A non-resident must take even more steps than a US resident. Non-residents who want to take their income out of the US face additional income tax issues. Obtaining a suitable US work visa and opening a bank account are also issues. Each of these topics is extremely complex.
Our guide to starting a business in the United States discusses the advantages of being an American business owner as well as a list of simple steps you can take to get started. We also provide solutions to the most common problems that may arise, making it as simple as possible for you to build your experience.
The process may differ depending on the type of business and the state in which it is established. In general, however, there is a fairly standard procedure for forming an LLC in the United States, and you might be surprised at how simple it can be. (Contact us to form your LLC in the US)
WHAT IS A RESPONSIBLE LIABILITY COMPANY (RLC)?
A limited liability company (LLC) is a type of private limited company that is unique to the United States of America. It is a business structure that combines the tax benefits of a partnership or sole proprietorship with the limited liability of a corporation.
LLCs can be owned by one or more individuals, who are referred to as “members” of the LLC. A single-member LLC is one with only one owner, while a multi-member LLC has more than one owner.
Tax Flexibility: One of the primary benefits of forming an LLC.
For tax purposes, an LLC is not treated as a separate entity by the IRS. This means that the IRS will not tax the LLC directly, at least not initially. Members of the LLC, on the other hand, have the option of deciding how they want to be taxed. There are a few possibilities:
- Single-member LLC: This structure is taxed in the same way as a sole proprietorship. Profits and losses from the business are taxed indirectly through the single member’s personal federal tax return.
- Members of an LLC can elect to be taxed as if they were a traditional partnership.
- Filing as an LLC as a Corporation: The members of the organization may also elect to file as if they were a corporation.
In most cases, members of an LLC will draft an Operating Agreement outlining how the LLC will be taxed. Be aware that the IRS automatically classifies some LLCs as corporations. IRS.gov has more information on how the IRS classifies some LLCs. If you need any help, just contact us.
LLCs are more adaptable than C-Corps or S-Corps. Once again, you’ll want to have an LLC Operating Agreement in place so that you can establish ground rules for your company. Otherwise, your company will be subject to the state’s default rules.
LLCs are easier to form and keep in good legal standing because they have less stringent compliance requirements and require less paperwork.
Limitation of Liability:
LLCs, like corporations, protect their members from liability. This means that members are not personally liable for the LLC’s debts and, in many cases, court judgments. Creditors are barred from pursuing the LLC’s members‘ personal assets. It is a significant safeguard that is not available in a sole proprietorship or traditional partnership.
FIVE ESSENTIAL STEPS TO FORMING AN LLC:
- Choose a State: If you are selling physical products to a specific location, you may want to start your business here. If you frequently conduct business in your home country, you may want to establish your LLC in a state that provides favorable conditions for foreign property owners, such as Delaware, Wyoming, or Nevada.
- Name Your Limited Liability Company: Choose a name for your company.
- Select a Registered Agent: If you are not physically present in the United States and need to obtain important legal documents, you will need to appoint a registered agent. These documents are received by a registered representative in the form of a post and communicated to you in your home country (or elsewhere in the United States).
- Fill out your Articles of Organization: the documents that will be used to register your company. After you prepare and file these documents, your LLC is ready to begin operations!
- Getting an EIN: Whether you live in the United States or not, you will most likely require an EIN to operate your business because it allows you to open bank accounts, pay taxes, and hire employees. There is a straightforward application process that is the same no matter where you are.
Form an LLC with the help of a professional service:
We will register your company with a reliable Delaware Registered Agent. JUST WHATSAPP US TO BEGIN PROCESSING.