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Open A Branch Office In The USA

What is a foreign entity or a branch office?

 

A foreign entity is created for an existing entity in the out of state or country to expand the business. For an example; a New York business entity intends to conduct business in the state of New Jersey or an Indian entity in the USA.

 

How to start a branch office?

 

The specific state laws are followed where the entity will be established to conduct business.Generally, following information are passed to the secretary of state to register an out of state of country entity.

 

  • A certificate of good standing is forwarded to the  state which shows that the company is legally registered and it is in a good standing. It is issued by the secretary of state where the company is already registered. Some states may require to produce a certified copy of the articles of incorporation or organization beside the certificate of good standing. The home state entity must be in a good standing in order to qualify to register a foreign entity or a branch office.
  •  The entity name must be available to register a foreign entity otherwise a dba (doing business as) is created to complete the foreign entity registration.
  • The same employer identification number is used to operate a branch office.
  • A consolidated tax return is filed end of the year with the Internal Revenue Service, whereas each state return is filed separately with the division of taxation and finance of each state.
  • An annual report, biennial statement, initial report, periodic report or a statement of information is required to file in each state in order to keep the company in good standing and avoid from the revocation or admin dissolution by the secretary of state on or before the due date.
  • Business licenses are required to acquire for each state to conduct business.
  • A registered agent address and a short business description are required to establish a branch office.

 

There are two type of foreign entities which are explained below:

 

  1. Out of state entity
  2. Out of country entity

 

An out of state entity is registered within the USA, whereas an out of country establishes an entity in the USA to transact business.

 

What is an estimated time to create a branch office in the United States?

 

The time varies for each state and the residency status. It can be 24 hours to three weeks. It takes generally three weeks for a Non US Resident and a social security or an ITIN is not required for a Non US Resident to open a branch office in the USA.