Have questions? We’ve got the answers.
Frequently Asked Questions
Here are some questions we usuallly get and have curated answers to.
EIN (Employer Identification Number) is your company’s tax identification number provided by the United States IRS. In order to apply for an EIN online, the person applying must have a valid Taxpayer Identification Number (SSN or ITIN). If you don’t have a Social Security Number or Individual Taxpayer Identification Number (which international founders might not have), then we would have to mail or fax application in to get an EIN for your US company.
With SSN: If you have a Social Security Number, you can receive your EIN in 3 – 5 working days. Without SSN: If you do not have a Social Security Number, you must fill out an SS-4. Due to the Covid19 backlog, getting your EIN can take anywhere from 1-4 months from the day of submission. To help you fast-track this, we follow up with the IRS daily and there have been cases where the EIN was obtained in less than a month.
The way you’re taxed and owned, and how shares work. C corporation income is taxed twice—the business pays taxes on its net income, and then the shareholders also pay taxes on the profits they receive. With S corporation income, only the shareholders pay taxes on profits received. C corporations have no limits on how many people and who can own shares. S corporations are limited to 100 shareholders who must be U.S. citizens or residents. C corporation owners may get preferred stock—which comes with no voting rights but priority to dividends before common shareholders. S corporation owners can only get common stock which comes with voting rights. About 70% of our corporation customers choose to be an S corporation, but don’t feel like any decision is final. You can always convert to a C corporation later.
The steps to form a new business are very similar across states, but there are small differences with timing given how each state structures its internal processes and workflows. Here is what you can expect when filing your business through kwanza: You select the filing plan that best fits your needs. kwanza files your certificate of formation with the state. The Secretary of State confirms your LLC or corporation. kwanza delivers your verified business documents. kwanza provides ongoing services to keep your business compliant and ready to grow!
The steps to form a new business are very similar across states, but there are small differences with timing given how each state structures its internal processes and workflows. Here is what you can expect when filing your business through kwanza: You select the filing plan that best fits your needs. kwanza files your certificate of formation with the state. The Secretary of State confirms your LLC or corporation. kwanza delivers your verified business documents. kwanza provides ongoing services to keep your business compliant and ready to grow!
We offer more than a lawyer can at much lower costs because we use technology and automation to reduce administrative costs. Worried about accuracy? Our processes are vetted by lawyers for validity to ensure we’re filing your information correctly.
Most of our clients start U.S. companies to access the U.S. market, reduce their personal liability, and access U.S. payment/banking infrastructure.
We currently support Delaware or Wyoming, which are considered to be the most business-friendly states in the US with over 67% of Fortune 500 companies registered in Delaware.
We support almost every country in the world except for a few countries like Iran, North Korea etc that have been sanctioned by the US government.
The time it will take to complete your formation varies by state. We offer a rush filing service depending on your state, but for a more accurate estimate, please visit our pricing plans to see what’s right for your company.
It ensures that you and other shareholders aren’t personally on the hook for company debts and liabilities.
Large public corporations or those planning to go public can benefit from things like Delaware’s well-established and predictable body of corporate law—aka how courts tend to resolve business disputes. Venture capital firms and angel investors also often prefer Delaware corporations. However, most small businesses form in the state where they do business to avoid added costs and complexities.
LLCs have one or more individual owners and corporations have shareholders. Corporations (C Corp) generally have more formal record-keeping and reporting requirements. LLCs are considered easier to start and maintain and more suitable for shopify sellers, amazon sellers, sole proprietors and freelancers. Investors however tend to prefer corporations.
Yes, you can but please let us know ASAP. You can chat with us online anytime or send us an email at [email protected].
We work with our partners to provide you with an easy way to file your taxes. Our partner Bookmate has packages based on revenue and can file for any type of entity that you can file with kwanza. kwanza customers have access to an exclusive 10% discount on all Bookmate services. Federal tax returns are due in March or April depending on the entity. Schedule a free consultation with Bookmate.
If you own and/or run a small business, chances are your state requires you to have a registered agent—most do. But even if your state doesn’t, strongly consider getting one. A registered agent is a responsible third-party in the same state as the business, who can receive service of process notices, correspondence from the Secretary of State, and other official government notifications—usually tax forms and notice of lawsuits—on behalf of the corporation or LLC.
If you do not have a physical location in the state in which your business is registered, in most states, you must select a registered agent to accept documents on your behalf. The state in which your business is registered needs to know it has a contact person for your business during business hours; accordingly, PO boxes are not acceptable addresses for registered agents.
Most of our clients start U.S. companies to access the U.S. market, reduce their personal liability, and access U.S. payment/banking infrastructure.
We file your formation very quickly so if you spot something you need to change after purchase, please let us know as soon as possible. You can also make changes after your formation is complete by either making an amendment or using one of the two free amendments you get each year as part of our Problem Free Guarantee service.
Think of shares as your piece of the ownership pie—and there are two main types (i.e. “common” and “preferred”). Common shareholders have voting rights and can receive dividends if they’re issued. Preferred shareholders have priority over common shareholders when it comes to dividends and payout claims (if the corporation becomes insolvent).
You need majority shareholder consent to switch before you can change your status with the IRS.
One time payment of $499
We have an all-inclusive package for $499. That includes incorporation in the state, all state filings, EIN (your tax ID), business bank account including a debit card, mailing address, and a US phone number. We’ll handle all the processing, state government fees for you. The whole process takes about 10-15 business days. You don’t have to worry about anything.
When we say no hidden fees, that means there are no surprise add ons or charges at checkout. We will only charge you for the package you select and purchase at checkout.
Buy with confidence knowing that your purchase is 100% refundable minus any expenses we have incurred to begin your formation. Once our payment is sent to the state, however, we cannot accept any cancellations or changes to your filing.
Nope! We handle everything remotely. You’ll just need to provide your passport as identity verification and we’ll work directly with the bank to open your account.
We use Mercury bank. You can read more about them at mercury.com, they are one of the premium banks in silicon valley.
They are an online bank, however they are based in San Francisco.
You’ll need a U.S. company with a federal EIN, your company’s articles of incorporation, and a picture of your government ID (e.g. a passport or driver’s license). We’ll file the company and get you an EIN and articles of incorporation. We just need a picture of your passport.
Mercury accounts are free. They don’t have minimum balances, account opening fees, or monthly fees. The only things that cost money are wire transfers, which are $5 domestically and $35 internationally.
No, they don’t have minimum balances, account opening fees, or monthly fees.
We’ll open the account on your behalf and share your account details with you. You can manage your entire banking experience online. No visit required.
The bank does not offer a credit card service. Once you have a bank account you should be able to apply for credit cards at any of the major service providers (Chase, Discover, Amex, etc). Also, the bank does issue a debit card for your usage and we will ship the debit card to you. We ship internationally.
Unfortunately, we are only offering the whole package together. We are building some more services around this to take care of your tax and compliance filings etc, so we need all the information with us.
To get started, simply fill out our online form, submit your payment, upload your documentation and we’ll handle the rest.
No, you don’t need to be a U.S. Citizen with an SSN to use kwanza. We support non-residents from over 175+ countries. If you do have an SSN, let us know and we can expedite your application.
You need majority shareholder consent to switch before you can change your status with the IRS.
Think of shares as your piece of the ownership pie—and there are two main types (i.e. “common” and “preferred”). Common shareholders have voting rights and can receive dividends if they’re issued. Preferred shareholders have priority over common shareholders when it comes to dividends and payout claims (if the corporation becomes insolvent).
The time it will take to complete your formation varies by state. We offer a rush filing service depending on your state, but for a more accurate estimate, please visit our pricing plans to see what’s right for your company.
With SSN: If you have a Social Security Number, you can receive your EIN in 3 – 5 working days. Without SSN: If you do not have a Social Security Number, you must fill out an SS-4. Due to the Covid19 backlog, getting your EIN can take anywhere from 1-4 months from the day of submission. To help you fast-track this, we follow up with the IRS daily and there have been cases where the EIN was obtained in less than a month.
The time it will take to complete your formation varies by state. We offer a rush filing service depending on your state, but for a more accurate estimate, please visit our pricing plans to see what’s right for your company.
