How To Register And Start A Company In The USA From Belgium? (2024) LLC & C-Corp

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Stepping into the realm of registering and launching a business in the USA from Belgium might feel like embarking on a complex and challenging journey. We get it, and we’re here to guide you through.

This guide is your personalized roadmap, designed especially for Belgian entrepreneurs looking to learn how to register and start a company in the USA from Belgium. Together we’ll navigate through the complexities of the legal, financial, and operational aspects, paving the way for your success.

Register and Start your business in the USA

Step 1: Choose between LLC and C-Corp

When individuals or businesses from Belgium consider registering a company in the U.S., the choice between an LLC (Limited Liability Company) and a C-Corp (C-Corporation) holds significant weight. Each entity type offers unique features, advantages, and limitations; making them suitable for different business scenarios and goals.

Register LLC in the USA from Belgium:

1. Taxation: In most cases, foreign-owned LLCs don’t qualify for pass-through taxation, but there’s a better way: register the LLC as being taxed as a corporation and then invoice it (personally or from your local business, or a lower tax jurisdiction) for management fees until there is zero profit and therefore zero taxes owed in the USA.
2. Ownership: There are no restrictions on ownership in an LLC. Members can be non-US citizens, non-resident aliens, or domestic or foreign companies, making it a flexible option for foreign individuals or entities from Belgium.
3. Management: LLCs offer a flexible management structure, allowing owners to define their roles and operations without the need for formal structures. An LLC is designed to be a limited liability Sole Proprietorship (one owner) or Partnership (multiple owners) and is managed/owned with that in mind. This flexibility means less complexity and more direct control over business operations.
4. Compliance: With generally fewer compliance requirements and formalities, LLCs can lead to reduced legal and accounting costs. This is particularly advantageous for smaller businesses that may not have the resources for extensive record-keeping and frequent reporting.

Register C-Corp in the USA from Belgium:

While LLCs offer many advantages, there are circumstances where a C-Corp may be more appropriate:

1. Raising Capital: If the primary goal is to attract venture capital or go public in the future, C-Corp is typically preferred by investors. They allow for issuing various types of stocks, which can be enticing to investors looking for equity positions.
2. Desire for Structure: Some businesses may prefer the formal structure of a C-Corp, which includes a board of directors and defined officer roles. This can enhance credibility and establish a clear hierarchy within larger organizations.
3. Employee Benefits: C-Corps are favorable for businesses planning to offer a variety of benefits to a large workforce. They’re structured to easily handle such offerings, making them suitable for companies looking to attract and retain talented and skilled employees, such as:

– Stock Options: C-Corps can give employees the option to buy company stock at a specific price, making them part of the company’s growth and success. This is particularly appealing in startup or rapidly growing environments.
– Tax Advantages: C-Corps can enjoy certain tax advantages with employee benefits, like being able to deduct the cost of these benefits. This can be financially beneficial for both the company and its workforce.

In summary, while LLCs often suit foreign entrepreneurs from Belgium with their tax, ownership, and compliance benefits, C-Corps are valuable for fundraising and structured growth. Deciding between an LLC and a C-Corp in the U.S. requires careful consideration.

Step 2: Pick a Name and a Corporate Ending

Here are the key steps and considerations for choosing a name:

1. Choose a unique business name: The name should be unique and not already in use in the state where you plan to register your company. You can check the availability of the name on the state’s Secretary of State website.
2. Check for name availability: The registered agent (who must have a physical address in the state where you plan to register your company) will verify that the name is available if you ask.
3. Consider the type of business entity: The type of business entity you choose, such as a C-Corporation, LLC, or S-Corporation, will also influence the name of the company. For example, an S-Corporation can only have U.S. residents as owners, so it isn’t suitable for foreign business owners.
4. Comply with state regulations: Each state has specific regulations regarding business names, and you must ensure that your chosen name complies with these requirements. This may include checking for reservations, filings, and other procedures as required by the state.

Step 3: Select Your Registration State

Selecting the right state for your business registration is crucial as it impacts taxes, legal matters, and operations. Delaware, known for its business-friendly environment, is an option worth considering among others like Wyoming and Nevada.
StateAdvantagesDisadvantages
DelawareFavorable Tax EnvironmentFranchise tax may lead to slightly higher costs for businesses
No state corporate income tax for out-of-state business
No State Sales Tax
Ease of Business Formation
Flexible Business Structures
WyomingNo corporate or personal income taxLess recognized compared to other states
Cheaper franchise taxes
NevadaNo state corporate income taxHigher annual reporting fees
Mandatory state tax return filing
Public listing of all officers and directors

Step 4: Choose A Registered Agent For Legal Compliance

To choose a registered agent for a business in the USA, there are several factors to consider. The registered agent is responsible for receiving legal and official documents on behalf of the business, so it is essential to choose a reliable and trustworthy agent.

Here are some key considerations when choosing a registered agent:

1. Physical Address: The registered agent must have a physical street address within the state where the business is registered. A P.O. box is not acceptable.
2. Availability: The registered agent must be available during normal business hours to receive legal and official documents.
3. Compliance Expertise: The registered agent should be an expert in the state’s business compliance rules and regulations.
4. National Presence: If the business operates in multiple states or plans to expand into other states, having a national registered agent service is a great option.
5. Reputation: Choose a reputable registered agent with a track record of providing reliable and efficient services.
6. Additional Services: Some registered agents may offer additional services, such as assistance with business formation and filing required formation documents.
7. Fees: Consider the fees charged by the registered agent and ensure that they offer a flat-fee model without any hidden charges.

Step 5: Provide details for the Owner, Director, and Manager (Who May Be A Single Individual)

You must provide the following:

– A passport
– Address

Step 6: Get A US Office (Virtual Or ExecutiveCenter)

A virtual office provides the benefit of registering your business with a premium address, without the costs associated with a physical office space.

When setting up a company in the USA from Belgium, choosing a virtual office can be a strategic move. It offers a professional business address along with a range of other services.

Need Assistance Establishing Your Serviced Office?

Along with our registered agent services, we also provide options for serviced offices, tailored to meet the needs of all businesses.

Step 7: Get an EIN From the IRS

Obtaining a Federal Employer Identification Number is an essential step. It legitimizes your business in the United States. The Internal Revenue Service (IRS) assigns this nine-digit number for tax-related purposes and several other business operations.

To secure an EIN outside the US for your company, there are two main methods available

1. Apply for an EIN: After incorporating your company, you can apply for an EIN from the Internal Revenue Service (IRS). An EIN is a unique nine-digit number assigned by the IRS to identify your business for tax purposes.
2. Use a Registered Agent: When registering your company, some registered agents can assist in the process of obtaining an EIN. The registered agent is responsible for receiving legal and official documents on behalf of the business, and they can also sometimes help with the EIN application process.

Once you’ve successfully applied for your EIN, the next crucial step is to register your company with FinCEN BOI in accordance with the latest legislation and regulations.

Register the company and beneficial owners with FinCEN BOI

When registering a company in the USA, it’s important to comply with the Beneficial Ownership Information (BOI) reporting rules set by the Financial Crimes Enforcement Network (FinCEN). These regulations, part of the Corporate Transparency Act, require reporting companies to provide details about the individuals who ultimately own or control them.

Here are the key points for registering your company and beneficial owners with FinCEN BOI:

Reporting Deadlines and Requirements

– Businesses established or registered before January 1, 2024, are granted until January 1, 2025, to submit their initial BOI report.
– Companies already in existence are given a one-year timeframe for filing, whereas newly formed businesses are required to file within 90 days post-creation or registration.
– For each beneficial owner, companies must disclose four key details: their full name, date of birth, residential address, and passport number.

Reporting Process and Frequency

– It’s essential for companies to establish methods for gathering, submitting, and securely maintaining BOI data for submission to FinCEN.
– Remember, BOI reporting isn’t a yearly obligation. A single report suffices unless there’s a necessity to amend or rectify details.
– The acceptance of BOI reports by FinCEN commenced on January 1, 2024.

Compliance and Fraud Protection

– Stay alert for any fraudulent activities. Remember that FinCEN does not issue unsolicited requests. Avoid responding to any suspicious messages and do not click on links within such communications.

Step 8: Open a US Bank Account Remotely

Following the successful formation of your company, the subsequent key action is to establish a bank account in the US.

Documents needed for opening a US bank account:

Required documentsDescription
Director’s IdentificationValid photo ID, such as a passport and driver’s license, or tax card with a photo.
Director’s Address ProofProof of the director’s residential address, e.g., utility bills or bank statements.
Incorporation/Organization PapersArticles detailing the company’s structure, management, and membership.
EIN ConfirmationVerification letter issued by the Internal Revenue Service (IRS) for taxation purposes.
Business Location VerificationEvidence confirming that the business address is located in the United States.
Company DocumentsMay include the company’s certificate of incorporation, articles of organization, or other relevant documents.
We work alongside four different US banks and are able to help you open an account in under 5 days, which is significantly faster than the typical turnaround period. You can find out more on this page or simply book us in for a free consultation.

Step 9: Open A Merchant Account To Accept Credit Cards

When setting up a company in the USA from Belgium, establishing a merchant account for credit card transactions is an important step. This type of account is essential for businesses as it facilitates the acceptance and processing of credit card payments.

Requirements for opening a Merchant Account:

– Submission of a detailed application, including necessary business information such as a – business license, evidence of a business bank account, and an EIN.
– Disclosure of both business and personal credit histories.
– Provision of the Certificate of Incorporation.
– Presentation of Articles or Memorandum of Association.
– Documentation of the Shareholder registry.

For business owners, personal information may also be requested, including:

– Your complete name.
– Your home address.
– Your ITIN (this is optional).

These requirements are in place as merchant account providers typically conduct a credit check during their underwriting process, although it’s worth noting that not all providers now require such checks.

Step 10: Transfer Profits Home Or To A Lower Tax Jurisdiction

When starting a business in the US from Belgium, it’s important to know the rules for sending money back home and moving it to places with lower taxes. Here’s what you need to remember:

Getting Your Money from Belgium:

1. Belgian Regulations: Belgium enforces strict regulations on fund transfers to maintain financial integrity and comply with international standards. These regulations are governed by laws such as the Law on Currency Exchange Control and the Law on Anti-Money Laundering. Compliance is essential for legal and smooth fund transfers.
2. Methods for Transferring Funds from Belgium: In Belgium, common methods for transferring funds abroad include bank wire transfers through Belgian banks and international money transfer services.
3. Taxation: Taxation on funds transferred from Belgium is influenced by factors such as the nature of the income and the tax residency status of the recipient. Generally, individuals or businesses transferring funds from Belgium may be subject to taxation on income earned within the country.

Transferring Profits to a Lower Tax Jurisdiction

1. Tax Implications: When transferring profits to a lower tax jurisdiction, consider tax implications in both the source and destination countries. Countries such as the Bahamas, Bermuda, and the Cayman Islands with 0% corporate tax rates are popular for offshore investments.
2. US Tax System: Understand how the US tax system may incentivize offshoring profits to low-tax jurisdictions within the context of international tax laws and agreements.

Limitations and Regulations

1. Repatriation Limits: While there are no limits for sending money from Belgium to the U.S., financial institutions and money transfer providers may have daily transaction limits, which vary depending on the establishment.
2. Tax Implications: Wire transfers over $10,000 will be automatically reported to the IRS, and additional information may be required by the bank or financial institution.

Setting Up Transfers

Payment Methods: Various payment methods are available for sending money from the U.S. to Belgium, including bank wire transfers, online money transfer services, and international payment platforms.

Step 11: Get an ITIN from IRS for Banking and Credit (optional step)

An ITIN is a special tax number from the IRS for people who need a US taxpayer ID but can’t get a Social Security number.

When registering a U.S. company from Belgium, getting an Individual Taxpayer Identification Number (ITIN) from the IRS can help with smoother banking and building a credit history for you and the business.

However, it’s important to know that you don’t need an ITIN to start a business in the U.S.

What are the Costs and Registration Fees for Incorporating a Company in the USA?

Selecting the right state for company incorporation in the USA depends on multiple factors like incorporation costs, the regulatory landscape, and the unique benefits available to businesses.

Let’s take a look at the various taxes levied by the top 5 states for incorporation:

StateCost to IncorporateAnnual Franchise Tax
Delaware$90$225
Wyoming$100$60
New Mexico$50$0
Nevada$75$0
California$70$800

Requirements to Register a Company in the USA for Belgian Citizens

These first steps are crucial when you’re setting up a company in the United States and should be at the forefront of your planning process.

– It’s mandatory for directors to be at least 18 years old (or represented by a parent) and possess valid passports.

Frequently Asked Questions

Do I need to travel to the US for Company Registration?

There’s no need for physical travel to the US to register a company. The entire registration process can be handled online, eliminating the requirement for any business stakeholder to be present physically. All necessary documents can be scanned, self-attested, and submitted through an online portal.

What is a Certificate of Authentication and when is it required?

A Certificate of Authentication is an optional yet sometimes essential document for certain business undertakings, such as opening a bank account in Belgium or verifying the existence of a US company. While it is not obligatory for registering a company in the USA from Belgium, it may be required for specific business operations.

How can I obtain an Apostille for my US documents?

Getting an Apostille, a special form of validation acknowledged worldwide through the Hague Convention, is essential for many reasons. You have multiple options to obtain it, such as applying through your Registered Agent, the Secretary of State’s office, or other designated entities like U.S. federal court clerks or the U.S. Department of State Office of Authentications.

This process becomes invaluable when you’re looking to set up a bank account in Belgium or provide evidence of your U.S. company.

What should I do to authenticate Belgian documents for use in the United States?

Firstly, you’ll need to get your documents notarized by a Belgian notary public. Then, you’ll have to have them legalized by the Ministère des Affaires étrangères which manages apostille issuance, typically priced at €20 per document.

Your documents are ready to use in the U.S. after these steps.

Is the Certificate of Authentication always necessary?

No, the Certificate of Authentication is not always necessary. It’s important to consider your specific business needs to determine if this step is essential for your circumstances.

Final Steps to U.S. Business Success for Belgian Entrepreneurs

Registering and starting a company in the USA from Belgium is a multifaceted journey. This 2024 guide provides a comprehensive outline that covers essential steps from selecting an appropriate business structure to establishing bank accounts.

As an Belgian entrepreneur, you can navigate this process with strategic planning and the right registered agent at your side, to help you through the legal steps and the state registration process.

Feel free to reach out to us for a free, no-obligation consultation where we can answer any questions regarding the information above and how you can get registered in just a matter of days.

Book Your 30 Minute Free Consultation.

Get Free & Instant advice on registering your business in Delaware & the USA.