To Form a US company for dropshipping and business purposes as well as signing up for a payment gateway is much easier than you think.
But it’s expensive to form a US company, you can spend over a thousand dollars trying to form a US company.
However, we always strive to make things easy and less expensive for anyone that visits our blog looking for solution.
Infact, in this guide, you will be creating a complete US company with all details such as EIN, Operating agreement, Articles of Formation and much more using $178.
Yes, that’s exactly what you’re going to do right here.
Why do you need a US company?
First of all, if you’re reading this article right now, it means one way or the other, you’re in need of a US company to complete a sign-up because you stopped on the way and can’t continue.
However, you need a US company if you’re doing an online business and you target the international audience.
You also need a US company to represent your business and proof to your customers that you’re serious in what you’ve come to do.
If you want to start accepting payments internationally, then you will a US company to complete some formalities and finally get what you want.
There are a lot of reasons, including if you’re dropshipping and need a US company to complete an application that is pending.
If you’re dropshipping on Shopify, you will need a US company to use the Shopify payment gateway. This means you don’t need to worry for any external payment gateway.
But the Shopify payment gateway is fond of holding some percentage of your money to build trust before you can start withdrawing all.
However, using your newly gotten US company, you can setup a stripe account with it and start accepting payments.
Whatever may be your reason for wanting to form a US company, we will go right into it today.
How to Form a US company
We always recommend you form your LLC/US company at Inc Authority, because they offer less expensive services and it starts with $0 service charge.
To form your LLC, you need to choose a state which you want to form your company.
You can choose either Delaware or Kentucky, but forming an LLC in Kentucky is much more cheaper and at the end, you will only be spending $178.
To get started, follow the step by step guide below and in few minutes, you will be done.
Step 1: Go-to Inc Authority
When you get to the page, click on the start now for free tab.
Step 2: Select Your Entity and State
In your entity type, select Limited Liability Company (LLC) and in the Formation State, select Kentucky.
Step 3: Enter your personal details
In this step, enter your First and last name, email and contact phone number.
You’ll need a US Phone number, install DingTone from playstore or apple store and purchase a US Phone Number for $4.99 which will last for a whole year.
Step 4: Select Your Business Details
Enter your business name and business description (if you have a clothing online store, say you have an online and you sell clothings and apparel).
A brief description of your company, a sentence or two describing your business.
Select your business benefit and click save & continue.
Step 5: Business Address
You’re required to enter a US address, since you’re forming your LLC in Kentucky, you need to enter a Kentucky US address.
I will share with you my Kentucky address, if you’re already subscribed to my newsletter, I have already given you the address.
If you’re new, click here to download the address, then copy it and continue with your application. I can’t share it publicly.
In shipping address, use the first option.
Step 6: EIN/Federal Tax ID
The interesting part about IncAuthority is they get an EIN for you at $49, which is considered as the cheapest place to get one. Others charge from $95 and above.
You need to include the EIN/Federal Tax ID which is very important!
It serves as your SSN for Non US citizens and as an add-on for US Citizens.
Step 7: Operating Agreement
Operating agreement is important because it provides proof you own the business.
In case any problem occurs in future, you can be able to correct them with your operating agreement and in case Stripe or any program requires it.
Select the operating agreement and proceed with the form.
Step 8: Add-ons
The next pages contains Addons and they include the following:
- INC Protection Advisor. $27/month.
- LawSuit Protection. – $99.
- Express Delivery – $49.
- Domain Name – $29.95
- Business License Package – $99
All these ad-dons are not important, so you can skip all of them until you get to the payment stage.
Step 9: Make Final Payments
At the end, you’ll only be paying for State Filling Fee, EIN and Operating Agreement.
Other formation companies charge a lot for offering this service but IncAuthority Charges $0 Service fee.
Now you need to make payment using either Debit/Credit Card or PayPal.
For the Delivery Option, you can select $0 free delivery (Electronic Delivery) and they will be delivered to your email.
Finally, that is all. You’ve successfully created your LLC Business Name and EIN/Federal Tax ID.
They will send you an EIN form document to fill and send back to them.
Every part of the document is easy to fill, but in the SSN/TIN section, enter/type FOREIGN.
Now, that’s all. In few days (5-7 days) your LLC will be formed and all your details will be sent to you.
You can now use your US company details to do whatsoever you wish to do, complete your sign-up that is pending and much more.
Form your LLC by following the above guide, and if you have any questions, be sure to drop them below.