America Company Formation

The United States of America is an attractive country for entrepreneurs and business people with its strong economy and influence in global money markets. Citizens of the Republic of Turkey can also establish a company in the USA by completing the necessary procedures. In this guide, we will discuss in detail the stages of establishing a company in the USA, the necessary documents and the points to be considered.

Why Incorporate a Company in America?

The USA is the birthplace of world giants such as Apple, Meta (Facebook), Alphabet (Google), Uber and Airbnb. The support for innovative ideas and the incentives offered to entrepreneurs in the country encourage those who want to start a business. In addition, the USA’s skilled workforce and world-renowned universities contribute greatly to the growth and development of companies.

Investor Friendly Environment

America opens its doors not only to its own citizens but also to entrepreneurs from all over the world. The country’s investor-friendly policies and agreements promoting international trade make the US one of the most favoured countries to start a business.

Tax Advantages and Treaties

Each state in the USA has its own tax laws and tax collection administration. The state in which you establish your company is of great importance for your tax obligations. The Double Taxation Avoidance Agreement between Turkey and the USA provides tax advantages for Turkish entrepreneurs.

Steps to Incorporate a Company in the USA

Decide on Company Type

There are two main types of companies that foreign nationals can establish in the USA:

• Limited Liability Company (LLC)
• Commercial Company (Corporation – C-Corp)

LLC is popular among foreign entrepreneurs and is subject to single-tier taxation. C-Corp is suitable for larger businesses and is subject to a two-tier taxation system.

Note: For S-Corp type corporations, shareholders must be US residents and legal long-term residents or have been in the US for at least 183 days, therefore, foreigners must bencı girişimciler genellikle C-Corp veya LLC tercih ederler.

Make a State Selection

Each state has different tax laws and business formation costs. States such as Delaware, Nevada and Wyoming are often favoured for their ease of company formation and tax advantages.

Determine Company Name

The company name you choose must be unique and not used by another business. When choosing a name, you can check the US Patent and Trademark Office (USPTO) database to confirm the suitability of the name.

Prepare the necessary documents

To set up a company in the USA you need the following documents:

• Certificate of Incorporation (Articles of Organization or Articles of Incorporation)
• Employer Identification Number (EIN)
• Work Licence and Permits
• Certificate of Settlement (available with Registered Agent)

Complete Company Incorporation

Submit your company incorporation documents to the competent authority of your chosen state. This process can usually be done online or by post.

Get EIN Number

The EIN is your company’s tax identification number and is issued by the US Internal Revenue Service (IRS). The EIN number is required when opening a bank account and for tax purposes.

Open a Bank Account

In order to operate in the USA, you need to open a company bank account. Some banks may require additional documents when opening an account for foreign nationals.

Establishing an E-Commerce Company in America

With the rapid growth of the e-commerce sector, it has become attractive to establish an e-commerce company in the USA. Especially models such as Dropshipping and Amazon FBA make it easier for entrepreneurs to enter the American market.

E-Commerce with LLC

By establishing your e-commerce company as an LLC, you can benefit from tax and liability advantages. After completing the company setup, you can start selling on platforms such as Amazon by obtaining your EIN number.

Cost of Company Formation in America

Company formation costs vary from state to state. For example, company formation costs in the state of Delaware (may vary in different States) :

• 200$ – Company incorporation fee
• 300$ – Annual state tax (Franchise Tax)
• 75$ – Company name reservation fee (optional)

In addition, the registered agent service and other licence fees may be included in the costs.

Required Documents and Points to Consider

Licences and Permits

Depending on your business activities, you may need licences and permits at the federal, state and local level.

Registered Agent Service

If you do not have a physical address in the U.S., you must designate a registered agent to whom legal documents and official correspondence can be forwarded.

Trademark and Patent Registration

It is recommended to register trademarks and patents to protect your company’s name, logo or products.

Tax Obligations

Federal Taxes: Varies depending on the type of company.

State Taxes: Subject to the tax laws of the state in which you are incorporated.

Double Taxation Agreement: Thanks to the agreement between Turkey and the USA, you can get exemption or discount from some taxes.

Advantages of Company Formation in America

• Great Market Reach: The US is one of the world’s largest economies and has a large customer base.
• Technology and Innovation Centre: Regions such as Silicon Valley are the heart of technology and innovation.
• Investment Opportunities: Angel investors and venture capital funds invest in innovative business ideas.
• Qualified Workforce: Opportunity to work with talented professionals graduated from world-renowned universities.

International Finance Transactions with Wise

When you set up a company in the US, you can use trusted financial services like Wise for international money transfers and payments.

• Multi-Currency Account: Get account information in USD, EUR, GBP, TRY and more currencies.
• Low Transfer Fees: Transfer money internationally at a lower cost than traditional banks.
• Wise Card: Easily manage your business expenses.

Establishing a company in the USA offers great advantages for entrepreneurs who want to take advantage of global business opportunities. By taking the right steps and following the necessary procedures, you can establish and grow a successful business in America. Remember, getting professional counselling throughout the process will help you overcome possible obstacles and establish your business smoothly.

Frequently Asked Questions