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

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As you stand at the threshold of registering and launching a company in the USA from Myanmar (Burma) it may seem like you’re facing an intricate and demanding endeavor. We understand the challenges and are here to assist.

This guide is your compass, tailored for Myanmar entrepreneurs eager to understand the process of registering and starting a company in the USA from Myanmar (Burma). Join us as we navigate through the legal, financial, and operational details to smooth your path to success.

Register and Start your business in the USA

Step 1: Choose between LLC and C-Corp

As individuals or businesses from Myanmar (Burma) mull over the prospect of registering a company in the U.S., a pivotal decision arises: selecting between an LLC (Limited Liability Company) and a C-Corp (C-Corporation). Both options come with their own sets of unique characteristics, benefits, and constraints, making them appropriate for varied business situations and objectives.

Register LLC in the USA from Myanmar (Burma):

1. Taxation: Typically, foreign-owned LLCs in the U.S. aren’t eligible for pass-through taxation. However, a strategic approach is to register the LLC to be taxed as a corporation, then charge it management fees (personally or through your local business, or from a lower tax jurisdiction) to balance out profit and minimize U.S. tax liabilities.
2. Ownership: LLCs in the U.S. offer unrestricted ownership opportunities. Members can include non-U.S. citizens, non-resident aliens, or companies, both domestic and international, offering a versatile choice for individuals or businesses from Myanmar (Burma).
3. Management: The management of an LLC is highly adaptable, granting owners the liberty to specify their roles and operations without strict formal structures. An LLC operates effectively as a limited liability Sole Proprietorship (single owner) or Partnership (multiple owners), providing simplified management and ownership.
4. Compliance: LLCs often have less stringent compliance and formalities, leading to potential savings in legal and accounting expenditures. This aspect is particularly beneficial for smaller businesses, which might not have ample resources for elaborate record-keeping and regular reporting.

Register C-Corp in the USA from Myanmar (Burma):

While LLCs have several benefits, there are scenarios where a C-Corp might be a better fit:

1. Raising Capital: For businesses aiming to draw in venture capital or considering an IPO in the future, C-Corps are often the preferred choice for investors. They offer varied stock options, which are attractive to those seeking equity stakes.
2. Desire for Structure: Some companies might lean towards the formalized structure of a C-Corp, with its board of directors and specific officer roles. This structure boosts credibility and provides a clear organizational hierarchy, especially for larger companies.
3. Employee Benefits: C-Corps are ideal for businesses in Myanmar (Burma) looking to offer extensive benefits to a significant workforce. They are adept at managing various benefits, crucial for attracting and keeping skilled employees, such as:

– Stock Options: C-Corps can grant employees the opportunity to purchase company shares at a predetermined price, involving them in the company’s growth.
– Tax Advantages: With certain tax advantages on employee benefits, like the ability to write off these costs, C-Corps can be financially advantageous for both the company and its employees.

To sum up, while LLCs may cater to the needs of entrepreneurs with their tax, ownership, and compliance perks, C-Corps stand out for capital raising and structured expansion. Choosing the right entity in the U.S. demands thoughtful deliberation.

Step 2: Pick a Name and a Corporate Ending

Key Steps for Business Name Selection:

1. Choose a unique business name: Ensure your business name is distinctive and not already utilized in the state of your intended registration. Availability can be confirmed through the state’s Secretary of State website.
2. Check for name availability: Have your registered agent, who should have a valid physical address in your registration state, confirm the availability of your proposed name.
3. Consider the type of business entity: Your choice of business entity, like a C-Corporation, LLC, or S-Corporation, influences your company’s name. Note that some entities, like S-Corporations, have ownership restrictions that might affect suitability.
4. Comply with state regulations: Adhere to the specific naming regulations of the state where you’re registering. This includes meeting state-specific requirements for reservations, filings, and any other relevant state procedures.

Step 3: Select Your Registration State

Choosing the optimal state for your business registration is a critical decision that influences taxation, legal affairs, and operational aspects. Delaware, with its reputation for being pro-business, is a strong contender. Other states like Wyoming and Nevada also offer attractive conditions for businesses and should be considered in your decision-making process.
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

When appointing a registered agent for your business in the USA, several crucial factors come into play. The registered agent handles the reception of legal and official documents for the business, making it imperative to choose someone both dependable and trustworthy.

Key Points to Consider:

1. Physical Address: Your registered agent must have a real street address in the state of your business registration; a P.O. box won’t suffice.
2. Availability: They should be consistently available during standard business hours for receiving important documents.
3. Compliance Expertise: Opt for an agent well-versed in your state’s business compliance laws and regulations.
4. National Presence: For businesses active or expanding in multiple states, consider a registered agent service with a national footprint.
5. Reputation: Select a registered agent known for reliable and efficient service.
6. Additional Services: Some agents might provide added services like help with business formation and document filing.
7. Fees: Ensure their fee structure is clear, flat-rate, and free of hidden expenses.

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 is an efficient way to register your business with a distinguished address, avoiding the overheads linked with a physical office. Myanmar (Burma) business owners registering a company in the USA can greatly benefit from a virtual office. It ensures a professional business address and comes with an array of supplementary services.

Interested in Assistance for Your Serviced Office Setup?

In addition to our registered agent services, we specialize in offering serviced offices, designed to support businesses of all kinds.

Step 7: Get an EIN From the IRS

Securing a Federal Employer Identification Number is crucial for legitimizing your business in the United States. This nine-digit number, assigned by the Internal Revenue Service (IRS), is used for tax purposes and is integral to various business activities.

There are two primary ways to obtain an EIN for your company from outside the US:

1. Apply for an EIN: Post the incorporation of your company, you can apply directly to the IRS for an EIN. This unique nine-digit identifier is essential for tax identification and other business operations.
2. Use a Registered Agent: Some registered agents offer help with acquiring an EIN during the company registration process. Besides handling legal and official documents, these agents can sometimes facilitate the EIN application.

After obtaining your EIN, the next important step is to register your company with FinCEN BOI, ensuring compliance with the latest laws and regulations.

Register the company and beneficial owners with FinCEN BOI

In the process of registering a company in the USA, adhering to the Beneficial Ownership Information (BOI) reporting requirements established by the Financial Crimes Enforcement Network (FinCEN) is crucial. Under the Corporate Transparency Act, these rules mandate that companies disclose information about the individuals who have ultimate ownership or control.

Key Aspects for Registering with FinCEN BOI:

Reporting Deadlines and Requirements

– Companies in operation or registered prior to January 1, 2024, must complete their inaugural BOI report by January 1, 2025.
– There’s a one-year filing window for existing companies, in contrast to the 90-day deadline for companies newly created or registered.
– The required information for each beneficial owner includes their name, date of birth, address, and passport number in the BOI report.

Reporting Process and Frequency

– Implementing systems for the efficient collection, submission, and security of BOI data is crucial for companies reporting to FinCEN.
– Unlike annual tasks, BOI reporting is a one-off process, with further submissions only required for updates or corrections.
– FinCEN initiated the acceptance of BOI reports starting January 1, 2024.

Compliance and Fraud Protection

– Maintain vigilance against potential fraudulent attempts. Be aware that FinCEN does not initiate contact without a reason, so ignore unsolicited requests and do not click on links in those messages.

Step 8: Open a US Bank Account Remotely

Having successfully registered your company, the crucial next step is to proceed with opening 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.
Our collaboration with four distinct US banks enables us to assist you in opening an account in less than 5 days, a process considerably quicker than the usual time frame. Discover more on our page, or book a free consultation with us for detailed information.

Step 9: Open A Merchant Account To Accept Credit Cards

For companies from Myanmar (Burma) embarking on registration in the USA, setting up a merchant account is an essential step. This business account is central to managing credit card payments, allowing for the efficient processing and acceptance of such transactions.

Requirements for opening a Merchant Account:

– Completing an application form with detailed business information, including but not limited to your business license, proof of a business bank account, and an EIN.
– History of both business and personal credit.
– Your business’s Certificate of Incorporation.
– The Articles or Memorandum of Association for your business.
– Details from the Shareholder registry.

In addition, personal information about the business owner may be needed:

– Your name in full.
– Your address of residence.
– Your ITIN (though this is optional).

This step is crucial as part of the credit check conducted by the merchant account provider, which is standard in the underwriting process, although not all providers continue to require this.

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

When establishing a business in the US from Myanmar (Burma), it’s vital to grasp regulations about bringing profits back and transferring them to places with lower taxes. Here are key points to consider:

Getting Your Money from Myanmar (Burma):

1. Myanmarese (or Burmese) Regulations: In Myanmar (Burma), regulations for getting your money involve certain restrictions and procedures. Foreigners may face challenges in transferring funds out of the country due to currency controls and limitations on foreign exchange transactions. It is advisable to consult with local authorities or financial institutions to understand the specific requirements and processes for transferring money from Myanmar.
2. Methods for Transferring Funds from Myanmar (Burma): Transferring funds from Myanmar (Burma) can be a complex process due to the country’s financial regulations. Individuals looking to transfer money out of Myanmar (Burma) may need to provide documentation and comply with foreign exchange rules.
3. Taxation: Depending on the source and nature of the funds, there may be tax obligations that need to be fulfilled.

Transferring Profits to a Lower Tax Jurisdiction

1. Tax Considerations: Carefully evaluate the tax consequences in both the originating and receiving countries when moving profits to jurisdictions with lower taxes. Locations like the Bahamas, Bermuda, and the Cayman Islands are often chosen for their 0% corporate tax rates for offshore investments.
2. Understanding US Taxation: Gain a clear understanding of how the US tax system interacts with international tax laws and agreements, particularly when it comes to incentivizing the offshoring of profits to low-tax areas.

Limitations and Regulations

1. Repatriation Limits: When sending money from Myanmar to the U.S., there are restrictions on the amount that can be transferred. Individuals in Myanmar (Burma) are subject to a limit on the amount of foreign currency they can send abroad annually. This limit is set by the Central Bank of Myanmar and may vary based on the regulations in place.
2. Tax Implications: Sending money from Myanmar to the U.S. may have tax implications. It’s essential to be aware of any tax obligations that may arise from transferring funds internationally. Taxes on such transactions can vary based on factors like the amount transferred and the purpose of the transfer.

Setting Up Transfers

Payment Methods: To send money from the U.S. to Myanmar, various methods are available, including bank transfers, online money transfer services, and international wire transfers.

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

An ITIN, or Individual Taxpayer Identification Number, is issued by the IRS specifically for individuals who require a US taxpayer ID but are ineligible for a Social Security number. For those in Myanmar (Burma) registering a company in the U.S., acquiring an ITIN can be beneficial for smoother banking operations and establishing a credit history for both the individual and the business.

However, it’s essential to understand that an ITIN is not a prerequisite for starting a business in the U.S.

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

Deciding on the most suitable state for setting up a company in the USA involves considering aspects such as incorporation expenses, the state’s regulatory environment, and specific business advantages each offers.

Below is a summary of the tax regimes in the top 5 states chosen for business incorporation:

StateCost to IncorporateAnnual Franchise Tax
New Mexico$50$0

Requirements to Register a Company in the USA for Myanmar Citizens

When initiating the process of company registration in the United States, these steps are critical and should be at the top of your checklist.

– Directors are required to be a minimum of 18 years old (alternatively, have a parental representative) and must have valid passports.

Frequently Asked Questions

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

Traveling to the US is not a prerequisite for registering a company, as the entire procedure has transitioned to an online format. This convenient approach means that no physical presence is required from any of the business owners or representatives. Simply scan, self-attest, and upload the necessary documents through a dedicated online registration portal.

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

A Certificate of Authentication, while not required for the registration of a company in the USA from Myanmar (Burma), can be valuable for certain specific business needs. This may include opening a bank account in Myanmar (Burma) or serving as evidence of a US-based company. It’s an optional document but can be important in certain contexts.

How can I obtain an Apostille for my US documents?

To get an Apostille, a type of authentication recognized by the Hague Convention, you have a few options. You can apply through your Registered Agent, the Secretary of State’s office, or other officials like U.S. federal court clerks or the U.S. Department of State Office of Authentications.

This step comes in handy if you’re looking to open a bank account in Myanmar (Burma) or submit proof of your U.S. company.

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

To start, have your documents translated into English if they are not already. Following that, ensure they are notarized by a notary public.

Next, acquire an official stamp from the Myanmar Ministry of Foreign Affairs. Then, proceed to authenticate the documents at the U.S. Embassy or Consulate.

Once these steps are complete, your documents will be recognized and ready for use in the U.S.

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 Myanmar Entrepreneurs

Embarking on the venture of registering and launching a company in the USA from Myanmar (Burma) is a complex process. Our 2024 guide offers a detailed roadmap, encompassing vital steps from choosing the right business structure to setting up bank accounts.

Myanmar entrepreneurs can effectively manage this journey with careful planning and the support of a knowledgeable registered agent, guiding you through the legal nuances and state-specific registration requirements.

We are here to assist you. Contact us for a complimentary, no-obligation consultation to address any queries about the provided information and how you can complete registration swiftly.

Book Your 30 Minute Free Consultation.

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