How to Register a Business in the US from Argentina

Step 1: Benefits of starting your US business from Argentina

Starting a US business from Argentina offers numerous advantages that can significantly benefit entrepreneurs. One of the primary benefits is access to the vast US market, which is known for its purchasing power and diverse consumer base. By establishing a presence in the US, Argentine entrepreneurs can tap into a new and potentially lucrative customer base that is less accessible from within their home country. This broad market access can result in increased sales, exposure, and opportunities for growth.

Another key advantage is the potential for more favorable financial and legal conditions. The US offers a well-established business infrastructure with transparent and relatively predictable regulatory environments. This can be highly advantageous for startups and small businesses aiming for stability and scalability. Furthermore, US tax incentives and funding opportunities, such as venture capital and angel investors, are often more accessible to businesses with a US presence, providing Argentine entrepreneurs with the financial backing they need to succeed and expand their operations internationally.

Step 2: How to start your US business from Argentina

Starting a US business from Argentina is a multifaceted process but can be very rewarding. First and foremost, you will need to decide on the type of entity you plan to form, such as a Limited Liability Company (LLC) or a Corporation. These structures have different implications for taxes, liability, and management flexibility. An LLC is often easier to manage and involves less paperwork, while a Corporation may offer benefits like easier access to capital markets. Additionally, non-residents are generally not required to have a social security number but will need an Employer Identification Number (EIN), which can be obtained from the IRS.

Once you’ve determined your business structure, the next step is to choose the state in which to incorporate. States like Delaware and Wyoming are popular among foreign entrepreneurs due to their favorable business regulations and tax structures. You will need to file the necessary incorporation documents with the state's Secretary of State office and pay the associated filing fees. It’s also crucial to open a US bank account, which may require travel to the United States for identity verification. Consider consulting with legal and financial advisors in both Argentina and the US to navigate the complexities of cross-border business operations efficiently.

Step 3: Opening a Business Bank Account

A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?

Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.

But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.

Furthermore, a business bank account can boost your credibility and project professionalism.

It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.

Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.

doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.

Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.

You may also want to consider working with a bank that specializes in small business banking.

Step 4: Understanding Your Compliance Requirements in Argentina

Understanding Compliance Requirements for Running a US Business in Argentina

Expanding your US business to Argentina can offer significant opportunities, but it also comes with a unique set of compliance requirements that you need to navigate carefully. Here are some key considerations to help you understand these requirements better.

Legal Structure and Registration

Choosing the right legal structure for your business is crucial. Common options include:

• Sociedad Anónima (SA): Similar to a corporation in the US, this structure requires at least two shareholders and a minimum capital of AR$100,000.
• Sociedad de Responsabilidad Limitada (SRL): This is akin to a limited liability company (LLC) in the US and requires a minimum of two and a maximum of fifty partners.
• Branch Office: This allows a foreign company to operate in Argentina without establishing a separate legal entity, but it must comply with local regulations and appoint a legal representative in Argentina.

Taxation

Understanding the Argentine tax system is critical for compliance:

• Corporate Income Tax: The standard corporate tax rate is 30% for fiscal years starting on or after January 1, 2021. For fiscal years 2021-2022 onwards, the rate is expected to drop to 25%.
• Value-Added Tax (VAT): The general VAT rate is 21%, but some goods and services may be taxed at 10.5% or 27%.
• Withholding Tax: Argentina imposes various withholding taxes on dividends, interest, and royalties paid to non-residents.
• Transfer Pricing: Transactions between affiliated companies must comply with Argentina's transfer pricing regulations, ensuring that terms are consistent with those that would apply between independent entities.

Employment Law

Labor laws in Argentina are comprehensive and worker-friendly:

1. Employment Contracts: Contracts can be either for an indefinite period or a fixed-term. However, indefinite contracts are the default and fixed-term contracts are subject to specific limitations.
2. Minimum Wage and Benefits: Employers must comply with the national minimum wage and provide statutory benefits, including health insurance, pensions, and annual leave.
3. Severance Pay: In case of dismissal without cause, employees are entitled to severance pay, which can be substantial.
4. Labor Unions: Unionization is prevalent, and collective bargaining agreements often determine working conditions and salaries.

Intellectual Property

Protecting your intellectual property (IP) in Argentina is essential:

• Trademarks: Register your trademarks with the National Institute of Industrial Property (INPI) to secure exclusive rights.
• Patents: Argentine patent law provides protection for inventions for up to 20 years from the filing date.
• Copyrights: Protection is automatic upon creation, but registration can provide additional benefits and evidence of ownership.

Conclusion

While running a US business in Argentina involves navigating various compliance requirements, careful planning and understanding of the local legal landscape can lead to a successful expansion. It is advisable to consult with local legal and tax advisors to ensure full compliance with Argentine regulations.

doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.

Step 5: Understanding Your Tax Obligations in Argentina

Understanding Tax Obligations for Running a US Business in Argentina

Running a US business in Argentina involves navigating a complex web of tax obligations. This guide explores key considerations to help ensure compliance and optimize your operations.

1. Double Taxation Agreements

Argentina and the United States do not have a bilateral tax treaty. This means you might face double taxation, where both countries levy taxes on the same income. To mitigate this, you can take advantage of the Foreign Tax Credit in the US, which allows you to credit foreign taxes paid against US tax liabilities.

2. Corporate Income Tax

Argentina imposes a corporate income tax on the worldwide income of resident companies. As of 2023, the corporate income tax rate is progressive, ranging from 25% to 35%. It is important to accurately report your global earnings to avoid penalties.

3. Value Added Tax (VAT)

Argentina has a 21% VAT on most goods and services. Certain items may be subject to reduced rates or exemptions. US businesses need to register for VAT in Argentina and ensure they collect and remit the correct amounts.

4. Withholding Taxes

Various transactions involving cross-border payments may be subject to withholding taxes. For example:

• Dividends: 7% to 13%
• Royalties: 21% to 31.5%
• Interest: 15.05% to 35%

These rates can vary based on the nature of the income and applicable domestic laws.

5. Transfer Pricing

Argentina has stringent transfer pricing regulations to ensure that transactions between related parties are conducted at arm's length. This requires thorough documentation and compliance with local rules.

6. Permanent Establishment (PE)

Having a PE in Argentina— such as a branch or office— may result in local tax liabilities. Defining and understanding what constitutes a PE is crucial to avoid unintentional tax burdens.

7. Employee Considerations

Employing staff in Argentina involves adhering to local payroll taxes, social security contributions, and income tax withholdings. These can significantly influence the cost structure of operating in the country.

8. Local Compliance Requirements

Argentina mandates that businesses maintain detailed records and adhere to local accounting standards. This includes regular filings, audits, and potential scrutiny from tax authorities.

In conclusion, understanding the tax obligations for running a US business in Argentina requires careful planning and compliance. Consulting with a tax professional well-versed in both US and Argentine tax laws can help ensure you meet all requirements while optimizing your business operations.

It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.

doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.

Step 6: How doola Can Assist

doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.

Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed. 

doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.

doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.

The doola Application

It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.

Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.

Forming the Company

doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent. 

You can also opt for our Total Compliance plan.

Getting Your IRS Tax ID (EIN)

After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing. 

For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.

Filing Your 83(b) Tax Election

Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.

We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.

Partner Perks and Discounts

doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.

doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.

Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.

Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.

Turn your entrepreneurship dream into reality today!

We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country