-You don't need to be in US to incorporate your business in US but you must understand the implications of incorporating your business in US. Gaining a "corporate" status helps you to raise capital. It also helps you to find an exit strategy in the long run by divesting all your shares.

Actually it is incorrect to say one "incorporates a business in US". Incorporation is done in any one of the 50 states. Thus you "incorporate in Delaware" or "Incorporate in California" but not "incorporate in US". (For the trivia fans, even United States is a corporate entity incorporated in the State of Delaware!).

-Select a state where you want to incorporate. Generally a good idea to pick a state where you will be "doing business" (which means you will have establish a physical presence, recruit employees, have an office, sell stuff). If you plan to sell stuff all over USA, you may incorporate in any state but obey the laws of each state where you sell stuff. For example if you incorporate in California, and sell a computer to a california resident, the buyer must pay sales taxes to California. If you sell the computer to New Yorker, he does not have to pay sales tax to california. The interstate commerce rules are different.

-Once you select a state, find a "registered agent" in the state. For example we use www.delawareintercorp.com as our registered agents.

-Pay the required fees and you will get your incorporation papers within a few days. There, you have incorporated a business in US and you are the CEO/Chairman/President! Some states like Delaware allow a single person as corporate officer. Some others require 2 or more.

-Once incorporated, you need to write/call internal revenue service and obtain a tax-number. You will pay federal government taxes under this number.

-To establish a physical presence, you must get a State certificate of qualification. Contact the Secretary of State (division of corporations) and they will give you a State Corporate Number and a certificate of qualification for a fee. After that, go to the city office and get a local business license. This license will permit you to use certain office space/warehouse for business purposes. Subsequently contact the State Franchise Taxboard and get an "employer id". You will need this id number to recruit employees. You will pay unemployed insurance under this id-number. This will be different from the State corporate reference number, IRS tax number etc depending on which state.

-With business license, state id, tax id etc you can open a bank account for business. Many banks charge about $8 per month for maintaining a current account. Some may offer free if the transactions are few.

-Finally, sign a lease with office landlord and take possession of the office space. Then call the utility companies and sign up for electricity, internet, water, trash removal. You also have to call the insurance companies to insure your property, renters insurance, and other insurance matters.

-You will have to pay quarterly taxes on revenues to IRS. If you pay at the year end you may not gain some benefits.