Incorporate a Business in USA as a Non-Resident: What You Should Know?
As a non-resident, you’d be wondering if you can incorporate a business in USA. Starting a business in U.S as a non-resident can be a complex journey – especially because it involves aspects like deciding which type of company to incorporate and filing for an Employer Identification Number (EIN). But at the same time, it opens up countless business opportunities, such as:
- Get access to the lucrative US market
- Broaden your reach and market reputation as a US-based company, which also paves the way for business expansion and diversification
- Opening a US bank account becomes less complex when you can represent yourself as holding a local company in the country
- Leverage the American legal system based on independent courts and supremacy of law
- Get your company registered in the USA and you can have access to the US venture capital for your business
Which Company Structure to Choose: LLC or Corporation?
Before you can incorporate your company, it is important to choose the right business structure. Ideally, you have two options when you incorporate a business in USA – LLC or C-Corporation. You can also set up an S-Corporation in the USA. Incorporating an S-Corporation may allow you to avoid double taxation, but there are limitations on an S-Corporation’s shareholder citizenship. For example, non-residents of the USA are not eligible to become shareholders of an S-Corporation.
On the other hand, LLCs are less complex in their structure, incorporation requirements, and decision-making. They are also easier to run. So, when you do not require any particular formality or have one or two shareholders, incorporating an LLC is an ideal choice. However, if you have a business structure with annual shareholders, boards of directors, etc. or you want to get access to the American venture capital, then you need to incorporate a C-Corporation.
Both LLCs and C-Corporations don’t have restrictions on the number of shareholders, their citizenship, or whether they are legal entities or physical persons. However, before you incorporate a business in USA under any of these categories, it is important to understand the impact on taxation. For instance, C-Corporations are taxed on a corporate level, but LLCs are not. This is because LLCs are considered a “disregarded entity” when it comes to taxation. However, shareholders of LLCs need to pay taxes on the amount of distributed dividends.
Where to Set Up a Business in US?
Before company incorporation in USA, it is important to know where to set it up. The ideal place to set up your company would be in a state where you plan to do business. This is because, in the USA, most business laws and proceedings conform to state regulations and not federal. Therefore, the status of your company, business regulations, and how it operates will be under the state where you do business.
How to Register a Company in the USA?
When you incorporate a business in the USA as a non-resident, the process will vary slightly depending on the type of business structure you choose and from state to state. Here are the steps to register a company in the USA:
- Choose a trademark and get it registered with the US Patent and Trademark Office (USPTO)
- Register your company with the state where you plan to operate your business
- Have a registered agent to manage legal documents and official documents on behalf of your business
- Get a foreign qualification in any other state where you want to conduct your business operations
- Submit all necessary state documents and related fees. This will vary depending on the state where you register the business and the structure
- File for permits and licenses from the city or county where you incorporate your business in USA
- Open a US bank account
Do I Need a Visa to Start a Business in US?
To establish a company in the United States of America, you do not need to be a US citizen. However, you would need a valid visa. Here are different types of visas you would need to do business in US as a non-resident:
- L-1 Multi-National Transfer Visas
- E-1 and E-2 Treaty Trader Visa
- Permanent Residency Visa or EB-5 Job Creation Visa
- H-1b Visa
Conclusion
To incorporate a business in USA is just the beginning. Once you register your company, you’d need to file for an Employer Identification Number and much more. A good law firm, with experience in business incorporation, can help you navigate the challenges and set up a company in US.
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You may need assistance with the following issues during the establishment of your business, the running of business operations, or the stages of closing your business.
- Create a Business Plan
- Choose a Business Structure
- Choose a Location
- Finance Your Business
- Building Permits and Inspections
- Buy an Existing Business
- Licensing and Certification Guide
- Business Resources
- Starter Kits
- Register Your Business
- Hire Employees
- Filings and Accounting
- Business Preparedness
- Manage Employees
- Closing Your Business
- Paying Taxes
- Contract with the State
- Market Your Business
- Open Another Location
- Exporting
Expert lawyers and professional consultancy save you time and money at these stages. We are always ready to help you.
To start and run your business in the USA, you need a lot of documentation to be prepared. When you need business licenses and permits, we can help you. You cannot be an expert in every subject you need. An expert consulting firm you can trust will save you time and money.
Comprised of experienced business attorneys, marketing experts, and business advisors, Liberty Business has the answers to any questions or needs a blossoming business may have.