The process of setting up a legal entity will differ from business to business, depending on what type of subsidiary is required, as well as other country-specific factors. A general summary of the US requirements is as follows:

• Choose the company type for your US subsidiary – this will most likely be a C-Corporation or an LLC (Limited Liability Company).
• Select a state to situate your business within.
• Give your US entity a name and confirm the business address.
• Hire a Registered Agent Service (RAS) – a company that acts as a registered agent for a business entity, managing legal documents and official notices on their behalf.
• Register your entity with the state.
• Create a Corporation Bylaws or an LLC Operating Agreement.
• Get an EIN.
• Get a US mailing address.
• Open a US bank account.
• Prepare for US tax filing.

However, this is not an exhaustive list. Setting up a legal entity in a foreign country can present a minefield of time-consuming complexities, legal intricacies and multiple risks of non-compliance. 

By partnering with a global PEO service provider, your business can spend valuable time focusing on the core management of your company while expanding your global footprint and tapping into new and lucrative markets.

US entity laws differ from state to state, and are primarily a matter of state law, as opposed to federal law. A general summary of US entity laws is as follows:

• There are no federal corporations in the US – corporations, partnerships, limited partnerships and limited liability companies can be formed under the laws of any state.
• These entities may have other offices in another state, as long as they qualify and register to do business in all states they choose to conduct business within.
• An entity’s name must contain specific terms depending on the company type, e.g. corporations must include ‘corporation’, ‘incorporated’ or an abbreviation of those terms as part of their company name(s).
• The entity’s name must be distinguishable from other names of record in the state of formation, including names for entities of another company type. In cases where your business plans for an entity to conduct business in multiple states, a name could be available in one state and unavailable in another.

As a global economic leader, expanding globally into the USA can help your business secure investments from some of the world’s biggest and most profitable entities, strengthening your reputation in the eyes of potential investors and stakeholders. 

Presenting a versatile economy, setting up a legal entity in the USA allows your business to access highly lucrative opportunities across the well-established Technology, Construction and Manufacturing sectors within the US. This includes a variety of global trade opportunities, facilitated by the strong transport links between the US, Canada and Mexico – enhanced by the United States-Mexico-Canada Agreement (USMCA) which ensures smooth trade between the three countries.

By setting up an entity in the USA, your company is securing a path towards long-term business growth and opening itself up to a wealth of remunerative scope.

In order to avoid the complex, time-consuming and risky process of singlehandedly setting up a legal entity in the US, partnering with a global PEO company can alleviate the stress and potential jeopardy that comes with this process.

From adhering to the intricacies of different state laws, to avoiding non-compliance, and factoring in entity name availability issues – our dedicated team of experienced consultants has the necessary knowledge and expertise to assist you with your global expansion into the USA. 

By outsourcing your entity set up to a global PEO or EOR provider, you can ensure your company is following best practices specific to the US, and focus on the core management of your enterprise, all while reducing your time to market. Opting to work with a global workforce management partner instils the confidence that your business’ valuable time can be spent on important aspects of your company’s growth, knowing that the legalities of tax, national insurance, employee onboarding, visas, work permits and employment contracts are being managed compliantly on your behalf. 

You can rely upon Leap29’s expert PEO services to support your expansion into the USA, thanks to our decades of experience and wealth of country-specific expertise. If you want to find out more about how our USA PEO and EOR services can support your global expansion, get in touch with our specialist team today on +44 (0) 20 8129 6860 or email us at [email protected] to see how we can help your business thrive in the USA.