How To Legally Operate With No Tax In The USA?

America is not only a world superpower and a leader on the global stage, but also a jurisdiction that offers unique business opportunities with favorable tax conditions. Registering a company in the USA can be an excellent solution for both startups and aspiring entrepreneurs, as well as for existing companies seeking to enter the American market. This allows you to gain access to more than 300 million potential customers and establish trade links with leading world powers. In addition, the United States, unlike European jurisdictions, does not participate in the automatic exchange of tax information, which provides a high level of confidentiality for businessmen. Today, America has the largest share of the global offshore financial services market – approx 22% – and provides a wide range of confidential and duty-free services to non-residents at both the federal and state levels. In this article we will look at the advantages and features, as well as the individual characteristics of such tax havens in the USA as the states of Delaware and Wyoming for company registration.

Wyoming’s and Delaware’s appeal as a business haven

If you are looking to establish a business in a country with a stable economy and excellent prospects, but want to minimize administrative complexities and tax burdens, consider registering a company in the United States, specifically in the states of Wyoming or Delaware. These states offer favorable tax conditions and simplified business management.

The state of Delaware is often chosen for registering startups, IT companies and gambling businesses. It is also attractive for those who are planning to enter the stock market and conduct an IPO. However, Delaware provides the greatest benefits if the business is not conducted in the United States. This state offers a tax system similar to offshore jurisdictions, where there are no taxes provided that the activity is not carried out locally. Moreover, there is no VAT or sales tax in Delaware.

Advantages of registering a company in Delaware are next-mentioned.

1. An LLC’s founding documents do not contain personal information about its members or managers. Only Delaware registered agent information is publicly available.
2. Management Flexibility: One person can serve as President, Vice President, Secretary and Treasurer.
3. Corporations incorporated in Delaware and operating outside the United States are not subject to sales tax, income tax, or intangible asset tax.
4. There are no minimum capital requirements.
5. Registering a company in Delaware is possible from anywhere in the world.
6. The existence of the Court of Chancery, which specializes in resolving commercial disputes based on principles of equity.

If your company plans to do business in the US, it may be worth considering alternative incorporation options such as Wyoming, which may offer more favorable terms.

The western US state of Wyoming has earned a reputation as a corporate paradise thanks to its liberal laws and numerous startup opportunities. Here you will find a stable economy, low taxes and highly developed infrastructure, as well as a moderate climate and low crime rates. Advantages of doing business in Wyoming are next-mentioned.

1. Directors and founders are not required to be US residents.
2. State taxes are among the lowest in the country.
3. Registering a business is quick and easy, without the need for meetings of participants or the accumulation of large authorized capital.
4. Possibility of issuing shares for any value without restrictions on volume and value.
5. Information about the owners remains confidential.

If you’re looking to open a business in the US without the expense or hassle, Wyoming is a great choice. The registration process can be completed quickly and even remotely. In addition, Wyoming provides access to a wide range of US payment systems, making financial transactions and transactions easier. This state has already established itself among businessmen as a reliable partner, which makes it an attractive choice compared to other regions of the United States.

Steps to setup a company

So let’s look at the state of Wyoming. It attracts entrepreneurs due to its low tax rates and minimum requirements for legal entities, without having offshore status, which contributes to the high prestige of the company and the trust of partners. Wyoming is actively involved in the nation’s business environment and has proven itself to be a reliable place to do business. To open a business in Wyoming, follow the next-mentioned steps.

1. Select a company name: It must be unique and not the same as the names of existing companies. The name can be in any language, but must be written in Latin and include the legal form (for example, LLC).
2. Prepare the articles of incorporation: Draw up a memorandum or articles of association that outlines the rules of governance and the rights of the company’s members.
3. Gather the necessary documents: Prepare your domestic and foreign passports, as well as proof of address in the country where the business is registered (for example, utility bills).
4. Hire a secretary (if required): If necessary, you can hire a secretary who will deal with organizational issues, conduct meetings and maintain documentation. Nominee services will help with this.

The procedure for registering a business in Wyoming includes next-mentioned phases.

1. Concluding an agreement with a registered agent.
2. Finding and specifying a legal address: Find the premises that will serve as the legal address of the company.
3. Receive registration confirmation and generate an identification number (EIN).
4. Opening a corporate bank account.

Wyoming provides the opportunity to register a company in the USA remotely, without the need for a personal visit to the country.

Now let’s look at the process of registering a company in the state of Delaware and its key aspects.

1. Choosing a Business Name: The name must be unique and meet state requirements. It must be distinctive and not the same as the names of existing companies.
2. Determination of legal address: It is necessary to indicate the actual location of the main office. Location may depend on many factors, such as target audience, tax policies, and zoning requirements.
3. Appointment of a Registered Agent: You must select an agent to represent your company and manage its official affairs. This may require the services of a nominee service.
4. Filing of Articles of Incorporation: Documents are filed with the Delaware Department of Corporations and must include the company’s name, management structure, stock information (if a corporation), applicant information, and a description of the company’s activities.
5. Drawing up an operating agreement: This document contains the rules of the company and the rights of all participants.
6. Obtaining an EIN: An EIN is needed to pay taxes, hire employees, and open a bank account. It can be obtained by contacting the tax office.
7. Opening a bank account in the US: Once you receive your EIN, you can open an account at any US bank. This will require documents such as company registration, license, ownership agreement and EIN. Please note that opening an account may require you to travel to the US in person.

The choice of bank should be made carefully, taking into account conditions, reputation and fees. This will provide you with convenient access to international transfers and financial transactions.

Tax pros and cons, and fees required

Let’s look at the key tax features in the states of Delaware and Wyoming that make them attractive for business. The State of Delaware offers next-mentioned.

1. Consumer Product Tax: Delaware does not impose sales tax on goods, regardless of where the company is located.
2. Income Tax: The state has no income tax on income from goods and services provided outside the state.
3. Investment Income Tax: Holding companies in Delaware are exempt from taxes on interest and investment income.
4. Property Tax: Delaware does not have a personal property tax. Property taxes are collected at the county level, but they are significantly lower compared to other states.
5. VAT and Other Taxes: Delaware has no value added tax (VAT), inheritance tax, capital interest tax, or stock transfer tax.

The State of Wyoming provides next-mentioned.

1. Income and Property Taxes: Wyoming has no corporate or property taxes and no franchise tax. Registering a business does not require additional tax payments.
2. Federal Tax: Companies incorporated as a C-Corporation are required to pay federal income taxes of 21% annually.
3. Income Tax for LLC: For a single-member LLC that is treated as a sole proprietor, income tax is applied at a rate ranging from 10% to 37%, depending on the level of profit.

These tax advantages make Delaware and Wyoming particularly attractive for business-registration, providing low tax costs and simplified tax accounting.

When it comes to business registration and maintenance costs, Wyoming offers a more cost-effective option. Here, the annual application fee is only US$60. In contrast, in Delaware the annual fee is in the form of a franchise tax and is $300. If your budget is tight and you’re looking for a more affordable way to incorporate your business, Wyoming offers a cheaper option compared to Delaware.

In conclusion, Delaware may be a good choice if you are considering converting your LLC to a C-Corp to attract US venture capital or if the company’s prestige is important to you. However, if you are looking for an easy and cost-effective way to start and operate a business, especially an online or e-commerce business, Wyoming is a better option. This state offers a business-friendly environment and low operating costs. The choice depends on your goals.