills. The country’s cultural diversity also provides valuable experience and insights for entrepreneurs.
Support for small and medium-sized businesses
The USA is known for its positive attitude towards small and medium-sized businesses, as well as its culture of freedom and entrepreneurship. Starting a business in the USA ensures property protection and income opportunities.
However, some specifics are worth noting. For example, sophisticated spam disguised as important messages is common in the USA. Without caution, this can lead to unnecessary expenses.
Overall, the USA offers favorable conditions for business thanks to transparent regulations, support for entrepreneurs, and access to a large market.
Advantages of Company Registration in the USA
Registering a company in the USA offers foreign entrepreneurs several unique benefits that have not been mentioned earlier.
- Simplicity and speed of registration. The company registration process in the USA is fast and accessible. Foreign citizens do not need to be physically present; all procedures can be completed remotely within 2–3 business days. There are no restrictions on the founders’ citizenship — both individuals and legal entities can be owners.
- Flexibility of legal structures. The USA offers various business entity types, such as LLC (Limited Liability Company) and C Corporation. Entrepreneurs can choose the most suitable structure based on business goals and tax preferences.
- Intellectual property protection. The USA has an effective intellectual property protection system. The country participates in most international agreements in this field, ensuring reliable protection of copyrights, trademarks, and patents.
- Remote company management. Foreign entrepreneurs can manage their American companies remotely through an officially appointed agent without needing to be permanently present in the country. This simplifies operations and reduces costs.
- Access to investment and partner trust. American companies inspire greater trust from investors and business partners due to a stable legal system and transparent business practices. This makes it easier to attract funding and build international partnerships.
- Visa support opportunities. Having a registered company in the USA can simplify obtaining business visas or immigration categories such as EB-5, which provide permanent residence rights under certain investment conditions.
These advantages make company registration in the USA an attractive step for foreign entrepreneurs seeking business expansion and entry into new markets.
Company registration algorithm in the USA
1. Choosing a business structure and preparing documents
The business structure affects legal liability, taxation, and company management. Main options include:
- Sole proprietorship — a simple form for self-employed individuals, with personal liability for debts.
- Partnership — joint ownership by multiple individuals with shared profits and liabilities.
- Corporation (C or S) — a separate legal entity that protects owners’ assets and has distinct tax treatment.
- Limited Liability Company (LLC) — a flexible structure with limited liability and simplified taxation.
The core set of documents includes:
Formation document: Certificate of Incorporation for corporations or Articles of Organization for LLCs.
Internal governance: corporate bylaws or an agreement between members (operating or shareholder agreement).
EIN application – Employer Identification Number issued by the IRS.
Proof of business address and designation of a registered agent with a physical address in the chosen state.
2. Choosing a company name
The name should be unique, memorable, and relevant to the business niche. Recommended steps:
Check name availability in the state business registry and the USPTO trademark database.
Make sure related domain names and social media handles are available.
Register a trademark if necessary to protect your brand.
3. Obtaining an EIN
This 9-digit number is issued by the IRS and is required for paying taxes, opening a bank account, and operating legally. It can be obtained online from the IRS website or via an agent, even without a Social Security Number.
4. Licenses and permits
Requirements depend on the state, city, and industry. Process:
- Identify required licenses (professional, commercial, local).
- Review requirements from the relevant authorities.
- Prepare necessary documents (insurance, permits, certificates).
- Submit the application and pay the fee.
- Wait for approval and display the license prominently if required.
5. Registration with government authorities
This varies by state and business structure:
Legal registration – filing formation documents.
Tax registration – registering for income tax, sales tax, and payroll tax purposes.
Insurance – obtaining required insurance policies.
Additional compliance – such as environmental standards, workplace safety, etc.
Potential Risks and How to Avoid Them When Starting a Business in the USA
Starting a business in the United States is an attractive opportunity with access to one of the largest and most dynamic markets in the world. However, it comes with a range of potential risks that need to be carefully considered and managed to ensure long-term success. Below is a breakdown of the main risks and proven strategies to mitigate them.
Legal and Regulatory Risks
The United States has a complex system of federal, state, and local laws governing business operations. Failure to comply with these regulations can result in fines, legal actions, or even forced business closure.
How to avoid:
- Conduct thorough research on legal requirements specific to your business type, state, and city.
- Consult with corporate attorneys who specialize in U.S. business law to ensure full compliance from the start.
Financial Risks
Inadequate funding, poor cash flow management, or incorrect financial planning can quickly lead to insolvency or bankruptcy.
How to avoid:
- Develop a detailed business plan with realistic financial projections and contingency scenarios.
- Secure sufficient funding through investors, business loans, or credit lines to maintain steady cash flow.
Tax Risks
The U.S. tax system is highly intricate, with various federal, state, and local taxes that apply depending on the business structure and location. Errors in tax filings or late payments can trigger audits and penalties.
How to avoid:
- Work with a qualified tax advisor to understand your full tax obligations.
- File all required tax returns on time and keep meticulous financial records.
Compliance Risks
Failing to meet health, safety, labor, or environmental standards can result in regulatory penalties or damage to your company’s reputation.
How to avoid:
- Implement robust internal policies and procedures to meet all relevant regulations.
- Provide ongoing employee training on workplace safety, compliance standards, and operational protocols.
Staffing Risks
Challenges with hiring, retaining, or managing employees can disrupt business operations, lower productivity, and increase costs.
How to avoid:
- Develop clear job descriptions and offer competitive compensation packages.
- Invest in professional development programs and employee engagement strategies.
Data Security Risks
Cyberattacks, data breaches, and information leaks can cause severe financial losses and irreparable damage to a company’s brand.
How to avoid:
- Deploy advanced cybersecurity tools and ensure all software is regularly updated.
- Train employees in best practices for information security and risk prevention.
Cultural and Communication Risks
Misunderstanding local customs, business etiquette, or communication styles can lead to conflicts with customers, partners, and employees.
How to avoid:
- Study the nuances of American business culture and adapt your strategies accordingly.
- Engage local consultants or partners to help bridge cultural gaps and support market integration.
Competitive Risks
The U.S. market is highly competitive, with established players across nearly every industry. Breaking into a crowded market and securing a loyal customer base can be difficult.
How to avoid:
- Conduct comprehensive market research to identify your unique value proposition.
- Create a strong branding and marketing strategy focused on differentiation and customer loyalty.
Location-Related Risks
Selecting the wrong business location can limit customer access, increase operational costs, and reduce visibility in the market.
How to avoid:
- Analyze demographic trends, traffic patterns, and transport accessibility before committing to a site.
- Compare rental costs, utility fees, and regional regulations to choose the most strategic location.
Economic Instability Risks
Economic downturns, inflation, and fluctuating consumer spending can negatively impact business revenues and long-term growth.
How to avoid:
- Diversify your product or service offerings to reduce dependence on a single revenue stream.
- Build an emergency fund to cover unexpected expenses and maintain operations during challenging times.
U.S. Taxation System
Understanding the U.S. taxation system is essential for businesses aiming to operate in the American market. Tax regulations vary significantly across states and depend on the legal structure, business activity, and income level. Below is an overview of the main taxes and reporting obligations.
Income Tax
In 43 out of 50 states, personal income tax is imposed. Twelve states apply a flat rate, while the others follow a progressive scale, with up to 12 tax brackets, as seen in Hawaii. Maximum state income tax rates range from 2.5% to 14.4%. Virginia applies high rates even on relatively low income, while California and New York impose higher taxes only after reaching specific income thresholds.
Corporate Tax
Corporate income tax is collected in 44 states, with rates that vary widely and are subject to periodic adjustments.
For example, at the time of writing this material:
- Minnesota applies a corporate tax rate of 9.8%.
- North Carolina offers a highly competitive rate of just 2.25%.
- Illinois (9.5%) and Alaska (9.4%) are among the states with higher rates.
- Missouri, Oklahoma, and North Dakota maintain more moderate levels between 4% and 4.31%.
This variety encourages businesses to carefully evaluate their state of incorporation to optimize tax obligations.
Transportation Taxes
These taxes include vehicle registration fees, fuel taxes, and personal property taxes on vehicles. Costs depend on the vehicle’s value and local regulations.
For instance, in Florida, transportation-related taxes can significantly affect overall vehicle ownership costs. The average vehicle owner pays around $300 per year, with approximately 43% of this amount consisting of state-imposed fees.
Sales Tax
There is no federal sales tax in the United States. However, each state establishes its own rules and rates. Sales tax can reach up to 11% and may apply to both goods and services.
Examples of sales tax rates include:
- California at 8.8%.
- Louisiana exceeding 10.12%.
- Alaska with a minimal rate below 2.25%.
This fragmented system requires businesses to track tax obligations in every state where they operate.
Property Tax
Property taxes are determined by local authorities — including states, counties, cities, and even districts. As a result, properties of identical value may face different tax rates based on local government budget needs.
For example:
- Suburban areas around Atlanta, Georgia, often have higher rates than rural regions.
- In certain Texas jurisdictions, property tax may be minimal or even nonexistent, depending on local policies.
Excise Taxes
Excise taxes are divided into indirect (included in product prices) and direct (levied directly on companies). Fuel excise taxes are typically fixed per gallon, while alcohol excises vary based on product strength and may be percentage-based or fixed sums.
The list of taxable goods evolves constantly.
For instance, since July 2022, California has imposed a 12.5% excise tax on electronic cigarettes.
Calculating the Tax Burden
Total tax liabilities for a business depend on its activity type, legal form, registration state, and income level. Errors in tax calculations can lead to severe fines and penalties. Therefore, consulting experienced tax professionals is highly recommended to ensure accurate determination of the taxable base.
Company Reporting Obligations in the USA
Companies operating in the U.S. must regularly submit financial and tax reports to the relevant authorities. These requirements support business transparency and compliance with legislation.
Key Reporting Types
Financial Reports
- Balance Sheet: Shows the company’s financial condition at a specific date, including assets, liabilities, and equity.
- Profit and Loss Statement (P&L): Reflects the company’s financial results over a period, detailing revenue and expenses.
- Cash Flow Statement: Tracks incoming and outgoing cash flows across operating, investing, and financing activities.
- Statement of Changes in Equity: Records changes in the company’s equity over the reporting period.
Tax Reports
- Federal Tax Return: An annual filing with the Internal Revenue Service (IRS) detailing taxable income and taxes paid.
- State Tax Return: Submitted to the tax authorities of the state where the company is registered, including any applicable state-level taxes and fees.
Reporting Deadlines
Filing deadlines depend on the company’s legal structure and chosen fiscal year. Typically, the fiscal year covers 12 months and may align with the calendar year or conclude on a different date. Adhering to deadlines is crucial to avoid penalties and interest.
Additional Compliance Requirements
BOI (Beneficial Ownership Information) Report As of January 1, 2024, all U.S.-registered legal entities are required to file a BOI report with the Financial Crimes Enforcement Network (FinCEN). This report discloses information about the company’s beneficial owners.
Deadlines for filing the BOI report are as follows:
- Companies formed before January 1, 2024, must submit the report by January 1, 2025.
- New companies must file within 90 days of registration.
Maintaining full compliance with reporting obligations is critical for business success in the U.S. Failure to meet these standards can result in severe penalties and operational risks. Engaging qualified accountants or tax consultants is strongly advised to ensure accurate and timely submission of all required documentation.
