How to Register a Business in the US from Guyana

Step 1: Benefits of starting your US business from Guyana

Establishing a US business from Guyana offers a multitude of benefits that can significantly contribute to your entrepreneurial success. One of the primary advantages is the unique position of Guyana as a gateway to both North American and South American markets. With its strategic geographic location, businesses can take advantage of the transport and trade routes connecting these two vast economic regions. Furthermore, Guyana's collaborative relationship with the United States allows for streamlined processes in business registration, compliance, and ongoing operations, making the initial setup and maintenance of your enterprise more efficient and less burdensome.

Another compelling benefit is the cost-effectiveness associated with operating from Guyana. The relatively lower cost of living and labor in Guyana means substantial savings on operational expenses, such as wages, office space, and utilities. This economic advantage allows businesses to allocate more resources towards growth initiatives like marketing, research and development, and expanding product lines. Additionally, with a well-educated and English-speaking workforce, Guyana provides a pool of talented professionals who can support various business functions, from customer service to technical support, enhancing the overall efficiency and competency of your US-based business. By leveraging these benefits, entrepreneurs can maximize their competitive edge and establish a robust presence in the US market, all while enjoying the vibrant culture and natural beauty that Guyana has to offer.

Step 2: How to start your US business from Guyana

Starting a US business from Guyana involves several steps and considerations. First, you must choose a business structure, such as a Limited Liability Company (LLC) or a Corporation. Each has different legal and tax benefits, so it is crucial to research which structure best suits your needs. Once you have decided on the business structure, you need to select a registered agent within the US to handle legal documents on your behalf, as US law requires a physical address within the country for business registration purposes.

After establishing an appropriate business structure and appointing a registered agent, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is essential for tax purposes, banking, and hiring employees. Additionally, you may have to apply for various licenses and permits depending on your industry and the state in which you are setting up your business. Lastly, open a US business bank account to handle financial transactions. It is advisable to consult with legal and financial experts who specialize in international business to ensure compliance with all US 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 Guyana

Understanding Compliance Requirements for Running a US Business in Guyana

Operating a US business in Guyana comes with a unique set of compliance requirements. Understanding these considerations is crucial for successful establishment and ongoing operations. This guide outlines key aspects to consider.

1. Business Registration

• Local Incorporation: US businesses typically must register as a local entity in Guyana. This involves submitting documentation to the Guyana Revenue Authority (GRA).
• Types of Entities: Options include setting up a branch office, subsidiary, or joint venture with a local company. Each type has different requirements and implications.

2. Taxation

• Corporate Tax: Guyana imposes a corporate tax on the income earned within the country. Familiarize yourself with current tax rates and filing deadlines.
• Value-Added Tax (VAT): Businesses may need to register for VAT, which is a consumption tax levied on goods and services.
• Withholding Tax: Certain payments to non-residents may be subject to withholding tax.

3. Employment Law

• Labor Regulations: US businesses must adhere to Guyana’s labor laws regarding working hours, minimum wage, and overtime.
• Local Workforce: Ensure compliance with regulations related to hiring local employees, including work permits for expatriates.

4. Environmental and Safety Standards

• Environmental Regulations: Compliance with environmental laws, especially for industries like mining, forestry, and agriculture, is crucial.
• Occupational Safety: Adhering to workplace safety standards is mandatory to ensure the wellbeing of employees.

5. Intellectual Property

• Trademark Registration: Protect your brand by registering trademarks with the relevant authorities in Guyana.
• Patent Laws: Understand the process of securing patents to safeguard your business innovations.

6. Financial Reporting

• Accounting Standards: Ensure financial statements comply with International Financial Reporting Standards (IFRS).
• Annual Filings: Regular financial reports must be submitted to local authorities.

7. Legal Considerations

• Contract Laws: Be aware of local laws governing contracts to ensure enforceability and protection of your business interests.
• Dispute Resolution: Familiarize yourself with the dispute resolution mechanisms available in Guyana.

Understanding these compliance requirements is essential for operating a US business in Guyana. Consulting with local legal and business experts can provide further guidance specific to your industry and business model.

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 Guyana

Understanding Tax Obligations for Running a US Business in Guyana

For US entrepreneurs planning to expand their business operations into Guyana, understanding the local tax obligations is crucial. Navigating the tax landscape can help ensure compliance and optimize financial strategies. Here are key considerations to keep in mind:

1. Corporate Income Tax

In Guyana, corporate income tax rates differ based on the type of business. Generally, commercial companies are taxed at a rate of 40%, while non-commercial companies are subject to a 25% tax rate. It's essential to identify the category your business falls into to determine the applicable tax rate.

2. Value Added Tax (VAT)

Guyana imposes a Value Added Tax (VAT) of 14% on goods and services. Businesses must register for VAT if their annual taxable sales or services exceed GYD 15 million. Ensuring compliance with VAT registration and remittance is a critical aspect of tax obligations.

3. Withholding Taxes

Businesses making payments to non-residents for services, dividends, interest, royalty, and other specific payments may need to withhold tax. The rates vary, often ranging from 10% to 20%, and it's important to understand these obligations to avoid penalties.

4. Double Taxation Agreement

Guyana has a Double Taxation Agreement (DTA) with the United States which aims to prevent double taxation and allow for the exchange of information. This agreement can offer relief and benefits, such as tax credits or exemptions, to businesses operating in both countries.

5. Tax Incentives

Guyana offers various tax incentives to encourage foreign investment. These can include exemptions from customs duty and VAT on machinery and equipment, and tax holidays for specific industries. Exploring available incentives can significantly benefit your business.

6. Local Compliance

Understanding local regulations and compliance requirements is essential. Consulting with local tax advisors or legal experts can ensure that your business adheres to all tax-related regulations and avoids any unintentional non-compliance issues.

Running a US business in Guyana requires careful consideration of these tax factors. Staying informed and seeking professional advice can help manage your tax obligations effectively and leverage potential benefits.

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