U.S. Entity Formation FAQs


When you are forming a U.S. company there are some important FAQs (frequently asked questions) you should be asking and here they are for you:

• Which entity is best to operate in the U.S.? Is it an LLC (limited liability company). If so, do you know how it is taxed? There are three options for you if outside the U.S. There are several factors that must be discussed including your gross revenue and net profits, goals with those profits, are partners involved, tax treaty with your country…

• Should you ever consider doing business in your own name? Operating a business as a sole proprietorship in your name is an option, it is low cost and in some situations a good starting point to “test” if your U.S. business will get off the ground. Long term there is too much risk with this business structure and for some industries too much risk even as a starting point.

• Which state is best for your situation (Nevada, Wyoming or Delaware)? What are the factors to consider besides state filing fees or state tax rates? Do you know any court history and which one will offer the best liability protection? Which one has the best U.S. economic benefit to your business?

• What are the U.S. tax rules for a corporation vs an LLC? A C corporation may have lower tax rates but it may not be best for your overall situation. On the other hand, an LLC taxed as a partnership will trigger three U.S. tax returns, which may not be bad overall, but it is something to consider.

• What are the U.S. tax treaties with your home country? Even if there is a tax treaty with your country is there a type of U.S. entity that may not be recognized in your home country?

• With a U.S. company will you need a work VISA?  Planning to come to the U.S. and now you have a U.S. company the key is not to mess up at the U.S. boarders! If you are planning to secure a work VISA in the future do you know which are the best options at the lowest cost?

• What is the best approach to establish a U.S. bank account? Will you have to come to the U.S. in person or not? Should you use an online payment system or set up a real U.S. bank account?

The goods news is when you work with my NCP as a client we will address all these FAQs plus you will have access to our professional resources as needed (and yes, we are able to establish a U.S. bank account WITHOUT you coming to the U.S. currently. This is subject to change in the future).

Take the next step and call us at 1-702-367-7373 or email us at support@launchwithconfidence.com and we will schedule a time to speak on Skype® (if you are outside the U.S.)  to help you determine the best strategy and fees involved in establishing a complete U.S. company.

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