When did you incorporate your product or service?

Hey Arjun here I've helped 1000s+ of entrepreneurs incorporate + launch a US business through doola so here are the top reasons why we've seen founders incorporate:

If you want to hear this in someone's own words, check out this video from Kari, a founder we helped! https://www.youtube.com/watch?v=rx7hKko5JWY&t=6s

You need to sell to US customers: US customers will either require or strongly prefer paying in $USD to a US Bank Account or via a US payment processor. More on how to set this up here: https://www.doola.com/blog/how-to-set-up-a-us-llc-and-us-bank-account-as-a-non-us-resident-remotely-from-anywhere-2021-update

You are required to have a US EIN: Ie some vendors require a W9 = US Taxpayer Identification number = an EIN! More on EINs here: https://www.doola.com/how-long-will-it-take-to-get-an-ein

You need to separate personal from business: It is a bad idea to have business expenses done on a personal card, and vice versa. Keeping things separate allows you to have better separation between personal and business, which is key for taxes as you can then ensure all business expenses are indeed logged as business expenses (and you can gain any tax benefits from this as well.

You need liability protection: In the name "limited liability company" is... limited liability! That's one of the top reasons why people form in the first place. This is so that, if you or the business is sued, you are not held personally liable and there is a protection/wall between your assets and the companies assets.

You are looking for tax benefits / business expense benefits or savings: as a non-us resident (disclaimer: not a CPA or lawyer) it is possible to form a US company and only have an informational filing requirement in the US + you pay taxes normally in country you live in. More on that here but there can be tax or business expense benefits from this structure: https://www.doola.com/blog/us-tax-filing-requirements-for-my-us-company

You get a business bank account: This allows you to work with US payment processors like stripe and its a massive sign of social proof + trust for global businesses!

So in summary, if you need any of the above, the right time to get started is actually 4-6 weeks before you need one of the above because that is how long it can take a non-US resident, for example, to go from formation to EIN/Bank Account! More on the full timelines we see here: https://www.doola.com/process

Lastly, this can be a complicated topic and I know many folks still would like to chat things through 1:1 with someone so feel free to schedule a free consultation online at https://www.doola.com/ where myself or someone on the team can answer any questions!

Say something nice to frabia…

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Hey Arjun here I've helped 1000s+ of entrepreneurs incorporate + launch a US business through doola so here are the top reasons why we've seen founders incorporate:

If you want to hear this in someone's own words, check out this video from Kari, a founder we helped! https://www.youtube.com/watch?v=rx7hKko5JWY&t=6s

You need to sell to US customers: US customers will either require or strongly prefer paying in $USD to a US Bank Account or via a US payment processor. More on how to set this up here: https://www.doola.com/blog/how-to-set-up-a-us-llc-and-us-bank-account-as-a-non-us-resident-remotely-from-anywhere-2021-update

You are required to have a US EIN: Ie some vendors require a W9 = US Taxpayer Identification number = an EIN! More on EINs here: https://www.doola.com/how-long-will-it-take-to-get-an-ein

You need to separate personal from business: It is a bad idea to have business expenses done on a personal card, and vice versa. Keeping things separate allows you to have better separation between personal and business, which is key for taxes as you can then ensure all business expenses are indeed logged as business expenses (and you can gain any tax benefits from this as well.

You need liability protection: In the name "limited liability company" is... limited liability! That's one of the top reasons why people form in the first place. This is so that, if you or the business is sued, you are not held personally liable and there is a protection/wall between your assets and the companies assets.

You are looking for tax benefits / business expense benefits or savings: as a non-us resident (disclaimer: not a CPA or lawyer) it is possible to form a US company and only have an informational filing requirement in the US + you pay taxes normally in country you live in. More on that here but there can be tax or business expense benefits from this structure: https://www.doola.com/blog/us-tax-filing-requirements-for-my-us-company

You get a business bank account: This allows you to work with US payment processors like stripe and its a massive sign of social proof + trust for global businesses!

So in summary, if you need any of the above, the right time to get started is actually 4-6 weeks before you need one of the above because that is how long it can take a non-US resident, for example, to go from formation to EIN/Bank Account! More on the full timelines we see here: https://www.doola.com/process

Lastly, this can be a complicated topic and I know many folks still would like to chat things through 1:1 with someone so feel free to schedule a free consultation online at https://www.doola.com/ where myself or someone on the team can answer any questions!

arjunmahadevan

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4 years ago
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1

I did not want to deal with administration issues for obscure reasons, so I decided to create a company at the very beginning of my entrepreneurial adventure. To avoid taking too much risk and spending too much on registration and taxes, I took the way of incorporating as a sole proprietorship!

Kazmaat

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5 years ago
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