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As a non-US citizen, establishing a business in the US sounds like an interesting idea. The unique and multicultural population of the US opens doors for new business ventures.
But, starting a business in the US from a different country can become complex. So, here’s a quick run-through and some tips on setting up a business in the US as a non-resident. You can also buy or sell a business in Florida.
US Company Structures for Non-Residents
There are only two types of business structures available for non-US citizens. These are the corporation (C-corp) and a limited liability company (LLC). Aspiring entrepreneurs need to know which design works best for their business plan.
One of the most notable advantages of an LLC is the protection it gives to its members. LLC members' assets are safe from any business-related liabilities. LLCs also have little to no restrictions on profit sharing between company members. Meanwhile, C-corps can expand and extend their business venture through unlimited stocks. This feature often attracts investors and brings C-corps massive gains in resources.
There are also other critical differences between LLCs and C-corps. These include differences in the foundation, forms of ownership, fundraising, and taxation.
Generally, LLCs are a lot simpler to form compared to C-corps. Ownership for LLCs is through a member-owner relationship. In contrast, C-corps have shareholders, directors, and officers who share ownership of the company.
Taxation is also different between LLCs and C-corps. LLCs can avoid double taxation by declaring themselves as a pass-through business entity. But, C-corps get taxed twice as a business and on the owners' salaries.
Location is Everything
Location is crucial when it comes to business. The basic idea is that the industry would dictate where you establish your business. For foreigners building a company in the US, choosing a state should be all about focusing on its benefits. The state's business laws and tax policies are crucial for brand new businesses.
The friendliest states for new businesses in the US are Wyoming and Delaware. This is because of their low tax burdens, privacy policies, and asset protection laws. But, it is important to note that the policies differ from each state. So, one could be more beneficial for you than the other.
The difference between a Wyoming vs. Delaware LLC can determine the best place for you. After establishing your prime business location, you can already register your business.
Registering a US Business as a Non-Resident
The registration process for a business depends on two things. The company's structure (LLC or C-Corp) and the state where you are registering your business. But, below is a general overview of the steps you need to take to start a company in the US as a non-resident:
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Come up with a company name that you can use when registering. The US Patent and Trademark Office will accept your company name if it is unique.
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Contact and register your company in states you plan to conduct business activities.
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Hire a registered agent and complete all necessary forms. Once your agent receives these legal papers, they’d file them on your company's behalf. A registered agent can also file state documents and settle all fees if necessary.
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Open a business account and get an Employer Identification Number (EIN).
Whether you are in the UK or in other parts of the globe, opening a business in the US is a challenging move. But, if you will not take a leap of faith, you will never further your entrepreneurial career. So, It is crucial to do ample research on how to establish a business overseas. The points mentioned above will help you get started.
