1. You Have Two Options for Company Structure
Like in most countries, you can do business in the US as a sole proprietorship or a company; however, there are more cons than pros when you operate as a sole trader. For instance, sole proprietors do not have significant protection against liability—their business obligations become their personal debt.
There are two common business structures in the US for foreign entrepreneurs: limited liability company (LLC) and C corporation (C-corp). Both insulate their owners from personal liability and debts because they are considered separate legal entities.
LLCs and C-corps can have foreign members or shareholders, unlike S-corporations, which can only be owned by US residents.
2. Determine the Best Corporate Entity for Your Business
Before proceeding with the company registration USA process, you must decide which of the two—LLC or C-corp—is the most suitable structure for your business. Below are some differences.
An LLC is not subject to the stringent bookkeeping requirements a C-corp does. It is easier to set up and offers flexibility but enough protection to its owners. Another advantage is avoiding double taxation—an LLC does not pay taxes on its profits, which are passed through to its members.
A C-corp is taxed twice. It must pay corporate taxes on its earnings before distributing profit, and its shareholders must pay personal income taxes on dividends received. However, a C-corp can easily raise more capital by offering stock shares to external investors.
3. Delaware Is an Ideal State for Company Formation
Regarding company registration USA, non-resident entrepreneurs can choose to do it in over 40 states. The laws and regulations vary for every state, and they will impact your taxes and overall business operations.
The best state to register is where you’ll conduct most of your business. But if you run an online operation or do business across various locations, consider setting-up-shop in a state with low hurdles and tax burdens.
Delaware is particularly preferred for its corporate law protecting owners and officers and its openness to foreign entrepreneurs and management. If you wish to incorporate in Delaware and speed up the process, consult an expert from Sterlinx Global.
4. A US Address Isn’t Necessary
As a foreign national, an advantage in Delaware is that this state does not require a physical address when establishing your company, unlike most US states. Having a physical presence in the state is not necessary for incorporating your LLC, but it’s necessary to enlist the services of a registered agent.
They will serve as the liaison between your business and the local government, receiving documents and transacting on your behalf. Sterlinx Global can act as your representative and provide a US address for your important correspondence.
5. You Don’t Need a Visa to Set Up Your Business
Company registration USA as a non-resident does not require a visa. There’s no need to obtain a valid American visa, which can be a significant hurdle, to incorporate your business in the country.
Managing your LLC from outside the US is permitted, so it doesn’t entail a work visa. It will only be required if you enter the country to work under your business. In that case, you must apply for an E-2 visa as a foreign entrepreneur.
6. Have a List of the Required Documents
When incorporating as an LLC in the US, you must prepare the following documents:
- Articles of Organisation
- LLC Membership Certificate
- IRS Form SS4 or the Application for Employer Identification Number (EIN)
- Office address
Documentary requirements vary from state to state; the above list may be lacking for other states. Sometimes, they may require a US bank account and Certificate of Formation. Working with a registered agent like Sterlinx Global ensures proper compliance.
7. Understand the Company Registration USA Process
Incorporating your company generally involves the following steps:
- Pick a unique name for your company that has not been registered or used.
- Choose a state, submit the legal documents to the proper agencies, and pay the required fees.
- Obtain your EIN. If you work with an agent, they can handle it for you.
Again, the steps may differ for each state. For instance, in some states, you must open a business bank account first for your application to be approved.
8. There Are Benefits to Registering as a US Business
Entering the US market is a lucrative venture. Apart from this, there are other benefits to company registration USA as a non-resident, such as:
- Low corporate taxes: Some states offer financial incentives to foreign investors, encouraging them to establish their operations in said locations.
- Access to technology: The US is among the most technologically advanced countries in the world. Working with the latest technology eases company operations.
- Equal treatment: The country’s laws and regulations do not discriminate between foreign- and locally-owned businesses, putting you on equal footing with your competitors.
9. You Have Tax Obligations
Although there are financial incentives to starting a business in the US, your newly established LLC is not exempt from complying with state and federal tax laws. You automatically have obligations as a taxpayer.
For example, you are an Amazon seller with buyers in the US. You have to collect and remit sales tax to the proper authorities. And if your LLC has other US-sourced income, it’s crucial to settle its corporate taxes. Business taxation can be confusing for corporate entities, so partner with an experienced tax advisor.
Part of compliance is filing quarterly tax returns.
