How to Register a Business in the US from Poland

Step 1: Benefits of starting your US business from Poland

Starting a US business from Poland comes with a multitude of advantages that can transform your entrepreneurial aspirations into a thriving international venture. One of the foremost benefits is the access to a vast and diverse marketplace. By tapping into the US market, Polish entrepreneurs can reach millions of potential customers, thereby significantly increasing their revenue potential. This is especially appealing given the robust consumer spending in the United States, which can offer substantial growth opportunities for businesses of all sizes.

Another significant advantage is the ability to leverage the robust and business-friendly infrastructure of the United States. The US is renowned for its advanced technological landscape, efficient supply chain networks, and comprehensive legal frameworks that support business operations. This environment not only facilitates smoother operations but also enhances the credibility and reliability of your business in the eyes of global partners and clients. Furthermore, the cultural and economic ties between Poland and the United States have been strengthening, which can further simplify the process of establishing a business presence across the Atlantic. With strategic planning and execution, starting a US business from Poland can serve as a pivotal step toward global market leadership.

Step 2: How to start your US business from Poland

Starting a US business from Poland is a feasible venture with the right knowledge and resources. First, you need to decide on the type of business entity you wish to form, such as an LLC (Limited Liability Company) or a Corporation. Many entrepreneurs prefer the LLC structure for its simplicity and flexibility. Once you have decided, you need to choose a registered agent who has a physical address in the US state where you plan to incorporate. This agent will handle official documents on your behalf.

Next, you need to file the necessary formation documents with the state government. This typically involves submitting Articles of Organization for an LLC or Articles of Incorporation for a Corporation, along with the required filing fees. At this point, obtaining an Employer Identification Number (EIN) from the IRS is essential, as it will allow you to open a US bank account and handle tax responsibilities. Although the process is straightforward, you might want to consider consulting with legal and financial advisors to ensure compliance with both US and Polish regulations. Once these steps are completed, you can focus on setting up your business operations, marketing strategies, and establishing a virtual presence in the US market.

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 Poland

Understanding Compliance Requirements for Running a US Business in Poland

Expanding your US business into Poland opens up new opportunities, but it also requires an understanding and adherence to local compliance requirements. Here are key considerations to keep in mind:

1. Company Registration

Before operating in Poland, you must register your business with the Polish authorities. The primary types of business entities are:

• Spółka z ograniczoną odpowiedzialnością (Sp. z o.o.) - Limited Liability Company
• Spółka akcyjna (S.A.) - Joint-Stock Company

The Sp. z o.o. is commonly chosen due to its flexibility and relatively straightforward set-up process.

2. Taxation

US businesses must comply with Polish tax regulations, including:

• Corporate Income Tax (CIT) - Standard rate is 19%, with a lower rate of 9% for small businesses.
• Value Added Tax (VAT) - Standard rate is 23%, with reduced rates of 8% and 5% for certain goods and services.
• Ensure proper tax registration for VAT purposes if applicable.

3. Employment Regulations

Understanding and complying with Polish labor laws is crucial:

• Adhere to employment contracts stipulations, which must be in Polish.
• Comply with minimum wage requirements and mandatory social security contributions.
• Observe regulations concerning working hours, leaves, and health and safety standards.

4. Data Protection

Poland adheres to the EU's General Data Protection Regulation (GDPR), which mandates:

• Obtaining explicit consent from individuals for data processing.
• Ensuring robust data protection measures.
• Providing clear privacy notices and rights to access and delete data.

5. Business Culture

Familiarize yourself with Polish business etiquette to foster strong relationships:

• Formal communication is the norm; use titles and last names.
• Building personal relationships can be key to business success.
• Expect punctuality and adherence to agreements.

Setting up and managing a US business in Poland involves navigating a complex compliance landscape. By understanding these key considerations, you can successfully establish and grow your business while adhering to local laws and 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 Poland

Understanding Tax Obligations for Running a US Business in Poland

When expanding your US-based business into Poland, it's essential to comprehend the various tax obligations that come into play. These obligations can significantly impact your business operations and financial planning. Below are key considerations to help you navigate the complexities of Polish tax laws.

1. Corporate Income Tax (CIT)

Poland imposes a Corporate Income Tax on companies operating within its borders. The standard CIT rate is 19%, but there's a lower rate of 9% for small taxpayers whose revenues do not exceed EUR 2 million annually. Understanding your eligibility for these rates is crucial for accurate financial forecasting.

2. Value Added Tax (VAT)

VAT is a significant aspect of Polish tax law. The standard VAT rate is 23%, with reduced rates of 8% and 5% applicable to specific goods and services. Ensure you're registered for VAT in Poland if your business activities require it, and maintain proper records of all transactions.

3. Double Taxation Avoidance Agreement (DTAA)

The United States and Poland have a Double Taxation Avoidance Agreement in place. This treaty aims to prevent businesses from being taxed twice on the same income. Familiarize yourself with the provisions of the DTAA to take advantage of tax credits and exemptions.

4. Payroll Taxes and Social Security Contributions

If your business employs staff in Poland, you will be subject to payroll taxes and social security contributions. These include health insurance, pension, and disability contributions. Both employer and employee share these costs, affecting your overall employment expenses.

5. Transfer Pricing Regulations

Poland has stringent transfer pricing rules. If you engage in transactions with related entities, ensure compliance with Polish regulations to avoid penalties. Proper documentation and adherence to arm's length principles are essential.

6. Local Business Taxes

In addition to national taxes, be aware of local business taxes that may apply depending on your business location within Poland. Research and consult with local authorities to understand any additional municipal obligations.

7. Tax Reporting and Filing Requirements

Timely and accurate tax reporting is paramount. Companies must submit annual CIT returns and, if applicable, quarterly or monthly VAT returns. Implement robust accounting systems to comply with these requirements.

8. Seeking Professional Guidance

Navigating the Polish tax system can be complex. It is advisable to seek assistance from tax professionals familiar with both US and Polish tax laws. They can help ensure compliance and optimize your tax strategy.

Understanding these aspects of Polish tax obligations will enable your US business to thrive in the Polish market. Careful planning and compliance can mitigate risks and enhance your business's financial health.

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