Registration

That's right, a lot of small businesses in the U.S. like to stick to their home state to dodge those pesky C-Corp taxes and save money on compliance. However, I think Delaware continues to attract many founders because it offers significantly better legal protection, quicker court processes, and incredibly friendly rules specifically for investors and fundraising. For those startups trying to secure major funding, these perks usually make the extra fees and paperwork absolutely worth it.

You are correct that when you're diving into U.S. entrepreneurship for the first time, it's extremely important to weigh factors such as liability protection, taxes, and your long-term vision. However, I think the most important takeaway is the difference between the two main options:

An LLC is the solid choice because it provides better legal protection and flexibility in how you're taxed, which is especially beneficial if you're planning for the long haul.

A sole proprietorship is much simpler and cheaper to start, but you must remember that it offers no protection against personal liability.

Ultimately, your choice should reflect the level of risk you're comfortable with and how ambitious you are about growing your business.

I have a question about the FDA and USDA.

Even if my products are safe and of high quality, do I still need licenses from the FDA or USDA? Are there any exceptions or special certifications for small or local goods?

To apply for an EIN, visit the IRS website and complete the online application—it’s completely free. You'll receive your EIN immediately after finishing the process. Once you have your EIN, you can open a business bank account by providing the necessary business documents and personal identification. To cash checks, make sure the account is opened under your business name.

That's a very good initiative your mother is taking. To register the nonprofit organization, you need to do the following things:

You need to incorporate with your state's Secretary of State. Apply for an EIN (Employer Identification Number). The IRS issues this number. File IRS Form 1023 (or 1023-EZ). The difference depends on the annual gross receipts.

If the forms are approved, then the IRS sends the "Determination Letter" and confirm 501(c)(3) tax-exempt status. Once you get this status, then you need to separately apply for state-level tax exemptions. Once 501(c)(3) status is granted, your organization enjoys significant tax benefits.

About the tax implications:

Your organization needs to file the annual IRS returns (Form 990 series). Benefits include tax exemption and deductible donations.

We have already described the rules and regulations you need to open a food business in the US. You can check out this post: https://fincuss.xyz/topic/207/what-documents-are-required-to-open-an-online-store/2

Apart from all the documents described in the post, you also need health and safety permits like a food license from the local health department, food handler permits/certifications, fire safety permits, and a certificate of occupancy.

We have already described the rules and regulations you need to open a food business in the US. You can check out this post: https://fincuss.xyz/topic/207/what-documents-are-required-to-open-an-online-store/2

If you need further help, feel free to reach out to us.

Yes, each state has its set of rules and regulations for a DBA. Registering a DBA (Doing Business As) name in the U.S. allows a company to use a name different from its legal one.

Rules and costs for DBA registration are state-specific. Filing fees typically range from $10 to $150, with many states between $20 and $50. Some states require newspaper publication, adding $50 to $100 in costs. Expedited processing may be available for an extra $20 to $100. Sites like LegalZoom, ZenBusiness, and Northwest Registered Agent assist with DBA registration.

For starting a homemade chocolate business, you need a Business license, a Food handler's permit, and potentially a Cottage food operation permit. The labeling of your food item must meet the standard set by the FDA. Check Local Health Department Regulations for food safety. Before starting a business, Insurance, Zoning laws, and Sales tax permits are mandatory.

Yes, it's a kind of challenging thing, as this setup needs high initial costs, precise zoning regulations, and a competitive market. Finance is important, so explore SBA (Small Business Administration) loans or find good investors.

Finding a suitable location in your budget is very important, as real estate prices in Austin are very high. Study the local market and then set your franchise.

Local permits and licenses should be done before opening a business, and for that it's better to consult a business counselor.

Can you explain the USPTO patent application process and how much time it will take to approve the patent?