If you’re looking to start your own business in the United States & wondering how to register your USA business as a non-resident. If so, you’ve found the perfect site because we can assist you. Let’s get started!
Decide on the type of entity you want to create
The type of entity you choose will depend on the structure, legal obligations, and tax considerations you desire. The first step in determining what form of entity to use is deciding which form will provide the best liability protection for your company. So far, there are two different types of corporate entities available to non-US citizens in the United State they are Limited Liability Company (LLC) & Corporation (C-Corp).
Forming an LLC is more flexible than forming a C-Corp because it offers more flexibility and can be taxed as an S corporation or partnership while C-Corps must be taxed like regular corporations. Forming either entity provides the following benefits:
- Unlimited lifespan
- Adequate liability protection
- Flexible management structures
- Unlimited ownership possibilities
- Taxes can be allocated among owners as agreed by them
Is a visa required to open a business in the United States as a non-resident?
No, you do not need a visa. A non-resident can open and operate any lawful business in the United States so long as they are authorized by their home country. The only restriction is that they must have an EIN (Employer Identification Number) or apply for one before opening their business. You will also need to contact your state’s revenue office about how much sales tax to collect from customers. The employer identification number (EIN) is also required if you plan on hiring employees, accepting funds from investors, or forming any type of legal entity such as an LLC.
If your business needs more assistance with registering as a non-resident, we recommend talking with a lawyer who specializes in international law. They can help you through it and ensure that everything is done properly. Generally, an officer of a corporation or LLC must have a valid work visa in order to perform their duties within the US. There are a few visa options available as,
1. E-2 visa:
This is for nationals of treaty countries. The candidate must travel to the United States to manage either a branch, subsidiary, or affiliate of his or her company located in the U.S., invest at least $1 million in qualifying U.S. business enterprise and bring along at least two years’ worth of financial records showing that his/her qualifying investment has been successful.
2. F-1 OPT Visa:
Foreign students may obtain practical training after graduating from college or university in their field of study. However, it is important to note that graduates should already possess the qualifications necessary to practice their profession back in their home country.
3. The H-1B Visa:
This visa permits employers in the U.S. to hire foreign professionals who fill jobs requiring specialized knowledge, usually higher education degrees earned outside of the United States.
4. O-1A Visa:
This is for people with extraordinary abilities in sciences, arts, education, business, or athletics. Applicants must show that they were recognized internationally as being at the top of their profession and were entering the US to continue work in this area.
How do I register my company in the USA as a non-resident?
Registering your USA company is easy when you have the right information & can be done online. If you are not a resident of the USA, there are some steps you need to take in order to register your business in the country.
1. You will need to get an employer identification number (EIN) which is obtained through the IRS.
2. With an EIN, you can hire employees, open a bank account, pay taxes, & obtain licenses.
3. You will have to choose a unique name for the company that hasn’t been used in the United States. The US Patent & Trademark Office has a list of available names for searching.
4. Set up a registered agent who will receive the company’s legal documents. You can hire professional services such as Northwest or Zenbusiness for this.
5. Once you’ve decided on a name for your company & got an agent, then go through the process of incorporating.
6. Next, you will file a report regarding the corporation’s incorporation & pay the franchise tax.
As a non-resident business, you can open a bank account!
The process of opening an account can vary depending on the type of bank you choose. Some banks may require you to have an in-person meeting with one of their agents, while others may allow you to open an account over the phone or online. Once you have opened an account, it will be necessary to provide your banking information & establish your identity by providing copies of some form of identification.
There are several benefits that come along with opening up an account for your business:
- It is easier to track income and expenses.
- Tax returns are simplified because all transactions are categorized according to what they were used for (i.e., expense vs. revenue).
- You get help in keeping tabs on any unusual transactions.
- A business account also allows you to purchase items at lower rates than if you paid them directly from your personal checking account.
You need not worry about how to register a USA business as a non-resident anymore. Follow the guidelines & easily get started with your business!