How to Register a Business in the US from Ireland

Step 1: Benefits of starting your US business from Ireland

Starting a US business from Ireland opens up a plethora of opportunities and advantages for entrepreneurs. One of the prime benefits is the access to a vast market. The United States is home to one of the largest consumer bases in the world, offering Irish businesses the potential to reach millions of customers. By leveraging the shared language, Irish entrepreneurs can seamlessly market their products and services without the hurdles of language barriers, making it easier to engage with the audience and grow their customer base.

Moreover, Ireland provides a favorable business environment that can bolster the success of a US-based venture. With favorable taxation policies, Ireland is an attractive location for establishing a business that operates on an international scale. The country's strong educational system produces highly skilled graduates, ensuring a talented workforce is at your disposal. Additionally, Ireland's robust legal and regulatory framework protects businesses, while its strategic location offers easy access to both European and US markets through efficient transport and communication links. Combined, these benefits create a powerful springboard for Irish entrepreneurs to launch and thrive in the US market.

Step 2: How to start your US business from Ireland

Starting a US business from Ireland can be a straightforward process if you follow the necessary steps. First, decide on the type of business structure that best suits your needs, such as a Limited Liability Company (LLC) or a Corporation. An LLC is often preferred for its simplicity and tax benefits, while a Corporation might be better if you plan on raising capital through investors. You will need to choose a state to register your business; popular options include Delaware, Nevada, and Wyoming due to their favorable business laws.

Once you've chosen your business structure and state, the next step is to register your business with the appropriate state agency, often the Secretary of State. You will also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which is necessary for tax purposes. Additionally, opening a US-based bank account is crucial for managing finances; many US banks have processes in place for non-resident business owners. It is highly recommended to seek guidance from legal and financial advisors with experience in US business law to ensure you meet all regulatory requirements and optimize your business setup.

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 Ireland

Understanding Compliance Requirements for Running a US Business in Ireland

Expanding your US business into Ireland can be a strategic move, given its business-friendly environment and status as a gateway to the European market. However, understanding and adhering to compliance requirements is crucial. Here are several key considerations:

Legal Structure

The first step in setting up your business in Ireland is deciding on the legal structure. Common options include:

• Private Limited Company
• Branch Office
• Partnership

Each structure comes with its own set of compliance obligations, so consult with a legal expert to choose the best fit for your business.

Registration and Documentation

Once the legal structure is chosen, you will need to register the business with the Companies Registration Office (CRO). Required documentation generally includes:

1. Company Name
2. Business Address
3. Directors' Details
4. Constitution of the Company

Tax Compliance

Understanding tax obligations is vital. In Ireland, these can include:

• Corporation Tax: Ireland offers a competitive corporate tax rate of 12.5%. However, this rate can vary depending on the nature of your business activities.
• Value Added Tax (VAT): Registration for VAT is required if your taxable turnover exceeds certain thresholds. The standard VAT rate is 23%.
• PAYE: Employers must operate Pay As You Earn (PAYE) for employees, ensuring proper tax deductions from wages.

Employment Law

Compliance with Irish employment law is mandatory and covers areas such as:

• Minimum wage requirements
• Working time regulations
• Employee benefits and entitlements

Ensure that contracts and policies adhere to local legislation to avoid legal complications.

Data Protection

Businesses in Ireland must comply with the General Data Protection Regulation (GDPR). This involves:

• Secure handling of personal data
• Obtaining consent for data collection
• Implementing data protection measures

Non-compliance with GDPR can result in significant penalties.

Financial Reporting

Irish law mandates that companies submit annual financial statements to the CRO. Public companies and large private companies are subject to more extensive reporting requirements.

Consult Local Experts

Navigating the regulatory landscape can be complex. It is advisable to engage with local legal, tax, and business consultants who can provide tailored guidance to ensure full compliance with Irish laws.

By understanding these key compliance requirements, your US business can successfully and legally operate in Ireland, tapping into its vibrant economic opportunities.

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 Ireland

Understanding Tax Obligations for Running a US Business in Ireland

Running a US business in Ireland can offer many advantages, including access to the European market and various tax incentives. However, understanding the tax obligations is crucial to ensure compliance and optimize your tax strategy.

Corporate Tax Rate

Ireland is renowned for its competitive corporate tax rate, currently set at 12.5% for trading income. This is significantly lower than the US corporate tax rate and is one of the primary reasons many US businesses set up operations in Ireland.

Double Taxation Treaties

To avoid being taxed twice on the same income, the US and Ireland have a double taxation treaty. This treaty provides mechanisms for businesses to claim relief from double taxation, making it easier to manage tax liabilities in both countries.

Value-Added Tax (VAT)

If your business is providing goods or services in Ireland, you’ll likely need to register for Value-Added Tax (VAT). The standard VAT rate in Ireland is 23%, but there are reduced rates for certain goods and services. It’s important to stay updated on VAT regulations to ensure compliance.

Employment Taxes

When hiring employees in Ireland, it's essential to understand the local employment tax obligations. This includes Pay As You Earn (PAYE) income tax, Pay Related Social Insurance (PRSI), and the Universal Social Charge (USC). Ensuring accurate payroll processing will help avoid penalties and support employee satisfaction.

Transfer Pricing Regulations

Transfer pricing rules aim to ensure that transactions between related entities are conducted at arm's length. If your US business interacts with its Irish subsidiary, adhering to transfer pricing guidelines is critical to avoid tax adjustments and potential fines.

Research and Development (R&D) Tax Credits

Ireland offers generous R&D tax credits to encourage innovation. US businesses engaged in qualifying R&D activities can benefit from a tax credit of up to 25% of eligible expenditure, which can further reduce the effective tax burden.

Professional Advice

Navigating the Irish tax system can be complex, particularly for US companies unfamiliar with local regulations. Consulting with tax professionals who specialize in cross-border tax issues can provide valuable guidance and ensure compliance with all obligations.

• Competitive corporate tax rate at 12.5%
• Double taxation treaty between the US and Ireland
• Requirement to register for VAT
• Obligations for PAYE, PRSI, and USC when hiring employees
• Adherence to transfer pricing regulations
• Potential R&D tax credits for innovation
• Consideration for professional tax advice

By understanding these key tax obligations, US businesses can effectively manage their operations in Ireland and take full advantage of the opportunities provided by this dynamic marketplace.

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