A US-based LLC company can have various advantages for both American and foreign entrepreneurs abroad. The opportunities are vast for foreign entrepreneurs and startups alike. You don’t need to get citizenship in order to enjoy American privileges. Anybody can do it, even if you’re from India or anywhere else in the world. All you have to do is follow certain guidelines to legitimately run a successful American business.
This guide covers the benefits of forming an LLC in the USA for US and non-US citizens, as well as simple steps on how to open an LLC company in the USA.
Benefits of Forming a Company in the USA
An LLC is essentially a hybrid between a corporation and a partnership. It protects the assets of its owners like large corporations do, and offers tax benefits like sole proprietorships and general partnerships. When you open an LLC in the US even if you’re from India or anywhere else in the world, you get to enjoy these benefits while targeting the massive buying demographic of the US.
Did you know that America has more than 11 million millionaire households — it is so large that it can definitely from another country, The benefits of opening a new business in a country that’s so massive like the US, especially when we’re talking about people’s financial capacity, are boundless.
- You get to enjoy various opportunities, networking and meeting with people who are respected in their fields. For instance, Bill Gates, Tim Cook, and Jeff Bezos.
- You get to target the huge buying population in the entire world.
- Forming an LLC in any state in the US will give you huge tax advantage and asset protection benefits.
- Limited Liability Company is the most popular business type in America today and citizenship is not a requirement. Setting up an LLC in the US is the same for a non-US citizen as it is for a US citizen.
How To Open An LLC Company In The USA (2020)
Legal Advantages of an LLC Company in the US:
- Asset-liability protection – Forming an LLC company in the US separates your personal assets from your company’s assets. This will prevent your personal assets from being used to pay business creditors during rough times.
- Pass-through taxation – The profits and losses of the business pass through to its owners, and will be reported on their personal income tax returns as if they owned a partnership or sole proprietorship. This prevents “double taxation” on its owners caused by paying taxes both as a business and as an individual.
- Employer Identification Number (EIN) – EIN allows you to file taxes and hire employees. Getting an EIN is simple. It doesn’t matter if you live in the US or not.
- Legal and compliant revenue streams – Foreigners can’t work in the United States unless they possess a Work Visa or a Green Card, but they can be a director or a corporate owner.
- Access to small business administration loans – the federal state grants small business loans, with low-interest rates and flexible terms to both U.S. and non-U.S. citizens alike.
Primary Steps to Open an LLC in the USA from India or Anywhere in the World
Forming an LLC in America is the same for a foreign citizen as it is for a US citizen. To open an LLC, you don’t need to come to the US. You can hire an LLC service company to form the LLC for you. Please take note that the requirements for forming an LLC vary from state to state.
Basically, here are the steps:
- Select a State to Register the LLC – We recommend forming your LLC in Delaware for it has low taxes and maintenance fees, and the laws aren’t that complicated. Wyoming is on the list too as well as Nevada. If you’re looking for a state that has strong privacy laws, we recommend opening your LLC Company in Nevada.
- Name your Company – This is the first and basic step when starting a business. You need to get a unique name for your LLC. Your LLC name should sound different from any business in the US. Take note that there are certain rules to follow when naming your LLC company. Your business name should have these words at the end, depending on the state you’ll be incorporating in.
- “Limited Liability Company”
- “LLC” or “L.L.C.”
- “Limited Company”
- “LC” or “L.C.”
- Get an EIN –You can get an EIN or Employer Identification Number from the IRS. This will be the tax ID that enables you to file and pay for taxes, hire employees and pay for their payroll. You can get your EIN online using third-party services like LLC INC.
- Hire a Registered Agent – If you won’t be physically present in the United States to receive all important documents and correspondence with the state, you’ll need a registered agent service. Hiring a registered agent in your state of formation will make things easier as they will be responsible in receiving and forwarding all the important documents to your home country so you won’t miss any deadline.
- File Articles of Organization – Your articles of organization or incorporation should contain information about your LLC business, information about your registered agent, and the names and addresses of your board of directors. Once this is filed with your state of formation, you’re ready to start doing business.
- Open a Bank Account in the US – One of the major hurdles when forming an LLC in the US if you’re a foreign national is opening a US business bank account. This requires a trip to America to physically apply at the branch. You might need to call the bank first to make sure you’re bringing all the required documents. The requirements may vary each bank, so contacting them first could save you a lot of time and money.
There are other options though without requiring you to travel to the US. Services like PayPal and other third-party payment options like Apple Pay, Skrill, and other Merchant payment gateways are also available for your convenience.
Steps To Set Up a US LLC Online In 2020
This is by far the most convenient way for forming an LLC company in the USA. Although, you might need to follow the steps above because they are needed to make your business come to life. However, you can definitely eliminate all the hurdles and burdens and make the process a breeze if you use a third-party incorporation service like LLCINC.
At LLCINC, we can make your business official in a heartbeat with no hidden fees and ‘round the bush tête-à-tête. We have served over a thousand businesses all over US. We offer 3 months free trial for our Registered Agent service when you choose our Plus and Ultimate filing packages. We also offer free of charge for our Basic Incorporation Package. Check out the steps below.
Step 1. Go to LLCINC website and choose your state of formation. Take note each state charges different state fee. So the overall pricing might be slightly different from that of Alabama or California. For the sake of this illustration, we will use Nevada as an example. Click Start Now.
Step 2. Type in the Name of Your Company and click “Continue”.
Step 3. Select a Package that best fits your needs. You can choose from the three options: Basic, Plus and Ultimate.
Basic Package – $0 + State Fee
You won’t pay anything for Basic Package. This is your best option if you want to get an EIN yourself, hire a different registered agent or create your own operating agreement. You can still enjoy free drafting of your articles of organization, business name check and online access with this package.
Plus Package (Most Popular) – $179 + State Fee
This is our most popular package as it covers most of the important things when forming an LLC in the United States. This package includes drafting of articles of organization, business name search, online access, priority processing, getting your EIN, a free 3 months Registered Agent service, and annual filing service.
Ultimate Package – $349 + State Fee
You’ll enjoy a worry-free filing experience with our Ultimate Package. With this package, we will tackle almost everything your LLC needed to legally operate in the United States. From the drafting of the articles of organization to the filing of business license report. Ultimately, this package includes: drafting your articles of organization, name check, online access, priority processing, getting your EIN number, free 3 months registered agent service, annual filing service, operating agreement, bank resolution template, corporate kits, and business license reporting.
Step 4. When you choose the Plus package, these important documents will show up as an add-on. You can either choose one or both of them by clicking the “Add” button below or skip them by clicking the “Continue” button.
Step 5. When you’re done adding or skipping some important documents for your LLC, you can proceed to Checkout. But first, you need to review your Plus Package and see if you’re missing anything.
Step 6. Checkout. Input your credit/debit bank credentials in the corresponding fields and make sure your bank has sufficient balance before clicking “Continue”.
There you go! You’re LLC is being filed by our team. You’ll receive a notification from us regarding the status of your LLC in 1-2 business days. By then, you can sit back and relax and wait for our notification.
After Formation Checklist
- Arrange a US Physical Address or Virtual Office – If you want to receive all your business emails, client emails at a US address and if your bank requires a separate physical US address that is not the same as your Registered Agent, then you need to get a mail forwarding service provider or virtual office service, provider. There are lots of companies offering this kind of service in the US. Many of them are based in our recommended state of formation: Delaware, Nevada, and Wyoming. They provide services like online tracking of documents, weekly and monthly mail forwarding and some may be able to provide you a US telephone number that you’ll be needing to become a legitimate US business.
- Open a US Bank Account – If you want to accept the US credit card payments or open a US merchant account, then you need to open a US bank account. However, this process has become significantly more difficult for non-US entrepreneurs because of US anti-terrorism laws. Call the bank first before arranging a trip to the US. But there are still other options that will make the process easier. Some banks may accept your registered agent address as your business address but you will need to make an arrangement with them first to have your bank statements or correspondence delivered to a mail forwarding service or e-mail.
- Select a Bank That Also Has a Branch in Your Home Country – When you select a US bank that also has a branch in your home country, you don’t need to come to the US to open an account personally. You’ll be able to walk into the bank anytime and open a business bank account for your US LLC. Banks that have large international presence include Bank of America, Citibank, Chase, USBank and Wells Fargo.
- Get a US Phone Number – Getting a US phone number will make you look like a trustworthy business operating in the US soil. It will allow your customers to call your business anytime for questions or appointments. Most of the phone providers in the US will give you the option to forward all the calls to any number you wish to use or over VOIP service where calls are routed over the internet instead of standard voice telephone lines. Some phone providers may also provide various online features such as voice mail or faxes delivered via e-mail.
- Nevada Virtual Office – Includes Nevada Address, Phone, and Fax.
- Wyoming Virtual Office – Includes Wyoming Address, Phone, and Fax.
- Google Voice – international restrictions and Google branding on phone calls.
- Skype – free for domestic use but no real phone number unless you upgrade.
- Ring Central
- Build a Website and Create a Company Logo – In order to successfully run an online marketing campaign, any business should have its own brand and online presence. To ensure that your business is ahead of the competition, you need to create a unique and unforgettable business logo. It should represent what your business stands for, and at the same time attracts customers. For a start, you can build a basic business website, buy a domain from GoDaddy or Namecheap and install a content manager like WordPress or Weebly. Going this route is usually cheaper than buying WordPress directly from their site.
Conclusion: How To Open An LLC Company In The USA (2020)
Now you have a step by step guide on How to Open An LLC Company In The USA. So, easily create one and your business should have its own brand and online presence and overtime once you grow your brand you will grow rapidly.
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