The United States is the global economic powerhouse. Everybody can participate in it! Many entrepreneurs in the world dream of starting a business in the USA and wonder how difficult it may be. If you are seeking to take advantage of the opportunities in the USA or hoping to establish a physical o virtual presence for your company but you are not a U.S. citizen, you can do it! Registering an LLC is one of the best ways to start a business.
A limited liability company (LLC) is a pass-through tax entity. It means the entity is not taxed on its profits or losses. Instead, the profits and losses of the LLC “pass-through” to the individual owners, who report them on their personal tax returns.
The LLC is the most popular corporate structure for small to medium businesses in the United States; it offers its owners, known as “members,” some protection from personal liability when adequately managed. This protection means that if your LLC is sued, creditors can go after the LLC assets, but they cannot go after your personal assets.
“However, the pass-through is not available to foreigners, so you can request that the company be treated as a corporation, which is typical in other countries, such as Mexico. The profits can stay in the company; you can deduct company expenses, travel, meals, lodging, materials, equipment, etc. Losses can also stay with the company and be used to offset future profits,” said Attorney Marcos Garciaacosta.
There are many benefits when creating an LLC for foreigners, including the following:
– LLCs are easy and inexpensive to set up
– LLCs offer personal asset protection by limiting liability.
– LLCs can help you save on taxes because they avoid double taxation if you already run a business in your country.
– LLCs in the United States are a great way to become a part of the world’s largest economy and gain access to a vast market.
Here is a list of steps to register an LLC:
1. Choose a State to Register your LLC
Every state has different legislation which affects your profits, taxes, and fees. There are some States that don’t have state taxes, and only federal taxes apply. Some states may offer low filling and zero or low annual maintenance fees. Some states provide anonymity for the company’s members and shareholders, but some federal regulations will require disclosure. We recommend carefully choosing the state to file your LLC. Consider your ability to travel and access your business’s legal support and other resources. Attorney Marcos Garciaacosta can help you select the best state according to your business logistics, states regulations, and other considerations.
2. Choose a Name for Your LLC
The next step in starting your business with an LLC is choosing a unique name. Please distinguish this state tradename from the federally issued Trademark by USPTO. The company name must comply with state regulations and include “LLC” or “Limited Liability Company” at the end. We can assist you in checking the name is not taken with the state’s business registry. Furthermore, attorney Marcos can assist you in filing trademarks at the federal level with USPTO.
3. Choose a Statutory Agent
You must select a registered agent to handle your company’s legal correspondence in your state and send it to the members. It is a requirement when starting your business. This agent has no legal operation responsibility. The statutory agent must be available during regular business hours and legally reside in the state where you file. Attorney Marcos will happily serve as your statutory agent in Arizona once you hire the business creation service with us.
4. Get a U.S. Mailing Address
You will need a U.S. mailing address in your LLC’s state. If you open a physical office, you can use this address. But you must obtain an address if your business operates virtually. Attorney Marcos can assist you with a mailing address that suits your needs. Ask us for pricing.
5. File Your LLC with the State
Once you’ve chosen a state, file the LLC’s articles of organization with the appropriate state office.
6. Create an Operating Agreement
An LLC operating agreement (OA) identifies the company, states its ownership, defines member duties, and lays out other structural features of the business. It’s like a roadmap for how you’ll run the LLC. In some states, de OA is mandatory, but it is highly recommendable to have one when there is more than one owner. We will be happy to craft an operating agreement that suits the needs of your business and the state’s requirements for an additional fee.
7. Obtain an Employer Identification Number
Once your LLC is registered, you must obtain an employer identification number (E.I.N.) from the IRS. This nine-digit number is used to identify your LLC for tax purposes. This number is necessary to hire workers, open a bank account, pay taxes, or get a business license. The application process can take from two weeks to a month in the case of non-citizens. Our service includes processing the application for your EIN.
8. Set up a U.S. Bank Account
After completing the abovementioned steps, you need to get a U.S. business bank account to manage the entity’s money. You will likely need to visit the United States to complete this process. Every bank has its rules and policies, so the best way to know the requirements to open a business account is to contact the bank of your preference beforehand. Some banks may allow opening an account remotely. Our office will provide you with guidance on how to achieve this.
Starting a Business in the USA. Are You Ready?
Attorney Marcos E. Garciaacosta offers the service of starting a business for foreign nationals or non-citizens on a flat fee basis. The flat fee includes state registration, tax number, and all the government fees.
He can help you start your business entity remotely for you. We also help you craft an operating agreement that suits your company’s needs and the state requirements or/and add a mailing address in the U.S.A. for additional fees. Our office also provides services to help you connect with other services or file for other applications such as banking, credit, rental of office, permits, business plans, visas, and more.
Contact us at (480) 324-6378 if you are ready to create your company in the USA with the peace of mind that you are doing it the American way.