Company incorporation in the USA can be an important step for expanding your business into the US market. When you incorporate, your company can either be a corporation or a Limited Liability Company (LLC). If you choose incorporation, your company is viewed as a separate legal entity. This brings a huge advantage since the owners and key stakeholders are protected from losing personal assets.
If you choose to be an LLC, your company is owned by individuals. Due to the difference in structure, an LLC has different tax benefits.
|Corporation||Limited Liability Company|
|Owned by stakeholders||Owned by individuals|
|Share = ownership||Ownership freely distributed or transferred|
|Double taxed on dividends||Reduced taxes|
|Tax deductions on fringe benefits||No taxes on salaries|
The main difference is that corporations are owned by their stakeholders, whereas the LLCs are owned by individuals. Corporations are often criticized on how stakeholders’ dividends are essentially double taxed. LLCs, on the other hand, often pay reduced taxes. Corporations follow a more traditional internal structure and hierarchy.
Additionally, clients may be wary of foreign businesses, therefore by incorporating your business in the US, your organization gains US market trust.
Benefits of incorporating your business
Your resident agent will create the LLC or corporation for your business since incorporated businesses must be associated with a US address. If you do not already have a registered agent, we will set one up for you. Then, Business America Services will file documents called “Articles of Incorporation” or “Certificate of Incorporation”. The LLC versions of these documents are called “Articles of Organization” or “Certificate of Organization” (these documents may have different names depending on which state you choose).
Registering your Canadian business in the state of Vermont grants you operational rights for your business. Since our warehouse and services are all based in Swanton VT, this is the minimum requirement for US company registration. The business will need to register every year, contrary to the incorporation process.