How to Set Up a Company in the USA for Non-US Citizens. Starting Your Own U.S. Business As A Foreigner. How To Form a LLC in the USA.
A non-resident even more steps to go through than a US resident. There are more income tax issues for non-residents who want to take their income out of the US. Obtaining an appropriate US work visa and opening a bank account are also problems. Each of these topics is very complicated.
Our guideline for opening a company in the United States covers the benefits of being an American business owner and a list of simple steps you need to take to get started. We also provide solutions to the most common problems that may arise to help you build your experience as easy as possible.
Depending on what type of business you open, and in which state, the process could vary a bit. In general though, there is a pretty typical process for starting an LLC in the U.S., and you might be surprised by how simple it can be.
WHAT IS A LIMITED LIABILITY COMPANY (LLC)?
A limited liability company (LLC) is the United States of America-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
LLCs can be owned by one or more people, who are known as LLC “members.” An LLC with one owner is known as a single-member LLC, and an LLC with more than one owner is known as a multi-member LLC.
Advantages of Starting a LLC Tax Flexibility:
The IRS does not consider an LLC to be a distinct separate entity for tax purposes. This means that, at least initially, the IRS will not tax the LLC directly. Instead, members of the LLC get to determine how they want to be taxed. There are several options:
Single member LLC: This structure is taxed like a sole proprietorship. Profits or losses from the business are not taxed directly but instead are taxed through the single member’s personal federal tax return.
Partners in an LLC: Members elect to be treated like a traditional partnership for tax purposes.
LLC filing as a Corporation: The members of the organization may also choose to file as if they were corporation.
Generally, members of an LLC will create an Operating Agreement that outlines how the LLC will be treated for tax purposes. Some LLCs are automatically classified as corporations by the IRS, so be aware. Further information on how the IRS classifies some LLCs can be found at IRS.gov.
Compared with C-Corps or S-Corps, LLCs are very flexible. Once again, you’ll want to have an LLC Operating Agreement so you can create rules that govern your business. Otherwise, your company will be governed by the default rules in your state.
With less stringent requirements for compliance and less necessary paperwork, LLCs are easier to form and easier to keep in good legal standing.
Like corporations, LLCs provide their members protection from liability. This means that members are not personally liable for debts and often court judgments incurred by the LLC. Creditors are foreclosed from seeking the personal assets of the LLCs members. It is a meaningful shield not provided in a sole proprietorship or traditional partnership.
FIVE BASIC STEPS TO START AN LLC:
- Select a State: If you are selling physical products to a specific location, you may want to start your business in this situation. If you are often doing business in your own country, you may wish to open your LLC in a state with favorable conditions for foreign property owners, such as Delaware, Wyoming or Nevada.
- Name Your LLC: Choose your company name.
- Choose a Registered Agent: If you are not physically present in the United States to obtain important legal documents, you will need a registered agent. A registered representative in the form of a post receives these documents by post and communicates them to you in your own country (or elsewhere in the United States).
- File Your Articles of Organization: Company registration documents. After you prepare and file these documents, LLC is ready to start your business!
- Obtaining an EIN: Whether you’re in the US or not, you probably need an EIN to run your business, because it allows you to open bank accounts, pay taxes, and hire employees. There is a simple application process that is the same wherever you are.
Have a professional service form an LLC for you: