A few states recognize Series LLCs, which consist of a “master” or “parent” LLC, with a “series” of legal entities under the umbrella of the larger LLC. The separate entities comprising the series aren’t whole, distinct LLCs, but enjoy separate assets and liabilities.
Name reservation is a matter of filing the appropriate form with the Secretary of State and paying a filing fee, which ranges from $10 to $50. On average, names are reserved for a time period ranging from 90 days to 1 year, and may or may not be renewable depending on the state.
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Most states also prohibit certain words that might imply you’re in a certain business, such as insurance or banking. And you’ll probably need to include some version of “LLC” or “limited liability company” at the end of your business name. Some states allow a type of corporation called a close corporation, which may appeal to small business owners.
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U.S. businesses owned by Indian clients, who don’t have Social Security number or any merchant history in the U.S, would fall under “high-risk” category. There are merchant account providers that serve the high-risk niche, and they are called high-risk merchant account providers. Typically a U.S. bank account is required, but some of those providers would even offer services to clients with a bank account in India or other countries. Also, to offset the risk, those providers charge higher fees and have longer settlement times. Beside initial investment, you would have monthly and annual costs, related specifically to maintaining your company. If you plan to lease a US address expect to pay between $20 and $99 each month (we offer our own professional solution called MyUSAOffice that offers addresses for as low as $299/year).
Each state has its own filing requirements for the articles of incorporation. There will be a filing fee to submit the article of incorporation with the state; in most cases, this is several hundred dollars. A business may also choose to incorporate as a corporation of a limited liability company. The filing requirements for either depend on the state the business is filing in, though each type of incorporated entity will have its own separate form. You can get an employer identification number at no cost on the IRS website. Once you have an EIN, you can set up a business bank account and deposit company funds. Use your business account for all income and expenses, and don’t mix business and personal finances.
I (clearly) don’t know the exact tax amounts for each state but I do know that, for example, California charges a minimum of $800 in yearly taxes that you have to pay even if you were not profitable. You’ll also need to file a tax return in each one of those states. If you are a US Citizen, this is a no brainer; there’s a quick online application that you can fill. For foreigners, you’ll probably need to go through your lawyer to do it, since some manual filing is required.
The only tax they levy is a state sales tax which is 4% for both of them, and it’s the lowest amount. Read more about USA company formation here. This could be convenient for small business owners who don’t want to complicate their tax filing and would like to avoid the “double taxation” that comes with operating a C-corporation.
