USA is the destination of business opportunities for individuals and entrepreneurs. It is ranked as the largest economy around the world following by other European and Asian countries.
It’s a dream for business people or entrepreneurs to have their business presence in the USA and it can be done through the Offshore company incorporation in the USA.
Basically there are two entities model are present that non-citizens can set up in the USA:
LLC (Limited Liability Company)
The most popular offshore company model in the USA which avoid any sort of personal liability for the business owners if one keeps all files and corporate book updated.
C Corporation
C Corporation company model separates tax liability of owners from the company but applicable to give corporate income tax. Business is also applicable for the double-tax but has many benefits too if a home country complies with USA dividends laws.
How much does it cost to register a company in the USA?
At the initial stage, it’s not that much hard for entrepreneurs, businesses, and even freelancers that they can’t afford the cost to register a company in the USA.
Cost: $500-$1000
How to start a business in usa for non citizens/foreigners?
1- Get your company name checked that will not match any other entity name.
2- Get a certificate of incorporation filled up with the incorporation report.
3- Get your EIN that is your Employer Identification Number which will allow you to pay the necessary taxes and file your returns.
4- Apply for any license
5- After all this get started with the process to open up a bank account.
You can apply for a residence or business visa and get an office space for rent.
Tax:
It is basically based upon the business structure and the state of your doing business like few states impose a franchise tax and other value-added taxes.
- Every foreign business needs to file a USA corporate income tax return that is Form 1120-F even if there would be no source of income in the USA.
- If the income is earned outside the country then it is applicable for a tax on a gross volume which is flat 30%.
- Foreign companies also required to file information returns(dividends or investment) by filling up Form 1099.
- The USA also levied a 15% tax on branch profits for corporations.
- File a business qualification if register in multiple states.
How to open a branch of a company in the USA?
In order to open up a branch of an Indian company in the USA, you have to invest your time and money. Below we have mentioned step by step guide so that you can fulfill all the requirements needed for the legal presence in USA.
1- Get your business plan and vision ready
2- LLC is the most favorable company model because it protects owner from personal liability.
3- Get your company incorporated in USA and the procedure we have mentioned above.
4- Get a office space on rent
5- Apply for a bank account
Do I need to apply for a visa to own a USA business?
- B-1 business visa
- L-1 Multi-National Transfer Visas
- Residency Visa
- E-1 Treaty Trader & Investor Visa
- EB-5 Job Creation Visa
How long is the USA incorporation process takes?
Basically it takes 2-5 days or more as it depends upon the government due diligence process.
Is it possible to use the registered agent address for the companyβs address?
No it has to be either your own home address or mail forwarding address.
Useful resources:
Want a USA citizenship? – Read more