How to Register a Business in the US from Belize

Step 1: Benefits of starting your US business from Belize

Belize offers a myriad of benefits for entrepreneurs looking to start a US business while residing in a Caribbean paradise. One of the most alluring advantages is the favorable tax environment. Belize does not impose capital gains tax or inheritance tax, and the country operates a territorial tax system. This means that as long as your business income is sourced from outside Belize, it is not subject to local taxation. This can result in significant savings and make your operations more financially efficient.

Additionally, the process of setting up a business in Belize is straightforward and relatively hassle-free. The Belizean government has made concerted efforts to attract foreign investment, offering a streamlined incorporation process and minimal corporate regulations. Operating from Belize also allows access to a skilled and multilingual workforce, which can be beneficial for businesses targeting diverse markets. Furthermore, the time zone alignment with the US Eastern and Central time zones facilitates smooth communication and coordination with partners and clients in the United States, enhancing business productivity and connectivity.

Step 2: How to start your US business from Belize

Starting a US business from Belize involves several steps that require careful planning and an understanding of both US and Belize regulations. First, it's essential to decide on the type of business entity you wish to establish in the US. Common options include a Limited Liability Company (LLC), Corporation (C Corp or S Corp), or Partnership. Each entity type has its own advantages and legal implications, so it’s important to consult with a legal or business advisor to determine the best fit for your business goals.

Once you have decided on the business entity, you will need to register your business with the appropriate US state agency. This typically involves choosing a unique business name, filing the necessary formation documents, and paying a registration fee. Additionally, you may need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which is required for tax purposes and to open a US bank account. To facilitate smooth operations, it may also be beneficial to engage a registered agent in the state where you are incorporating, who can handle legal documents and compliance requirements on your behalf.

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 Belize

Understanding Compliance Requirements for Running a US Business in Belize

Expanding your business operations into Belize can offer numerous opportunities, but it's crucial to understand the compliance requirements involved. Here are the primary considerations US business owners should keep in mind:

1. Business Registration

Before operating in Belize, you must register your business with the Belize Companies Registry. This process includes:

• Choosing a unique business name
• Filing the necessary incorporation documents
• Paying registration fees

2. Licenses and Permits

Depending on the nature of your business, you may require specific licenses and permits. Common types include:

• Trade licenses for retail operations
• Environmental permits for businesses impacting natural resources
• Tour guide licenses for tourism-related services

3. Taxation

Understanding the local tax system is vital. Key taxes include:

• Corporate Income Tax: A standard tax on corporate profits
• General Sales Tax (GST): A tax applied to the sale of goods and services, similar to VAT
• Withholding Tax: Applicable on certain payments to non-residents

4. Employment and Labor Laws

Compliance with Belizean labor regulations is non-negotiable. Key considerations include:

• Adhering to minimum wage laws
• Ensuring proper working conditions
• Observing mandatory benefits such as social security

5. Environmental Regulations

If your business impacts the environment, compliance with regulations from the Department of Environment is essential. This may involve:

• Environmental Impact Assessments (EIA)
• Obtaining specific environmental permits
• Abiding by waste disposal and pollution control policies

6. Currency and Banking

Belize operates with the Belize Dollar (BZD). For transactions and business operations, consider:

• Establishing a local bank account
• Understanding exchange control regulations
• Being aware of anti-money laundering (AML) requirements

7. Intellectual Property Protection

Protect your business's intellectual property by registering trademarks, patents, and copyrights through the Belize Intellectual Property Office (BELIPO).

Navigating these compliance requirements ensures that your US business operates legally and efficiently in Belize, allowing you to take full advantage of the opportunities this vibrant country offers.

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 Belize

Tax Obligations for US Businesses Operating in Belize

Running a US business in Belize offers numerous opportunities due to its favorable investment climate and strategic location. However, understanding the tax obligations is crucial for ensuring compliance and optimizing financial performance. Here are some key considerations:

1. Types of Taxes

• Corporate Income Tax: Belize operates a territorial tax system where only income earned within the country is subject to taxation. The standard corporate tax rate is 25%, but this can vary depending on the type of business and its revenue.
• Goods and Services Tax (GST): A GST of 12.5% is levied on goods and services consumed in Belize. It's essential for businesses to register for GST if their annual turnover exceeds the threshold.
• Withholding Tax: This tax applies to payments made to non-residents, including dividends, interests, and royalties, and ranges from 15% to 25%.

2. Registration and Compliance

US businesses must register as a foreign entity with Belize's Companies and Corporate Affairs Registry. Proper registration ensures that the business is recognized under Belizean law, facilitating smooth operations and compliance with local regulations.

3. Double Taxation Agreements (DTAs)

Belize has several Double Taxation Agreements in place to prevent the same income from being taxed by both Belize and the US. These agreements can help reduce tax liabilities and prevent dual taxation on income earned from cross-border activities.

4. Tax Incentives

Belize offers various tax incentives to attract foreign investment. These include duty exemptions, tax holidays, and export incentives. US businesses should explore these opportunities to minimize tax burdens and enhance profitability.

5. Record Keeping and Reporting

Maintaining accurate records is vital for meeting tax reporting requirements in Belize. Businesses must file annual tax returns and pay any due taxes by the stipulated deadlines to avoid penalties. Employing a local accountant or tax advisor can be beneficial in navigating the local tax landscape.

6. Legal and Professional Advice

Given the complexities of international tax laws, it is advisable for US businesses operating in Belize to consult with legal and tax professionals. They can provide tailored advice and ensure compliance with both US and Belizean tax obligations.

Understanding and adhering to these tax considerations will help US businesses operate successfully in Belize while optimizing their tax liabilities.

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