How to Register a Business in the US from Armenia

Step 1: Benefits of starting your US business from Armenia

Starting a US business from Armenia offers a unique set of advantages that can significantly boost the potential for success. One of the primary benefits is the lower operational costs. Armenia's cost of living and average wages are considerably lower than those in the US, allowing entrepreneurs to benefit from an excellent talent pool at a fraction of the cost. This cost-effectiveness extends to various business operations, such as customer support, software development, and administrative tasks, making it feasible to allocate resources more efficiently.

Another significant advantage is the strategic access to both European and Asian markets. Armenia's geographic location and robust infrastructure enable easy connectivity with major global markets. This dual-market access facilitates smoother trade and logistics operations. Additionally, Armenia's growing tech ecosystem provides a supportive environment for startups, offering access to a network of tech professionals, innovation hubs, and government incentives that can enhance business growth and expansion in the US market. By leveraging these benefits, Armenian entrepreneurs can build a strong foundation for their US business, ensuring sustainable growth and international success.

Step 2: How to start your US business from Armenia

Starting a US business from Armenia involves several important steps. First, you will need to choose the right business structure such as a sole proprietorship, partnership, LLC, or corporation. Each structure has different legal and tax implications. It is advisable to consult with a legal expert to understand which structure best suits your business goals and needs.

Once you’ve determined your business structure, the next step is to register your business. This includes obtaining a Federal Employer Identification Number (EIN) from the IRS, and registering your business at the state level. You might also need to acquire specific licenses and permits depending on your business activities. Many of these processes can be completed online, which makes it more accessible while managing from Armenia. Additionally, you should open a US bank account to facilitate transactions, and this might require a US mailing address.

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 Armenia

Understanding Compliance Requirements for Running a US Business in Armenia

Expanding your business operations to Armenia offers promising opportunities and a gateway to new markets. However, there are several compliance requirements you must understand to ensure a smooth transition. This article highlights key considerations for US businesses operating in Armenia.

1. Legal and Regulatory Environment

Before establishing a presence in Armenia, it's essential to understand the local legal and regulatory framework. This includes:

• Business Registration: Register your business with the State Registry of Legal Entities under the Ministry of Justice of the Republic of Armenia.
• Licensing: Determine the specific licenses required for your type of business. Some industries are heavily regulated and may need special permits.
• Tax Compliance: Familiarize yourself with Armenia's tax code, including corporate tax rates, VAT, and other applicable taxes.

2. Employment Law

Hiring local employees requires compliance with Armenia's labor laws. Key points include:

• Contracts: Employment contracts should clearly state terms such as salary, working hours, and benefits.
• Work Permits: Obtain necessary work permits for expatriate employees.
• Labor Code Compliance: Adhere to laws regarding working conditions, employee rights, and termination procedures.

3. Financial Reporting and Auditing

Armenia has specific standards for financial reporting and audits. Ensure compliance with:

• Accounting Standards: Maintain accurate financial records in accordance with Armenian accounting standards.
• Annual Audits: Conduct annual financial audits if required, particularly for larger enterprises or specific regulated industries.

4. Intellectual Property Protection

Protecting your intellectual property (IP) is crucial when doing business internationally. Key points include:

• Trademarks and Patents: Register your trademarks and patents in Armenia to safeguard your brand and innovations.
• IP Laws: Familiarize yourself with Armenian IP laws to understand enforcement and legal recourse options.

5. Data Protection and Security

Armenia has laws governing data protection. Ensure your business complies with:

• Data Protection Regulations: Implement measures to protect personal data in accordance with Armenian laws.
• Cybersecurity: Establish cybersecurity protocols to prevent data breaches and safeguard sensitive information.

6. Cultural and Market Considerations

Understanding local culture and market dynamics is crucial for business success. Consider:

• Market Research: Conduct thorough market research to understand consumer behavior and local market trends.
• Cultural Sensitivity: Be aware of cultural nuances and adapt your business practices to fit local customs.

By taking these considerations into account, you can navigate the compliance landscape effectively and position your US business for success in Armenia.

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 Armenia

Understanding Tax Obligations for Running a US Business in Armenia

Running a US business in Armenia requires careful understanding of both Armenian and US tax regulations. Here are some key considerations to keep in mind:

1. Dual Tax Responsibilities

As a US business operating in Armenia, you might have tax obligations in both countries. This includes:

• US Taxes: The US taxes its citizens and residents on their worldwide income. Ensure compliance with IRS regulations.
• Armenian Taxes: The tax system in Armenia includes corporate income tax, value-added tax (VAT), and other local taxes.

2. Double Taxation Treaties

Armenia and the US have a bilateral agreement to avoid double taxation. Familiarize yourself with the US-Armenia Tax Treaty, which provides guidelines on how income is taxed by both countries.

3. Corporate Income Tax in Armenia

The corporate income tax rate in Armenia is generally 18%. Understanding the local tax base and allowable deductions is crucial.

4. VAT Considerations

Businesses in Armenia are subject to VAT, which is currently set at 20%. You must understand when and how to register for VAT, as well as compliance requirements for VAT returns.

5. Withholding Taxes

Armenia imposes withholding taxes on certain payments to foreign entities. This includes dividends, interest, and royalties. The rates can be reduced by applying the double taxation treaty.

6. Transfer Pricing Rules

Be aware of Armenia's transfer pricing regulations. These rules ensure that transactions between related parties are conducted at arm's length to prevent tax base erosion.

7. Financial Statements and Audits

Armenian law requires certain businesses to prepare financial statements and undergo audits. Ensure you meet these requirements to avoid penalties.

8. Professional Advice

It is highly recommended to seek professional tax advice both in the US and Armenia to navigate the complexities of operating a business across borders. This can help you optimize tax liabilities and ensure full compliance.

Understanding these tax obligations will help you effectively manage your US business operations in Armenia, ensuring legal compliance and efficient tax planning.

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