A Limited Liability Company (LLC) can be registered in the United States by anyone, including non-US citizens, who want to grow their business internationally or enter the American market with the help and support of the legal and financial services offered in America.
Many people tend to believe that one has to be a US citizen or at least hold a visa to register an LLC which is false.
We will show to you in which steps a non-American registering an LLC in the United States has to go through.
Step 1: Choosing the State for Your LLC
The first decision is choosing the state where you wish to register the LLC. Among these the popular ones are:
Delaware: It is quite popular because of the business friendly laws and tax benefits.
Wyoming: It has low filing fees and good privacy policies.
Nevada: There is no state income tax and also no business restraints.
Each state operates under different rules and regulations and therefore comes with its own shares of pricing so make sure to do your research properly on what state will fit your business needs and strategy.
As an example, for startups targeting investment opportunities, Delaware would be the best option because of its well developed corporate laws. But, for small business owners who want to keep their costs to a minimum and are prioritizing privacy, Wyoming would be perfect.
Step 2: Develop a Brand Name for your Company
Creating a name for your LLC should be original and adhere to the requirements of your state. The following are the basic requirements for naming:
- The name must contain ”LLC” or “Limited Liability Company.”
- There are certain ideologies like “bank” or “insurance” that cannot be used without a permit.
You can review the US firm checklist. Doing so assures the availability of the name you desire. A well crafted name is sure to offer compliance plus helps develop a brand in America which is extremely dense.
Step 3: Assign a Register Agent
A person or company that is tasked with receiving official correspondence along with legal documents is referred to as a registered agent. If you are not based within the United States, you will need to put a registered agent in place that has a physical office within the state your LLC will be situated.
There are countless companies who assisit you as a registered agent for a set fee allowing you to receive all legal notifications or documents without missing a single one.
Step 4: Arrange the Articles of the Organization
The Articles of Organization (in some states, this document is also known as a Certificate of Formation) is a formal document that the state receives to officially establish your LLC. This document usually includes:
- The title and address of the LLC.
- The name and address of the register of agents.
- In some states, members or managers do not have to be named on the LLC registration documents.
When it comes to filing an LLC application, one important thing to note is that every state has its own application fees ranging anywhere from $50 – $500. And in certain states, there are faster filing options at an additional fee, which is great for entrepreneurs who need to launch their businesses promptly.
Step 5: Get Your EIN (Employer Identification Number)”
As previously mentioned, an EIN is a number that serves as a unique federal identification for your business. This number is issued by the IRS, and is essential for opening a business bank account in America, hiring employees, and making tax filings.
If you do not reside in the United States, you can acquire an EIN through the mail or on the internet by submitting an IRS Form SS-4.
What’s more, the best part of this process is that you don’t have to provide your Social Security Number (SSN) to receive an EIN. This is a vital step for establishing your LLC as it effectively works as your business identifier for tax purposes.
Step 6: Open a US Business Account
One of the very first things you should do is open a business bank account as this will help your LLC in managing its finances, along with establishing trust with your clients and suppliers. Some documents that you will need include:
- Establishment documents of your LLC, including the formation certificate.
- An EIN.
- A government issued ID or passport.
While some banks may necessitate a visit, online banks such as Mercury and Brex are purposely designed for entrepreneurs who do not reside in the country. These digital services include multi-currency accounts, easy onboarding procedures, and connections with accounting software to enhance financial organization.
Step 7: Adhere to State and Federal Tax Requirements
Even though LLCs are classified as pass-through businesses, it is probable that you must submit federal and state tax returns. And some of the considerations are:
Sales Tax: If your LLC is involved in the sales of goods or services liable to sales tax.
Annual Reports: A number of states mandate LLCs to submit an annual report along with a renewal fee.
Foreign-Owned Single-Member LLCs: Need to submit Form 5472 and keep track of accurate transaction records.
A tax professional can provide guidance on the above obligations to help you remain in good standing with the law. Compliance with US tax law is imperative, so as not to incur sanctions which may hinder business activities.
Step 8: Ensure Continuous Compliance
To preserve the legal status of your LLC, you need to one:
- Renew your registered agent service every year.
- Tender annual or biennial reports depending on what your state mandates.
- Settle any fees and franchise taxes that your state stipulates.
It is worth noting that compliance extends well beyond KYC and trust issues between your business and your clients. It is always better to look at business procedures so as to brace for changes in regulations.
Benefits of Forming an LLC as a Non-US Resident
- Imposition of business debts limited: Personal resources are not liable to be seized.
- Gain Entry Into US Based Markets: Direct selling of goods or services to target US citizens.
- Gain Business Reputation: Improves your standing.
- A variety of taxation options are available.
Moreover, opening an LLC in the United States can create opportunities for international partnerships, joint ventures, and financing that may not otherwise be available in the business owners’ countries.
Things To Think About
- Some banks will require that you have an address within the United States or visit a branch there before allowing you to open an account.
- Tax matters can be very hard to understand without proper advice.
- A registered agent service is required for all foreign LLCs. There will be costs incurred for this ongoing service.
All these factors if well managed, require good planning on your side that you may need professional assistance.
How EasyFiling Can Help You
EasyFiling provides non-US residents with personalized service for setting up an LLC. We can:
Organizing and filing your Articles of Organization, managing it accurately within compliance bounds.
Providing registered agent service in all 50 states so you never worry about receiving, and managing legal documents.
Assistance with acquiring an EIN without a Social Security Number. Time efficient and hassle free.
Advice given on how to open a US business bank account, recommending solutions such as online banking that empower non US entrepreneurs.
Adhering to state and federal regulations such as Annual Report and other filings. This allows you to spend more time on your business as it grows.
With EasyFiling, you’re able to evade time consuming mistakes that are typical when attempting to establish an LLC from outside the USA. A team of experienced professionals is at your service, ready to assist and guide you at every stage of the process.
Conclusion
Even though the world’s largest market seems far, establishing an LLC from abroad is exceptionally simple and grants access to countless opportunities. By employing the above listed tactics and consulting an expert, you will be able to successfully establish a business in the United States.
For further assistance or to eliminate the hassle in establishing an LLC, you may find EasyFiling to be an excellent solution. We make sure the incorporation process is easy even for non-American clients that wish to set up a business in the United States.
Contact the EasyFiling company today and start your journey of turning your business dream into reality!
