Incorporating your business in the U.S. is an exciting milestone, but the process doesn’t stop there. Once you’ve established your company, there are a few essential next steps to ensure you're ready to operate smoothly. Let’s walk through the key actions you need to take right after incorporating your company.
1. Set Up a Business Bank Account
The first thing you’ll need to do after incorporation is open a business bank account. Without a bank account, you won’t be able to move funds in and out of the company, making it challenging to run daily operations. It's also a requirement for managing taxes, receiving payments, and handling payroll. Setting up an account is straightforward and requires your company’s legal documents, including the Certificate of Incorporation and Employer Identification Number (EIN).
2. Execute a Share Purchase Agreement
Once your company is incorporated, there are authorized shares that have not yet been issued. To officially allocate ownership, you'll need to execute a Share Purchase Agreement. This is especially important for Delaware C-Corps, as it formalizes the ownership of shares.
For example, if your company has 10 million shares authorized, and you, as the founder, are entitled to 50% ownership, you would need to purchase 5 million shares. These shares are typically bought at their par value (a fraction of a penny per share). You’ll wire funds from your personal bank account to the company’s account to complete this transaction. Once this step is complete, you will officially own the shares.
3. Other Immediate Actions
Beyond opening a bank account and completing the share purchase, there are other important tasks to consider, such as:
- Issuing stock certificates: For record-keeping purposes, you’ll need to issue stock certificates to the shareholders.
- Drafting company bylaws: These bylaws govern the operation and management of the company. It's important to have them in place to ensure proper governance.
- Register for Taxes: Make sure your company is registered with the IRS and local state tax authorities for tax compliance.
- Set up an operating agreement: If your business is an LLC, an operating agreement outlines the responsibilities, ownership structure, and operational procedures for your company.
Conclusion
Incorporating your business in the U.S. is just the beginning. The next steps involve critical tasks that help formalize your company’s operations and ensure smooth functioning as you begin to grow. Setting up a bank account, executing share purchase agreements, and completing other legal formalities will ensure your business is ready to scale and comply with U.S. regulations.
Explore our YouTube video for more in-depth guidance on expanding your business to the U.S.!
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