How to Register a Business in the US from Antigua and Barbuda

Step 1: Benefits of starting your US business from Antigua and Barbuda

Starting a US business from Antigua and Barbuda offers a unique blend of advantages that cater to both entrepreneurs seeking a robust legal framework and those looking to leverage the twin-island nation's favorable business environment. Located strategically in the Caribbean, Antigua and Barbuda provide easy access to both North and South American markets, making it an ideal hub for international trade. The country's well-established banking system and commitment to international compliance standards ensure a secure and reliable foundation for business operations, giving entrepreneurs peace of mind as they navigate the complexities of the US market.

Moreover, Antigua and Barbuda offer an attractive tax regime, including no capital gains tax and favorable provisions for foreign direct investments. This can significantly reduce the operational costs for businesses, allowing them to reinvest more into growth and innovation. The islands' high-quality infrastructure, coupled with a skilled, English-speaking workforce, provides the necessary resources to support business activities effectively. Entrepreneurs can also benefit from the government's numerous incentives aimed at encouraging business development, making Antigua and Barbuda a compelling choice for starting a US business.

Step 2: How to start your US business from Antigua and Barbuda

Starting a US business from Antigua and Barbuda involves several key steps. First, you need to decide on your business structure, such as forming a Limited Liability Company (LLC) or a Corporation. Each structure has different legal and tax implications, so it's essential to choose the one that best suits your business goals. Researching state-specific regulations is also crucial, as business formation requirements can vary by state. Typically, Delaware, Wyoming, and Nevada are popular choices due to their favorable business laws.

After deciding on the business structure and state, you need to register your business by filing the necessary formation documents with the state’s Secretary of State office. This usually involves submitting the Articles of Organization for an LLC or the Articles of Incorporation for a Corporation. Additionally, you must designate a registered agent with a physical address in the chosen state to receive official correspondence on your behalf. Obtaining an Employer Identification Number (EIN) from the IRS is another critical step. This number is used for tax purposes and is required to open a US business bank account. It can typically be acquired online through the IRS website. Lastly, you should consider consulting with legal and tax professionals to ensure compliance with all US laws and regulations.

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 Antigua and Barbuda

Understanding Compliance Requirements for Running a US Business in Antigua and Barbuda

Operating a US business in Antigua and Barbuda involves navigating a complex web of compliance requirements. Understanding these requirements is crucial for smooth operations and avoiding legal pitfalls. This article highlights key considerations to help you ensure your business adheres to local regulations.

1. Business Registration

First and foremost, your business must be properly registered in Antigua and Barbuda. This includes:

• Registering with the Companies Registry
• Ensuring your business structure is compliant with local regulations
• Obtaining necessary licenses and permits relevant to your industry

2. Taxation

Understanding the tax obligations is critical. Consider the following:

• Registering for the Antigua and Barbuda Sales Tax (ABST)
• Complying with corporate income tax requirements
• Understanding the implications of payroll taxes and social security contributions for employees

3. Employment Laws

Adhering to local employment laws ensures ethical and legal treatment of employees. You must:

• Follow the guidelines of the Labour Code
• Maintain fair wage practices
• Provide statutory benefits and comply with immigration laws if hiring foreign staff

4. Environmental Regulations

Depending on your industry, you may need to comply with environmental laws:

• Obtain necessary environmental permits
• Implement waste management and pollution control measures
• Conduct Environmental Impact Assessments (EIAs) where necessary

5. Intellectual Property

Protecting your intellectual property is vital for maintaining your competitive edge. Ensure you:

• Register trademarks, patents, and copyrights in Antigua and Barbuda
• Understand the local intellectual property enforcement mechanisms
• Consult legal experts to navigate complex IP regulations

6. Financial Regulations and Reporting

To maintain financial transparency and avoid legal issues, ensure compliance with financial regulations:

• Maintain accurate and detailed financial records
• Submit annual financial statements as required by law
• Adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations

Understanding and adhering to these compliance requirements is fundamental for operating a US business in Antigua and Barbuda successfully. Always consult local legal and financial experts to stay informed about changes in regulations and ensure your business remains compliant.

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 Antigua and Barbuda

Understanding Tax Obligations for Running a US Business in Antigua and Barbuda

Running a US business in Antigua and Barbuda involves several tax considerations that can influence your operations and profitability. Below are key aspects to understand when setting up and managing your tax obligations:

1. Corporate Income Tax

Antigua and Barbuda levy a corporate income tax on companies operating within the jurisdiction. It is important to familiarize yourself with the current tax rate and any applicable incentives that could benefit your business. Additionally, double taxation agreements (DTAs) between Antigua and Barbuda and other countries can impact tax liabilities.

2. Value Added Tax (VAT)

The country imposes a Value Added Tax (VAT) on goods and services. Ensure your business complies with VAT registration requirements, and be prepared to collect and remit VAT on taxable transactions. Some goods and services may be exempt or zero-rated.

3. Withholding Tax

Withholding taxes may apply to dividends, interest, and royalties paid to non-residents. Understanding the rates and ensuring compliance can prevent potential legal issues and financial penalties.

4. Import and Export Duties

For businesses involved in cross-border trade, knowing the import and export duties is crucial. Antigua and Barbuda have specific regulations governing the importation and exportation of goods, which can affect your cost structure.

5. Payroll Taxes

If your business employs staff in Antigua and Barbuda, you must adhere to local payroll tax requirements. This includes contributions to social security and other mandated benefits. Proper management of payroll taxes is essential to avoid penalties and ensure employee satisfaction.

6. Tax Incentives and Exemptions

Antigua and Barbuda offer various tax incentives and exemptions to encourage foreign investment. These can include tax holidays, reduced tax rates, and exemptions for specific industries. Researching and leveraging these incentives can significantly reduce your tax burdens.

7. Compliance and Reporting

Maintaining compliance with local tax laws requires accurate record-keeping and timely filing of tax returns. Hiring local tax professionals or consultants can help navigate the complex tax landscape, ensuring that your business adheres to all obligations.

8. Double Taxation Agreement (DTA)

Antigua and Barbuda have DTAs with several countries, including the United States. These agreements can mitigate the risk of double taxation on income earned in Antigua and Barbuda by a US-based business, providing potential tax relief and credits.

Understanding these tax considerations is essential for the successful operation of a US business in Antigua and Barbuda. Consulting with local tax experts and legal advisors can provide tailored advice and enhance compliance with local tax regulations.

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