How to Register a Business in the US from North Macedonia

Step 1: Benefits of starting your US business from North Macedonia

Starting a US business from North Macedonia offers numerous advantages, leveraging the nation's strategic position and cost-effective environment. Entrepreneurs can benefit from significantly lower operational costs, including labor, rent, and general overheads, compared to the United States. This cost efficiency allows business owners to allocate more resources towards innovation, marketing, and scaling the business. The burgeoning technology sector and skilled workforce in North Macedonia also provide a solid foundation for businesses requiring expertise in IT, engineering, and other high-demand fields.

Moreover, North Macedonia's favorable timezone offers a practical advantage for managing operations across continents. Situated close to major European markets, it facilitates seamless communication and collaboration with both European and American clients and partners. The Macedonian government also supports foreign investments and business initiatives, providing incentives such as tax benefits and streamlined regulatory processes. This pro-business environment ensures that entrepreneurs can focus on growth and expansion, making North Macedonia an attractive hub for setting up a US-based business.

Step 2: How to start your US business from North Macedonia

Starting a US business from North Macedonia involves several essential steps to ensure compliance with both US and North Macedonian regulations. First, you need to decide on the type of business entity you want to establish, such as a corporation, Limited Liability Company (LLC), or partnership. Each type has its own legal and tax implications. Many entrepreneurs prefer the LLC structure due to its flexibility and limited liability protection.

Once you have chosen the business structure, the next step is to register your business with the appropriate state authorities in the US. You can typically do this online through the Secretary of State's website for the state where you plan to operate. After registration, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is essential for tax purposes and will allow you to open a US bank account and hire employees if needed. It's also wise to consult with a legal and tax professional who can help you navigate the complexities of operating a US business from abroad, ensuring you comply with both North Macedonian and US laws.

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 North Macedonia

Understanding Compliance Requirements for Running a US Business in North Macedonia

Expanding your US-based business to North Macedonia can open up new opportunities. However, it's crucial to be aware of various compliance requirements that come with operating in a different country. Here are some key considerations:

1. Legal Entity Formation

Determining your business structure is a primary step. Choose from several options including:

• Limited Liability Company (DOOEL)
• Joint Stock Company (AD)
• Branch Office

Each type has different setup requirements and implications for liability and taxation.

2. Registration Process

Register your business with the Central Register of North Macedonia. The key steps include:

1. Submitting founding documents
2. Providing identification and proof of initial capital
3. Receiving a company registration certificate

3. Tax Compliance

Compliance with tax regulations is critical. Understand the following:

• Corporate Income Tax: Currently, the rate is 10%
• Value Added Tax (VAT): Standard rate is 18%, with a reduced rate of 5% for certain goods
• Withholding Tax: Applicable on certain types of income like dividends and interest

4. Employment Regulations

Employing staff requires adherence to local labor laws. Key considerations include:

• Drafting employment contracts that comply with North Macedonian labor laws
• Understanding maximum working hours, minimum wage, and overtime compensation
• Ensuring proper social security and health insurance registrations

5. Intellectual Property

Protect your business's intellectual property by:

• Registering trademarks, patents, and copyrights with the State Office of Industrial Property
• Considering agreements for protecting trade secrets and other proprietary information

6. Import and Export Rules

For businesses involved in trading goods, follow customs regulations:

• Understanding import duties and tariffs
• Acquiring necessary licenses for specific products
• Ensuring compliance with the EU's technical and safety standards

By addressing these considerations, US businesses can effectively navigate compliance requirements and build a successful presence in North Macedonia.

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 North Macedonia

Understanding Tax Obligations for Running a US Business in North Macedonia

Running a US business in North Macedonia requires a thorough understanding of both local and international tax regulations. Below are key considerations to help navigate this complex landscape.

1. Registration and Legal Entity

Before establishing operations, register your business with the Central Registry of the Republic of North Macedonia. You'll need to decide on the appropriate legal entity, such as a limited liability company (DOO), which affects your tax obligations.

2. Corporate Income Tax

Businesses in North Macedonia are subject to a corporate income tax rate of 10%. Understanding how to file accurate tax returns is crucial. This rate applies to net profit, but various deductions and exemptions may be available.

3. Value Added Tax (VAT)

North Macedonia has a VAT system applicable to goods and services. The standard VAT rate is 18%, with a reduced rate of 5% for specific categories. Ensure your business complies with VAT registration and reporting requirements.

4. Withholding Taxes

Withholding tax may apply to certain payments to foreign entities, such as dividends, interest, and royalties. Rates can vary, often around 10%, but bilateral tax treaties may offer reductions.

5. Personal Income Tax

If you employ staff locally, understanding personal income tax is essential. North Macedonia employs a flat tax rate of 10% on individual income, including salaries and other benefits.

6. Social Security Contributions

Both employers and employees must contribute to social security. As an employer, you are required to match employee contributions, covering health insurance, pension, and unemployment funds. The combined contribution rate can be around 28.4% of gross salary.

7. Bilateral Tax Treaties

The tax treaty between the US and North Macedonia aims to prevent double taxation. Familiarize yourself with its provisions to benefit from tax credits and exemptions where eligible.

8. Transfer Pricing Regulations

Inter-company transactions between your US and North Macedonian entities must comply with arm's length principles. Maintain documentation to support your pricing policies and avoid penalties.

• Consult with tax advisors specializing in international taxation.
• Regularly review changes in North Macedonian tax laws.
• Maintain thorough financial records for tax filing and audits.

Adhering to these considerations will help ensure your US business operates smoothly in North Macedonia and remains compliant with all tax obligations.

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