> ## Documentation Index
> Fetch the complete documentation index at: https://guides.partners.place/llms.txt
> Use this file to discover all available pages before exploring further.

# Entity Formation Guide

> Step-by-step guide to forming your U.S. entity with Portal

# U.S. Entity Formation Guide

This comprehensive guide walks you through the entire process of establishing your U.S. business entity through Portal.

## Pre-Formation Checklist

Before starting the formation process, gather the following information:

<Checklist>
  * [ ] Company name (with 2-3 alternatives)
  * [ ] Business description and primary activities
  * [ ] Founder information (names, addresses, passport copies)
  * [ ] Initial shareholding structure
  * [ ] Registered agent preference
  * [ ] Business address requirements
</Checklist>

## Step 1: Choose Your Entity Type

### C-Corporation vs LLC Comparison

| Feature               | C-Corporation            | LLC                               |
| --------------------- | ------------------------ | --------------------------------- |
| **Best For**          | VC funding, going public | Flexibility, small teams          |
| **Taxation**          | Double taxation          | Pass-through taxation             |
| **Ownership**         | Unlimited shareholders   | Members (owners)                  |
| **Management**        | Board of Directors       | Member-managed or Manager-managed |
| **Investor Friendly** | Yes (preferred by VCs)   | Less attractive to investors      |
| **Compliance**        | More requirements        | Fewer formalities                 |

<Tip>
  Most Korean tech startups planning to raise capital choose C-Corporation. Consult with Portal advisors for personalized recommendations.
</Tip>

## Step 2: Name Your Company

### Naming Requirements

* Must be unique in Delaware
* Cannot use restricted words without approval
* Must include entity identifier (Inc., LLC, etc.)

### Name Search Process

1. Portal checks name availability
2. We suggest alternatives if needed
3. Reserve name for 120 days (optional)

<Warning>
  Avoid names too similar to established brands to prevent trademark issues.
</Warning>

## Step 3: Complete Onboarding

### Information Required

**For C-Corporation:**

* Number of authorized shares (typically 10 million)
* Par value (typically \$0.0001)
* Board of Directors names
* Officer positions (CEO, Secretary, etc.)

**For LLC:**

* Operating agreement preferences
* Member ownership percentages
* Management structure
* Tax classification election

## Step 4: Document Preparation

Portal prepares and files:

### Formation Documents

* Certificate of Incorporation (C-Corp) or Formation (LLC)
* Corporate Bylaws or Operating Agreement
* Initial Board Resolutions
* Stock Certificates or Membership Certificates

### Post-Formation Documents

* EIN application (Form SS-4)
* Initial Statement of Information
* Foreign qualification documents (if needed)

## Step 5: EIN Application

The Employer Identification Number (EIN) process:

<Steps>
  <Step title="Form Preparation">
    Portal completes IRS Form SS-4 with your information
  </Step>

  <Step title="IRS Submission">
    We submit electronically for fastest processing
  </Step>

  <Step title="Follow-up">
    Track application status and handle any IRS queries
  </Step>

  <Step title="Delivery">
    Receive EIN letter typically within 1-2 weeks
  </Step>
</Steps>

## Step 6: Corporate Compliance Setup

### Digital Minute Book Includes:

* Formation documents
* Bylaws/Operating Agreement
* Board and shareholder resolutions
* Stock/membership ledger
* Annual meeting templates

### Compliance Calendar:

* Annual report deadlines
* Franchise tax due dates
* Board meeting requirements
* Foreign qualification renewals

## Step 7: Business Banking

### Account Opening Process:

1. **Bank Selection**: Choose from our partner banks
2. **Application**: Complete online application
3. **Verification**: Video call with bank representative
4. **Approval**: Usually within 3-5 business days
5. **Access**: Receive online banking credentials

### Banking Features:

* Multi-currency accounts
* Wire transfer capabilities
* Business debit cards
* Online/mobile banking
* ACH payments

## Post-Formation Considerations

### Federal Tax Elections

* S-Corporation election (if applicable)
* Tax year selection
* Accounting method choice

### State Registrations

* Foreign qualification in operating states
* State tax registrations
* Business licenses

### Ongoing Compliance

* Annual Delaware franchise tax
* Annual report filing
* Registered agent renewal
* Good standing maintenance

## Common Mistakes to Avoid

<AccordionGroup>
  <Accordion title="Inadequate Shareholding Structure">
    Plan for future funding rounds and employee equity. Standard is 10 million authorized shares for C-Corps.
  </Accordion>

  <Accordion title="Mixing Personal and Business">
    Maintain corporate formalities to preserve limited liability protection.
  </Accordion>

  <Accordion title="Ignoring Compliance">
    Missing Delaware deadlines can result in penalties and loss of good standing.
  </Accordion>

  <Accordion title="Wrong Entity Choice">
    Converting between entity types later is costly and complex.
  </Accordion>
</AccordionGroup>

## Timeline Overview

<Timeline>
  <TimelineItem title="Day 1-2" description="Initial consultation and onboarding" />

  <TimelineItem title="Day 3-5" description="Entity formation in Delaware" />

  <TimelineItem title="Week 2" description="EIN application and processing" />

  <TimelineItem title="Week 3" description="Business banking setup" />

  <TimelineItem title="Week 4" description="Complete setup and dashboard access" />
</Timeline>

## Need Help?

<CardGroup cols={2}>
  <Card title="Schedule Consultation" icon="calendar" href="mailto:info@partners.place">
    Book a free consultation to discuss your formation needs
  </Card>

  <Card title="View Pricing" icon="dollar-sign" href="/services/portal">
    See detailed Portal pricing and features
  </Card>
</CardGroup>