A business entity is automatically entitled to do business in the state where it is formed, but in order to do business in another state, they must register to do business there. The definition of “doing business in a state,” like so many things, is different from one state to another, but there are common themes to be aware of. As a non-resident looking to set up a US company, you have even more steps to go through than a US resident, and more downside if you make a mistake. For example, there are more income tax issues for non-residents who want to take their income out of the US. Obtaining an appropriate US work visa and opening a bank account are also problems. In short, you not only have to create a workable business model, but further have to make it work within the US tax, legal and economic framework.
An LLC legally separates the owner’s personal assets from the business, providing protection against personal liability for business debts and claims. In contrast, a sole proprietorship does not offer this separation, leaving personal assets vulnerable. However, to assist entrepreneurs, many LLC formation services offer packages that only require you to pay the state filing fee, advertising a $0 + state filing fee price point. This approach streamlines the process, making it more accessible and affordable by minimizing service charges and helping you navigate the paperwork required to get your LLC up and running. The law observes a corporation as an entity separate and distinct from its shareholders (i.e., owners). A corporation has its own assets, liabilities and legal rights that protect its shareholders from personal liability.
Can I have multiple businesses under one LLC?
Keep in mind though that in addition to your American mailing address, you also need a registered agent in the US. There are benefits to a C corporation too though, primarily the varying types of stock interests owners can hold, which can lead to higher dividends if your company makes a profit. A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict. A registered agent is a person or business that sends and receives legal papers on your behalf. However, if your business does not have this physical need, it is usually advisable to form your LLC in a state without state taxes, so you only have to handle US federal taxes. Registering a USA LLC (limited liability company) is the best way to open a company in the USA for a non-US citizen. Anyone can register an LLC in the USA; you do not need to be a US citizen or a US company.
Starting an LLC in California
Your personal assets include belongings like your home, car, and personal bank accounts. It is required to travel to the U.S. to open a U.S. bank account (assuming someone else in the U.S. is not signing on your account for you). Most assume since they are traveling and here in person, it will be easy to establish a U.S. bank account for a newly formed LLC or Corporation, that is not the case. Most bankers will look at your new entity as a new local business and expect to see a local utility bill or office lease agreement. They may also require an ITIN or SSN on the signer and all signers present. Read more about USA company formation here. An EIN (employer identification number) is required for each new entity (corporation or LLC) in the U.S. NCP will send you the form SS-4 completed via email for your signature to scan and email back to our offices.
If the answer to this question is “yes” then you probably should consider registering a Delaware C-Corporation specifically, since this is the most popular tool for companies with this profile. U.S. companies are registered by states and territories, not by the federal government. That means theoretically you have 50 states, DC and several U.S. territories to choose from.
Almost all U.S. banks offer a free checking account, debit card, and online account. Your company will have an annual report due each year with the state (though some states require reports every other year or every several years), and different states charge different fees. You’ll also have to maintain a registered agent to receive service of process (legal notices) on your company’s behalf. When you hire Northwest, you can renew our registered agent service each year for $125. As a business owner, having separate bank accounts to track financial transactions is one of the most essential parts of building a sustainable business, especially for small businesses.
Learning how to start a company is the U.S. with a complete formation is key to your overall business and U.S. e-commerce strategy. Read more about Open a company in the US here. Public companies, conversely, have their stock available to the general public on the stock market. For them, stock certificates might be more symbolic, with most trading and ownership records kept electronically. Regardless of your corporation’s type, maintaining meticulous records of stock ownership is paramount to help ensure clarity and transparency. This isn’t just about money — attracting shareholders also means bringing in individuals who believe in your vision and offer their support as you steer your business toward greater heights. Incorporating unlocks these opportunities, making it simpler to secure the resources your corporation needs to thrive. When a business becomes a corporation, it often gains an enhanced level of credibility among potential customers, clients, vendors, and partners.
