The USA has a reputation as a jurisdiction where many people would like to live and work but few can actually do so on a legal basis. However, when it comes to business formation, the USA offers really good conditions that you can take advantage of as a non-resident. In fact, the country may be considered one of the biggest offshore jurisdictions in the world as the company you can establish there will in fact enjoy the same benefits as a typical offshore entity set up somewhere on the islands!
All you need to launch your business undertaking in the US is up-to-date information and probably the help of a qualified expert to guide you through the process in a hassle-free manner. We invite you to our portal where you can read a more detailed article on how to start an LLC as a foreigner in the United States and find a professional that can give you reasonable advice on the details and help you with all administrative features for an affordable fee.
Meanwhile, let’s take a look at the basics.
Non-Residents and US Business
There is a popular misconception that you need to be a US citizen and possess a social security number (SSN) to set up a company in the USA. However, this is not true: you are free to establish an LLC here as a resident of any country, no matter whether you stay in the US for some time or permanently reside in another place. However, the laws regulating your company’s activities will be different from those applicable to the locals, so it is important to study all the peculiarities. Fortunately, you can always address our experts for explanations by following the above link!
Non-residents can legally:
- Incorporate an LLC in the USA
- Open a business account with a local bank
- Freely use domestic payments
And you will not find a single limitation to that in American laws, which is the reason why entrepreneurs from all over the world opt for this destination.
Non-Resident LLC in the US: Advantages
Let’s see why far-sighted entrepreneurs choose the USA and what are the main benefits of the country they want to take advantage of:
- You will get access to the enormous American market, including its venture capitalists and investors
- The reputation of a US-based company is traditionally very high, and your business may benefit from it
- Personal wealth protection. The easiest way to start a business in the US is to become a private entrepreneur. However, this is not the best option as you will be liable for your losses with all your personal assets – simply put, creditors will take away your car, apartment, and pension savings if you have debts. This is the reason why we recommend a US LLC: this is a legal form that protects your personal liability as you will only be liable with the company’s property. An LLC owner may go bankrupt, but his or her personal property will remain intact.
- Pass-through taxation. This is one more reason why we recommend an LLC (and not a corporation, for instance). An LLC allocates each company owner his or her share of profit, and he or she will pay the required taxes on an individual level. This is a striking difference from corporations that are taxed on both individual and corporate levels (it actually means that they have double taxation applied to them).
- Freedom of ownership structure. You can establish your LLC with only one non-resident member (who will be its owner at the same time), or you can have as many members (and owners) as you wish. These may be individuals or legal entities, residents or non-residents: you will have no restrictions whatsoever, which is very convenient.
- No management structure limitations. If you want your company to be managed by a board of directors (or a group of any other corporate executives), you are free to do so. Moreover, you can opt for engaging a third-party manager or running the LLC yourself – the laws permit any of the above options.
- Incorporation is not that difficult. You will not set up your business as easily as an individual entrepreneur – and yet you will not meet any insurmountable obstacles! We will help you choose the best state for your purposes and easily jump through all administrative hoops (it will take a couple of weeks to complete the procedure).
- Tax exemption is possible. It is not applicable in 100% of cases, though, and you will need to meet certain requirements: your LLC should be wholly owned by a US non-resident, have no economic substance in the country, and bear no relation to the US when it comes to deriving its income. As you see, you will not be tax-exempt if you work with the internal American market.
Do you have any questions? Feel free to contact our experts using the above link and get all the information you need to make a decision.
Top States for LLC Formation
Most entrepreneurs who wish to register their companies in the US have certain confidentiality requirements, and Wyoming and Delaware are the best by this parameter.
Delaware
You will not have to provide your name if you become a non-resident company owner in Delaware, and foreigners appreciate this feature.
The state is a perfect choice if you are planning to transform your Limited Liability Company into a C Corp later on as it will help you raise funds from US investors.
Wyoming
The state is just as good for privacy purposes as the nominee service is available. Wyoming is really popular with entrepreneurs engaged in e-commerce as they find company establishment and maintenance easy and convenient. It is also famous for its welcoming business atmosphere.
You will not need a physical address for your non-resident LLC. However, you will still need a local registered agent: his or her address will be used as a mailing address, and you will need it to open a local bank account. Don’t worry if that sounds too complicated: we will help you.
The USA is a country of opportunities, and we are ready to tell you all about them. Follow the above link to our portal to read updated information on the world of offshore business in different countries – and much more! And contact our qualified experts who will help you with any aspect of your undertaking.
