You can start your own business and live the American dream even if you do not live in the United States. Non-residents can create and operate LLCs in the United States. There are no laws preventing non-residents from forming a US LLC. Non-residents, however, are subject to various filing requirements, taxation, and other regulations.

Are you ready to form an LLC and learn more about establishing a US business!? Continue reading and follow the instructions to get started.

What Is an LLC?

A limited liability corporation, or LLC, is a legal business entity that enables your company to operate independently. An LLC can open a bank account, accept payments, and, as the name implies, restrict your responsibility.

Simply put, an LLC functions independently of its owners or members.

This means that the LLC is liable for any business-related lawsuits or obligations. The personal assets of LLC members or owners cannot be utilized to pay business debts. Most owners see this as a primary justification for forming an LLC.

Benefits of Choosing the US to Start Your Business

The United States has one of the best reputations in the world for being business-friendly, including for non-US citizens!

The United States also boasts a very competitive corporation tax system, as well as a simple business structure in the form of a limited liability company (LLC).

One of the most significant advantages of beginning a business in the United States is the inexpensive initial expenses in comparison to many other nations, as well as the prestige of being headquartered in the United States.

Can a Non-US Resident Start a US LLC?

One common myth about starting a US company is that you must be a US citizen with a US Social Security Number (SSN).

Fortunately, this is false. You do not need to be a US citizen, resident, or green card holder, nor do you require a US SSN.

This means you can form a US LLC as a non-resident, online, as a foreigner, and acquire:

• A US LLC

• A US bank account

• Access to US payments

• And more!

One of the most significant advantages of being a non-US resident and forming a US LLC is that an LLC is a “pass-through entity,” which means that taxes can be passed through to the owners.

This means that your firm will not be subject to US tax if your LLC:

• Is 100% owned by non-US tax residents (whether natural or legal people)
• There is no US presence or economic substance.
• Income must not be “effectively connected”.

The pros of founding an LLC as a non-resident include:

• Personal Liability Protection
• Simpler taxation (pass-through taxation)
• Flexible management and ownership
• Enhanced business credibility.
• Owner privacy and asset protection

6 Steps to Open an LLC for Non-US Residents

Starting an LLC as a non-US resident involves a straightforward process. If you possess a Social Security Number (SSN), you can potentially file for an LLC and obtain an Employee Identification Number (EIN) within a week. The EIN serves as your business’s tax ID, crucial for tax filings, and ongoing compliance may involve additional fees and form submissions.

For non-residents initiating an LLC in the United States, the following steps are recommended:

• Choose Your State:

Decide which state is suitable for your LLC formation. Options like Delaware or Wyoming are popular, each with distinct advantages. Delaware is favored for attracting investors, while Wyoming offers lower fees and tax advantages, especially if you plan to operate in a different state.

• Select a Name:

Choose a unique business name, always ending with “LLC.” If opting for an alternative name, file a Doing Business As (DBA) registration. Prioritize a name search to ensure its availability.

• Hire a Registered Agent:

Every LLC needs a registered agent to receive legal notifications. This can be a business address, your home address, or a registered agent service. You can change your registered agent by filing an amendment form.

• File Legal Documents:

Most states require filing articles of organization, providing essential company details. Consider additional documents like an operating agreement. Be mindful of state-specific filing costs and annual maintenance fees.

• Apply for an EIN:

Obtain an Employer Identification Number (EIN), serving as your business’s tax ID. Apply through the IRS website, completing Form SS-4. Any changes require Form 8822-B.

• Open a US Business Bank Account:

After completing the previous steps, open a bank account for your LLC. Provide necessary documents and identification information. Separating personal and business finances is advisable, although opening a US business account as a non-resident can be intricate.

These steps empower non-US residents to establish an LLC, enabling them to operate a business in the United States efficiently.

FAQs

Is it necessary to appoint a registered agent for an LLC as a non-resident?

Yes, every LLC requires a registered agent. While a few states allow the Secretary of State to serve as the registered agent, in most cases, individuals must designate a registered agent.

How long does forming an LLC as a non-resident typically take?

The average duration for forming an LLC as a non-resident is typically four weeks. If an individual possesses a Social Security number, the process could be expedited, sometimes taking as little as a week.

Can a non-resident LLC owner obtain a US business visa?

A non-resident LLC owner is eligible to apply for a US business visa. Options include the B-1 business visa or an E-1 or E-2 investor visa, depending on the individual’s circumstances and the planned duration of stay in the US.

Is it possible for a non-resident LLC owner to participate in US government contracts?

Non-resident LLC owners have the opportunity to engage in US government contracts, subject to specific eligibility criteria. Most government agencies welcome bids from any qualified company capable of fulfilling the contract requirements.

Do non-US citizens have the same rights and responsibilities as US citizens regarding owning an LLC?

Yes, non-US citizens or residents are allowed to be members of an LLC but must comply with all business laws for LLC ownership. Non-US citizens must meet the same requirements as US citizens or residents.

Is there any requirement for non-US citizens to obtain a visa or legal residency status to own an LLC in the US?

There are no specific residence or visa requirements to own an LLC in the US. However, if you plan to visit the business or come to the US for business meetings, having a business visa can facilitate that.