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United States of America Company Formation Frequently asked questions (FAQs)

Alaska (United States of America)

1. How to start a small business in Alaska?

Starting a business in Alaska is a great choice for entrepreneurs since it is among the most tax-friendly states in the nation and provides a low-risk environment. If you want to know how to start a small business in Alaska2 then follow these essential steps below.

Step 1: Choose the right business idea & plan for your Alaska business

The first step towards small business ownership is to decide what kind of business you want. You should start looking for an idea that matches your interests, personal goals, and financial capabilities.

Planning greatly affects the success of a business. Before spending a significant amount of money and other resources on your business in Alaska, thoroughly analyze your idea and create a detailed plan that includes: your business name, location score, market research, etc.

Step 2: Choose a business structure

The form of small business in Alaska you choose will greatly influence your future strategies. The main business structures include:

  • Sole ownership
  • Partnerships
  • Corporation
  • Limited Liability Company - LLC

Step 3: Register your business in Alaska

Once you have chosen your business structure, the next step is to register your business. Regardless of which formal business structure you choose, you must follow this process before starting a small business in Alaska:

  • Name your business.
  • Select a registered agent.
  • Get an Employer Identification Number (EIN).
  • File formation documents.
2. What taxes do you pay in Alaska?

If you plan to do business in Alaska, USA, you should have a brief understanding of taxation here, as there are some differences compared to other states.

The most noticeable feature of Alaska taxation is that unlike other states, it does not require you to pay state sales tax or individual income tax. For local sales taxes, however, the rate is around 1.76%.

As a legitimate business owner in Alaska, you also do not need to pay for any franchise or privilege tax, which is a divergence from most states. Corporate income tax rates range from 0% to 9.4%, depending on your business’s taxable income. 0% rate applies for businesses with under US$ 25,000 taxable income, and 9.4% for above US$ 222,000. You must pay this tax before the 15th day of the fourth month after the close of the tax year.

In total, there are approximately 20 taxes in Alaska. You can visit the Alaska tax division website to check out all of them for more information. If you need more support on conducting business in Alaska or any other states in the USA, One IBC is here to help you through all the process from start to finish.

Is Alaska a tax free state?

Alaska is one of the most tax-friendly states in the United States. The state can be considered tax free as it does not impose state income or sales tax. Additionally, Alaska even “pays” its residents a certain amount of money annually, just for living there.

However, unlike other tax-free jurisdictions, Alaska still has many taxes levied on businesses such as taxations on vehicle rental, mining license, oil and gas production and property. Corporate income tax rates in the state are relatively low, as it could be 0% if a business’s tax income is under US$ 25,000. The highest income tax rate is 9.4% for income from US$ 222,000 and more.

The total state and local tax imposed on Alaska citizens, including income, property, sales, and excise taxes, is only 5.16% of personal income, the lowest of all 50 states.

The reason Alaska is a tax free state is because it is underpopulated and wants to attract more people and businesses to come and reside here. The state also has huge oil reserves, which become the main source of the state’s revenue and can support the tax-free policies.

How much taxes do you pay in Alaska?

If you are planning on doing business in Alaska, you should know how much taxes you will have to pay at the end of every tax year. This could save you a lot of time and money if done correctly.

As a business in Alaska, you are required to pay three types of taxes: federal, state, and local. Taxations will be calculated on your business’s taxable income and expenses, and your staff or contractors’ taxes. Depending on your business entity and situation, you may need to pay one, two or all three types of taxes in Alaska.

For each type of taxes, there are different taxes imposed on different industries that your business is doing in, such as taxations on vehicle rental, mining license, oil and gas production and property. However, Alaska, unlike most of the other states, does not impose state sales tax or individual income tax. You still need to pay for local sales taxes, and the rate is around 1.76%.

Corporate income tax rates in Alaska range from 0% to 9.4%. The rate applies on how much of the taxable income your business has earned during the year. 0% rate applies for businesses with under US$ 25,000 taxable income, and 9.4% for above US$ 222,000.

3. How to register a business name in Alaska?

Registering an Alaska business name is a must when you decide to form a business entity in the state. Here are the 3 basic steps you need to take to register a business name in Alaska.

Step 1: Choose a Structure for your business in Alaska

Depending on your business plan, there are different types of business structure you can start with. The one you choose to form will determine how you register your business name in Alaska. Common Alaska business registration are sole proprietorships, general partnerships, limited liability companies (LLCs).

Step 2: Check Alaska Business Name Availability

When registering an Alaska business name, you should ensure your business name is unique to avoid copyright and identity issues. If you register with One IBC service, we will help you check the Alaska State corporations database. This is the crucial step as your application will be denied if you attempt to claim a name that is already in use.

Step 3: Alaska Business Registration

Once you have completed the above 2 steps, you will need to send your Alaska company registry documents to the state. As a final step in registration, you must submit in person or by mail your Articles of Organization as well as documents related to your business to the Alaska Department of Commerce, Communities and Economic Development.

California (United States of America)

1. What is a foreign corporation in California?

A foreign corporation in California is simply a corporation that was established outside of California but has registered with the California Secretary of State to do business in California. To register a foreign corporation in California, you’ll need to appoint a California registered agent and file the correct form.

  • Most foreign corporations in California (including nonprofits) will file the Statement and Designation by Foreign Corporation (Form S&DC – S/N).
  • Foreign professional corporations that practice law or accountancy will need to file Form S&DC-PC.
  • Foreign corporations in California that provide insurance services should use Form S&DC-INS.
2. Do foreign corporations in California need a registered agent?

Yes. Any foreign business in California is required to appoint and maintain a registered agent. The registered agent must have a physical street address in California, keep regular business hours, and agree to accept legal mail on behalf of your corporation.

Registered Agents have a significant role in shaping the company's business in California, they will consult you in tax planning and legal matters, this may relate to supporting, maintaining and advising your company from time to time and dealing with matters during the lifetime of business. A foreign corporation in California must choose the best agent to serve and contribute to the growth of business.

3. What are the benefits of registering a business in California?

Registering a business in California is the first step of structuring your business towards success. Successful businesses are built through careful planning. A company registered in California would be beneficial in many ways, especially for small businesses in California:

  • Protect business against lawsuits.
  • Make your business become more credible to customers.
  • Expand business towards the biggest free-trade center of the world.
  • A California corporation provides anonymity to the owner.
  • Attractive tax regime in the state.
4. How to start a small business in California in 5 steps:

Step 1

Create a business plan.Start by doing market research and write a business plan including: marketing, finance, product or service then choose the most suitable company structure.

Step 2

Choose a location. When starting a small business in California, picking the right location is very important because each city/county has different laws and regulations.

Step 3

Get an Employer Identification Number (EIN). The company cannot open a bank account or file for tax without an EIN. One IBC service covers both EIN and also Individual Taxpayer Identification Number (ITIN).

Step 4

Apply for licenses. Company needs proper licenses to operate and many banks will ask for this during the application process. Consult One IBC licensing service for a full guidance on which type and how to apply.

Step 5

Open a bank account. OneIBC has a list of available worldwide banking partners ready to help any customer who wants to start a company in California.

5. How to incorporate a company in California?

Step1

Make a business plan. To start a company in California, it is not required but a proper plan will be of help later on. Banks and Investors will also want to read this plan when assessing the company.

Step 2

File Article of Corporation. This is the legal paper to register for a company in California. It includes basic information of the business and its board of directors and should be submitted to the Secretary of State.

Step 3

Submit Statement of Information. This has to be done within 90 days of the Article of Corporation.

Step 4

Apply for an Employer Identification Number (EIN). One IBC service assists with EIN and also helps with Individual Taxpayer Identification Number (ITIN).

Step 5

Apply for Licenses and Permits. Consult with One IBC to know which one is needed and how to apply correctly.

Step 6

Open a Bank Account. The business plan, incorporation documents and other papers that the bank wants have to be presented. Some banks also ask for a face to face interview during the application process.

Step 7

Fulfilling non-urgent requirements. After starting a business in California, the company should draft a bylaw, hold a company meeting, get a lawyer, etc.

6. How to register a name for your foreign business in California?

Step 1

Name availability check. When determining name availability, names are checked only against names of like entities registered with the California Secretary of State. A name can be reserved for 60 days.

Step 2

Name registration for foreign company. If a name is available for registration, businesses can register the corporate name with the Secretary of State by filing form Foreign Name Registration to protect it for further use. The registration is effective until the close of the calendar year in which the application for registration is filed.

Step 3

Renew the name for your foreign business in California. A corporation may renew its name registration by filing a new form between October 1 and December 31 of each year. The renewal, when filed, extends the registration for the following calendar year.

Step 4

Obtain a certificate by an authorized public official of the state or place of incorporation. To the effect that the corporation is an existing corporation in good standing in that state or place, must be attached to the Registration of Corporate Name by Foreign Corporation form by the time of filing with the California Secretary of State.

7. How much does it cost to start a corporation in California?

The numbers below are for reference and only at state level

  • Company name reservation: Minimum of US$10 and US$10 special handling fee.
  • Incorporation filing: Company Detailed Information report costs US$25 plus $75 service fee. Then there is the Incorporation Filing with US$100 fee and US$15 for handling.
  • Appoint a registered agent: doing business in California requires a registered agent to handle legal matters. As an authorized agent, One IBC can act as an agent for the customers.
  • Business License: The average for a small business is US$50-US$100. However, extra fees may occur based on your location and industry.
  • Ongoing Fee: Annual Report Filing Fee is US$25.
  • Annual tax: There is a minimum of US$800 no matter what for corporation and payroll taxes at US$100, which is compulsory even if the company is not hiring any employee.
8. How much does an LLC costs in California?

The numbers below are for reference and only at state level

  • Reserving Business Name: Minimum of US$10 and US$10 special handling fee.
  • Incorporation Filing: Company Detailed Information report’s fee is US$25 plus US$75 service fee. Then there is the Incorporation Filing with US$100 fee with US$15 handling fee.
  • Business License: The average for a business is US$50-US$100 but extra fees may occur based on location and industry.
  • LLC Fee: US$85 is the initial cost of starting a business. In California, the Statement of Information (US$20) is required to be submitted within 90 days of formation.
  • Ongoing LLC Fee: The annual US$800 fee is due within 3.5 months of forming and then every April 15th thereafter. This is the cost of doing business in California uniquely for LLC.
  • Other Ongoing Fee: Annual Report Filing Fee is US$25 and Annual Tax Fee is at US$800 minimum.

Florida (United States of America)

1. How do I form a corporation in Florida?

It is fairly easy to form a corporation in Florida. Below is the step-by-step guide on how you can register a corporation with the Florida government.

1. Find a suitable name for your Florida corporation

Your Florida corporation must have a unique name. You can perform a quick namecheck on the FL Division of Corporations website.

The word "Corporation," "Incorporated," or "Company," or the corresponding abbreviation "Corp.," "Inc.," or "Co." must appear in your company's name.

2. Choose a Registered Agent for your Florida Corporation

Every corporation in Florida is required to have a registered agent. This agent is in charge of handling legal papers and documents on behalf of the corporation. If you are looking for a certified registered agent in Florida, check out Florida company formation at One IBC Group.

3. Prepare and file the Florida Articles of Incorporation

In order to form a corporation in Florida, you need to file the Articles of Incorporation form with the Florida Division of Corporations. In that form you need to provide the following information:

  • Corporation's name, principal office address, and its purpose
  • Registered agent detail information
  • Number of shares corporation is authorized to issue
  • Initial officer and director names and addresses
  • Incorporator name and address

4. Comply with Florida legal requirements

After you successfully formed a corporation in Florida, you need to meet some legal requirements of the state, such as issuing stock, applying for licenses and permits, obtaining an EIN, or designating a Board of Directors.

2. What is the corporate tax rate in Florida?

Florida is considered a tax-friendly state as it does not impose individual income tax and has an overall low corporate tax rate. Here is what you should know about some types of taxes in Florida.

There are two types of corporations in Florida: C-Corporation (C-Corp) and S-Corporation (S-Corp). Out of all business structures, only C-Corp is required to pay Florida corporate income tax. The tax rate alters a little depending on when your C-Corp is registered, particularly:

  • Before 01/01/2019: 5.5% of corporate income tax rate
  • Between 01/01/2019 and 12/31/2021: 4.458% of corporate income tax rate
  • Between or after 01/01/2022: 5.5% of corporate income tax rate

S-Corps, on the other hand, are not subject to corporate income tax as they are pass-through entities. Limited liability company (LLC), Partnership, and Sole Proprietorship are also pass-through entities. This means the taxable income of the business is passed through to the individual shareholders, and each shareholder is subject to federal tax on their share of the business income.

Furthermore, all businesses are required to pay other types of business taxes aside from corporate income tax in Florida, namely: Estimated tax, Self-Employment Tax, Employment Taxes, or Excise Tax.

3. What are the tax return filing requirements for Florida S Corporation and LLC?

Limited Liability Company (LLC) and S Corporation are two most common types of business structure in Florida. Here are the tax return filing requirements for both types.

1. Florida S Corporation tax return filing requirements

  • Form an S Corporation in the state of Florida.
  • Submit Form 2553 to the Internal Revenue Service (IRS).
  • File an annual report by May 1st. The report has a filing fee of $150.
  • Depending on the company's annual net income, pay franchise taxes to the state of Florida by the last day of the fourth, sixth, ninth, and twelfth months.
  • Shareholders receive a Schedule K-1 from the S corporation.

2. Florida LLC tax return filing requirements

LLC in Florida is not required to file a tax return. Its income passes through to its members, who subsequently pay individual income taxes on their shares. For this reason, there are no tax return filing requirements for LLCs in Florida.

However, LLCs can be treated as other business entities such as Corporation, Partnership, or Sole proprietor for tax purposes. If the LLC files its federal income tax return as one of those entities, it needs to follow the same process of the entity it is chosen to be taxed as.

4. How do I create an LLC in Florida?

A Limited Liability Company (LLC) is among the best choices for small businesses in Florida. Below is the step-by-step guide on how to create an LLC in Florida.

1. Find a suitable name for your LLC in Florida

Your Florida LLC must have a unique name. You can perform a quick namecheck on the FL Division of Corporations website.

The phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.) must appear in your business name.

2. Choose a Registered Agent for your Florida LLC

Every LLC in Florida is required to have a registered agent. This agent is in charge of handling legal papers and documents on behalf of the company. If you are looking for a certified registered agent in Florida, check out Florida LLC formation with One IBC Group.

3. Prepare and file the Florida Articles of Organization

In order to create an LLC in Florida, you need to file the Articles of Organization form with the Florida Division of Corporations. In that form you need to provide the following information:

  • LLC's name and its principal office address
  • Registered agent detail information
  • LLC's members' names and addresses .
  • If not the date of filing, LLC's effective date (optional).

4. Comply with Florida legal requirements

After you successfully create an LLC in Florida, you need to meet some legal requirements of the state, such as preparing an Operating Agreement, obtaining an EIN, or filing annual reports.

5. How do you obtain a business license in Florida?

Depending on the industry you register for your business, you may be required to obtain a business license in Florida. To make sure if you need a business license or not, you can check with Florida’s Department of Business & Professional Regulation (DBPR) or Department of Agriculture and Consumer Services (DACS) for more information.

There are some requirements for your business in order to obtain a business license in Florida, such as Valid Federal or State Registration, Proof of Education, Background Check, and Tax Information. After you submit your application with the mentioned requirements, you need to pay for the filing fee. It generally costs less than US$100 for most of the business licenses in Florida.

Once you have obtained your business license, you are ready to start operating lawfully in Florida. However, some licenses for specific industries require to be renewed in a fixed period of time. In case your business license demands renewal, you should pay for it before the expiration date to avoid legal issues.

Read more: U.S. Business licence registration and Business licence requirements

6. How much does it cost to file an annual report in Florida?

Each year, your business is required to file a Florida company annual report to validate or amend your company's information on the state's records. This contains information about your company's management or membership, your company's principal office and mailing addresses, as well as information about your Florida registered agent.

The cost to file an annual report in florida depends on your business structure, particularly:

  • Profit corporation: $150
  • Non-profit corporation: $61.25
  • Limited liability company: $138.75
  • Limited partnership or limited liability limited partnership: $500

The due date for Florida company annual report is May 1st. A $400 late fee is assessed if you file after that day. Non-profit organizations, on the other hand, are exempt from paying this fee.

The fastest and most efficient way to file your Florida company annual report is via the Florida Secretary of State’s website. You need to provide:

  • Florida Department of State’s Document Number
  • Entity name
  • Federal Employer Identification Number (FEIN)
  • Principal names and place of business address
  • Registered agent’s detail information
  • Valid credit/debit card, check, money order

 

7. How do I get a copy of my articles of incorporation in Florida?

All businesses wishing to incorporate in Florida must file a business Articles of incorporation with the Florida Department of State. The articles of incorporation is the document that certifies a business’s incorporation in Florida.

In order to submit your Florida business articles of incorporation, you are required to fill in these information beforehand:

  1. Corporate name
  2. Principal address
  3. Capital stock
  4. Registered Agent information
  5. Each Incorporator’s name and address

Once you have finished your incorporation in Florida, within 10 to 15 business days, you should receive a copy of your articles of incorporation in Florida. The processing time is approximately seven days, after which you must allow time for the copy to be mailed. There is an option for expedited service, but it is only available in person.

Maryland (United States of America)

1. How much does a business license cost in Maryland?

There are 17 business licenses in Maryland. Depending on the nature of your business and the industry your business operates in, you must obtain one or more licenses, or do not need any. If you plan to conduct business in Maryland, you should know about the 3 most common licenses’ cost below.

1. Traders

Unless your business may not offer for sale (like growing or manufacturing), you must obtain the trader’s license in Maryland. The traders license fee is determined by the wholesale value of your retail inventory. It costs from $15 to $800 with inventory amounts ranging from 0 to 750,001 and over. You also need to pay a $2.00 issuing fee for each type of license.

2. Chain store

A chain store license is required in Maryland if you run two or more retail stores under the same general management or ownership. The fee starts from $5 for 2-5 stores, and peaks at $150 for more than 20 stores. Cecil and Baltimore City apply different fee ranges, so if you are going to open chain stores in these 2 cities you should take more time to check out the cost.

3. Construction

Any business who constructs new homes or participates in the home purchasing process is required a construction license. This business license cost differs from county to city, particularly:

$30 in Cecil County,

$40 in Baltimore City and

$15 in all other counties

$50 for out-of-state construction companies.

For more information on business license cost in Maryland, you can visit the state’s Business License Information System website.

Read more:

2. How do I renew my Maryland business license?

If you are doing business in Maryland, USA, you need to renew your business license annually. No matter when you start your business, your license expires on April 30th. The cost for Maryland business license renewal varies depending on the date your business is registered.

In March of each year, you receive application documents for license renewal delivered to your mailing address. You should check the documents carefully to make sure all information is correct. You must also pay all municipality taxes before renewing your business license. If you submit the renewal application with any unresolved issues, it will be sent back to you and delay the process. In Maryland, the penalty fees for late business license renewal apply starting from June 1st, and will increase monthly until you finish the renewal process.

After checking all the information, you can mail in the renewal to the Court Clerk’s Office of the County your business is registered in. You can also renew your Maryland business license via fax or email to the local Court Clerk’s Office.

Read more:

3. How to pay Maryland’s LLC annual fees?

A limited liability company (LLC) in Maryland, USA is required to pay a certain amount of taxes and fees annually to keep the business in compliance. Here are some of the essential ongoing filing requirements for Maryland LLCs.

Annual Report

Maryland requires its businesses to file an annual report (or Personal Property Return) by April 15. The filing fee is $300

Taxes

Maryland LLCs need to pay tax annually based on their nature of business and the industry they are operating in. To check what kind of tax and the exact amount of tax rates your business is filing annually, you can visit The Department of Assessments & Taxation of Maryland website for more information.

To pay Maryland’s LLC annual fees, a business can file an Annual Report online or by paper. To submit online, go to the Maryland Business Express website and follow the filing instructions. To submit by paper, download the form from the Maryland Departmental Forms & Applications website. For a quick and easy solution, a Registered Agent Service like One IBC is recommended for Maryland LLC. One IBC is the world’s leading corporate services provider that helps more than 10.000 businesses around the world incorporate and operate efficiently in a foreign country. Visit oneibc.com or offshorecompanycorp.com for more information.

4. Do I have to file an Annual Report for an LLC in Maryland?

All corporations and other business entities, including Limited Liability Company (or LLC), have to file an Annual Report in Maryland, USA. An annual report is a yearly filing that your LLC must submit to keep your business information up to date. It must contain information about your business’s contact details, the nature of your business activity, your business personal property status, and gross sales transacted in Maryland.

The cost for a Maryland LLC annual report is $300, and may increase based on your business Personal Property Tax. You must submit the filing before April 15 every year to avoid late fees.

You can file an Annual Report for an LLC in Maryland online or by paper. To submit online, you need to go to the Maryland Business Express website and follow the filing instructions. To submit by paper, you need to download the form from the Maryland Departmental Forms & Applications website. You can also use a Registered Agent Service to handle all compliance and paperwork with the government for your business. Here at One IBC we are proven to be the world’s leading corporate services provider. We are capable of supporting your business in filing an Annual Report for an LLC in Maryland and doing business efficiently in a foreign country.

New York (United States of America)

1. What are the requirements for New York City's LLC?

LLC formation is the best option if you plan to conduct a small business in NY. However, there are a few things to keep in mind if you don't want to run into legal problems. Here are the LLC NYC requirements that you should know.

  • First of all, you must prepare all company establishment documents for New York LLC registration, including: company regulations, list of shareholders, founders, practice license.
  • Secondly, attached to these documents is a confirmation of effective business operations, issued by reputable and independent auditing companies, or by banks and agencies. LLC NYC requirements for these documents and document notarization are different from other states.
  • The third requirement is the application form for incorporation, which this state also has its own New York LLC registration form. After obtaining a business license here, your business must register with the Department of Finance, the Department of Taxation... and other specialized departments if operating in the field of specialized management such as pharmaceutical and medical field.
  • Finally, there is a specific requirement for NY LLC formation, which is to publish a copy of your Articles of Organization or a notice of incorporation in two different newspapers. This must be done within 120 days of the original Articles of Organization becoming official.
2. How long does it take to form an LLC in New York?

Limited Liability Company (LLC) formation in NY or other states basically has the same legal procedures with little distinction since it is considered as a foreign company in the United States.

In general, forming an LLC in NY takes six to seven weeks. The schedule includes processing time for filling out and submitting registration forms as well as company related documents to the New York Department of State; creating a company operating agreement; and registering for an EIN number. For publication, businesses must ensure this process is completed within 120 days after the original Articles of Organization becoming official in order to finish your NY LLC formation.

In addition to form an LLC in New York, you can register to reserve the name of your company in case you cannot carry out the operation right away and have to register your company name early, avoiding other companies taking it first. This procedure is similar to the New York LLC registration but you will not need to register with the tax office and will not be charged the period of operation. The time to reserve the company name is 6 months and can be extended for another 6 months to 2 years.

3. Which is the best New York LLC guide for entrepreneurs?

In the United States, each state has different laws governing the establishment of a business and is governed by different agencies. The following New York LLC guide includes all the things you should keep in mind:

1. Prepare relevant documents for your New york LLC formation

Choose an appropriate name and make sure it's not already in use. Also, your limited company name must end with one of the following symbols:

  • Limited Liability Company
  • LLC
  • L.L.C

After that, you should prepare documents related to the company, including: company regulations, list of shareholders, founders, license to practice.

2. File your Articles of Company

Submit the Articles of Organization certificate to the government agency to finish your business formation in New York. This certificate proves that your LLC is formed and ready to go into business.

3. Create your company operating agreement

Your New York LLC formation may need an operating agreement, which is a document that outlines the business rules, regulations, and operating procedures that all members of an LLC agree to and sign on.

4. Apply for an EIN

Obtaining an Employer Identification Number (EIN) or tax ID number is a must for your business formation in New York since it is required for tax purposes and financial paperwork. Your New York LLC’s EIN can be obtained through the IRS website, by mail, or by fax.

4. Do I have to publish my LLC in NY?

Before your NY LLC formation, you must have known about the steps of publishing in this state's newspaper. But still many investors wonder, do I have to publish my LLC in NY? Below are the answers to your questions.

New York LLC publication requirement for new Limited Liability Companies is to publish notices in two local newspapers for six consecutive weeks. Publishing costs between counties can vary widely. In some suburbs, cost of incorporating in New York range from about $300 and can go up to over $1,600 in New York (Manhattan).

Under New York LLC publication requirement § 206, LLCs that fail to comply with publication requirements within the specified timeframes may be subject to suspension of any payments or business activities.

The likely consequence is that your LLC will lose its right to sue in the New York courts. Furthermore, you will not be able to receive a Certificate Under Seal that some partners may require when working with your business.

Hence, you should follow all the New York LLC publication requirements for your business. This is the safest option to ensure that your NY LLC formation will proceed smoothly under the protection of the state law.

5. How are LLCs taxed in New York?

A Limited Liability Company (LLC) in New York is an ideal choice for small and medium sized businesses because of the way it is taxed. There are 2 main ways that LLCs can be taxed in New York:

  • Most LLCs in New York are not subject to federal or state income tax. Instead, the income of LLCs is passed through to their members/owners. The members/owners then pay the state income tax on revenues that they earn from the company. LLCs, however, still need to pay the state filing fee on their gross income. It ranges from $25 for the incomes above $0 up to $4,500 for the incomes above $25,000,000.
  • In some cases, LLCs in New York can be treated as a corporation, a partnership, or a disregarded entity for tax purposes. These LLCs are taxed the same way as the entity they are classified as. Thus, if an owner of an LLC in New York registers his/her business in the form of a corporation, that LLC will need to file a separate tax return and pay corporation income tax well as franchise tax.
6. What is the corporate tax rate in New York?

New York has just added a few changes to the corporate tax rate starting from 2021. Here are the rates applied for some typical New York corporate taxes:

New York Corporate income tax rate

The corporate income tax rate imposed on the New York State business income base increases from 6.5% to 7.25% for taxable years beginning in 2021. This rate applies for business taxpayers with income for the taxable year of $5 million and more. Small businesses, qualified manufacturers, and qualified emerging technology companies in New York remain to be eligible for their current respective preferential tax rates.

New York Business capital tax

From 2021, The New York State business capital tax will be restored and set at 0.1875% for taxable years. A zero percent tax rate continues to apply to small businesses, qualified manufacturers, and cooperative housing corporations in New York.

Fixed dollar minimum (FDM) tax

The FDM tax is calculated based on the corporation's New York State receipts. The rate ranges from $25 for receipts under $100,000 to $200,000 for receipts over $1,000,000,000. A different tax table exists for manufacturers, Non-captive REITs and RICs, and QETCs in New York.

7. Is there an annual fee for an LLC in New York state?

Even though most Limited Liability Companies (LLCs) in New York state are not subject to the federal or state income tax, they are still required to pay for an annual filing fee. An LLC in New York must file a form IT-204-LL every taxable year. The amount of the filing fee is calculated depending on the gross income of the LLC, and can vary from $25 (for the income of more than $0) to $4,500 (for the income of more than $25,000,000). LLCs that do not have income, or are treated as a corporation, a partnership, or a disregarded entity will not need to pay for this type of annual filing fee.

Additionally, LLCs in New York state are also required to pay certain types of taxes and fees annually. They include State Employer Taxes, Sales and Use Taxes, and, for LLCs treated as a disregarded entity or partnership, State Business Taxes.

These payments are usually handled by LLC’s registered agents in New York. An agent will help businesses comply with the state rules and regulations, as well as deal with administrative procedures. If you need a registered agent for your LLCs in New York, or anywhere else in the world, check out One IBC’s corporate services. We are proud to have supported more than 10,000 clients worldwide in setting up new businesses successfully in more than 27 jurisdictions.

8. How to register a business name in New York?

If you are planning to conduct business in New York, you must first have a good grip of the business name registering process. Below are the basic 3 steps that you must follow in order to register a business name in New York.

Step 1: Choose a suitable New York business entity

Depending on your business plan, there are different types of business structure you can start with. The one you choose to form will determine how you register your business name in New York. Common New York business registration are sole proprietorships, general partnerships, limited liability companies (LLCs).

Step 2: Run a New York business name check

When registering a New York business name, you should ensure your business name is unique to avoid copyright and identity issues. If you register with One IBC service, we will help you check the New York State corporations database. This is the crucial step as your application will be denied if you attempt to claim a name that is already in use.

Step 3: Set up your New York business

Once you have completed the above 2 steps, you will need to send your New York company registry documents to the state. As a final step in registration, you must submit in person or by mail your Articles of Organization as well as documents related to your business to the New York Department of Commerce, Communities and Economic Development.

9. How to apply for a business license in New York?

The primary state-level permit or license (if the company does business in New York or intends to sell, lease and provide services) is called the Certificate of Authority for sales tax. This is also commonly known as a seller’s permit. To apply for a business license in New York, the company has to contact the Department of Taxation and Finance.

Additionally, companies operating in certain fields have to apply for specific licenses as well. The New York State License Center can provide assistance with these permits. They have a comprehensive list of the licenses issued as well as which office will handle said licenses. There is also another way to apply for a business license in New York, using an authorized agent.

At local levels such as counties, cities, towns, and villages, different permits and licenses are also required. Check directly with the local offices if the company is going to be located there or is going to do any business there. Local government websites usually have information about this topic so it is better to check there to know how to apply for a business license in New York.

10. How much does it cost to get a business license in New York?

Each business license has its own fee, so if a company operates in multiple fields and professionals, the cost will be higher. For example, for a barber, it costs $60 while a massage therapist needs to pay $108. On average, for a small company in New York, it usually costs from $50 to $150 to get a business license in New York. The cost varies from city to city as well as from governmental level to level.

There are other additional costs associated with business license application as well. Generally, there is a processing or filing fee then there is the cost to get a business license in New York itself. For example, in Rochester, a $25 filing fee is required for a business license and it is non-refundable. Some professionals also have to pass certain exams before getting their licenses and these exams usually cost a few extra dozen dollars.

Furthermore, business licenses all have expiration dates. Companies have to pay to renew their licenses when they expire. Each license also has its own unique length. Some last for a year while others require renewal after four years.The renewal fee is usually the same or less than the license fee.

11. Does New York require a business license?

Not all businesses need to apply for licenses but some specific types of company in New York require a business license. They can vary from industry to industry as well as at each governmental level. If you are planning on starting a New York company, you should check with the authorities carefully when starting a business in New York or contact an authorized agent to get some help.  

There are professional and occupational licenses such as seller license, real estate license and construction license. If the company is going to do business or going to hire a professional in a certain field, be sure to apply for the correspondent licenses. Companies also need to apply for licenses or permits related to agriculture, food, environment, safety or sales of certain products such as tobacco and alcohol. 

In addition, companies may obtain business licenses at the local level. New York city does require different business licenses from other cities in New York state. It is recommended to always check the local office or website to know if the company is required to get a business license or not.

Texas (United States of America)

1. What is a good business to start in Texas?

Finance: Companies providing services such as bookkeeping, accounting, consulting, fundraising can be an ideal starting point. With Texas’s enormous economic scale, second only to California, there are several opportunities for financial services to thrive here. Specialized and affordable financial services are always in demand because small and medium startups cannot spare too much money hiring their own accountant.

Commerce: A shared border with Mexico and the NAFTA agreement significantly help booster trade. Mexico alone accounts for approximately two thirds of Texas’s exports. Commerce is a good business to start in Texas. A company acting as a commerce hub for products from all the other 49 states to gather there then ship to another country and vice versa, for products from South American countries to cross the border and be distributed all over the US is a very solid business.

2. How do I create an LLC in Texas?

Step 1:

Name the LLC. The name has to comply with the state’s regulations and has to not be taken.

Step 2:

Contact a Texas registered agent. One IBC is authorized to be a registered agent with a local office specializing in starting business in Texas by accepting any legal document and providing proper guidance.

Step 3:

File the documents. Send Form 205 - Certificate of Formation for a Limited Liability Company with a filing fee of US$ 300 to Texas Secretary of State. One IBC will provide the application along with detailed guidance on how to fill it.

Step 4:

Create an Operating Agreement. It is a legal document detailing the ownership of the LLC as well as how business will be conducted. To create an LLC in Texas, this is not compulsory but is strongly recommended.

Step 5:

Get an EIN or ITIN. One IBC’s service covers both of these tax ID numbers.

Step 6:

Open a bank account. A local bank account can greatly help the business but the application process is very difficult. With several partner banks, One IBC can help guide customers through this process.

3. How much does it cost to form an LLC in Texas?

A cost of US$ 300 (US$ 308 for online application) for filing fee is incurred when submitting the Certificate of Formation for a Limited Liability Company (Form 205) to the Texas Secretary of State. There is also a US$ 30 for a certified copy of Certificate of Formation and a US$ 5 for a Certificate of Status. Both of these are highly recommended after the Texas corporation formation.

Company name reservation in Texas costs US$ 40 per application. Then there are some service charges for registered agent services. As an authorized agent in Texas. One IBC can also provide the customers with such service with affordable prices.

One IBC offers creating an LLC in Texas with a service of only $ 599.

4. How long does it take to get an LLC in texas?

In Texas an LLC usually takes as long as 2-3 days for an online application and 7-10 days for postal applications. One IBC can submit the application to the Texas Secretary of State on the very same day the customers send in the required documents. It usually takes a day or two for all the papers to be checked by the government office. If the customers have already checked and reserved the company name beforehand, there will be no more waiting. The freshly stamped Certificate of Formation is available. This means the company is official. With One IBC’s service, starting business in Texas is very convenient and is only within just 2 days.

5. Texas corporate filing requirements

Texas corporate filing requirements are not complicated: some forms are one-time-only while others are required regularly. During Texas corporation formation, the Certificate of Formation for LLC or Establishment Certificate for corporation must be submitted to the Texas Secretary of State (SOS).

Annual forms consist of:

  • Annual Report
  • State Business Tax: In Texas, even LLC has to pay franchise tax. This is very complicated and it is advised to consult with One IBC specialist to understand and pay this tax properly.
  • State Employer Tax: If the company hires someone, employer tax has to be paid and state unemployment insurance (UI) tax.
  • Sales and Use Tax: If the company is doing business in Texas, it has to pay sales tax.
  • Registration in Other States: If the company is doing business in other states, it needs to register and file corresponding papers. Check One IBC 50 states guide for more details.
6. Does an LLC expire in Texas?

During formation, the owner(s) of the LLC can designate its lifetime in the Article of Incorporation. After said date, if the company is planning to continue its business activity due to any reason, a new date has to be set and notified with the Texas government. If no date is stated, the LLC does not expire but continues on. Additionally, Texas does not require an annual report so the expiry date can be set at the owner(s)’ leisure.

In the case that the owner(s) wants to end the LLC not by a specific date but by a specific event, occurrences that shall make an LLC expire in Texas such as bankruptcy or a member's death can also be agreed upon. Therefore, One IBC greatly recommends an LLC because it is very flexible for customers starting a small business in Texas.

7. Is an LLC the same as a business license?

The answer is no, it is not. An LLC provides the owner(s) with a legal business entity while a license allows the company to conduct business in specific industry or with specific product and service. Therefore, an LLC is not the same as a business license. The LLC has to be set up first then the owner(s) can apply for the required licences. If the customers need any help with business licenses, One IBC is happy to resolve any inquiry and help with the application process.

8. What are accounting services in Texas?

Accounting services in Texas will produce financial records, track revenues and expenses, and provide consulting on overall financial health. This will help the company plan ahead and make financially sound decisions.

Many accounting services in Texas also help with tax obligations. They can ensure any financial reporting practice is following IRS regulations, determine tax liability, and adhere to the filing requirements and deadlines. These include federal, state and local tax returns.

In addition, there are specialized areas depending on the customers’ needs such as:

  • Auditing (very important if the company is looking for a bank loan)
  • Business advisory (for financial planning, insurance, mergers or litigation)
  • Forensic accounting (for reviewing financial statements, computer systems and other accounting information to uncover embezzlement, tampering and other financial wrongdoing)

Obviously these will cost extra fees but overall they are much cheaper than hiring a full time specialist to handle these tasks.

9. What are bookkeeping services in Texas?

As the name suggests, bookkeeping services keep the accounting book in check. Their main task is to perform daily basic accounting activities. These are calculating, entering data and organizing payroll, accounts receivable, accounts payable and bank reconciliations in the key financial reports such as Income Statement, Balance Sheet, and Account Ledger.

The bookkeeper can also assist in implementing and operating the company’s accounting system. Or provide the company with said accounting system if there is not one available. This helps the owner(s) to better monitor expenses and revenues, identify trends and track budget items.

Without bookkeeping services in Texas, companies have to hire a full time bookkeeper to maintain and evaluate financial transaction records such as sales, purchase, cash journals, ledgers, preparing budget or income expenditure reports, profit and loss statements and trial balances. Not to mention paying for the licence of an official computerized accounting system.

10. Are accounting services required after Texas corporation formation?

Although the Texas Secretary of State does not require companies (both LLC and corporation) to file any annual report, the government does ask for a public information report, a No Tax Due report and a franchise tax statement. In addition, many businesses also require a periodic audit of their finances. This might be a requirement from the investors or was written into the bylaws of incorporation. One IBC also strongly recommends using accounting services in Texas to gain many benefits.

By outsourcing the financial tasks to accounting services in Texas, business owner(s) can save time and money, avoid any risk with the IRS, keep track of the financial health of the company and always be ready when the tax season comes.

11. How to get an ITIN number in Texas?

To get a ITIN number in Texas, there are three steps to follow:

  1. Complete Form W-7 (IRS Application for Individual Taxpayer Identification Number)
  2. Prepare the documentation substantiating foreign/alien status and true identity. There are 13 accepted documents (Passport works best)
  3. Submit the application to the designated address written in Form W-7
12. How to get itin number for nonresidents?

There are only 3 types of nonresident who can get an ITIN:

  • Nonresident alien who is required to file a U.S. tax return
  • Nonresident alien claiming a tax treaty benefit
  • Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception

Also, ITIN number is available for nonresidents who do not have an SSN or are not eligible to get one and are required to furnish a federal tax identification number or file a federal tax return.

13. How to get an EIN number in Texas?

To get a EIN number in Texas, simply follow these 3 steps:

  1. Complete Form SS-4 (Application for Employer Identification Number)
  2. Prepare the documentation substantiating foreign/alien status and true identity. There are 13 accepted documents (Passport works best).
  3. Mail it to the IRS, EIN (International) Operation
14. How long does it take to get an EIN in Texas?

One IBC can get an EIN for customers in just 2 weeks. During these two weeks, the IRS has to process the application and permanently register the new number into their system. If there is no issue, One IBC will notify the company owner(s) after this period and the company can now conduct these two tasks:

  • Filing an electronic return or an electronic payment
  • Passing an IRS Tax Identification Number matching program

How long it takes to get the EIN card in Texas depends on where the customer is staying. Upon request, One IBC can send it through express postal service and this will usually take a few days to deliver the card.

Washington (United States of America)

1. How much does it cost to form an LLC in Washington state?

The cost to form an LLC in Washington stateis $200. This fee is charged when you file your LLC's Certificate of Formation with the Washington Secretary of State online. If you file via mail, the fee is $180.

LLCs in Washington are required to file an annual report with the Secretary of State. The filing fee costs $60 and needs to be paid by the end of the month in which the LLC was formed.

There are other costs associated with the process of forming an LLC in Washington state. For instance:

  • Washington State LLC registration, you must file an initial report. If you file this report with the Certificate of Formation, there will be no extra cost. If you file it separately, the cost will be $10 by mail and $30 online.
  • You can reserve your LLC name in 180 days for $30 by filing a name reservation form.
  • To register a trade name other than your official Washington LLC business name, you can file a Business License Application and pay the $24 filing fee.

These are all the basic costs to form an LLC in Washington state. Alternatively, you can find your LLC a registered agent like One IBC and they will handle all the paperwork and filings for your business registration. Check out Washington company formation service and learn more about what One IBC Group can do for your overseas business now.

2. What is the difference between LLC and Professional LLC in Washington?

A Professional Limited Liability Company (PLLC) in Washington is treated the same way as a Limited Liability Company (LLC). The fundamental distinction between a PLLC and an LLC in Washington is that a PLLC must be formed by professionals who have been licensed in Washington. It can only provide professional services licensed by the state's authority, including, but not limited to, these professions:

  • Certified public accountants
  • Chiropractors
  • Dentists
  • Osteopaths
  • Physicians
  • Podiatric physicians and surgeons
  • Chiropodists
  • Architects
  • Veterinarians
  • Attorneys

This list is not exhaustive. In general, a professional service is any sort of public-facing personal service that necessitates the provider obtaining a license or other legal authorization prior to providing the service. A Washington PLLC can be formed by anyone who is licensed to practice one of the above-mentioned professions, or is otherwise lawfully licensed or legally permitted in Washington. To make sure if your business profession qualifies as a Washington professional service to form a PLLC, you can consult a local business attorney or use One IBC’s Washington Company Formation service.

3. What is the difference between a sole proprietorship and an LLC in Washington state?

Sole proprietorship and limited liability company (LLC) are both two of the most popular business structures in Washington state. They can be good options for a small and medium sized business as they are easy to set up and flexible in terms of management. Here are some notable differences between a sole proprietorship and an LLC in Washington state:

  • Liability protection
    • This is the main distinction between the two structures. An LLC can provide liability protection to its owner while a sole proprietorship cannot. That means owners of a sole proprietorship can be at risk of losing their personal assets if the business runs into a legal problem.
  • Start-up process and costs
    • Unlike LLCs, Washington sole proprietorships are not required to register with the state and do not have to pay filing fees.
  • Compliance
    • Washington Sole proprietorships are exempt from filing annual reports, which are required for LLCs in Washington. In addition, the tax filing process is much easier for sole proprietorships than for LLCs.

 

4. What are the requirements for an LLC in Washington state?

Limited liability company (LLC) is one of the most popular business structures in Washington state, as it is easy in terms of formation and does not have many requirements for the business owner. Here are some formation documents and requirements that you need to prepare in order to form an LLC in Washington:

  • At least 1 member of the LLC
  • Name of the Washington LLC and its business address
  • The date your Washington State LLC officially becomes effective (immediately or within 90 days from the filing date)
  • The LLC's life span (perpetual or a specific term)
  • Your LLC’s registered agent information
  • The consent of the Registered Agent to function as the Registered Agent

After providing all the requirements above, you must fill them in the Certificate of Formation and file it with the Washington Office of the Secretary of State.

Alternatively, you can hire a Commercial Registered Agent to handle the formation documents and business requirements for your Washington LLC. If you are looking for a commercial registered agent, check out One IBC’s Washington Company Formation service and get your business a reputable agent.

5. How long does it take to get a business license in Washington state?

When starting a business in Washington state, offshore companies are required to obtain the necessary licenses and permits to run the business legally. Depending on your business area, the regulator licenses/permits will be different, however, you will usually need to provide information about the legal entity, shareholders/directors, business plan and some other documents such as: financial statements, rental office agreement, etc.

A Washing business license registration will normally take about 10 working days from the day of application. In case you need additional city or state endorsements, it will take 2-3 more weeks for your Washington business license/permit to be approved. Please rest assured that One IBC will support you throughout the whole process.

You can find out more about how to get a Washington business license here.

6. How to get an LLC in Washington state?

In order to get an LLC in Washington state with One IBC Group, simply follow 4 steps to get started:

  • Step 1 - Preparation: Send us your information, requests, billing address and choose 3 valid names for your business. One IBC will do the name check for you.
  • Step 2 - Filing the required documents: We need information of your company’s directors/shareholders along with the shares ratio. If you don’t find anyone to appoint, we can do it for you. Additionally, you can choose some recommended services for your business, e.g serviced office, trademark registration, bank account opening, accounting, etc.
  • Step 3 - Making your payment to One IBC: After making an order, One IBC will send you a quotation. A Washington LLC was incorporated by filing a Certificate of Formation with the Secretary of State, it takes you approximately 2-3 days to process.
  • Step 4 - Receiving your company kit: Your company original documents will be sent to your provided address. You can now get your LLC license in Washington state. Additional services, if any, can be subsequently performed by One IBC Group right after that.

For more information, please contact us or visit our website here.

7. Which types of business licenses in Washington state do I need to get?

Generally, there are 3 types of Washington business licenses that you need to get when opening a business here: 

  • Primary business license: Every Washington business must obtain a general business license from the state where the business is located. This type of license is granted once your company is created.
  • Regulatory licenses and permits: Besides primary business license, many industries in Washington are required to have subsidiary business licenses or permits, e.g. banking, health and safety, environment, construction, restaurant - hotels, and other hospitality services. This type of business license in Washington state is granted by government authorities.
  • Professional and occupational licenses: This type of Washington business license is for professionals who work in specific fields, e.g. doctor, engineer, etc.
8. Do I need a business license in Washington state?

Yes. It is required by law that you need to obtain business licenses and permits to run a company in Washington. Please contact us for more details.

9. How much does it cost to renew an LLC in Washington state?

The annual renewal fees are the annually recurring Government fee that a company must pay in order to maintain its operations in Washington. Companies will be considered to be in a “good standing” when they comply with the law and fulfill those government fees. In a nutshell, you can compare this fee with the annual corporate income tax to be collected from a business.

Washington LLCs and corporations are required to pay the renewal fee to the Government. The due date is the company’s anniversary date. You can renew an LLC in Washington state by yourself, or simpler, find a corporate service company to do it. Our annual fee for a Washington LLC renewal is from US$ 1,059 (including US$ 499 of service fee and US$ 560 of Government fee).

Please visit the One IBC website for the latest pricing on Washington company formation and renewal services in the 50 US states here.

10. What is the Washington state income tax?

There is no Washington state income tax for business entities and individuals. However, the state still collects a gross receipts tax of 1.5%.

Washington businesses are generally subject to the subsequent taxes:

  • Business and occupation (B&O) tax: Virtually all Washington businesses are subject to B&O tax; including businesses formed as corporations, LLCs, partnerships and sole proprietorships, whether they are nonprofit or for profit.
  • Retail sales tax: Generally, sales of tangible assets to consumers are subject to a retail tax. Retail tax is also levied on certain services such as escrow, title insurance, credit bureaus, etc.
  • Use tax: This tax is charged on the value of the goods and includes the cost of shipping, delivery or shipping fees paid to the seller.
  • Personal property tax: Personal property used in business is also subject to property tax, including furniture, equipment, and supplies. Tax rates for real estate and personal property are the same.

For more advice about Washington state business income tax, please contact us via Hotline +65 6591 9991 or email [email protected].

11. How to get a tax ID number in Washington state?

After forming a Washington company, the next step is to get a tax ID number in Washington state, which is commonly referred to as Federal Tax ID number or Employer Identification number (EIN). EINs are composed of unique nine-digit numbers issued by the Internal Revenue Service (IRS).

Obtaining an EIN is necessary to lawfully run your business in the United States. Washington businesses need an EIN to pay their federal taxes online, to file their annual tax return, and to issue payroll and tax documents to suppliers.

There are several advantages of getting an EIN in Washington state than only for the purpose of tax filings, which include:

  • Preventing identity theft;
  • Adding more credibility to your business;
  • Building trust with partners.

To learn more about how to get a tax ID number in Washington state, please do not hesitate to have a talk with our expert team.

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