What Private Entrepreneur Implies?
In the United States, there are several doing business options:
- private entrepreneur;
- corporations, limited liability companies.
A sole proprietorship in the United States is an individual who does not own an unincorporated enterprise. But at the same time, if an entrepreneur is the only member of a limited liability company and prefers to consider the business as a corporation, then he is not a private entrepreneur.
Anyone can be an entrepreneur. This form of doing business is the most simple and affordable. Only a citizen of this country can be an individual entrepreneur in the USA. Foreign citizens can register as an LLC or corporation. An individual entrepreneur in the United States runs its business according to a simplified taxation system and maintains accounting reports. Basically, private entrepreneurs are engaged in trade, small-scale production and the provision of various services: hairdressing, sales, automotive and etc.
The US laws do not establish formal requirements for FB. The registration procedure is quite simple and inexpensive. But you need to take into account that the country has a federal structure, which means that the registration procedure, the taxation system can differ significantly in different states. Consider the registration process using the example of the state of Washington:
- registration in this US state of FB is not required unless it is planned to conduct activities subject to licensing.
- it is necessary to verify the chosen name of your company on the website of the Secretary of State in order to avoid similarity with existing companies.
- if the individual FB is not in the state where the registration takes place, it is necessary to contact the registered agent. An agent can be both individual and specialized companies. But all of them must have a registration address in this state. The correspondent receives the correspondence, informs the Secretary of State about the change in the data of the FB or about the termination of the activity.
- an identification business number is issued, which is used later when applying to various government agencies.
You can find out whether licensing can be done by an individual entrepreneur in the United States on the website of the Licensing Department. In addition, you can order documents that describe all the steps for registering sole proprietorship – which authorities to apply to, their addresses, phone numbers, and websites; documents required for submission. Licensing of business activities can also vary significantly from state to state.
In the USA, taxes are quite low, which makes doing business in this area economically attractive. Some states do not impose local taxes on individual entrepreneurs, only once a year the fee for re-registration is paid. Non-resident individual entrepreneurs registered in the United States do not pay income tax from operations in other countries. A “green card” – a permanent residence permit – can also be issued more quickly if your business is successful.
A private entrepreneur manages his property, is responsible for debts and obligations. Legally, he is not a legal entity, all his profits are considered personal income, which he has the right to dispose of independently. Income is taxed at the same rates as the income of individuals. Doing business in the United States does not require an audit or accounting audits, therefore it is a fairly attractive form of business.
Category: Health Care
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