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How to register your eCommerce business in the US

June 1, 2022
3 mins

How to register your eCommerce business in the US

June 1, 2022
3 mins

 

 

First, you need to decide what type of business entity you wish to incorporate, that is, a limited liability company (LLC) or a corporation (C Corp).

At Kwanza, we advise you to register an LLC for a number of reasons:

  • LLC protects your personal assets 
  • LLCs are simple to establish and operate 
  • LLC taxation is more flexible and easier to file.
  • LLCs can be owned by a single member or by a group of members.
  • LLCs provide excellent privacy protection.
  • Transferability of ownership is easy
  • The entity can be formed and managed from anywhere in the world

To form an LLC in the U.S, you need to do the following:

 

Decide which state in the US you want to incorporate your company in

The US has 50 states and their regulations may differ. However, the most business-friendly states are Delaware, Wyoming, and Nevada. At Kwanza, we help founders incorporate their businesses in Delaware and Wyoming.

 

Select a business name

Once you have decided on a state to incorporate in, you need to pick a name that has not been previously registered. Make sure your business name stands out and resonates with your audience.

 

Register the company

Then you have to file your formation documents. These are the documents that validate the existence of your company. For C Corps they are called Articles of Incorporation, and for LLCs, they are called Articles of Organisation. 

 

Obtain an EIN

Every business in the US is required to have an employer identification number (EIN) which is typically your business’s tax identification number. You need the EIN to open a bank account, employ and pay employees, file your company tax, etc.

 

Open a US business bank account

With your EIN in place, you can then apply for a US business bank account.

Using a regular US bank like Wells Fargo or Citi Bank can prove difficult because they require you to visit their banking premises in person in the US to set up a bank account.

This would mean you need to travel to the US to complete the entire process. This is unnecessary and a waste of time and money. 

This is why we provide an alternative at Kwanza. We have partnered with banking providers such as Brex, Mercury, Relay, and others to help you set up a US business bank account remotely.

That way, you can create a US bank account for your company without having to travel to the United States. All you need are your business formation documents, your means of identification, and address validation.

 

So there you have it. A detailed guide on how you can start your eCommerce business on Shopify and get paid easily even if you don’t live in the US or any of the Shopify-supported countries.

Ready to get started? Click here to register your eCommerce business in the US today.

Author
Kwanza

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By registering with kwanza you get easy access to all the tools you need to start your own business in the united states.