How Non-Residents Can Legally Own A Business In The US

Trying to figure out whether you can open a company in the US without citizenship? Yes is the quick response. The longer response is that a non-resident may be limited in the kind of corporate company that they may create.

How Can You Establish and Own a Business as a Non-Resident: Summary

Some procedures and standards must be followed in order for non-citizens of the United States to lawfully operate a company there.

1. Non-residents must first decide on the best corporate form for their firm. A corporation or a limited liability company are the most typical choices for foreign-owned firms in the US (LLC). Both of these arrangements have different tax ramifications and provide owners with liability protection.
2. Internal Revenue Service must provide non-residents an Employer Identification Number (EIN). When establishing a bank account or applying for a business license, you must provide this number, which is used for tax reasons.
3. In order to work in the US, non-residents may also need to apply for a visa. The L-1 Intra-Company Transferee Visa and the E-2 Treaty Investor Visa are the most popular visa choices for company owners. These visas enable non-residents to visit the country and engage in employment there to operate and expand their businesses.
4. Last but not least, non-residents must abide by all state and municipal rules and ordinances pertaining to company ownership and operation. This includes getting any required licenses and permissions, signing up with the proper state and municipal organizations, and submitting yearly reports.
5. While it is lawful for non-citizens to operate a company in the US, the procedure may be difficult and time-consuming. To make sure that all legal criteria are completed, it is crucial to seek the advice of an experienced immigration attorney and a business lawyer.

What Kinds of U.S. Businesses Can a Non-Resident Form?

The ownership of a C Corporation or an LLC often has no citizenship or residency restrictions; yes, a foreign national may be a member of an LLC in the United States.

S Corporations, on the other hand, are a different story.

Non-resident aliens are not allowed to be S Corp stockholders, although resident aliens are, following the S Corp rules set out by the IRS. In other words, a non-U.S. citizen who dwells in the U.S. (also known as a resident alien) is permitted to own an S Corp, but a non-U.S. citizen who is also a non-resident alien is not. This is so that an S Corp owner may be incorporated, which requires them to have a physical presence or to live in the jurisdiction.

Not sure whether you qualify as a resident alien? According to the IRS, you must pass the significant presence test or the green card test for the calendar year in order to qualify as one.

In which state ought I to register my business?

The state in which your company will be conducted is the ideal one, but there are other elements to consider when it comes to select a state to register your US company. However, you may want to think about registering in a state with reduced tax costs if you run an internet business or do business in many locations.

Nevada and Delaware are two states that are well-known for having low business taxes. Delaware is especially well-known because of its corporation law, which gives shareholders and directors extensive protections.

A physical residence or bank account is not necessary for Delaware incorporation. The website for Delaware’s corporate law is really accessible in a wide variety of languages, demonstrating how open the state is to overseas business owners.

What steps are involved in registering my company?

Depending on whether you’re founding an LLC or a C-Corp, the procedure for registering a corporation in the United States for international enterprises differs somewhat from state to state. For the fundamental phases and requirements, Delaware’s procedure serves as a suitable model:

A distinctive name that hasn’t already been registered in the US must be chosen.

There is a trademark database you may search at the US Patent and Trademark Office.

To obtain the firm’s legal paperwork, you or a designated company representative must be present.

When agent is determined and name is decided, it is time to get official certificate for it. This document contains the name of the company, your or your firm’s agent’s address, the number of authorized shares, and the name, and the legal address of the incorporator. The cost to file the certificate of incorporation begins at $89 and rises in proportion to the number of shares issued or the amount of new capital generated.

You must next pay your franchise tax and submit an incorporation report.

Finally, you need to get an EIN. The EIN will enable you to pay taxes, create a bank account, recruit staff, and get any permits you need. With the IRS, you may easily and cost-free apply for an EIN online. However, a Taxpayer Identification Number must already be in your possession or that of the company’s chief executive officer. If neither of you has one, you may still apply for an EIN by mail or fax if you don’t already have one.