USA company formation
Non-resident US LLCs still maintain popularity on the market, for example as offshore holding companies or for international trading. If you want to expand your business to the United States, whether to run an internet-store for US based clients or open an art gallery in the Chicago area, an onshore resident structure must be established. US companies that partially conduct business in the United States turn to be a beneficial trading vehicle with liable presence in USA and US bank account. Moreover, upon smart structuring non-US source income will not be subject to US federal tax.
One must distinguish non-resident LLCs and resident LLC:
- Have non-resident owners
- Have non-US source income
- The US federal income tax is avoided
- File Report of Foreign bank and financial accounts (FBAR) and/or other reports if required, for example The Foreign Account Tax Compliance Act (FATCA)
- Unlikely to open US bank account
- May have non-resident owners
- Fully or partially conduct business in USA – have US clients, venders, etc.
- Pay federal income tax on US-source income
- Maintain bookkeeping as per US accounting standards
- Can open US bank account.
If you wish to set-up a resident structure with US bank account, please provide us answers to the questions in „Popular Applications” sections.
Non-resident LLC companies can be used as tax-transparent entities for holding and international trading purposes. Although it must be noted that it is becoming more and more challenging to open a bank account for those.
Resident LLC features advantages of territorial taxation whereas only US-source income is taxed after deducting of administration expenses.
We can assist in setting-up your presence in the United States. To obtain an initial, free of charge consultation on your set-up requirements, it is essential we receive your answers to the following questions:
- What is the nature of the operations?
- Does the Company plan to have employees, maintain inventory or / and occupy a facility in the US?
- How does the Company plan to sell into the US?
- In which country or countries do the shareholders reside?
- What country / countries does the company currently operate in?
- What is the company’s long and short term plan for cash profits generated in the US?
- If a business plan with financial projections exist, please provide a copy
We provide the following services for US onshore companies:
- Formation of a legal entity. Typically such entities are formed in the state of Delaware
- Establishing a bank account and merchant account (no visit required)
- Preparation of a shareholder agreement (if required)
- Implementation of the US foreign structure
- Preparation of US Corporate tax returns (annually)
- Bookkeeping services for US company
Non-resident LLCs that have non-resident partners and trade purely outside the US generally are not required to file federal or state income tax return. Although abbreviated reports may be required in some states, for example Maryland. As well particular IRS reports for non-resident entities such as FBAR (if bank account balance exceeds USD10,000 at anytime) and/or The Foreign Account Tax Compliance Act (FATCA).
We can assist overseas clients in obtaining tax id numbers (Employer Identification Number), and in preparing and filing annual trading accounts for any type of US LLC structure - trading solely outside of the US, trading in US or hybrid LLCs that have both US and worldwide income.
Companies that are set-up as resident entities and conduct business in United States are subject to US federal tax and must file US tax returns.