Setting up a business in the US
Thread poster: Zareah (X)

Zareah (X)  Identity Verified
United States
English to German
+ ...
May 10, 2002

Dear colleagues,

I am planning on setting up my own business in the United States and need \"loads\" of advice since I don\'t have any experience with this at all. Anyone who can give me a few hints?

Thank you very much,

Nadine icon_smile.gif


Henry Dotterer
Local time: 11:45
consider delaware May 10, 2002

You need to choose a state under which to file. Most people choose Delaware because the tax laws are most favorable (I am told that 1/3 of public companies in the US are based in Delaware.) You need a representative in Delaware; they can be found online at very reasonable rates.


Zareah (X)  Identity Verified
United States
English to German
+ ...
thank you Henry May 10, 2002

That would be Colorado in my case but thank you!



Hans-Henning Judek  Identity Verified
Local time: 00:45
German to English
+ ...
Nevada is another good choice May 10, 2002

\"Setting up business\" means, you want to incorporate? Or do just want to have advice how to work best as a freelancer?

In case of incorporation:

I have set up a company in the US (S-corporation in Delaware) for another purpose than translation. It is relatively easy. There are tons of agencies who can help you, and you get real share forms, a nice company seal, etc. They also handle the representation against a small annual fee (in the range of $50), which means nothing more than that they have to file some tax papers for you that show that your company is still in existence.

Just go to Google and type in the terms \"incorporation\" and the State and you will get tons of agencies, which can handle your case.

By the way, it does not matter, where you reside or run the business. so you can have a company in Nevada or Delaware and still reside in Colorado. My company was established in Delaware and operated out of California.

You can also buy a dormant corporation, which costs a bit more.

I was considering to establish a new business and thought about a limited liability company (LLC) in Nevada, which is similar advantageous and less costly.

You can get good advice and an overview under:

If you have further questions, let me know.

Greetings from Yokohama


Eden Brandeis  Identity Verified
Local time: 08:45
Japanese to English
+ ...
The Truth About Incorporating May 10, 2002

I hear the recommendation:

\"Incorporate in X state because of Y & Z\"

all the time.

The truth is that if you plan to do business in the state you live in, then it is to your advantage to incorporate there. You will not have to worry about extra licenses and fees related to being a \"foreign\" corporation in your own state.

Check out:

for more info. The reason so many companies are incorporated in Delaware is that the fees are low and they are business friendly. This is great if you plan on building your company up and going public, but irrelevant for most freelancers.

My advice: if you plan to incorporate, do it locally.

P.S. There is a ton of information on the web about starting businesses and even more in the library and bookstore. I like the Nolo Press book \"Wage Slave No More!\" It has a lot of general business advice and information for independent contractors.


Alexandru Pojoga
Local time: 18:45
Japanese to English
+ ...
How do you "run" the business remotely? Jun 6, 2002

i.e. when it comes time to pay corporate taxes, you do have to travel to Delaware, don\'t you?

Also it would take at least one trip there in the first place, to set up a bank account and all?


jmtquiroga  Identity Verified
United States
Local time: 11:45
Spanish to English
+ ...
more suggestions Apr 3, 2003

Thanks for the information that all of you have given on this topic.

I have a couple of questions about this sibject too. For a freelance translator who lives in South America but would like to have a translation business operating out of the US ( I am a citizen), what would be necessary? Incorporation, non-incorporation, sole proprietership, LLC? Is any of it necessary if you\'re the sole translator?

Thanks in advance.


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Setting up a business in the US

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