How to open an LLC in the USA as a foreigner in 2023
It is possible to register an LLC to a foreigner in the USA quickly and without problems, if the whole package of documents is submitted at once. You can save significantly on taxes if you carefully study what fees to be paid to the local budget when choosing a state.
The Importance of Choosing a State
Pay attention to the choice of the state where the LLC will be registered. Ideally, it is best to open it where you plan to do business or live. If the foreigner has yet to decide on the place of residence or business, it is vital to focus on taxes. For example, in 9 states, you do not have to pay local income tax. But note that federal taxes must be paid regardless of the state of incorporation. Popular options are Florida, Texas, Nevada, Wyoming, and Delaware.
How to register an LLC in the USA
You can register a company in person or online by applying directly to the state authorities. To open an LLC in the USA, a foreigner should proceed as follows
- Hire a registered agent (e.g. contact IT-OFFSHORE) who will represent the icompany's interests - a prerequisite for LLC.
- Pick a unique name. Before filing for registration, check the name in the state register. If it already exists, another option is needed. Additionally, ensure a website address with the corresponding name is available so the company can be easily found online.
- Get a TIN (Taxpayer Identification Number). The process is not complicated, but can take several weeks.
- Develop an operating agreement (if necessary). It should describe how you will manage the company's operation, name the owners, their share of the business, and other nuances.
- Get a local phone number - needed to open a bank account, verify the business, confirm the company's location, communicate with customers, etc.
- Apply to open an LLC in the U.S. to a foreigner by attaching a package of documents and paying the fees. Each state has its filing fee, with the amount varying from $50 to $500.
- Wait for the authorities to respond.
- Obtain business licenses and other required permits.
- Publish the LLC opening information in the newspaper. Not all states require this step, but extra publicity about the new business does not hurt.
If you plan to live and work in the U.S., first find out if you get a visa: the consulate may refuse. To make sure everything goes smoothly, contact our experts.
Opening a Bank Account
A company registered in the U.S. must open a bank account. You need a U.S. phone number and a physical address to do this. Opening a bank account is the biggest problem when registering an LLC in the USA, but our specialists will solve it quickly.
Tax requirements are incredibly confusing, so you need to hire a specialist. For example, if you are the sole owner of the LLC and do not work in the U.S., you can not file form 1040NR and do not pay taxes on personal income. Also, consider that there are federal and local taxes, and the first must be paid, unless otherwise stated in the law.
Be prepared that a company registered in the United States must file regular tax returns with the authorities in the state where the business is located. After one year, or even earlier, you must fill out an income tax return, collected from non-residents (form 1040-NR). An accountant will tell you in more detail about other taxes.
How to apply for an LLC in the USA
Please get in touch with IT-OFFSHORE experts for registration of an LLC in the USA in 2023.