FAQ Schema Articles

#1 Best State To Form LLC For Online Business in 2021

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What is the best state to form a LLC?

The best state to form an LLC is Wyoming, as long as you do not have a business presence already in another state. Otherwise, it is better to establish your LLC where you have a business or industry influence. Wyoming is a good choice, as its fees are lower and the state offers asset protection and does not charge taxes for capital gains or taxes. Businesses also experience more privacy, as the members’ names are not disclosed. 

Does it matter what state you form your LLC in?

Yes. It does matter where you establish your LLC. Usually, you should form your LLC in a state where you have a predominant business influence. However, if you are a non-resident, you can choose from one of various states to support business activities. Usually, it is best to choose Wyoming. The state’s annual fee is only $50, and you can own a business anonymously. The state also offers one of the best asset protection laws, and does not charge taxes for state earnings and capital gains.

What is the best state to start a business?

The best state to form a business is the place where you plan to base your business operations. For example, if you want to base your operations in California, you need to set up your business entity in California. However, if you are from another country, Wyoming has proven to be both business-friendly and low-cost with respect to business formations.

Do I need to form an LLC for an online business?

You do not have to form an LLC for an online business. However, it is a good idea to do so, as an LLC can protect your personal assets and provides more tax flexibility. If you want to do business, online or offline, you should carefully consider your business priorities, and how you can protect yourself legally and financially.

Can I start an LLC in another state?

Yes. You can start an LLC in another state, provided that you do not have a prevailing business influence in the state or location where you live. Otherwise, if you are a US resident, it is better to form an LLC where you actively do business. If you live in another country, you can start a business in low-cost states such as Wyoming, Delaware, or Nevada. The state that offers more privacy with respect to filing and a lower annual filing fee is Wyoming.

 

EIN Number Cost (How Much Does It Cost To Get An EIN?)

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How much does it cost for an EIN?

You do not have to pay the IRS to obtain an Employer Identification Number, provided you already have a social security number (SSN) or international taxpayer identification number (ITIN) on file. Otherwise, you do need to pay for a tax number so you can secure an EIN. Learn more about getting an ITIN, if you don’t have an SSN, along with an EIN at this link: https://einexpress.com/ein-without-ssn. 

Do you need a business license to get an EIN?

You may need to get an Employer Identification Number (EIN) before you apply for a business license. However, in most states, you can obtain both the EIN and license at the same time. If you live in California, you should get the EIN first before you apply for a business license. 

In California, licenses or permits are provided for various tax reasons, and may include permits for tax withholding, sales, or unemployment tax insurance. A database in California and other states lists links and resources for obtaining general business licenses.

How long does it take to get an EIN?

People who apply online usually receive their EIN in two weeks. Otherwise, people who send in applications by mail normally wait four to five weeks to get their EIN. International applicants must first call a number that is provided on the US IRS website. Form SS-4 must be completed to receive the EIN.

 

Partnership vs Corporation (Discover Which Is Better For YOU?!)

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What is the difference between a partnership and a corporation?

A corporation is a separate legal and business entity whose owners are called shareholders. They decide on how the company is managed and by whom. A partnership is formed when two or more individuals agree to share ownership. 

A general partnership permits all the management duties to be shared by two or more owners while a limited partnership is made up of active owners and investors. Active owners share in running the company while the limited owners only invest in the business.

Why is a corporation better than a partnership?

Unlike a partnership, a corporation is considered better, as it operates separately. Therefore, this type of business will not hold shareholders or managers personally liable for any business obligations or debts. Only the corporation is responsible for the business’s legal fees or obligations. None of the shareholders have to worry about losing their personal assets. Partners, on the other hand, do not enjoy this protection, and can be held liable if they default on a loan or other business debt or obligation.

What are the advantages of a partnership over a corporation?

A partnership is designed so it has a simpler management structure than a corporation. Basically, the general partners of the business decide how the business will be run. The general partners share and assume management responsibilities, and decide on the hiring and oversight of others on the management team. Alternatively, a corporation is governed by its shareholders, who conduct meetings regularly to determine policy. The shareholders oversee the managerial practices of the business. They are not directly involved in everyday operations.

A partnership also enjoys pass-through taxation. Therefore, the owners’ profits and losses can be reported on their individual tax returns. Corporations, on the other hand, are subject to double taxation. Not only must the business pay taxes, but the shareholders must also pay taxes on the dividends earned. The corporate tax rate is normally lower than the individual tax rate to allow for the double tax.

Is LLC a corporation or a partnership?

An LLC, in and of itself, is not considered a corporation or a partnership. However, an LLC, which has more than one member, can be categorized as a partnership for income tax purposes. An LLC may also submit IRS tax form 8832, so it can be treated as a corporation for income tax filing purposes. In either of these two instances, though, the entity is still considered an LLC.

The LLC or limited liability company is considered a hybrid business entity, as it features traits that are representative of a partnership, corporation, and sole proprietorship. However, an LLC is technically considered distinct from any of the aforementioned entities.

Which is better, a partnership or corporation?

With respect to risk, it is better to form a corporation. If anything goes wrong, and you form a partnership, a creditor can go after your personal assets. A corporation is separate, and therefore the owners’ personal assets are usually protected. A partnership does not operate separately from its owners.

Also, in terms of stability, a corporation is often better. For example, if there is a change in ownership, the corporation’s ownership can be transferred or the stock sold. A partnership, on the other hand, must form a new partnership if there is a change in owners.

 

How to Open Bank Account in the USA in 2021 (Step-by-Step Guide)

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Can a foreigner open a bank account in the USA?

Yes, a foreigner can open a US bank account. However, the process is not all that simple if you open an account as a non-resident. Some US banks require that you have a US-based address or provide an International Taxpayer Identification Number or ITIN for tax reporting purposes. You also need to provide immigration documents if you live in the US or plan to move to the US and live. To obtain an ITIN or EIN (Employer Identification Number), visit this website for further details.

What is required to open a bank account in the US?

To open a US bank account, you will need two forms of valid photo identification. You must submit a passport and a secondary ID, such as a student picture ID, state ID, or driver’s license. You also need to provide immigration paperwork, including your visit or work visa. 

An EIN or Employer Identification Number should be included as well. This number is required to open a bank account in the US, or a US-based business. You should first obtain an International Taxpayer Identification Number (ITIN) before obtaining the EIN. The ITIN is needed for tax reporting if you are not a resident and do not possess a social security number (SSN).

Most banks will require a US-based address and an initial deposit of $10 to $100. 

If you don’t have a US address, you can solve this dilemma by obtaining a virtual street address. This address often comes with mail forwarding services. You can also receive mail through major US carriers, such as the US Post Office, UPS, and FedEx.

Can a visitor open a bank account in the USA?

Yes, a visitor can open a US-based bank account. As long as he or she has the needed documentation and paperwork, a bank account can be established. That means you need to provide two forms of picture IDs – your passport and a secondary ID, such as a driver’s license or student picture ID. 

For example, if you are a visitor, you can open a bank account if you are a student with a passport. Possessing proper identification can get you through the door. Also, you will need to possess an ITIN (International Taxpayer Identification Number). You will need a US address as well. You can obtain a virtual US address with mail-forwarding services.

To learn more about the process, you need to contact a US-based attorney to help you with each step. Contact https://mollaeilaw.com/start for further details if you are visiting from another country and want to open a bank account.

Can a non-citizen open a business in the US?

Yes, a non-citizen can open a business in the US. He or she just needs to rely on a US-based attorney to ensure success. To open a business as a non-resident, you need to form a business entity, preferably a limited liability company. 

You will also need to obtain an International Taxpayer Identification Number (ITIN) for tax reporting purposes. A lawyer can also help you establish a US-based bank account. To learn more about the process, contact a legal expert. Email https://mollaeilaw.com/start for further information.

How much money do you need to open a bank account at US Bank?

The initial deposit to open a bank account in the US usually ranges from $10 to $100.

What documents do I need to open a bank account in the USA?

You need to supply two forms of a picture ID to open a bank account in the US. You should also provide a US-based address. If you do not live in the US, you can obtain a virtual address with mail forwarding services. In addition, you need to provide an International Tax Identification Number (ITIN) or Social Security Number (SSN). 

Both numbers are required for reporting taxes. If you don’t live in the US, you will need to obtain the ITIN. You will also need, as a business, to obtain an Employer Identification Number (EIN). This number is used to establish a bank account, hire employees and file US-based taxes. 

 

How Much Does It Cost To Trademark a Name or Logo in 2021?

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How much does it cost to apply for a trademark?

A trademark, which is a brand name, costs between $275 and $325 for filing. In addition, you need to pay the related attorney fees or any state fees, (which range between $100 to $200). You will also need to pay future maintenance costs. A single-class application is usually just over $1,200.

How do I trademark a name and logo?

To establish your company’s identity and protect it, you should trademark the name and logo. To trademark your name and logo, you need to make sure the logo is available before you begin using it. Register the trademark for the logo with the Secretary of State where you have established your business. 

If you want to protect your rights throughout the US, you need to register the trademark with the US Patent and Trademark Office (USPTO). Contact a lawyer to help you with the process, as it takes about six months. Begin by visiting https://mollaeilaw.com/start for all the details today.

What are the three types of trademarks?

According to the US Patent and Trademark Office (USPTO), the three main types of trademarks include word marks, design marks (which make use of images), and composite marks (which feature both words and a design). You can also consider slogans as trademarks when used for business purposes.

Is it better to copyright or trademark a logo?

While copyrights cover intellectual copy, logos must be trademarked. Therefore, it is better to trademark a logo with the US Patent and Trademark Office (USPTO). Once you register your trademark with the USPTO, you can use your business logo anywhere in the US.