Did you know that nearly 80% of U.S. public companies choose Delaware for their business registration? Many non-residents believe starting a business in America is complicated, but here’s the surprising truth: it’s not.
The United States ranks sixth globally for ease of doing business. Non-residents face no legal restrictions when forming an LLC. The process can be straightforward and affordable. Some states offer LLC registration at costs as low as $50, making it perfect for business expansion or fresh starts in the American market.
This complete guide will walk you through each step of registering your LLC in America. You’ll learn everything needed to get your business running in the U.S. market – from state selection and documentation to business banking setup.
Let’s take a closer look at how you can turn your American business dreams into reality!
Understanding LLC Requirements for Non-Residents
Starting an LLC in America as a non-resident starts with understanding the simple requirements. You should know that non-U.S. residents can legally form and own an LLC without being U.S. citizens or permanent residents.
Legal Eligibility Requirements
Non-resident aliens from most countries can create and own a U.S.-based LLC. On top of that, foreign entities and businesses can form LLCs in America without restrictions. The federal law prohibits nationals from certain countries, including Iran, North Korea, and Cuba, from owning U.S. assets, including companies.
Documentation Needed
You’ll need several key documents to set up your LLC:
- Articles of Organization with simple company information
- Operating Agreement that spells out ownership structure and management rules
- IRS Form SS-4 to get an Employer Identification Number (EIN)
- Proof of identity (passport and foreign ID)
- Business address documentation
Your LLC must have a registered agent with a physical address in the state where the business operates. This step will give your company compliance with state regulations and helps receive important legal documents.
Visa Considerations
You don’t need a visa to form an LLC, but managing your business in the U.S. comes with different requirements. A tourist visa (B-1/B-2) or visa waiver program won’t let you handle direct management or operational activities. You’ll need proper work authorization if you plan to work for your LLC within the United States.
Remote management of your LLC doesn’t require physical presence in the U.S.. All the same, you should think over visa options if you want to conduct business activities in person. The B-1 visa allows limited business activities like attending meetings and negotiating contracts, but it won’t let you manage operations actively.
Choosing Your LLC Registration State
Choosing the right state to register your LLC is a vital decision if you’re a non-resident entrepreneur. Most business owners pick between Wyoming and Delaware. Each state comes with its own set of benefits.
Top States for Non-Resident LLCs
Wyoming guides most non-resident entrepreneurs, especially those running online and e-commerce businesses. The state’s resilient infrastructure protects your privacy and has a 150-year old legal system that supports businesses. Delaware attracts business owners who plan to turn their LLC into a C Corporation. The state’s specialized Court of Chancery provides extra legal protection.
Tax Implications by State
Each state has different tax rules. Wyoming doesn’t charge state income tax to individuals or corporations. This means LLC members keep more of what they earn. Delaware is a chance to avoid state income tax if your LLC operates outside its borders. Some states will ask you to file returns even if you work there for just one day.
Cost Comparison Analysis
Filing fees and annual maintenance costs change by a lot between states. Wyoming asks for a $100 state filing fee and charges $60 yearly if your company’s assets are under $250,000. Delaware’s original filing costs $110, plus you’ll pay a $300 franchise tax each year. Montana has the cheapest filing fee at $35, but this works only if you live there or run your business in the state.
Step-by-Step Remote Registration Process
You need to pay close attention to three important steps when registering your LLC remotely. We focused on building a solid foundation through a registered agent.
Selecting a Registered Agent
Your registered agent acts as the main point of contact for legal and tax documents. This person must have a physical address in your chosen state and be available during regular business hours. They will get vital documents like tax notices, legal summons, and corporate filing notifications. Professional registered agent services come with more benefits such as compliance management and document scanning.
Filing Articles of Organization
Your LLC becomes official through the Articles of Organization. This document needs these key components:
- LLC name and business address
- Registered agent’s name and physical address
- Statement of LLC’s purpose
- Management structure details
- Duration of the LLC
- Organizer’s name and signature
Getting an EIN Number
The EIN application process has specific rules for non-residents. Online applications are only available to people with U.S. tax identification numbers, so non-residents must submit Form SS-4 by fax or mail. The application requires:
- Business name and address
- LLC’s primary business activities
- Name of the member with primary control
- Expected number of employees
EIN application processing times change based on how you submit it. Fax applications usually get responses within four business days, while mailed applications take about four weeks. The IRS will send your confirmation through Form CP 575 to your registered agent’s address.
Setting Up Business Banking for Non-Residents
You need to understand your banking options before opening a U.S. business bank account as a non-resident. Right now, you can choose between traditional banks and digital banking platforms.
Available Banking Options
Wells Fargo and other traditional banks usually want you to visit their branch to open an account. Most conventional banks need you to show up in person with your documents and verify your identity. Some specialist banks let you open accounts from overseas, but they charge extra fees for this service.
Required Documentation
To open a business bank account, you’ll need:
- LLC approval documents (Articles of Organization)
- EIN confirmation letter
- Two forms of identification (passport recommended)
- LLC Operating Agreement
- Proof of business address
- Proof of personal address
Digital Banking Solutions
Digital platforms have made banking accessible to more people who own non-resident LLCs. Wise has the simplest approval process and gives you multi-currency accounts with smooth international transfers. Relay offers complete banking solutions that come with virtual cards and accounting tool integration. Mercury has become another good choice that gives you unlimited free domestic wire transfers.
These fintech platforms work as Electronic Money Institutions instead of traditional banks. They team up with established banks to keep your funds secure. Relay’s advanced features are a great way to get better financial control with team debit cards, spending limits, and expense tracking.
Note that your country of residence might limit your options. Banking services aren’t available if you’re from Belarus, Cuba, Iran, North Korea, or several other nations.
Conclusion on Non-Residents LLC
Non-resident entrepreneurs can establish an LLC in America through a clear and systematic approach. The process becomes achievable with proper planning and understanding.
Wyoming and Delaware emerge as prime choices due to their business-friendly climate and tax advantages. This significant decision leads to a manageable remote registration process that requires proper documentation and a reliable registered agent. Modern digital banking makes financial operations simple for non-resident business owners.
The registration process demands meticulous attention to detail. Your journey starts with filing Articles of Organization, moves to securing an EIN, and culminates in setting up banking operations. These guidelines will help you establish your LLC with confidence and join the ranks of international entrepreneurs who thrive in the U.S. market.
FAQs about Non-Residents LLC
Can non-residents form an LLC in America?
Yes, non-residents can legally form and own an LLC in America without being U.S. citizens or permanent residents. However, nationals from certain countries like Iran, North Korea, and Cuba are prohibited from owning U.S. assets, including companies.
What are the best states for non-residents LLC registration?
Wyoming and Delaware are top choices for non-resident LLCs. Wyoming offers robust privacy protection and is ideal for online and e-commerce ventures, while Delaware is preferred for those planning to convert their LLC into a C Corporation or seeking enhanced legal protection.
How can a non-residents obtain an EIN for their LLC?
Non-residents must submit Form SS-4 via fax or mail to obtain an EIN. The application requires information such as the business name and address, LLC’s primary activities, and the name of the member with primary control. Processing time varies from four business days for fax applications to four weeks for mailed applications.
What banking options are available for non-residents LLC owners?
Non-resident LLC owners can choose between traditional banks and digital banking platforms. While traditional banks often require in-person visits, digital platforms like Wise, Relay, and Mercury offer more accessible solutions with features such as multi-currency accounts, virtual cards, and seamless international transfers.
What are the tax implications for non-resident LLC owners in the U.S.?
Tax implications vary by state. For example, Wyoming imposes no state income tax on individuals or corporations, allowing LLC members to retain more profits. In Delaware, LLCs conducting business outside the state face no state income tax. However, non-residents should be aware that they may be subject to federal taxes and potentially state taxes depending on their business activities and location.