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Following the establishment and proper ground for existence, here are the steps to follow for the registration of a software company in the USA. These include the following:
Choose a structure: LLC, C-Corp, S-Corp, or Sole Proprietorship. Each one has different implications: liability, taxes, and ownership. Usually, for software companies, LLCs and corporations are preferred due to protection against liability and access to funding with ease.
Pick a state in which to incorporate. For software companies, Delaware, California, and New York are common ones. Delaware's everyone's darling because it has very business-friendly corporate laws, whereas California-if you plan to operate there-is very strict regarding the regulations for businesses that physically operate in-state.
Search for name availability on the Secretary of State website for the state in which you desire to use the name. To perform a broader search, check with the US Patent and Trademark Office to ensure your name does not conflict with an existing trademark. You will register your name reservation as you file for registration.
Provide the forms to be filled for the incorporation of the company. Therefore, it may require filing Articles of Incorporation in the case of a corporation or filing Articles of Organization in the case of an LLC. Filing requirements and fees differ from state to state. Delaware facilitates online registration and levies an annual franchise tax on corporations.
Apply for your EIN with the IRS. This is necessary for tax purposes, hiring employees, and even opening a bank account for your business. The EIN application can be done online through the IRS website.
Having a business bank account would be key to keeping one's personal and company funds separate. Most of them will want some sort of documentation, such as your EIN, proof of registration, company ownership information, before they offer you a business account.
A few states and localities require special permits or licenses for software businesses, especially if you are going to license your software as SaaS or store customer data. Quite sensibly, you would best check with local authorities or get the advice of a business attorney to verify.
Trademark your software and brand through the USPTO via a patent, copyright, or trademark. Most software companies trademark their brand names and pursue copyrights on proprietary code to protect said intellectual property.
This means that your software company is going to have to abide by data privacy regulations, such as CCPA or GDPR, in case you process data about the EU. Industry-specific certifications can include SOC 2 regarding the security about data .
These steps will help one set up the software company and remain compliant with general business regulations in the United States.
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