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Creating a U.S. LLC for non-resident entrepreneurs

Creating a U.S. LLC for non-resident entrepreneurs

Non-U.S. residents can set up a limited liability company (LLC) in the U.S., without having to be a U.S. citizen or green card holder.

There are no specific legal restrictions on nationality or residency status for creating an LLC in the United States.

Foreign entrepreneurs, whether resident in the U.S. or not, can therefore legally establish an LLC. Thus, an individual from any country can be a holder of a U.S. LLC, provided he or she meets the LLC formation requirements.

It is important to note that foreign entrepreneurs must comply with specific rules and procedures when setting up an LLC. It is therefore advisable to enlist the help of experts to guide you through the process.

Nevertheless, taxation can vary depending on the specific situation of each individual and the country of residence. You should consult a tax advisor for personalized guidance and to understand the precise tax implications of creating an LLC as a non-US resident. 

Expert LLC USA is here to support you throughout the process of creating and managing your company.

What advantages does an LLC in the United States offer non-residents?  

A U.S. LLC gives a non-resident access to the vast U.S. market, as well as to U.S. investors. What's more, having a presence in the U.S. can enhance a foreign company's reputation and credibility.

The LLC offers significant advantages to non-residents, particularly in terms of personal liability protection. As a separate business entity, the LLC protects non-resident partners by separating the debts and obligations of the partnership from their personal assets.

Another important advantage of the LLC is its indirect taxation system. Company profits are taxed at the level of each non-resident owner, thus avoiding double taxation.

Flexibility of ownership is also a major advantage of an American LLC. A U.S. LLC can be either single- or multi-partner. This allows a non-resident partner to hold the company individually. What's more, an LLC can have several partners, whether individuals or legal entities such as corporations.

How is a non-resident-owned LLC taxed?

LLCs owned by non-residents can benefit from a significant tax advantage on their business income, provided certain conditions are met.

All LLC partners must be non-resident aliens and reside in a country that does not tax personal income. In addition, they must not be required to pay U.S. federal income taxes.

According to the IRS, a non-resident alien is a person who does not possess one of the following qualifications:

U.S. citizenship: U.S. citizens are required to declare and pay taxes on their worldwide income, whether they live in the U.S. or abroad.

Permanent residence in the U.S. (green card holder): Permanent residents, also known as green card holders, have immigration status in the U.S. and are generally considered tax residents, meaning they are subject to tax on their worldwide income.

Substantial presence test: A person may be considered a tax resident even if he or she is neither a U.S. citizen nor a green card holder, if he or she satisfies the "substantial presence test". This test is based on the amount of time a person physically spends in the United States over a three-year period. If a person passes this test, he or she is considered a tax resident and must report worldwide income to the IRS.

Why trust Expert LLC USA?

The Expert LLC USA team has extensive experience and in-depth knowledge of the LLC formation process in the United States. We understand the specific challenges and requirements faced by non-resident entrepreneurs, and are here to guide you every step of the way.

You'll receive personalized support to meet your specific needs as a non-resident.

Expert LLC USA specialists are familiar with tax regulations and legal requirements specific to non-residents. We can help you navigate tax, compliance and legal issues so you can focus on developing and growing your business.

Calling on our team will save you time and give you the peace of mind you need to successfully launch your business in the United States.

 

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