If it’s about expanding a business globally, the United States of America is probably the best market to work in. The most popular business structure to use while forming a company in the US is, undoubtedly, an LLC or limited liability company. The best part is that to form a corporation like LLC, one doesn’t necessarily need to hold the country’s citizenship.
Forming a US LLC – A quick look through
The most significant factor that one needs to consider before initiating the formation of a new LLC in the US is obtaining visas that allow one to open a bank account in the country. One also needs to remember that forming an LLC in the USA never grants one any visa to work in the land of the United States.
Hence, another important step is getting an employee identification number and acquiring a physical US mailing address.
Steps to form a US LLC
As said before, anyone can form a Limited Liability Company in the US, including foreign citizens. The steps to do so are mentioned below.
Selecting a state
When it comes to form a corporation in the US, one should consider selecting a state that doesn’t levy state taxes. Hence, one needs to shoulder the liability of the US Federal taxes only. However, it depends on the pattern and type of the business. In case one is required to open offices or maintain a physical presence in a particular state, it’s important to form an LLC in that state itself.
In addition, one should also check that the selected state offers foreign-friendly laws and reduced filing and annual fees.
Naming the LLC and hiring a professional assistance
Naming a new LLC is not as simple as it looks. It’s good to remember that each state has its own rules when it comes to selecting names for LLCs. The general guidelines include the following.
● The name should have the phrase “Limited Liability Company” or its abbreviation, LLC included.
● The name must not contain any word that can confuse and mislead people by carrying the similarity with government agencies like treasury, FBI, state departments, and more.
● The business name should be available as a web domain.
● Words like a bank, university, and attorney are restricted, and to put them in the name of the LLC may require additional paperwork and the involvement of licensed professionals like doctors or lawyers.
Apart from selecting a name, another mandatory step to follow while forming an LLC in the United States is hiring professional attorneys who provide service related to forming a company in the US.
In actuality, most states require every LLC to nominate a registered agent who is a resident of the state from where the business will operate.
Filing the LLC with state
If one wants to form an LLC in the United States, it’s more than vital to file the documents with the state. These documents are usually called Articles of Organizations or Certificate of Organization. These documents aim to outline the organizational structure of the business. In addition, they will define the type of the company – manager-managed or member-managed.
Creating an operative agreement and acquire an EIN
Though the operative agreement doesn’t come up in the list of must-have documents, acquiring one may allow an individual to leverage its benefits like the reduced risk of future conflict.
Additionally, obtaining an EIN or Employer Identification Number is imperative as it acts as a tax id for the company.
Finally, when one is done with all the steps mentioned above, it’s time to get a physical mailing address and open a US bank account.
That’s all when it comes to forming a corporation in the United States. One should always reach out to a reputable law firm before starting with the formation of an LLC in the US. This will allow one to keep the process simple and hassle-free.