Foreign nationals can start their own business in the United States without becoming a resident. In fact, many foreign nationals are establishing their business presence in the United States on a regular basis. From major corporations to small startups, foreigners flock the United States to take advantage of the many opportunities it offers. Gaining access to the United States marketplace has been a proven way to expand your reach on a global scale. 

The United States os world-renowned for its massive global economic influence. Foreign enterprises are also attracted with the country’s thriving market and low tax rates. Setting up a company in the United States for non-residents is simple and straightforward, especially when you have a competent team that can help you in the formation process. Taxation, real estate, supply chain, immigration, and other crucial activities are streamlined with a business consultant that can guide you at every turn. 

Follow these steps to successfully start your business in the United States. 

How to set up and select your US Company

Non-residents typically choose the C corporation structure as it ensures expansion opportunities, offering limited stocks that are appealing to investors, despite profits being taxed twice. 

Stockholders of corporations enjoy several advantages as they are eligible for a lower dividend rate. In case a company owns real estate, the parent company covers the capital gains by selling to a United States affiliate. 

While the majority of payments are double, tax planners utilize pensions, wages, and other additional expenses to reduce corporate income tax while simultaneously taking advantage of double taxation treaties. Depending on the case and prevailing tax regime, a limited partnership is perceived as the best option for a company that plans to commence commercial operations in the United States. 

In case a non-resident chooses a limited partnership structure, partners without any management control carry limited liability. For profits, members are required to pay income tax through their individual tax returns. 

State Selection for Company Registration 

The industry your company belongs to will determine where it should be established. By rule, if a particular state is dominant in a certain sector or market, foreigners are advised to incorporate their respective companies in that state. For instance, Delaware, Wyoming, and Nevada are considered low-load states. In case your enterprise does not concentrate on a particular state, Delaware, Wyoming, and Nevada are highly recommended due to the greater flexibility they offer in terms of corporate law. The two states offer directors and shareholders adequate protection. Additionally, they do not require companies to have a bank account or physical address. 

Business Registration 

Depending on the state where you wish to operate, the requirements and registration forms may include the following:

• Business managers must choose a unique name for the company. 
• Decision makers must choose a registered agent to receive all legal paperwork from the company. A registered agent can be company with a physical address in the chosen state. 
• Completion of certificate of incorporation that include corporate name identification, nominal value of shares authorized by the corporation, registered agent’s address, and the name and address of the incorporated party. 

Business registration fees start at $89 and increases based on the number of shares issued and capital raised. 

After incorporating the business, you must then file a report followed by payment of franchise tax annually at $175 while the reporting costs $50. 

Retrieve Employer Identification Number

You need an employee identification number if you are going to hire workers for your company. If you do not plan on hiring workers, the next step involves opening a bank account, paying the necessary taxed, and obtaining a business license. 

You can apply online unless you have succeeded in obtaining the taxpayer identification number separately, then you must process it through mail. 

Bear in mind that if you plan on investing or establishing a company in the United States, you are required to set up a domestic corporation structure. 

Opening a Branch Office in the United States

Opening a branch office in the United States for foreigners involve a few steps. For instance, you must obtain an L visa. A branch office may be registered as a corporation, limited liability company, or partnership. 

Different Company Structures in the United States

Sole Proprietorship

• In a sole proprietorship, the company and owner are considered as one legal entity.
• Depending on the state and type of business, a sole proprietorship is easy to create. 
• You will require a license to collect sales taxed and other types of licenses to operate the business. 
• The owner will be fully liable of profits and losses. 

Limited Liability Partnership

• Structure that consists of two or more personals who will be considered as members. 

General Partnership

• This structure is made up of two or more members. 
• It’s easy and affordable to create a general partnership. 
• A business license is a requirement to operate the business. 
• Each of the partners is liable for any debts that a general partner may incur. 

Limited Partnership

• Structure made up of two or more partners with limited liability. 
• The partners are not required to take responsibility with their patrimony for debts incurred by a partnership. 

S Corporation 

• Partners in this structure have limited liability. 
• There is no double appraisal. 
• Company formation is expensive but carries advantages similar to those of a Limited Liability Company. 

C Corporation 

• Partners of C corporations are not liable for the debts incurred by the business. 
• Have multiple investors, issuing shares in the business.
• Double taxation advantages. 
• Dividends are distributed among partners. 

The massive market size, business-friendly provisions, access to investors, cheap capital, and boost in company’s credibility in the global stage make opening a business in the United States. If you are looking to start a company or expand your existing operations in the United States, you can trust Damalion and our wide global service network to offer you the expert guidance and assistance you need. From company formation, understanding of the existing taxation regime, to connecting you to service providers to run a smooth operations in the United States, our team of Damalion experts will be with you at every turn. To know more about opening a company in the United States, reach out to a Damalion expert today.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.