A corporation is simply a company or group of people authorized to act as a single entity (so called legal person).
U.S. corporations provide lots of personally liability protection, advantageous tax structures, but also require higher startup costs, regulatory compliance, and operating expenses.
Corporations must file Articles of Incorporation with the Secretary of State where they wish to be incorporated (also called Certificate of Incorporation). Your business’s name must have the word “Incorporated” or “Corporation” in its title. Some states allow “Inc.” or another term required or accepted by each state (e.g. In California, “Limited,” is also allowed in the title).
After this, all states require that a corporation file annual reports to stay in good standing, as well as other legal requirements in their operation including holding shareholder and board of director meetings, adopting bylaws, filing annual reports, among other tasks. Most states also require that corporation pay annual fees (sometimes called franchise fees, or corporate tax) that are required regardless of income.
The formal reporting requirements, annual fees as well as other regulatory obligations vary between each U.S. state’s incorporation laws. As a separate legal entity, a corporation will also have to file its own tax return each year separately from the owners. A corporation must also have
The general legal costs of starting and maintaining a corporation (not including attorney fees or costs to produce and draft required documents) depend mostly on the type of activities the corporation engages in, and the location in which it is incorporated.
To start a corporation the initial fees generally range between USD 1,000 to 2,000, and it should be expected that annual fees are between USD 800 to USD 1,500 each year (not including taxes). This may change depending on the U.S. state of incorporation.
Choosing to incorporate in the U.S. is a great way to structure your business so it can grow and provide you with the maximum personal liability protection. As a full-service business and corporate law firm with U.S. and German counsel, we will evaluate your business plan and determine the most advantageous strategy to incorporate in the U.S. so you can have access to the U.S market with the right structure to succeed. We
If you have a sincere interest to expand your business and enter the U.S. market, whether to establish a corporation or invest in the U.S., our team is ready to support you. We explain all requirements establishing a U.S. corporation and support you on all steps ahead. Your attorneys for U.S. legal matters are:
We can provide you with a consultation and ongoing legal services in German and English. Get in touch! The easiest way to reach us is by email (email@example.com) or by phone (+49 69 76 75 77 80). Tell us more about your U.S. business and we will offer a service package tailored to your particular needs.