How to Register a Business in the US from Belgium

Step 1: Benefits of starting your US business from Belgium

Starting a US business from Belgium offers entrepreneurs a unique vantage point to take advantage of two dynamic economic landscapes. By establishing a business presence in the United States, Belgian entrepreneurs can tap into the vast American market, which is one of the largest consumer bases in the world. The geographic and cultural diversity of the U.S. provides an excellent environment for businesses to expand their reach, test new products, and innovate rapidly. Additionally, the regulatory framework in the United States supports entrepreneurship with favorable tax structures, access to venture capital, and a plethora of resources that can help drive early-stage growth.

Another significant benefit is the ability to leverage Belgium's strategic position within Europe while operating a business in the U.S. Belgium's central location and well-developed infrastructure allow for seamless travel and communication, making it convenient to maintain steady business operations between the two regions. Furthermore, Belgian entrepreneurs can take advantage of bilateral treaties and trade agreements that facilitate smoother transactions and reduce barriers. This dual-market strategy can significantly enhance a company's resilience, profitability, and competitive edge, providing a solid foundation for long-term success. The multilingual proficiency and international mindset common among Belgians also serve as invaluable assets in navigating the complexities of the American market.

Step 2: How to start your US business from Belgium

Starting a US business from Belgium is a multi-step process that involves several key actions. Initially, it's essential to choose the right type of business entity in the US. The most common types for foreign entrepreneurs are the Limited Liability Company (LLC) and the Corporation (C Corp or S Corp). Each type has its own benefits and drawbacks, so it's crucial to research which one best suits your business goals. Once you have decided on the entity type, you must choose a state in which to register your business. Delaware, Nevada, and Wyoming are popular choices due to their business-friendly regulations.

After deciding on the type and location of your US business, the next step is the registration process. You will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which is necessary for tax purposes. Additionally, opening a US bank account can be challenging but is often facilitated by having an existing relationship with an international bank. Consider hiring a registered agent who can manage legal documents and compliance issues on your behalf. Lastly, ensure that you comply with all federal, state, and local regulations, which may include obtaining permits, licenses, and adhering to labor laws.

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 Belgium

Understanding Compliance Requirements for Running a US Business in Belgium

Expanding a US business into Belgium can offer numerous opportunities, but it comes with a set of unique compliance requirements. Here are some key considerations to keep in mind:

Legal Structure

The first step is choosing the appropriate legal structure for your business. Common options include:

• Branch Office: An extension of the parent company without separate legal personality
• Subsidiary: A separate legal entity that can offer more flexibility and limit liability
• Representative Office: Suitable for market research or preliminary activities but cannot engage in commercial operations

Registration and Permits

Once the legal structure is decided, you'll need to register the business with the Belgian Crossroads Bank for Enterprises (CBE). Consider obtaining relevant permits:

• Business Number: A unique identifier issued upon registration
• VAT Registration: Required for businesses involved in taxable activities
• Sector-Specific Permits: Necessary for regulated industries such as food services or pharmaceuticals

Employment Laws

Compliance with Belgian employment laws is crucial. Key aspects include:

• Employment Contracts: Must be in line with Belgian labor regulations
• Working Hours: Adherence to standard working hours and overtime rules
• Social Security: Mandatory contributions to the Belgian social security system
• Work Permits: Required for non-EU employees

Taxation

Understanding the Belgian tax system is vital for compliance and financial planning. Consider the following:

• Corporate Income Tax: Currently set at a standard rate of 25%
• Withholding Tax: Applicable on dividends, interest, and royalties
• Double Tax Avoidance: Utilize tax treaties between the US and Belgium to prevent double taxation

Data Protection

Compliance with the General Data Protection Regulation (GDPR) is mandatory for businesses operating in Belgium. Key requirements include:

• Data Processing Agreements: Ensure contracts with third parties meet GDPR standards
• Data Protection Officer (DPO): Appoint a DPO if your business processes large volumes of personal data
• Privacy Policies: Transparent communication with customers and employees about data use

By carefully considering these factors, you can ensure compliance and smooth operation of your US business in Belgium.

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 Belgium

Understanding Tax Obligations for Running a US Business in Belgium

Running a US business in Belgium presents unique tax challenges and opportunities. Below are key considerations to understand your tax obligations effectively:

1. Tax Residency Status

Your business's tax residency significantly impacts its obligations. If your US business has a permanent establishment (PE) in Belgium, it may be subject to Belgian corporate income tax on profits attributable to the PE.

2. Corporate Income Tax (CIT)

Belgium imposes a corporate income tax on the net income earned within its jurisdiction. As of 2023, the standard CIT rate is 25%. Understanding how this rate applies to your income can help you plan accordingly.

3. Double Taxation Treaty

The US and Belgium have a double taxation treaty to prevent the same income from being taxed in both countries. Familiarize yourself with the treaty to understand how it can mitigate potential tax liabilities.

4. Value-Added Tax (VAT)

Belgium uses a value-added tax system, with a standard rate of 21%. If your business engages in selling goods or services within Belgium, you may need to register for VAT and comply with local VAT regulations.

5. Transfer Pricing

Belgian tax authorities require that transactions between related entities be conducted at arm's length. Proper documentation and compliance with transfer pricing rules are essential to avoid penalties.

6. Employment Taxes

If your business employs staff in Belgium, it's crucial to understand the required payroll taxes. This includes social security contributions, which are shared between the employer and the employee.

7. Filing Requirements and Deadlines

Timely and accurate tax filings are vital. Be aware of the Belgian tax year and relevant deadlines for CIT, VAT, and annual reports to avoid penalties.

8. Tax Incentives and Credits

Belgium offers various tax incentives, particularly for research and development activities. Investigating available credits can provide beneficial savings for your business.

9. Professional Advice

Navigating the complex tax landscape in Belgium can be daunting. Engaging a professional tax advisor with expertise in both US and Belgian tax laws can help ensure compliance and optimize your tax position.

• Tax Residency Status
• Corporate Income Tax (CIT)
• Double Taxation Treaty
• Value-Added Tax (VAT)
• Transfer Pricing
• Employment Taxes
• Filing Requirements and Deadlines
• Tax Incentives and Credits
• Professional Advice

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