For non-US entrepreneurs who run their own business, US LLCs is possibly one of the best legal vehicles. They are allowing access to all jurisdictions that belong in the first world. They have a good reputation, a banking system, and payment processing while a low tax rate is maintained. Also, it has a high level of management in bookkeeping and bureaucracy. My friend Chris posted an amazing article here.
Read through to know if an LLC is the best option for you. You will learn the process of opening it fast and cost-effectively.
What are the Benefits of the USA as Jurisdiction?
There are a plenty of good reasons on having a USA registered business.The following are among them:
- The reputation is very good
- The maintenance costs and set up are low
- Low KYC requirements
- Payment processing and good banking are of easy access
- No tax
If you think of it, it is amusing that a US LLC is becoming interesting as a ride for your business when you are not even a US citizen in the first place. Perhaps, this could be one of the best examples of the use of an optimized flag theory.
Incorporating an LLC is both cost-effective and easy where organizing takes its place. For less than $500, you can get everything running and set up in just a week. The same company form in Canada will make you pay $2000 to get it started.
America is continuously becoming one of the leading countries in the world in terms of the economy. Registered companies in this country are enjoying a high level of trust worldwide. Being said, your customers will get zero issues in deducting invoices that come from your country. Also, this is not the case of several low-tax jurisdictions that are offshore.
Maintenance and Set-Up Costs
A thousand of LLCs are being held daily all over the USA where competitions in the industry already exist. They aim to acquire your business and most services that are related to LLCs.
Tax Obligations for Non-Resident Owners
When you own and operate an LLC in the US, one of the most relevant topics to discuss is the tax implications. Also, this is one of the frequently misunderstood topics of all the US international tax..
Best US State to File LLC
Registering an LLC gives you a lot of choices between any of the 50 US states. A non-US resident that has an LLC is treated as a disregarded entity. Some of the differences between the states turned out to be less important. The differences in state tax rates will not matter anymore as you aim of not being liable for paying them.
Best State for an Anonymous LLC
There are only four US states that allow an anonymous LLC, which makes you having limited options. The good thing is, these states are the states that have the most cost-efficient and easiest incorporation methods. States like New Mexico, Delaware, and Wyoming allow you to form LLCs while you keep your name out of the public records.
Keep in mind that these are not 100% anonymous LLCs. A registered agent will always know the person behind the LLC and an information disclosure will be done to the state upon request.
The state of Delaware is not requiring a list of the members’ and managers’ names of the LLCs. There is a requirement of a registered agent to be listed and an organizer/incorporator. It is a requirement to hire a third-party provider for those services to maintain complete privacy.
New Mexico is not collecting any information about the members and managers of LLCs. Also, there is a full lack of fees, taxes, and annual reports. Just the same with Delaware, there is a need for a third-party provider in maintaining complete privacy.
Nevada and Wyoming are both allowing nominee services. When using these services, a nominee appears in the public records on behalf of the real owners.
An information disclosure to the IRS is a requirement no matter where you set up your LLC especially when you will register for an EIN that needs to get payment processing and banking.
How to Open Your Own LLC
Now, let’s move on to a step-by-step method on how you can open your LLC. Plan on what state you want to have your LLC.
- Pick a name and make a comparison with your state’s database.
- Make use of a service provider in opening your LLC that serves as your registered agent.
- Make an application for EIN.
- Open a bank account and make an application with the payment processors.