How to Register a Business in the US from Peru

Step 1: Benefits of starting your US business from Peru

Starting a US business from Peru offers a myriad of benefits that leverage both geographical and economic advantages. One of the significant perks is the lower operational costs. Peru, with its favorable cost of living and affordable labor market, allows entrepreneurs to manage expenses more efficiently compared to the higher costs in the US. This cost-efficiency can be crucial for businesses in their initial stages, helping them allocate resources smartly and focus on growth. Additionally, Peru's strategic time zone alignment with many parts of the US facilitates seamless communication and collaboration, ensuring that operations run smoothly despite the geographical distance.

Moreover, the Peruvian workforce is known for its talent and professionalism, providing a robust foundation for various business operations such as customer service, technical support, and even software development. Entrepreneurs can tap into this pool of skilled professionals to build a reliable team that can drive their business forward. Furthermore, starting a business from Peru gives access to both US and Latin American markets, opening up a diverse customer base and numerous expansion opportunities. These advantages, combined with the dynamic and entrepreneurial spirit found in Peru, make it an ideal location for establishing and growing a US-based business.

Step 2: How to start your US business from Peru

Starting a US business from Peru can be an exciting opportunity. The first step is to decide on the type of business entity you want to create. Common choices include a Limited Liability Company (LLC), a Corporation, or a Sole Proprietorship. Each type offers different benefits and demands, so it's important to research which one best suits your needs. Next, you'll need to choose a state in which to register your business, as regulations and costs can vary widely. Delaware, Nevada, and Wyoming are popular choices due to their business-friendly laws.

Once you've chosen your business structure and state, you will need to register your business with the appropriate state authorities. This typically involves filing formation documents such as the Articles of Organization for an LLC or the Articles of Incorporation for a Corporation, and paying the required fees. You will also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is essential for tax purposes and for opening a US business bank account. Additionally, be sure to comply with any local and federal regulations, including obtaining any necessary licenses and permits. With careful planning and attention to detail, starting a US business from Peru can be a rewarding endeavor.

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 Peru

Understanding Compliance Requirements for Running a US Business in Peru

Setting up and managing a business in a foreign country can be complex, particularly when it comes to navigating the local regulatory landscape. For US businesses operating in Peru, it is essential to understand various compliance requirements to ensure seamless operations. Below are key considerations:

1. Business Registration

Before starting operations, a US business must register with the Peruvian public registries. The process involves:

• Choosing a unique business name and registering it with the Superintendencia Nacional de los Registros Públicos (SUNARP).
• Filing articles of incorporation or equivalent documents.
• Obtaining a unique taxpayer identification number (RUC) from the Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT).

2. Corporate Structure

Selecting the appropriate corporate structure is crucial. Options in Peru include:

• Sociedad Anónima (SA): Similar to a corporation, suited for larger enterprises.
• Sociedad Comercial de Responsabilidad Limitada (SRL): Equivalent to a limited liability company, ideal for small and medium-sized businesses.
• Branch Office: For businesses maintaining operations in both the US and Peru.

3. Employment Law

Compliance with Peruvian labor laws is mandatory. Key requirements include:

• Offering employment contracts in Spanish, adhering to local standards.
• Registering employees with the Peruvian social security system (EsSalud).
• Providing mandatory benefits such as vacation time, bonuses, and severance pay.
• Ensuring compliance with minimum wage and maximum work hours regulations.

4. Taxes

Understanding the tax obligations is vital for smooth operations. Major tax considerations include:

• Corporate Income Tax: Generally, a flat rate of 29.5% on net income.
• Value Added Tax (VAT): A standard rate of 18% on goods and services.
• Withholding Taxes: Applicable on payments to non-residents, including dividends, royalties, and interest.

US businesses must regularly file tax returns and make timely payments to SUNAT.

5. Intellectual Property

Protecting intellectual property (IP) is crucial. Businesses should consider:

• Registering trademarks, patents, and copyrights with the Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual (INDECOPI).
• Ensuring compliance with local IP laws to safeguard innovations and brand identity.

6. Environmental Regulations

Depending on the industry, businesses may need to adhere to environmental standards. Considerations include:

• Obtaining necessary environmental permits and licenses.
• Complying with regulations related to waste management, emissions, and resource usage.
• Engaging with the Ministerio del Ambiente (MINAM) for up-to-date guidelines.

While this overview provides a foundation, consulting with local legal and financial experts is recommended to ensure comprehensive compliance. Understanding and adhering to these requirements will facilitate successful business operations in Peru.

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 Peru

Understanding Tax Obligations for Running a US Business in Peru

Expanding your US business into Peru presents a wealth of opportunities, but also brings forward the necessity to understand the tax obligations that come with operating in this foreign market. Below are key considerations for navigating the Peruvian tax landscape.

1. Registration and Legal Structure

Before commencing operations in Peru, your business must register with the Peruvian tax authorities, SUNAT (Superintendencia Nacional de Administración Tributaria). You need to choose an appropriate legal structure, such as a branch or subsidiary, which will determine your tax obligations and compliance requirements.

2. Corporate Income Tax

Peru imposes a corporate income tax on the net income of businesses. The tax rate is generally 29.5%. Profits earned by a Peruvian subsidiary of a US company are subject to this tax. However, tax treaties between the US and Peru may offer relief from double taxation.

3. Value Added Tax (VAT)

VAT, known as IGV (Impuesto General a las Ventas) in Peru, is a significant tax consideration. It is applied at a rate of 18% on the sale of goods and services. Businesses must collect and remit VAT to SUNAT, and they can also claim credits for VAT paid on business-related purchases.

4. Withholding Taxes

Peru imposes withholding taxes on certain types of payments to non-residents. Interest, dividends, royalties, and service fees can be subject to withholding taxes, generally ranging from 4.99% to 30% depending on the nature of the payment. Assess tax treaty benefits to determine applicable rates.

5. Transfer Pricing

Transactions between related entities must comply with Peruvian transfer pricing regulations. This involves documenting and justifying that prices are in line with market rates to prevent tax avoidance. Proper documentation is crucial to avoid penalties.

6. Social Security and Labor Taxes

Employers in Peru are obligated to contribute to social security on behalf of their employees. Contributions typically include payments for health insurance, pension funds, and other social benefits. These costs should be factored into your business planning and budgeting.

7. Local Taxes and Municipal Levies

Besides national taxes, businesses might be subject to various local taxes and municipal levies depending on where they operate. This can include real estate taxes, vehicle taxes, and business license fees. Investigate the specific local tax requirements in your area of operation.

8. Exchange Control Regulations

Peru has regulations governing foreign exchange transactions. Understanding these rules is essential, especially when repatriating profits back to the United States. Ensure compliance with foreign exchange controls to avoid penalties and facilitate smooth financial operations.

To ensure compliance and optimize your tax situation, it is advisable to consult with a tax professional familiar with both US and Peruvian tax law. This will help you navigate the complexities and take advantage of any available benefits and incentives.

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