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It is entirely possible and, more importantly, legal to own and operate an LLC as an NRA even if you are not a resident of the United States.
The U.S. government established this advantageous status to bring foreign capital into the country.
The American LLC offers many advantages. This is why French e-tailers choose the American LLC legal form for the following reasons:
- The personal liability of the partners in an LLC cannot be engaged. Therefore, their private assets are protected from creditors;
- NRAs (non-resident aliens) can benefit from an interesting tax system, especially when the French shareholder has the idea of moving abroad or has a large number of shares;
- From an operational point of view, the American LLC offers advantages because of its ease of incorporation, its maintenance at low cost and its low management and accounting requirements;
- On the social level, the LLC USA presents an incomparable flexibility because the managers are able to freely decide the frequency and the amounts of their remunerations, and benefit from a remuneration net of social charges. Moreover, this legal entity offers a privileged legal and fiscal framework;
- In an LLC, the anonymity of the managers is preserved. This advantage constitutes a legal bulwark and protects the managers from possible recourse from third parties.
The United States ensures the largest market in the world for online purchases and is the world reference for e-commerce. More than half of all Americans use the Internet for their purchases. The United States is a real Eldorado for e-merchants and especially for those who intend to sell on Amazon US.
Is there any interest for a French entrepreneur to create an American entity, if he has in mind to sell on Amazon US and to challenge the American market of online commerce?
It is perfectly possible and legal to conquer the American market by relying on a French company. On the other hand, with a French company the barriers to entry are high.
If you have in mind to sell on an American e-commerce platform or on Amazon US, you will encounter difficulties in creating your account and in selling your products from the central seller. Indeed, marketplaces (Amazon US) are demanding towards foreign sellers and you will not be spared any inconvenience.
The American LLC legal form has an international reputation and allows you to deal actively with your suppliers and customers, worldwide. The creation of the LLC is very simple and offers the advantage of being economical. It is an accepted standard for international business operations. This is why many e-commerce giants choose this legal entity for their activities.
When the entrepreneur operates in an international environment, the most suitable vehicle is the LLC, i.e. when customers, principals, suppliers, or sales platforms are located in different countries. This option is excellent if you want to sell on Amazon US from your home in France, with Chinese suppliers and American customers.
The liability of the partners is limited within the LLC, which means that their private assets remain intact and their anonymity is protected, making third party claims quite difficult.
In addition, the equipment necessary for the smooth running of operations is obviously available to the entrepreneur (business bank account, credit cards, international transfers, etc.).
In addition to being fiscally advantageous, the LLC USA offers another advantage which is to have few constraints to remunerate the partners and ensure a profit.
Finally, the US LLC is the best way to sell on Amazon US and generally for international business operations.
The American LLC is seducing more and more French online sellers, especially those who want to challenge the American market. In fact, most of them are planning to sell on Amazon US.
The LLC is an ideal, low-cost vehicle for :
- Have access to the essential web-merchant tools (Shopify, Woocommerce) ;
- Sign up for the major e-commerce platforms and sell on Amazon US, Walmart, Etsy, etc. ;
- Have access to US payment processors (Stripe, Paypal, etc.);
- Buy in dollars from your foreign suppliers;
- Collect a sum from your American customers and gain their trust.
On the other hand, choosing to challenge the U.S. market with a non-American company is risky and you may run into multiple constraints that will hinder its growth.
The LLC is the essential means for an online sales project in the USA. Indeed, the legal entity offers an advantageous ecosystem for e-merchants who are able to reinvest their profits massively in order to purchase new products and/or increase their inventory.
If you choose this status, it will be possible to benefit from an advantageous flexibility in terms of deductible expenses from your taxable income (see section 162 of the American tax code). To reduce the tax bill of the entrepreneur, it is necessary to invest the cash surpluses via current accounts of partners within dedicated subsidiaries (securities, real estate, etc.).
The LLC is an ideal way for an e-merchant who plans to expatriate in a country benefiting from a privileged taxation of his US source income. Thus, he could legally collect his LLC income with less or no taxation. If you are planning to expatriate, you can call on our specialists.
Finally, it should be noted that the transfer of ownership (transfer of LLC shares) is easily done within the framework of an American LLC. The shareholder can thus transfer or resell his shareholding without any particular constraint.
Have a question? Do not hesitate to contact our expert formalists on the creation, management, and declaration of American LLC. Through a free interview, he will answer all your questions.
