The LLC starting process the same for US citizens and also non-US citizens. So the LLC process is the same for everyone. There is no restriction for non-US citizens to be ownership of an LLC in the US States
You don't need a residence permit or work permit to start up an LLC or incorporate in the USA. The USA, therefore, distinguishes two types of foundations: Domestic and Foreign. So if you only want to have a branch in the US, you can classify your company as "foreign" and thus have, so to speak, founded a legally registered company form.
Can a non-US citizen Start LLC in the US?
The LLC starting process the same for US citizens and also non-US citizens. So the LLC process is the same for everyone. There is no restriction for non-US citizens to be ownership of an LLC in the US StatesYou don't need a residence permit or work permit to start up an LLC or incorporate in the USA. The USA, therefore, distinguishes two types of foundations: Domestic and Foreign. So if you only want to have a branch in the US, you can classify your company as "foreign" and thus have, so to speak, founded a legally registered company form.
This would almost only be on paper, so it does not necessarily have to have an office profile. So someone from abroad can set up a business in the USA and even employ employees there - or not - without owning a work permit. Many LLC companies doing export-import bases work. Exporting US goods to abroad or importing any goods to the US from abroad with their LLC company without residence or open an office in the USA
I just want to express that visa and company are not necessarily linked. The American philosophy here is simple: If someone wants to start a company that is done no demolition. After all, there are fees and costs involved, and if someone is already investing in them, the state sees them as welcome.
For example, in California, a minimum annual tax of $ 800 is due for an LLC established, domestic or foreign - even if it has no income. Thus, the state also gives foreigners the opportunity to start a business, after all, the state receives a tax.
This tax is also due when the center of activity is overseas - this is a so-called fixed tax and is "franchised tax" and mandatory in these US states: Alabama, Arkansas, Delaware, Georgia, Illinois, Louisiana, Mississippi, Missouri, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas, and West Virginia.
US States Tax Rules
Tax is due where the center of activity is. So if the company has the work center in the US, the tax will be due there as well. If, on the other hand, you have a company in the US, but do your work in your country "for example the UK", UK has the right to this tax.A misunderstanding in advance: You can not start a company in the US to save taxes in your resident country. As soon as the working center in Germany is, you do not have the opportunity to escape the German tax authorities.
Is Delaware State tax haven?
A popular rumor is that one should establish a company in the US state of Delaware, as the tax position there is particularly favorable. The reason why all companies do not start a business in Delaware and save taxes is as follows: The center of activity should also be Delaware. Just having a branch there is not enough to pay the tax in Delaware. So if you really want to save taxes in Delaware, you need to be based there as well and work locally.The tax authorities say unofficially that one would have to operate there for at least 180 days in order to be able to pay taxes in Delaware. Of course, it is also faster if, for example, there has a residence and residence status. For the American tax office IRS here already the driver's license and a residence in Delaware as proof.
As there is no obligation to register in the US, permanent residence is proven by electricity and telephone bills and proof of Delaware car insurance. Then you can get stuck in Delaware after day one - the tax will be due next year anyway, and by that time it will be clear anyway where exactly the center of work was in the previous year.
Set Up LLC in USA
As already explained above, there is the possibility of founding a Foreign or Domestic Limited Liability Company (LLC). For Foreign, the focus of activity is not the US state. At Domestic, the focus of activity is the state where you registered the LLC.check our related article: Incorporating in the US
How Long Does LLC Opening Takes
You can easily set up an LLC with an online application and prepare the application forms online. The registration of an LLC is done in 5 minutes.In California, for example, it's the LLC-1 form. All you need is an address, the name of the manager and a person who can take letters. These people call themselves corporate agents in the US and these can easily be booked for $ 50 a year, for example. After a while you will receive a confirmation by mail from the Secretary of State and the LLC is officially founded.
The simplest variant is the founding of an LLC in the so-called pass-through procedure (submission). That is, any income of the LLC is simply attributed to my personal income and losses. That's basically the same as a GbR in Germany.
This simplifies the tax declaration many times over. Also, you do not necessarily need an extra bank account for the LLC. This variant can also be had with several members - in this case, all incomes and losses of the LLC are attributed to each member in percentage terms. This is very cheap for tax purposes.
In this section, we tried to answer the questions listed below. If you have detailed questions, please specify them in the comments section;
- Can a foreigner set up an LLC in the US?
- How much does an LLC cost yearly?
- What visa do I need to start a business in USA
- Do I need a lawyer to create an LLC?
- What is the best state to open an LLC?
- What does an LLC cover?
- Is an LLC good for a small business?
- How is an LLC terminated?
- How do you start a business in the US as a non resident?
- How non-US residents can open LLC
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