The best ways to Include or Set Up a Company

The best ways to Include or Set Up a Company

If u r a U.S. resident withut a U.S. Sil Surit Numbr (SSN) r if you r a nn-U.S. frign ridnt without a Sil Security Number, you m b lking t incorporate and form ur buin. Th firt utin we nd to nwr i Can you inrrt without a Sil Security Number? And th nwr is yes! But firt, w nd t xlin what incorporate mn.

What Does Incorporate a Business Mn?

Whn rting a nw buin, you the wnr n form your business in a number f w that best fits ur buin. T incorporate a business mn to turn your buin int a Crrtin entity rgnizd b tt in Unitd Stt. When a buin wnr decides t frm a Crrtin tht Crrtin bm a lgl buin trutur indndnt of it wnr r wnr.

Wht i a Corporation?

Crrtin i n independent buin ntit, rt from the people wh own, ntrl, and manage it. Crrtin n ntr int contracts, incur debts, nd tx rt from it wnr. In thr words, th Corporation itlf, not the hrhldr wh own it, is hld legally libilit for th actions nd debs the buin incurs.

Bnfit of Incorporation

The biggt benefit t frming a Crrtin i personal libilit protection. Shrhldr of a Corporation hv limited libilit protection, whih means creditors cant m after n wnr rnl t t collect a debt. Th same li if th buin gt sued. Al, Crrtin can ri capital more easily through th l f tk. Stk n m in diffrnt classes, n b ud t rwrd ml in addition to mntin, and n vn be publicly trdd.

Disadvantages of Incorporation

Crrtin till highr filing f thn other business ntiti whn inrrting with th tt. Crrtin mut l k more records, such Artil f Inrrtin, blw, rlutin, minut nd nnul mting minut, communication t hrhldr, nd nnul reports.

how to incorporate without ssn

Hw t Incorporate Withut a Sil Surit Numbr (SSN)

If u r a U.S. ridnt or nn-U.S. resident withut a Sil Security Number (SSN), you n still inrrt ur buin. Yu firt mut dtrmin wht tt fr inrrt your business in. If you r a U.S. resident, I wuld suggest incorporating in th tt whr you urrntl rid and whr u will be nduting buin.

Form ur Crrtin in Utah

If u r a nn-U.S. resident, I wuld highly rmmnd inrrting ur buin in Uth. Utah i considered t b th most buin-frindl state fr incorporating. In fact, Utah i Americas mt ulr state t inrrt.

Uth ffr flxibl fvrbl lw fr businesses, riv (Utah does not ruir members, directors r ffir t b listed on th frmtin documents), nd hr filing f.

Form a C Crrtin

Once u determine where to inrrt ur business, you wuld hv t dtrmin whthr to incorporate ur buin as a C Crrtin r S Crrtin. A C Corporation i th mt mmn entity. It is a separately taxable ntit. Tx i id n th corporate lvl nd at th individul lvl n dividnd. On the thr hnd, n S Corporation is nidrd a -thrugh tx entity. Wht tht mn i tht it pays n corporate income tx. Instead, th rfit nd l of th buin are d thrugh the buin nd rrtd n th wnr rnl inm tx rturn.

Although C Corporations have n restrictions n wnrhi, n S Crrtin i rtritd t n mr thn 100 shareholders, whom MUST be United Stt itizn. S if you do NOT hv a Sil Security Numbr (SSN), u should frm a C Crrtin, and NOT an S Crrtin!

A buin lawyer can help u rgniz, drft, nd fil th rr dumnttin with th Secretary f State to frm ur Crrtin. Once you frm your C Crrtin, you wuld nd n Employer Identification Number (EIN).

What is an Employer Identification Number (EIN)?

Emlr Identification Numbr (EIN) i a numbr iud by th Intrnl Rvnu Service (IRS) t idntif a business. An EIN i nr for a Crrtin to lwfull ndut business in Unitd Stt. EIN i used to start ur buin, open a U.S. bnk unt, hir ml, file tx, obtain loans, and l for rmit nd licenses. If u do NOT hv a Social Surit Numbr (SSN), the following process huld be fllwd t l fr an EIN:

  • Gt a buin lwr to t as a third-party designee for u
  • Th business lwr will rr ur EIN application nd ntt the IRS
  • Th buin lwr will receive your EIN n your bhlf

To gurnt mltin of th EIN litin process, it i highl rmmndd to hv a buin lwr t as ur third-party dign l fr ur EIN on your bhlf.

Summary

If you nd t incorporate ur business but do NOT have a Sil Security Numbr, it i still possible t inrrt your business. As diud in dtil bv, inrrtin means forming n indndnt buin ntit, typically a Crrtin. If u r a U.S. ridnt, I would uggt frming ur Corporation in the tt whr u urrntl rid. Dn’t forget t frm a C Crrtin nd nt n S Corporation. And l, don’t frgt t l for n Emlr Idntifitin Number (EIN) whih will allow u to legally rt ur buin in United Stt nd ml with the IRS. Also EIN will llw u to n a U.S. bnk account.

Free Consultation with a Utah Business Lawyer

If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah

84088 United States
Telephone: (801) 676-5506

Ascent Law LLC

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Source:http://www.ascentlawfirm.com/how-to-incorporate-without-a-ssn/

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