Business Registration in the U.S.

 

Registering your business in the United States gives you all the advantages of a reputable jurisdiction and a low corporate tax rate (see below). My Corporate Services can register company names and incorporate your business anywhere in the U.S. as a limited liability company or as a corporation. Our business registration packages include all the documents required to legally register your business and to open a corporate bank account.

 

Benefits of Incorporating in the U.S.

  • Greater credibility based on the reputation of U.S. jurisdictions
  • No restrictions on the countries of residence of your directors or shareholders
  • No minimum authorized capital
  • No issued capital requirement
  • No restrictions of number of shares issued
  • Stable political environment and secure economy
  • A financial infrastructure that is reliable and well-developed
  • An independent legal system based on English common law
  • A strong service economy
  • Low corporate tax rate compared to many countries

US Corporate Tax Rates

Companies in the U.S. pay between 15% and 39% of their income in taxes, depending on yearly earnings. Corporations are taxed at a flat rate of 35% if taxable income for the year equals or is greater than $18,333,333. Corporations with lower taxable income pay graduated tax rates, starting at rates as low as 15%. The gradations begin to level out after a corporation’s total taxable income for the year begins to rise past the $100,000 mark. For purposes of taxation, companies that are members of a controlled group are treated like a single corporation.

US Corporate Tax Rates:

Taxable Income (US$) Tax US$ + Tax Rate % of excess
$0 $50,000 15%
$50,000 – $75,000 $7,500 + 25% of excess over $50,000
$75,000 – $100,000 $13,750 + 34% of excess over $75,000
$100,000 – $335,000 $22,250 + 39% of excess over $100,000
$335,000 – $10,000,000 $113,900 + 34% of excess over $335,000
$10,000,000 – $15,000,000 $3,400,000 + 35% of excess over $10,000,000
$15,000,000 – $18,333,333 $5,150,000 + 38% of excess over $15,000,000
Over $18,333,333 Flat 35%  

 

Tax Differences Between Corporations and LLCs

Corporations in the U.S. can deduct business expenses from their taxes and can also provide some tax free benefits, such as health and dental insurance, to their employees.

Limited Liability Companies, on the other hand, are not taxed in the United States, except for cases in which an LLC elects to be taxed as if it were a corporation. Instead, the income and losses of the LLC are passed on to its members, and its members include their portion of the LLC income and/or losses on their own individual tax returns. On their own tax returns, members of an LLC can deduct the LLC’s losses from their other sources of income. If the members do not live in the United States, they are not liable in the U.S. for U.S. income tax for income derived outside of the United States or passive income, such as dividend and interest income, derived in the United States.

Tax Treaties

The United States has signed tax treaties with certain other countries. Consequently, many non-US residents, depending on their countries of origin, are exempt from US taxes or are taxed at considerably reduced rates on income derived in the U.S.

Notice:

Individuals should seek professional tax advice and should not solely rely upon this information to make decisions about when, where or how to incorporate a business entity.

 

Disclaimer: My Corporate Services Inc. is a service company and does not offer legal or financial advice. © MyCorporateServices.com, 2012 All Rights Reserved