How to Incorporate a Business in the US [Guide for Non-US Residents]

How to Incorporate a Business in the US [Guide for Non-US Residents]

There are several benefits to incorporating your foreign business in the United States. For example, US incorporation gives you access to American markets and payment systems. It also improves your company’s reputation among American-based businesses.

To incorporate your business as a non-US resident, you’ll need to take several steps. These include choosing a business type and state, obtaining tax IDs and bank accounts, and working with an experienced international business lawyer to make sure you file the correct paperwork.

Find Out How to Incorporate a Business in the US

To learn how to incorporate a business as a non-US resident, follow these five basic steps while working with an experienced international business law firm, such as Rooney Nimmo.

Step 1: Choose a Business Type and Registering State

Your first step is to choose your business type, which affects your tax situation. A C Corporation pays taxes on business profits at the corporate level, while an LLC (Limited Liability Company) reports profits on an individual level; that is, the profits and losses flow through to the individual members. This step is an excellent time to begin working with an international attorney who can advise you on which business type is best for your situation.

Choosing a state in which to register your business is the next step. If you plan to do business and/or hold a physical presence in a state other than the state of incorporation, you’ll need to register in the state where your business is located. If you are operating outside of the US, you can opt for any state. However, there are a few states that have a more business-friendly reputation than others, such as Delaware, New York, and California.

Step 2: Hire a Registered Agent

After you decide on your business type and state, you will need to appoint or hire a registered agent. A registered agent is a third-party individual or company with the authority to accept important legal documents on behalf of your business. The majority of states will require you to have a registered agent as an incorporated business, and if you fail to do so, you could face severe legal consequences that lead to the dissolution of your company. In some states, such as New York, the Secretary of State acts as the registered agent for the company.

Step 3: Obtain a Tax ID Number

As a US company, you must have a tax ID with the IRS. This is called an Employer Identification Number (EIN). To ensure the process of obtaining a tax ID number goes smoothly, it’s vital you work with your tax attorney at Rooney Nimmo to complete the appropriate paperwork and visit the IRS website.

Step 4: Open a US Bank Account

After you fill out your incorporation paperwork and have a tax ID, you need to open a US bank account. Although requirements differ per financial institution, most ask that you bring your Tax ID number, incorporation paperwork, and passport. Many banks prefer that you open an account in person, but opening an account online may be possible.

Step 5: Work with an International Tax and Business Attorney

You are now legally ready to operate in the US. However, one additional step to take, if you have not done so already, is to work with an international tax and business attorney. It is preferable to work with a professional who has offices in both the US and your home country so that you fully understand your tax responsibilities in each location.

Discuss your annual compliance needs with your attorney so you do not skip any necessary compliance requirements. Most states require a yearly company report and annual meeting that must be documented and filed each year.

Let Rooney Nimmo Assist You with US Incorporation

If you have questions about how to incorporate your foreign business in the United States, Rooney Nimmo can help. Our team offers expert assistance to ambitious entrepreneurs. We also welcome queries related to compliance and tax concerns for existing businesses.

Contact the offices of Rooney Nimmo to speak with an experienced international business lawyer today.

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