Heads-up: This content is exclusively prepared for entrepreneurs who are non-US residents.
Learning to trade in a new market can be intimidating. However, we've created the following article to help you understand what to do in the first 100 days after registering your business in the United States.
Step 1: Review and save all your company documents in a safe place.
These are:
- State registration: Articles of formation, Certificate of incorporation, etc.
- Federal registration: EIN letter.
- Legal and internal documents: Operating agreement, bylaws, Shareholders' agreement.
Step 2: Use our Compliance Calendar tool to identify key deadlines for your company’s obligations, such as:
- State renewal: Annual report/Franchise Tax. (The filling deadline depends on the state where your company was formed.)
- Tax filing: Deadlines March 15th (Partnerships), April 15th (Disregarded entities and corporations).
Please keep in mind that the company’s obligations are the responsibility of the members and the owners.
You can access our compliance calendar tool by logging in to your account from the following link: https://portal.globalfy.com/. Then click on “Compliance Calendar” on the left-hand side of the page.
Step 3: Make sure that the registered agent and virtual address (Or address) you are using in the US is reliable, and that you have high-resolution access to your mailing.
It’s important to trust whoever is receiving your mailing and to have immediate access to your documents.
Step 4: Know that your company’s initial investments are tax-deductible.
In the US, you pay taxes only on your net profit (Income). This means that if you made an initial investment in your business, such as marketing research, marketing consulting, or even the amount you paid to create your business in the US, you can deduct these expenses at the time of declaring taxes.
Even if you made these payments in your home country, you can make them tax-deductible.
Therefore, remember to save all the invoices, receipts for those expenses. So you will be able to use these to deduct them in the tax return for your company later on.
Step 5: Apply for your ITIN.
Keep in mind that the EIN is the company’s tax ID in the US, but the ITIN is the individual taxpayer identification number, used by members with businesses in the US who don’t have an SSN and need to declare taxes in the US.
The ITIN can also be required by some entities, to open a bank account.
Step 6: Get a US number (Optional).
Some entities might have you obtain a US phone number in order to do businesses with them, so here are a few options for you to obtain a phone number from the US:
Those are good tools for international founders who are looking to establish a presence in the US.
Step 7: Publish a website or online store.
Even if you are selling online on Amazon or Shopify, having an online website will give you some advantage in your bank application process or even in dealing with some suppliers. The website must be in English, preferably, and targeted to the American market, so entities can see and understand what your activity is and what you do.
Some tools we recommend to create your website are:
Step 8: Apply for your business bank account directly through our platform.
Currently, we work alongside some banking partners such as the Mercury bank, Lili and Payoneer. These are all online banks, and you can apply to some of them directly from our platform: https://portal.globalfy.com/
Once approved, you will be able to operate with your bank platform, send and receive transfers, have a debit card, among others.
Important: Please submit your application for a bank account and payment processors carefully, do not use a VPN, and be transparent about your company’s operation. This will improve your chances of approval.
Step 9: Open your account with payment processors (Optional).
Depending on your activity, you might need a payment processor. Some examples would be:
- E-commerce: Shopify payments, Stripe, and PayPal.
- Tech/Digital: Stripe, PayPal, and Paddle.
- B2B: AC, Wire transfer, and check.
Important: Start using your payment processors gradually, with low-value transactions that can be easily verified by the provider, so you can avoid blockage.
Step 10: Understand how to issue invoices.
When you make a sale, you will need to issue an invoice to your customer. This is not a government-registered document and can be generated using tools available through your bank account (Mercury, Lili), Payment processor (Stripe, PayPal), E-commerce platform (Shopify, Amazon), or accounting software (Xero, Quickbooks, Freshbooks).
Here is an article where you can learn more about issuing invoices: https://globalfy.com/blog/how-to-issue-an-invoice-in-a-company-in-usa/
Step 11: Register your trademark in the US.
Registering your brand in your home country does not protect its use in the US. However, it may simplify the process through the Madrid protocol
Currently, we don’t offer this service, but we give you these options of service as a recommendation:
Step 12: Sales tax.
Sales Tax is a tax collected from the final consumer and remitted to the state, typically applied only to the sale of physical products.
When we talk about sales tax, we need to have in mind 2 types of different nexus:
- Physical Nexus: It’s where the company is registered or where it holds inventory.
- Economic Nexus: When your sales exceed certain thresholds in a given state.
Monthly or quarterly reports must be submitted to the state, depending on the state.
Important: We recommend our bookkeeping/accounting service for this type of activity to help you with the registration process, + regular reports for sales taxes.
Step 13: Insurance.
Insurance may be required or necessary.
- General liability: Covers third-party claims against your business, such as bodily injury or property damage.
- Umbrella Insurance: Provides additional coverage that kicks in when the limits of other policies (Such as General liability) are exceeded.
The majority of retailers (Walmart, Amazon) require general liability insurance. And even some companies that might hire your service/site/platform might require this insurance too.
Step 14: Build your contract library.
If you have a company in the US, you are surely going to lead some sort of contracts. Some examples would be:
- US-based employees: Employment agreement.
- International contractors: Independent contractor agreement.
- Business agreements: Service agreement, sales contract, purchase agreement.
Although we provide templates for some of these contracts, we recommend looking for some examples on LawDePot:
Here you have tons of templates for different types of legal documents that are pre-vetted by legal attorneys.
Step 15: To hire local (W2) employees in the US. (Optional).
You will need additional registrations and compliance measures.
- IRS, State department of labor.
- State Department of Revenue.
- Securing workers’ compensation insurance.
- Disability Insurance.
You will also need a platform as a Payroll solution. Here are some examples:
They help you manage your payroll to make your employees’ payments.
Important: We also recommend our bookkeeping service if you need support with this payroll, to make sure that your company is 100% compliant with the state and federal regulations.
Step 16: You are eligible to import and export goods and services from day one.
No additional registrations are required.
A customs broker will handle the entire process for you. Including “Customs bond”.
Step 17: Accounting might not be fun, but it is Essential.
Choose an accounting system that fits your needs. Look for features like bank and payment processor integration, and an easy way to manage payment receipts.
Some recommendations would be:
Having your books done monthly and organized will help you a lot when the tax season arrives.
Step 18: Understand how taxes impact your costs and know exactly when to file and pay.
Know exactly when and how to file taxes in the US.
Federal and state taxes are always applied to your profit, not your revenue.
Expect quarterly payments and annual tax returns.
Penalties for failing to file can exceed $25.000 sometimes.
If you still have any questions or need further assistance regarding this topic, we are available to help you! Simply click here to submit your support request and our team will be glad to assist you.