How to Set Up a US Company as a Non-Resident

The United States is one of the best places in the world to run a business. Foreign entrepreneurs, when setup a company in US, initially can find very complicated processes, but if they have appropriate directions, they can easily traverse the complicated systems. Therefore, let us know how to set up a US Company as a Non-Resident.

The excitement of starting a new business, or expanding an existing one in another country, is this thrilling feeling. Starting a business concept in another country can be a challenging experience, given the current political and economic climate. For this reason, a non-citizen must pursue the right process using all tools at their disposal to achieve their main goal. 

Types of Business you can Set up in US

Limited Liability Company (LLC):

• As a non-resident setting up a US business, the best choice probably is an LLC. 
• The members are protected from personal liability in respect of corporate decisions or actions and also with respect to any debts or problems of the business.
• LLCs escape the stringent accounting rules that corporations C and S must operate under.

Corporations:

• The corporation, called a C-Corp, protects its stockholders against personal liability to the highest measure. However, establishing a corporation involves a greater expense than others.
• To expand by providing unlimited shares is the greatest advantage of establishing a business; this often attracts investors. 
• On the flip side, the downside of corporation formation, unlike LLCs, corporations incur taxes on profits within the company and, in some cases, double taxation is faced. 

How to Register a US Company as a Non-Resident?

In all, the process of registration for companies varies from state to state depending on whether you are forming an LLC or a corporation. After deciding the business structure and other factors about the site you choose to launch your business, you will take the next step:

• Select an original name for your LLC or C Corporation.
• You must hire a licensed agent service
• Submit documents of incorporation to the state.
• Get an employer identification number (EIN)
• You must also get a physical US postal address.
• Open a US bank account.

Documents Required for New Company Set Up

LIMITED LIABILITY COMPANY:

• In terms of Formation: Articles of formation/ Articles of organization
• In terms of Governance: Operating Agreement
• In terms of Ownership:Issuance of member certificate for each member
• In terms of Tax: Submission of IRS Form SS4- Application for Employer Identification Number
• In terms of Due Diligence:Compliance with regulations prohibiting nationals, all working with it companies that have affiliations with specific nationalities, Iranian, North Korean, and Cuban to have possession of US assets, including stock markets and American companies.

BUSINESS CORPORATION:

• In terms of Formation: Incorporation certificate/ Articles of incorporation
• In terms of Governance: Organizational minutes and bylaws (Shareholder Agreement is optional)
• In terms of Ownership: Issuance of Share certificate for each shareholder
• In terms of Tax: Submission of IRS Form SS4- Application for Employer Identification Number
• In terms of Due Diligence: Compliance with federal regulations that prohibit specific nationals, including the Iranian, North Koreans and Cubans from having US assets and doing business in America with stock markets and American companies.

Process of Setting up an US Company as a Non-Resident

Setting up an US company as a non-resident requires several important steps. Here is a list to assist you with the procedure:

Establish Your Business Framework:

• Remember to evaluate the alternative possibilities depending on your goals and requirements for your business; LLC or Corporation.
• Open up an Individual Taxpayer Identification Number (ITIN) from IRS, so you can fulfil tax obligations when in the United States as a non-resident.
• Complete an employer identification number (EIN) registration with the IRS that is needed by all tax filings and compliance purposes.
• Investigate Requirements Specific to Each State. Be aware of and adhere to tax responsibilities specific to each state, as regulations for businesses can vary.

Register for the Taxes:

For a non-resident to establish his or her business in the US requires that the other necessary steps be taken properly, with tax registration being the most important.

• Non-residents need to have an ITIN for tax purposes with respect to their US tax obligations, and this would be obtained from the IRS.
• Choose the legal environment for your kind of business, which could be LLC or corporation, based upon your needs and purposes.
• Register for an Employer Identification Number (EIN) in signing up with the IRS. This specific number is crucial for tax submissions and various legal reasons.
• Explore and comply with the tax regulations unique to every state. Every state in the US can have varying tax rules for businesses.
• Acquaint yourself with federal tax regulations and make sure to adhere to them. This involves comprehending income tax, employment tax, and various federal tax responsibilities.
• If your company sells products or services, it's important to understand sales tax obligations, as they differ by state. Sign up for a sales tax permit if required.
• Keep accurate and orderly financial documentation to aid in tax reporting and adherence to regulations. This consists income statements, expense reports, and receipts.
• Due to the intricacies of US tax regulations, think about employing a tax expert or accountant who understands international tax issues to check and adhere to.
• Stay informed about tax filing due dates to prevent penalties. Acquaint yourself with the necessary forms and submit them punctually.
• Stay updated on any modifications to US tax regulations that could affect your business. Consistently monitor for revisions and changes to tax laws.

Conclusion

For an entrepreneur who aims for world’s super economy, setting up a business in the US as a non-resident would be the first strategic move. The whole process, is not that tough if well planned with expert assistance. With the right business structure, tax compliance and leveraging the benefits of a US presence, an entrepreneur is ready to start a business destined for long-term value generation in the market at a global level.