Incorporating Your Business Into The USA As A Non-Resident: An FAQ (Part 1)
It’s no secret that to be come an LLC or corporation based in the United States, your business needs to meet a number of strict guidelines. However, these guidelines are very different for US residents than they are for non US residents. Here’s part one of our FAQ surrounding the details of incorporating a business in the US as a non-resident.
What is the most convenient business entity for non-residents?
Experts typically say that the most effective way to incorporate a business into the US is by forming an LLC. On the other hand, S corporations have one level of taxation, and all dividends a C corporation makes are subjected to double-taxation. That’s why most foreign citizens start an LLC as opposed to a corporation.
How long is the process of incorporating a business into the US?
There isn’t a set amount of time that’s expected for your business to become an LLC-based one. This is because each state has different rules and procedures that change often. Fortunately, you can check your state’s expected processing time to give you an idea of how long the process will take. Keep in mind, also, that a special IRS unit is in charge of processing tax ID registrations when business owners are non-residents, so the process may take longer than usual.
Are non-residents legally allowed to use the address of their Registered Agent as the company address?
No — unfortunately, non-residents cannot use the Registered Agent address as their company address. This is because the Registered Agent’s address is used to send and receive official documents that are generally related to taxes and lawsuits. Your company address needs to be, by law, the address where your company officially operates at, i.e., the home or office in your country where your business operates. There’s also the option of coordinating a mail forwarding service that authorizes you to use their address as that of your company’s.
Ultimately, being aware of these common questions can help you make the most informed decisions for your business’ needs. Keep an eye out for the next post, where we’ll answer even more frequently asked questions regarding the process of how to become an LLC and incorporate your business into the US as a non-resident, and for more information about how to form a corporation, contact MyUSACorporation.