This guide is your trusted companion, carefully crafted for Cuban entrepreneurs ready to explore the process of registering and launching a company in the USA from Cuba. Together, we’ll delve into the complexities of legal, financial, and operational aspects, laying the groundwork for your triumph.
Register and Start your business in the USA
Step 1: Choose between LLC and C-Corp
Register LLC in the USA from Cuba:
2. Ownership: There are no ownership limitations in a U.S. LLC. Members can be non-U.S. citizens, non-resident aliens, or any company, domestic or international, making it an adaptable option for entrepreneurs.
3. Management: LLCs provide a flexible management framework, enabling owners from Cuba to define their roles and operations without rigid structures. Designed as a limited liability Sole Proprietorship or Partnership, an LLC’s management and ownership are streamlined, ensuring less complexity and direct control.
4. Compliance: Generally, LLCs face fewer compliance demands and formalities, reducing legal and accounting costs. This is especially advantageous for smaller businesses, where resources for extensive record-keeping and frequent reporting may be limited.
Register C-Corp in the USA from Cuba:
1. Raising Capital: Businesses focused on attracting venture capital or pursuing a public listing might find C-Corps to be more appealing. C-Corps can issue various types of stocks, which can attract investors interested in equity.
2. Desire for Structure: Enterprises desiring a more formal structure, complete with a board of directors and specific officer roles, might opt for a C-Corp. This can add legitimacy and establish a defined hierarchy in larger companies.
3. Employee Benefits: For companies planning extensive benefits for a large workforce, C-Corps are well-suited. They excel in handling diverse benefits, key for companies aiming to attract and retain top talent, such as:
– Stock Options: C-Corps enable employees to buy shares in the company at a set price, aligning them with the company’s progress.
– Tax Advantages: C-Corps can leverage tax benefits related to employee benefits, like deducting the cost of these benefits, providing financial benefits to both the company and its employees.
In conclusion, while LLCs are often the go-to for entrepreneurs from Cuba due to tax, ownership, and compliance advantages, C-Corps are instrumental for capital raising 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
1. Choose a unique business name: The chosen name should be distinct and not in use in the registration state. The state’s Secretary of State website can be used to check name availability.
2. Check for name availability: Task your registered agent, who needs a physical address in the state of registration, with verifying the availability of your chosen name.
3. Consider the type of business entity: The type of your business entity, whether it’s a C-Corporation, LLC, or S-Corporation, will affect your company’s name. For instance, S-Corporations have specific ownership criteria that might not align with every business model.
4. Comply with state regulations: Every state has its own set of regulations for business names. Ensure compliance with these, including necessary reservations, filings, and any state-specific formalities.
Step 3: Select Your Registration State
| State | Advantages | Disadvantages |
|---|---|---|
| Delaware | Favorable Tax Environment | Franchise 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 | ||
| Wyoming | No corporate or personal income tax | Less recognized compared to other states |
| Cheaper franchise taxes | ||
| Nevada | No state corporate income tax | Higher annual reporting fees |
| Mandatory state tax return filing | ||
| Public listing of all officers and directors |
Step 4: Choose A Registered Agent For Legal Compliance
Considerations for Selection:
1. Physical Address: Ensure the agent has a physical address (not a P.O. box) in your business’s state of registration.
2. Availability: They must be present to receive documents during normal working hours.
3. Compliance Expertise: Your agent should have a thorough understanding of the state-specific compliance requirements.
4. National Presence: If your business is or will be operating in multiple states, a registered agent with a national presence is advisable.
5. Reputation: Choose an agent with a solid reputation for providing dependable services.
6. Additional Services: Look for agents offering extra services such as business formation assistance and paperwork filing.
7. Fees: Pay attention to their fee model, ensuring it’s straightforward and devoid of hidden fees.
Step 5: Provide details for the Owner, Director, and Manager (Who May Be A Single Individual)
– A passport
– Address
Step 6: Get A US Office (Virtual Or ExecutiveCenter)
When registering a company in the USA from Cuba, you have the option to obtain a virtual office, which can provide a professional business address and other services.
Want Help Setting Up Your Serviced Office?
With our registered agent services, we also offer serviced offices.
Step 7: Get an EIN From the IRS
To apply for an EIN from outside the US for your company, consider these options:
1. Apply for an EIN: Following your company’s incorporation, you can apply for an EIN through the IRS. This nine-digit number is crucial for your business’s tax identification.
2. Use a Registered Agent: During your company’s registration, a registered agent can aid in the EIN application process. Registered agents are responsible for managing legal and official documentation and may assist with EIN applications.
Once you have your EIN, the subsequent step is to ensure your company is registered with FinCEN BOI, adhering to current legislation and guidelines.
Register the company and beneficial owners with FinCEN BOI
Essentials for FinCEN BOI Registration
Reporting Deadlines and Requirements
– Existing companies have one year to file, while new ones must do so within 90 days of creation or registration.
– Companies must provide four pieces of information about each beneficial owner: name, birthdate, address, and passport number.
Reporting Process and Frequency
– Reporting is not an annual task; you only need to submit a report once, unless you need to update or correct information.
– FinCEN started accepting reports on January 1, 2024.
Compliance and Fraud Protection
Step 8: Open a US Bank Account Remotely
Documents needed for opening a US bank account:
| Required documents | Description |
|---|---|
| Director’s Identification | Valid photo ID, such as a passport and driver’s license, or tax card with a photo. |
| Director’s Address Proof | Proof of the director’s residential address, e.g., utility bills or bank statements. |
| Incorporation/Organization Papers | Articles detailing the company’s structure, management, and membership. |
| EIN Confirmation | Verification letter issued by the Internal Revenue Service (IRS) for taxation purposes. |
| Business Location Verification | Evidence confirming that the business address is located in the United States. |
| Company Documents | May include the company’s certificate of incorporation, articles of organization, or other relevant documents. |
Step 9: Open A Merchant Account To Accept Credit Cards
Requirements for opening a Merchant Account:
– Business and personal credit history
– Certificate of incorporation
– Articles/memorandum of association
– Shareholder registry
In addition to business details, you might be required to provide personal information about yourself as a business owner. This includes:
– Your full name
– Your residential address
– Your ITIN (optional)
This is necessary because the merchant account provider conducts a credit check as a standard component of the underwriting process. Not all providers require a credit check anymore.
Step 10: Transfer Profits Home Or To A Lower Tax Jurisdiction
Getting Your Money from Cuba:
2. Methods for Transferring Funds from Cuba: For transferring funds from Cuba, individuals subject to U.S. jurisdiction can provide financial services to Cuban nationals located outside of Cuba, as long as the transaction does not involve a commercial exportation of goods or services to or from Cuba. Banking institutions are authorized to open and maintain accounts solely in the name of a Cuban national located in Cuba for authorized transactions.
3. Taxation: The amount of remittances allowed can vary. It’s also important to note that remittances to Cuban nationals by any person subject to U.S. jurisdiction are authorized.
Transferring Profits to a Lower Tax Jurisdiction
2. US Tax Framework: Familiarize yourself with the nuances of the US tax system, especially how it may encourage transferring profits to low-tax jurisdictions, in alignment with international tax regulations and treaties.
Limitations and Regulations
2. Tax Implications: Depending on the nature of the transfer and the amount sent, individuals may be subject to taxes or reporting requirements in both countries.
Setting Up Transfers
Step 11: Get an ITIN from IRS for Banking and Credit (optional step)
It’s important to note, though, that obtaining an ITIN is not mandatory for starting a business in the U.S.
What are the Costs and Registration Fees for Incorporating a Company in the USA?
Here’s a breakdown of the different taxes imposed by the top 5 states:
| State | Cost to Incorporate | Annual 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 Cuban Citizens
– Directors must be at least 18 years old (or have a parent representative) and have valid passports.
Frequently Asked Questions
Do I need to travel to the US for Company Registration?
What is a Certificate of Authentication and when is it required?
How can I obtain an Apostille for my US documents?
This process becomes invaluable when you’re looking to set up a bank account in Cuba or provide evidence of your U.S. company.
What should I do to authenticate Cuban documents for use in the United States?
Is the Certificate of Authentication always necessary?
Final Steps to U.S. Business Success for Cuban Entrepreneurs
Cuban entrepreneurs can smoothly navigate this path with strategic planning and the assistance of an adept registered agent, who can facilitate the legal procedures and state registration process.
Feel free to get in touch with us for a free, no-obligation consultation. We’re here to clarify any doubts about the above information and guide you through a rapid registration process.
