How to Register a Business in the US from Greece

Step 1: Benefits of starting your US business from Greece

Starting a US business while residing in Greece can offer numerous advantages, particularly when it comes to market access and operational flexibility. One of the key benefits is the ability to tap into the vast and dynamic American market. By establishing a US business, you gain access to millions of potential customers and a highly diversified economy, which can significantly enhance your business growth prospects. Additionally, the strong trade relations between the United States and Greece can facilitate smoother transactions, allowing you to leverage both markets effectively.

Another major advantage is the technological and infrastructural support available in the US. As a business owner operating from Greece, you can benefit from advanced technological tools, robust internet infrastructure, and a wide array of business services that are readily available in the United States. This can streamline your operations, enhance productivity, and provide a competitive edge in your industry. Moreover, starting a business in the US can afford you greater credibility and trust among international clients and partners, helping you establish a strong global presence while enjoying the comforts of living in Greece.

Step 2: How to start your US business from Greece

Starting a US business from Greece involves several steps that you need to carefully navigate to ensure compliance with both US and international regulations. Firstly, you should decide on the type of business entity you want to establish, such as a Limited Liability Company (LLC) or a Corporation. Each type has its own advantages and disadvantages concerning taxation, liability, and management structure. Once you've made this decision, you will need to register your business with the appropriate state in the US. States like Delaware and Nevada are popular choices due to their business-friendly regulations and lower fees.

Next, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This is necessary for tax purposes and can be applied for online. Additionally, consider opening a US bank account to manage your business finances more efficiently. Many banks offer international accounts, but it may be easier to work with a US-based bank that has experience dealing with foreign entrepreneurs. Lastly, ensure you comply with any state-specific requirements such as acquiring necessary permits or licenses. Consulting with a legal advisor who specializes in international business can be extremely beneficial to help you navigate these challenges.

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 Greece

Understanding Compliance Requirements for Running a US Business in Greece

Expanding your US-based business into Greece can offer new opportunities but also comes with a unique set of compliance requirements. Navigating these effectively is crucial to your success. Below are some key considerations to keep in mind:

1. Company Formation

Before starting operations, you must select the appropriate business structure. Common options include:

• Société Anonyme (S.A.) - Similar to a US corporation with shares
• Limited Liability Company (E.P.E.) - Comparable to a US LLC
• Private Company (I.K.E.) - A versatile and popular choice for smaller businesses

Each structure has distinct requirements for capital contributions, governance, and regulatory compliance.

2. Taxation

Greece has its own taxation system that differs significantly from the US. Important aspects include:

• Corporate Tax Rate - Currently set at 22%
• Value Added Tax (VAT) - Standard rate is 24%, with reductions for certain goods and services
• Withholding Tax - Applicable on dividends, interest, and royalties

It's essential to work with a Greek tax advisor to navigate these complexities and take advantage of any applicable tax treaties.

3. Employment Laws

Greece has stringent labor laws, covering areas such as:

• Employee Contracts - Must be in writing and stipulate terms clearly
• Working Hours - Standard workweek is 40 hours, with mandatory overtime pay
• Minimum Wage - Set by the government, with periodic adjustments
• Social Security - Contributions are required from both employers and employees

4. Regulatory Compliance

Several regulatory bodies oversee business operations in Greece:

• General Commercial Registry (G.E.MI.) - For business registrations and updates
• Hellenic Capital Market Commission (HCMC) - Regulates financial markets
• Labor Inspectorate - Enforces employment laws and standards

5. Intellectual Property

Protecting your intellectual property (IP) in Greece involves:

• Registering trademarks and patents with the Greek Industrial Property Organization (OBI)
• Ensuring copyright compliance

Greece follows European Union directives on IP, so EU-wide protections may also apply.

6. Local Partnerships and Legal Assistance

To navigate the complexities of doing business in Greece, consider partnering with local legal and business advisors:

• They can provide insights into local market conditions and best practices
• They ensure that all filings and compliance documents are correctly prepared and submitted

By understanding these key areas, you'll be better positioned to ensure full compliance when running your US business in Greece.

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 Greece

Understanding Tax Obligations for Running a US Business in Greece

Expanding your US business into Greece is an exciting opportunity, but it also involves navigating a different tax landscape. Here are key tax considerations to help you understand your obligations and remain compliant:

1. Corporate Income Tax

Greece imposes a corporate income tax on the profits of companies operating within its jurisdiction. The current corporate tax rate is 22%. US businesses must ensure they properly account for this when projecting their finances.

2. Value Added Tax (VAT)

VAT in Greece is applied to most goods and services. The standard rate is 24%, with reduced rates of 13% and 6% for specific categories. US businesses must register for VAT if they make taxable supplies in Greece.

3. Double Taxation Avoidance Treaty

To prevent double taxation, the US and Greece have signed a treaty. This treaty allows US businesses to claim tax credits in the US for taxes paid in Greece, and vice versa. Businesses should consult the treaty to optimize their tax liabilities.

4. Social Security Contributions

Employers in Greece are required to contribute to social security for their employees. The contributions rates are approximately 16% for employers and 12% for employees. US businesses must ensure they comply with these contributions for any local employees.

5. Local Taxes and Levies

Depending on the nature and location of the business, various local taxes may apply. These can include municipal taxes, property taxes, and industry-specific levies. It's essential to understand and budget for these additional obligations.

6. Tax Filings and Deadlines

• Annual Tax Returns: Must be filed by the end of June each year.
• Quarterly VAT Returns: Must be submitted every three months.
• Employer Contributions: Payments are due monthly.

Staying aware of these deadlines can help avoid penalties and interest charges.

7. Professional Advice

Navigating Greek tax law can be complex, and it's advisable to seek professional tax advice. Partnering with local accountants or tax advisors who understand both Greek and US tax systems can ensure compliance and optimize tax strategies.

Understanding and managing these tax obligations will help US businesses operate successfully in Greece, fostering growth and ensuring financial health.

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