How to Register a Business in the US from Burkina Faso

Step 1: Benefits of starting your US business from Burkina Faso

Starting a US business from Burkina Faso offers an array of benefits that can be highly advantageous for entrepreneurs and investors alike. One of the primary advantages is the access to a vastly larger market. The United States boasts one of the largest consumer markets in the world, providing endless opportunities for business growth and expansion. By tapping into this market, businesses based in Burkina Faso can scale rapidly, reaching a diverse and affluent customer base that is constantly seeking new products and services.

Moreover, the regulatory environment for businesses in the United States is highly conducive to growth and innovation. The US provides a well-developed infrastructure, robust legal protections, and a variety of incentives for foreign businesses. Entrepreneurs from Burkina Faso can benefit from lower costs of doing business due to streamlined processes and a well-established support network for startups. Additionally, establishing a presence in the US can enhance the credibility and global standing of a business, opening doors to international partnerships and investment opportunities. By seizing these advantages, businesses from Burkina Faso can not only thrive in the US market but also gain a competitive edge on the global stage.

Step 2: How to start your US business from Burkina Faso

If you are in Burkina Faso and considering starting a business in the United States, there are a few key steps you need to follow to ensure the process goes smoothly. First, you will need to choose the type of business structure that is right for you. Common options include a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own legal and tax implications, so it's important to research which one best fits your business model and goals.

Once you have decided on a business structure, you will need to register your business with the relevant state authorities in the U.S. This often requires selecting a unique business name and filing registration documents, such as articles of incorporation for a corporation or articles of organization for an LLC. Additionally, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which acts like a social security number for your business. Depending on your business activities, you may also need to apply for specific licenses or permits. It's advisable to consult with a legal expert to navigate these requirements efficiently.

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 Burkina Faso

Understanding Compliance Requirements for Running a US Business in Burkina Faso

Starting and operating a US business in Burkina Faso requires careful attention to local compliance requirements. These considerations ensure that your business operates legally and efficiently within Burkina Faso's regulatory framework. Below are key elements to consider:

1. Business Registration

Registering your business is the first step towards ensuring compliance. This involves:

• Choosing a legal structure (e.g., LLC, Corporation, Partnership)
• Registering with Burkina Faso's Ministry of Commerce and Industry
• Obtaining necessary permits and licenses

2. Local Partnerships

Working with local partners can help navigate Burkina Faso's business environment. Consider:

• Finding reputable local advisors or consultants
• Establishing joint ventures with local businesses
• Engaging local law firms to guide on compliance matters

3. Taxation

Understanding the tax obligations is crucial for compliance:

• Register for a Tax Identification Number (TIN)
• Understand corporate income tax rates
• Comply with VAT requirements and filing deadlines

4. Employment Laws

Adhering to local labor laws is essential:

• Comply with minimum wage regulations
• Ensure proper employee contracts
• Understand the local employment benefits and social security contributions

5. Environmental Regulations

Ensure your business activities adhere to environmental standards:

• Understand any industry-specific environmental regulations
• Obtain necessary environmental permits
• Implement waste management and sustainability practices

6. Intellectual Property

Protect your intellectual property rights:

• Register trademarks and patents in Burkina Faso
• Understand local enforcement mechanisms
• Seek legal counsel for intellectual property issues

7. Anti-Corruption Compliance

Promote ethical business practices:

• Implement anti-corruption policies
• Train employees on compliance and reporting mechanisms
• Ensure adherence to both US and Burkina Faso anti-corruption laws

By carefully considering these aspects, your US business can successfully navigate the local compliance requirements in Burkina Faso, promoting a smooth and lawful operation.

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 Burkina Faso

Understanding tax obligations is crucial for running a US business in Burkina Faso. To ensure compliance and optimal operations, several key considerations need to be addressed:

Registration and Legal Structure

The first step is to register your business with the relevant authorities in Burkina Faso. Depending on the nature of your business, you may choose different legal structures, which may include sole proprietorship, partnership, or corporation. Each structure can have different tax implications.

Corporate Tax

Businesses operating in Burkina Faso are subject to corporate tax on their income. The corporate tax rate can vary based on the sector and the size of the business. It is important to consult with local tax authorities or professionals to determine the applicable rate for your business.

Value-Added Tax (VAT)

VAT is a significant consideration for businesses in Burkina Faso. The standard VAT rate is applied to the sale of goods and services. Ensure that your business is properly registered for VAT and that you comply with filing and payment requirements.

Withholding Tax

Burkina Faso imposes withholding tax on various types of payments, including dividends, interest, and royalties. Understanding the rates and compliance requirements is essential to avoid penalties and ensure proper tax reporting.

Social Security Contributions

Employers are responsible for contributing to social security for their employees. This includes contributions to health insurance, pension schemes, and other social benefits. Ensure you are familiar with the contribution rates and due dates.

Double Taxation Agreements (DTA)

Burkina Faso has entered into double taxation agreements with several countries, including the United States. These agreements help prevent the same income from being taxed in both countries. Familiarize yourself with the terms of the DTA to optimize your tax liability.

Local Tax Regulations and Compliance

Burkina Faso's local tax regulations may differ from those in the United States. It is crucial to stay updated on local tax laws, including filing deadlines, payment schedules, and any changes in tax legislation. Consulting with a local tax advisor can be beneficial.

Record-Keeping and Documentation

Maintaining accurate financial records and documentation is essential for tax compliance. Proper documentation supports your tax filings and can be crucial in the event of an audit or dispute with tax authorities.

Seeking Professional Advice

Given the complexities of international tax obligations, it is advisable to seek professional advice. Engaging with local tax consultants, accountants, and legal advisors can help ensure that your business remains compliant and takes advantage of any available tax benefits.

By understanding these considerations and taking proactive steps, US businesses can successfully navigate the tax landscape in Burkina Faso, ensuring compliance and efficient operations.

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