Benefits of Forming a Company in the USA

  • SBA Small Business Loans
  • Venture Capital
  • US Bank Account

Types of Business Entities a Foreign National Can Choose From

  • Corporation (C-Corp)
  • Limited Liability Company (LLC)

We would suggest starting an LLC since there are many advantages over a Corporation. Some of these advantages include:

  • Pass through taxation will help you avoid the double taxation of business profits.
  • Greatly reduced State Regulations and formalities compared to a corporation.
  • A previous advantage of a corporation known as Corporate income splitting, is also now available to LLCs. An LLC must elect to be treated as a corporation for tax purposes by the IRS by filing form 8832. This is really only useful when the LLC is making sufficient profit that it can pay its members and still retain a significant chunk of it for reinvestment in the LLC.

Have a professional service form an LLC for you:

Recommended: INCFILE.COM ($49 + State Fees)

To learn more about What is an LLC -- Click Here


Ready to Start an LLC in the USA?

Steps to Form Your LLC

  1. Select a State

    Think about what State you want to start your LLC. You may already have a location in mind since that is where your customers are. If you primarily intend to conduct business from your own country then the (international-friendly) States to start an LLC include , , or . The State Offices and Banks of these three States are very familiar in dealing with Non-US Citizens.

  2. Name your LLC
  3. If you are starting an LLC in the US from your home country and will not have a physical address in the US that will be open normal business hours, we suggest you hire a . They will receive and forward all official mailings to you, such papers include service of process of legal action, and state filings.

  4. File the Articles of Organization with the State
  5. Create an Operating Agreement

Steps after LLC Formation

  1. Obtain an EIN (Employee Identification Number)

    Getting an EIN will grant you access to:

    • Opening a US bank account
    • Accepting US payments
    • Paying US Taxes

  2. Register for State Tax
    • A Non-US resident is taxed on US source income only
    • A US Resident is taxed on worldwide income
  3. Obtain Business Licenses & Permits
  4. Hire Employees
  5. Get Insurance

Challenges to Overcome

The needs a Physical Address in the State in which your LLC is formed.

This can be easily overcome by using a

  • A Registered Agent Service is a business nominated by your company to receive and send official State documents on your behalf.
  • To learn more about a Registered Agent --

Have a professional service form an LLC for you:

Recommended: INCFILE.COM ($49 + State Fees)

Getting an EIN (Enables your Company to open a Bank Account or Hire Employees)

An EIN (Employer Identification Number) is the tax identity of your LLC, it is necessary to open a bank account, hire employees, and pay State Taxes. You will also be required to provide your EIN to other companies to receive payments exceeding $600 in a calendar year. Obtaining an EIN from the IRS (Internal Revenue Service) for your Company is easy and, the IRS does not charge you any fee to issue your LLC with an EIN. You can only apply for the EIN after forming the LLC.

  • Download the and
  • Read the instructions carefully while filling out the form
  • NOTE Line 7b: If you don’t have a US Social Security Number, ITIN, or EIN just put “N/A Foreign” on line 7b.
  • Fax form to designated number provided on the form, be sure to give the IRS a number to fax your EIN back to.

An ITIN (Individual Tax Identity Number) or US social security number is not necessary to obtain an EIN for your company if the above process is used.

If you wish to use a service to obtain an EIN number for you, Ein Express is an online service that specializes in obtaining the EIN number for people without an SSN or ITIN.

Opening a Bank Account in the USA

An address in the US is required to open a bank account in the US

  • This can be overcome by using a mail forwarding or virtual office service

Recommended: Use Earth Class Mail to get an address in one of 19 USA Cities, which can be used to create a US bank account.

An EIN Number is required in order to get a bank account

  • See how to get an EIN above.

Here are some banking options to consider - Contact the bank directly for more information on International Banking

Quick Facts about Expanding your Business to the USA

Do I have to be a United States citizen to open a business in the United States?

No, it is not necessary to be a US citizen OR to have a green card to start a business in the US.

Am I allowed to work for the business I have started in the United States if I am not a citizen?

You are only allowed to work for your company in the US if you have the proper work permit (Green Card).

You can however work for your company in your home country.

What type of Business Entities am I allowed to start in the United States if I am not a citizen?

There are two types of business entities you are allowed to start in the US, a Corporation or an LLC. An LLC’s benefits outweigh that of a corporation unless you plan on issuing shares of stock. Learn

An S-Corp requires all shareholders to be US Citizens, so this is not an option for foreign nationals.

Can the company I have started in my home country be the owner of the company I start in the United States?

Yes, as long as you are starting an LLC in the United States. You would nominate your Company to be the Managing Member of your LLC.

Can I create a branch of the company I have already started in my home country?

Yes, but it would not be considered a branch. What you would have to do is form an LLC in the United States and then establish the relationship through internal resolutions and ownership.

One way to do this is to make the Parent Company the Managing Member of the LLC when forming the LLC in the United States.

Does the Legal Address of my company have to be located in the US?

No, your legal address does not need to be in the US. It can be located anywhere in the world. BUT, you must have a Registered Agent with a physical address in the State your business will be started.

Can the company Name and Address act as the Registered Agent?

Yes, your company name and legal address can act as the Registered Agent but there are a few rules you must follow:

  • In order for your legal address to act as your Registered Agent Address it must be located in the State in which your LLC was started.
  • There must be someone present at normal business hours (9:00am to 5:00pm, Monday to Friday) to accept important documents.
  • If this criteria cannot be met we suggest hiring a .

This however cannot be switched. Your Registered Agent Address cannot act as your Legal Address.

Does my company have to have an address in the US to open a US bank account?

Yes, in order to obtain a bank account, the business must have a US mailing address.

  • The Registered Agent address cannot act as this address
  • The address does not need to be in the same state as the LLC was formed

The company does not however need a physical address in the US to open a bank account, you can use a mail forwarding service, or set up a virtual office in the US.

Recommended: Use Earth Class Mail and choose a physical address from 19 cities across the United States (including New York and San Francisco).

Please be cautious of companies claiming they can set up a Bank Account for you. This must be done by you, the business owner, and may require a trip to the States. Unless the company is an accredited financial institution you could be a victim of fraud.