In continuation of our theme, we are looking at moving to the USA and this huge country’s most popular jurisdictions for just some of the many reasons which may fuel your move overseas.
This week we take a look at the top states for US company formations, which we have selected for various reasons ranging from their unique tax incentives, to a range of advantageous corporate laws and market appeal.
Whichever state you decide is best for you and your business, the visa category you choose to support your immigration requirements is a key factor to consider, and will vary depending on your circumstances and what you seek to achieve in the United States, alongside your plans longer term.
If you’re looking to move to the US to make a big impression business-wise, Delaware is a prime spot to consider incorporating for maximum impact. This is one of the most popular states for forming a company, owing to its generous tax incentives, modern and flexible business laws, high levels of confidentiality and a highly respected entrepreneurial environment.
- No Sales, or Corporate Income Tax. If you do not actively trade in Delaware, you are exempt from this requirement. This means that you can effectively incorporate your business in Delaware, operate in another state or country, and not pay Corporate Income or Sales tax.
- Flexible Directorship and Shareholding. One perk of running a business in Delaware is that an individual may act as the company president, secretary, treasurer, and sole director, and there is no residency requirement for this individual/ persons. Non-shareholders are also permitted to join the board of directors and shareholders are able to communicate in writing without a formal requirement to hold a meeting.
- Single Corporate Structure. Multiple types of business – or indeed numerous businesses can be operated under a single corporate structure.
- Health insurance and other fringe benefits. Delaware LLCs and corporations typically gain the ability to deduct the cost of health insurance and/or other fringe benefits.
- No limits on corporate losses. There are no limits on the amount of losses a corporation may carry forward to subsequent tax years.
- Ease in raising capital. Capital from investors can be raised easily through the sale of membership interests or corporate stock.
California sports a business and economic climate as sunny as its weather, and alongside employing more Americans than any other state, it is a hub of affluence and diversity for start-ups and incorporations from all over the world.
One of the reasons California remains at the forefront of business activity is its highly successful technology sector: this is the fastest growing industry in the USA, and the state of California provides more highly paid jobs in technology than any other state. It also houses over 3 million small businesses and sits comfortably in the top 10 states in terms of fastest growing companies and initial public offerings.
Alongside housing one of the nation’s most prominent tourism industries, other incentives for Floridian company formation include its low tax rates, skilled and relatively cheap workforce and access to a wealth of foreign markets.
Florida corporations also have a continuous life, which will not vary regardless of any changes in ownership: shareholders of Florida corporations can be changed often, but the continuation of Florida State corporations will not be affected.
4. New York
Manhattan is undoubtedly the most prestigious and highly sought after business location in the USA. One of the outstanding unique benefits of New York company incorporation is that although it holds position as a high-tax jurisdiction for businesses trading locally, it also offers an entity which is not subject to federal tax, or tax reporting.
If you are establishing your business abroad over in the USA, a popular choice for those actively engaging in trade within the state is either to form a corporation in New York, or to form in Delaware with registration to conduct business within New York.
Nevada is one of the top states in which to incorporate and operate a public company because of its well-established reputation for business-friendly laws. With favourable corporate structures and governance, legal systems that work to your advantage and economic development incentive programs, Nevada is a natural fit for your business.
Operating your business in Nevada adds to your bottom line. That’s because they offer one of the most attractive tax structures in the country, including no corporate income tax, no personal income tax, no franchise tax, no unitary tax, no inventory tax, no inheritance tax and no estate tax, as well as competitive sales and property tax rates.
Kick Start Your Business Overseas
No matter which US state fits with your business plans, the visa category you opt for will vary depending on your specific requirements, and this is something you should consider very early on. Speak with one of our consultants today to discuss which US immigration route would fit your business best. Contact us at [email protected]