Publication date: 25.08.2024
How to start a business in the US during the war
Starting a business in the United States during a time of war can be a challenge for Ukrainian entrepreneurs, but it also opens up new opportunities for development and expansion of their business to the international market. There are many resources and support for foreign entrepreneurs in the United States, which allows them to adapt to new conditions and create a successful business even in difficult times. In this article, we will look at the main steps to take to start a business in the US and how Ukrainian entrepreneurs can take advantage of these opportunities during the war.
Determining legal status and choosing a legal form
The first and one of the most important steps in the process of starting a business in the United States is to determine the legal status of the future company and choose its legal form. The choice of legal form will determine how your business will operate, what taxes you will have to pay, and how the liability of the owners will be organised. The main forms of doing business in the United States are:
- Limited Liability Company (LLC): This form of business allows you to limit the liability of the owners of the company for its obligations, which is an important aspect for the protection of personal assets.
- Corporation: A corporation is a separate legal entity that allows you to attract investors and sell shares. Corporations can be either private or public.
- Partnership: This form is suitable for businesses that are planned to be run jointly with other partners. A partnership can be a general partnership or a limited partnership.
The choice of the right legal form depends on many factors, including the type of business, the number of founders, the level of liability and tax obligations. Consulting a lawyer will help you choose the best form for your business.
Preparing for legal due diligence
- Determining the place of registration: Choosing a state to register your business is important. Some states, such as Delaware, Nevada, and Wyoming, are known for their favourable business environment, especially for foreign companies.
- Check the uniqueness of the company name: Your company name must be unique and comply with the requirements of the chosen state. A lawyer will help you check the availability of the name and register it.
- Preparation of constituent documents: This stage involves drafting the company's articles of incorporation (Articles of Incorporation for corporations or Operating Agreement for LLCs), as well as other necessary documents.
- Legal analysis of documents: A lawyer checks all prepared documents for compliance with legal requirements and identifies possible risks.
The role of a lawyer in the process
Legal advice: The lawyer provides the client with comprehensive information about legal requirements, tax liabilities and possible risks, and helps to determine the best option for registering a business in the United States.
Legal analysis of the situation: The lawyer analyses the legal aspects of business registration, identifies possible problems and develops an action plan to eliminate them.
Legal review of documents: The lawyer checks all documents for compliance with the legal requirements of the United States and the selected state, identifies possible shortcomings and suggests ways to eliminate them.
Legal opinion: After the legal analysis, the lawyer prepares a legal opinion containing recommendations for further actions, including possible ways to minimise risks and tax liabilities.
Legal review of documents
Legal review of documents is one of the key stages of preparation for business registration in the United States. It allows you to identify possible problems that may arise during registration and ensure that all documents comply with legal requirements. Document review includes:
- Document analysis: The lawyer evaluates each document for compliance with the requirements of the chosen state, checks the presence of all necessary signatures, seals and other details.
- Identification of errors: If errors or deficiencies are found, the lawyer recommends ways to correct them and ensures that new documents are prepared.
- Ensuring the completeness of the package of documents: The lawyer checks whether all the necessary documents have been collected and are properly executed to avoid possible delays or refusals.
Preparation of a legal opinion
After a comprehensive legal analysis of the documents and the situation in general, the lawyer prepares a legal opinion. This document contains an assessment of the possible risks associated with registering a business in the United States and ways to minimise them, as well as recommendations for further action. A legal opinion is an important step in preparing for business registration, as it ensures that all actions comply with the requirements of the law and protects the client's interests.
Solving problems with documents
Often, when preparing documents for business registration in the United States, various problems arise, such as errors in official documents, insufficient number of required papers or their non-compliance with legal requirements. A lawyer provides a written consultation detailing possible solutions to such problems, including:
- Correction of errors: If mistakes are found, the lawyer helps to correct them and ensures that new documents are prepared correctly.
- Obtaining additional documents: If the necessary documents are missing, the lawyer helps to collect them or prepare applications for their receipt in the relevant authorities.
- Legal support in dealing with government agencies: The lawyer represents the client's interests in dealing with US government agencies, ensuring that all necessary documents are prepared correctly and in a timely manner.
Obtaining the necessary permits and licences
In the process of registering a business in the United States, additional requirements for obtaining permits and licences may arise. A lawyer can help you determine which permits are required and develop a strategy for obtaining them. This may include:
- Obtaining business licences: Depending on the type of activity of your company, special licences may be required, which a lawyer can help you obtain.
- Registration with the relevant state authorities: A lawyer will help you register your business with the relevant authorities, ensuring that all aspects of your business comply with the law.
Resolving disputes during business registration
The process of registering a business in the United States may be accompanied by disputes that require legal support. A lawyer helps resolve such disputes at various stages of the process, including:
- Negotiations with government agencies: An attorney can represent the client's interests in negotiations with government agencies, which helps to avoid conflicts and resolve disputes without involving the court.
- Mediation: If the parties cannot reach an agreement, a lawyer can suggest mediation as a way to resolve the conflict without litigation.
- Litigation: If all other methods have been exhausted, a lawyer represents the client's interests in court, ensuring the protection of their rights and interests.
Consultations and support at all stages of the process
The lawyer provides advice and support at all stages of the business registration process in the United States. This includes:
- Consultations on the collection of documents: The lawyer helps to determine what documents are required for business registration and how to prepare them correctly.
- Legal support during the application process: The lawyer supervises the process of filing an application for registration, interacts with US government agencies and ensures that the case is processed correctly and in a timely manner.
- Advice on obtaining licences: The lawyer helps to obtain all necessary licences and permits, ensuring that the process complies with the requirements of US law.
Legal support in litigation
If litigation arises during the business registration process, the lawyer provides legal support in court. This includes:
- Preparation of documents: The lawyer prepares all the necessary documents for submission to the court and ensures that they meet the requirements of the court process.
- Representation in court: The lawyer represents the client's interests during court hearings, ensuring the protection of his or her rights.
- Appealing decisions: If necessary, a lawyer can file an appeal or challenge a decision of a higher court.
Questions and answers
Question.
What are the main stages of business registration in the United States for Ukrainians during the war?
Answer.
The main stages of registering a business in the United States are choosing a legal form of the company, preparing constituent documents, checking the uniqueness of the name, applying for registration in the chosen state, and obtaining the necessary licences and permits to conduct business. Engaging a lawyer helps to avoid potential mistakes and ensures successful business registration.
Starting a business in the United States is a profitable solution for Ukrainians during the war to develop their business in the international market. This process, although complicated, requires attention to detail and compliance with all legal requirements. With the help of a lawyer, you can avoid potential problems and ensure successful business registration in the United States. Legal analysis of documents, verification of documents by a lawyer, legal analysis of the situation and legal advice from a lawyer help ensure that the process complies with the requirements of US law and that the client's interests are properly protected at every stage of business registration.
