When deciding to expand a business with a presence in the States, it is important for foreigners to study the tax system, legal aspects, and corporate law very carefully. At home, everything is clear without unnecessary questions, and you know where to start. But how to be in a foreign territory, so that the organization of the business goes in the shortest possible time?
Initially, take into account that without legal assistance you are unlikely to do – the mentality of Americans shows a special passion for legal support, advice and representation you will find everywhere.
The same situation with the registration of the company in the U.S. – the interests of businessmen shall be represented by a licensed agent, who will submit the necessary documents to the registration authorities.
As for the answer to the question of why you need to open a company in the States, the goals and prospects may be different. Therefore, let’s consider the key privileges of the jurisdiction available to foreigners who have founded their own business here. Among them:
direct access to investment, venture capital, public markets;
creation of a structure with flexible management;
obtaining and facilitating trade in the U.S. market;
the ability to get a Green Card for investors and move as a family;
the ability to completely separate personal financial savings and
from corporate finances;
optimization of tax payments;
To get a visa for legal residence and official employment in the States (additional conditions required).
It is possible to open a company in the USA without a personal visit to the jurisdiction – remotely, you work with our experts by power of attorney. However, please note that in most cases a personal visit is required to open a corporate account with a US bank.
Choosing the legal form of the company, taking into account taxation and overall business structure
The most common legal forms of business among foreigners are:
LLC;
C-Corp.
Less popular, but legally allowed company structures include:
Partnership;
S-Corp (corporation with distribution of profits and losses among shareholders, for small business);
Joint Ventures (joint ventures);
Branches (branches of foreign firms);
Foreign Corporations Representatives.
Let’s understand the differences and general points of the most popular forms of business in the USA – Limited Liability Companies and Corporations.
The creation of an LLC is more attractive for small businesses with a small number of participants and no shares. Note that such a company may be treated by the IRS as a partnership, corporation or limited liability company. You should request Form 8832 to determine the status of your business.
As for the C-Corp, it is a publicly traded company, more attractive to large scale businesses and large business groups. Here it is mandatory to appoint a director or board of directors, otherwise taxes are paid (at the corporate rate and personal dividend income of shareholders). Additionally, consider the availability of federal taxes, the rates of which vary from state to state in America.
