How to Register a Business in the US from Slovenia

Step 1: Benefits of starting your US business from Slovenia

Starting a US business from Slovenia offers a myriad of advantages for entrepreneurs looking to tap into one of the world's largest markets. Geographical distance is no longer a barrier in today's interconnected world, allowing Slovenian business owners to seamlessly operate in the US market while enjoying the benefits of lower operational costs in their home country. Slovenia's strategic location in Central Europe also provides excellent opportunities for networking and establishing partnerships, which are crucial for the success of any business. Additionally, the time zone difference can be leveraged to ensure round-the-clock productivity and customer service, giving businesses a competitive edge.

Moreover, the US market is renowned for its diverse consumer base and robust economic environment, providing ample growth prospects for innovative products and services. Slovenian entrepreneurs can benefit from the US's advanced infrastructure, access to venture capital, and comprehensive legal protections. The process of incorporating a business in the US is relatively straightforward, and numerous resources are available to assist foreign entrepreneurs in navigating the regulatory landscape. By setting up a US business from Slovenia, entrepreneurs can also take advantage of international tax treaties that often offer favorable tax conditions, thereby optimizing their financial strategies and enhancing profitability.

Step 2: How to start your US business from Slovenia

Starting a US business from Slovenia involves several key steps to ensure compliance with American laws and to successfully launch your venture. First, you'll need to decide on the type of business entity you wish to establish, such as a corporation, Limited Liability Company (LLC), or partnership. Each type has different legal and tax implications, so it's crucial to choose the one that best aligns with your business goals. You should also check if there are any state-specific requirements for the type of business you plan to start.

Once you've decided on the business structure, the next step is to register your business with the appropriate US authorities. This typically involves filing formation documents with the state in which you plan to operate. You may also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which is necessary for tax purposes. Additionally, consider opening a US business bank account, which can facilitate smoother financial transactions and help build credibility with American clients and partners. Consulting with legal and financial professionals who specialize in international business can help ensure you comply with all necessary regulations and set a solid foundation for your venture.

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 Slovenia

Understanding Compliance Requirements for Running a US Business in Slovenia

Expanding a US-based business to Slovenia can offer numerous opportunities, but it also comes with a unique set of compliance requirements. Understanding these considerations is crucial for ensuring a smooth and legally compliant transition.

1. Business Registration

To operate a business in Slovenia, you must first register your company. This involves:

• Choosing a business structure (e.g., limited liability company, branch office).
• Registering with the Slovenian Business Register (AJPES).
• Obtaining a tax identification number from the Financial Administration of the Republic of Slovenia (FURS).

2. Tax Compliance

Understanding the Slovenian tax system is essential for compliance. Key points include:

• Corporate Income Tax: The current rate is 19%.
• Value Added Tax (VAT): Standard rate is 22%, with reduced rates for specific goods and services.
• Double Taxation Treaty: Slovenia and the US have a treaty to prevent double taxation, which can benefit businesses operating in both countries.

3. Employment Laws

Hiring employees in Slovenia requires adherence to local labor laws, such as:

• Minimum wage requirements.
• Social security contributions.
• Work contracts in accordance with the Employment Relationships Act.

4. Regulatory Compliance

Businesses must comply with various regulations depending on their operations, including:

• Health and safety standards.
• Environmental regulations.
• Consumer protection laws.

5. Legal Representation

It is advisable to have local legal representation to navigate the complexities of Slovenian laws and regulations. A legal expert can assist with:

• Drafting and reviewing contracts.
• Ensuring regulatory compliance.
• Handling any legal disputes.

In conclusion, running a US business in Slovenia involves careful consideration of various compliance requirements. Thorough understanding and planning can help ensure a successful and compliant business operation in this European market.

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 Slovenia

Understanding Tax Obligations for Running a US Business in Slovenia

Running a US business in Slovenia requires a keen understanding of the tax implications that come with operating in a foreign jurisdiction. Here are several key considerations to keep in mind:

1. Double Taxation Agreements

One of the primary concerns is the potential for double taxation, which can occur when both the United States and Slovenia tax the same income. However, the US and Slovenia have a double taxation agreement (DTA) that aims to minimize this risk. The DTA outlines which country has the right to tax different types of income, providing relief and clarity for businesses operating in both jurisdictions.

2. Corporate Tax Rates

In Slovenia, the corporate income tax rate is currently set at 19%, which may differ from the federal and state tax rates in the US. It is crucial to understand how these rates interact and what portion of your business earnings will be subject to Slovenian taxes.

3. VAT (Value-Added Tax)

Businesses in Slovenia are required to deal with Value-Added Tax (VAT), which is levied on most goods and services. The standard VAT rate in Slovenia is 22%, with reduced rates applicable to certain items. US businesses must register for VAT and comply with relevant VAT reporting requirements.

4. Transfer Pricing

If your US business engages in transactions with affiliated entities in Slovenia, transfer pricing rules will be in effect. These rules stipulate that intra-group transactions must be conducted at arm’s length, meaning prices should be consistent with those charged between unrelated parties. Proper documentation and compliance are essential to avoid penalties and adjustments.

5. Social Security Contributions

Employers in Slovenia are required to contribute to social security schemes, which cover pensions, health insurance, and unemployment benefits. The rates and bases for these contributions differ from those in the US. Understanding these obligations is key to budgeting for employee-related costs.

6. Permanent Establishment

A permanent establishment (PE) is a fixed place of business through which the company's activities are wholly or partly carried out. The definition of a PE in Slovenia determines whether a portion of your business profits will be subject to Slovenian tax. Factors influencing PE status include the location of offices, branches, or dependent agents in Slovenia.

7. Tax Filing Requirements

Slovenia has its own set of tax filing deadlines and documentation requirements. US businesses must maintain accurate records and submit annual tax returns and financial statements in compliance with Slovenian law. Late filings or errors can result in penalties and interest charges.

Understanding these tax obligations is crucial for the successful operation of a US business in Slovenia. Consulting with tax professionals who are knowledgeable about both US and Slovenian tax systems will help ensure compliance and optimize your tax position.

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