U.S. Business FAQ

Frequently Asked Questions of Non-US Residents Wanting to Register Their Company in USA

 

Do I need to provide any documents to start?

There’s no documents required to start your U.S. business. You just need to answer our intake questions. We will take care of the rest. You will only have to sign, scan, and email a form that will allow us to get an EIN for your US business. This can be done through email.

How long does the process take?

Processing times for forming a U.S. company vary among the different states and change constantly depending on the workload at the state office. If you’re a non-US resident, it takes 1 day to register your Wyoming LLC. Then after your LLC is registered, it takes 2 weeks to get your EIN. This is the fastest time the IRS takes to assign and mail the assigned EIN for non-U.S. citizens. So the entire process takes about 2 weeks. If you’re a US resident, the processing times to get the LLC or S-Corporation formed depends on the state where we will be forming the company. Please check with me for the exact timeline.

 

In which state should I form my business?

You should form your LLC in the state in which you have physical presence. For example, if you’ll be operating your business in California, then we should form your LLC in California. However, if you do not plan to have physical presence in the US (meaning that you’ll operate solely from outside the US), then it’s best to form your LLC in Wyoming, the best and most business-friendly state for non-US residents.

 

Why is Wyoming the best state for non-US residents?

Wyoming is the best business and foreigner-friendly state for non-US residents. The top 3 reasons why Wyoming is the best for non-US residents are: no state or capital gain taxes, low annual report fees of $50, more privacy (member names are not disclosed), and foreigner-friendly laws. In the past 3 years, all of my non-US clients have been really happy with forming their LLC in Wyoming and I’ve never had any issues with Wyoming. That’s why I always recommend Wyoming for my non-US clients.

 

Why should I register my US company?

By registering a US company, you get the following benefits:

  • LLC gives you access to open a US bank account
  • LLC makes it easier to accept payments from US clients
  • LLC protects your personal assets from business debts and lawsuits. What this means is that if something happens to your business then your personal assets such as personal bank account, car, and home will be protected. The first thing successful entrepreneurs do is form an LLC.

 

Once I start the service, what else will I need to do and how long will the setup take?

Once you become our client, I will personally review your answers to make sure we’re setting up your LLC or corporation in the correct state (the state where you’re conducting business if you’re a US resident or Wyoming if you’re a non-US resident). Then we will do all of the filing for you and will be in contact with you via email (or phone if necessary) to complete your filings and provide you all of the documents.

 

Do I need an US address to form my business in the US?

No you do not need a US address to form your business in the US. You can provide an international mailing address where you will be able to receive your EIN. We provide Registered Agent service that is the only state requirement related to physical address. Our Registered Agents service allow you to form an LLC in the US.

 

Will you help me get my EIN?

Yes, EIN service is included in my service. EIN is a business tax ID necessary to help you open your US business bank account and comply with the IRS. The EIN application form has to be signed by what the IRS calls a “Responsible Party,” someone who controls, manages, or directs the business. After we prepare your EIN application, we will email you your EIN application for you to review and sign. After you sign and scan and email it back to us, we will file it with the IRS. It typically takes the IRS 2 to 3 weeks to assign and mail you your EIN to your mailing address.

 

Can I own in the ownership of an LLC if I am not a US citizen?

Generally, there are no restrictions on foreign ownership of a company formed in the US. The procedure for a foreign citizen to form a company in the United States is the same as for a US resident. It is not necessary to be a US citizen or to have a green card to own an LLC or in the US.

 

Which is the best business entity type for a foreign person?

To receive pass-through profit distributions, a foreign citizen can form an LLC. In contrast, for a corporation, all profit distributions (dividends) made by a C corporation are subject to double taxation. Under US tax law, a nonresident alien may own shares in a C corporation, but may not own any shares in an S corporation. For this reason, most foreign citizens form an LLC instead of a corporation.

 

Can I work in the US if I own an LLC or Corporation?

A foreign citizen may be a corporate officer and/or director, but may not work in the United States or receive a salary or compensation for services provided in the United States unless the foreign citizen has a work permit (either a green card or a special visa) issued by the United States. Some work permits allow a foreign citizen to work only for a sponsoring employer. Such work permits generally do not enable a foreign citizen to also work for a new, unrelated company formed by the foreign citizen. The foreign citizen would need to obtain a separate work permit to work for the new company. You can own a business but unless you have a work visa, you are not allowed to work for your company in the US (You can work for your company in your country).

 

Can Mollaei Inc. help me open a U.S. business checking account?

Yes, Mollaei Inc. can assist you with the opening of a U.S. business checking account. Please get in touch with us to learn more.

 

Can I use the Registered Agent address as my company address?

No, you cannot use the Registered Agent address as your legal address or the mailing address of the company. The Registered Agent address and service is just to receive official documents, generally related to taxes and lawsuits. The legal address of your company has to be the real one (for example, your home or office in your country or a mail forwarding service that authorizes you to use their address as yours).

 

Can my foreign company be the owner of our US LLC or Corporation?

If you form a LLC, yes. Instead of appointing an individual as “managing member” you can appoint your own foreign company. If you chose to form a Corporation, at the time of registration we only appoint “Directors” and they have to be individuals. Please note that Directors does not own a corporation. A corporation is owned by its shareholders, and from this point of view, your foreign company can own 100% of any US corporation.

 

We want to create a branch of our company. Is that possible?

In the US there’s no entity type called “Branch”. In order to create a branch of your company, you need to form an LLC in the US and then establish the relationship through the Operating Agreement. No filing is involved with this action.

 

What do I have to do on an Annual basis?

Your LLC will have to file some form of Annual Report on a yearly basis. We will provide you instructions on how to do this after you become our client. Mollaei Inc. suggests that you consult your accountant for any additional information required for filling out tax returns, quarterly tax payments, employment payroll records, etc.

 

Will I receive “originals” of my documents?

Each state has its own way to return proof of filing. Some states will return the information by fax, others by email and some of them by mail. Documents returned as proof of filing can include a nice certificate or just an electronic stamp with the company number and filing date. They can return a stamped copy of the original (they always keep the original) and payment receipt. If you order the service, we can obtain a certified copy of the formation documents and also Apostille certification.

 

Can you prepare annual reports, tax returns and hand over all official procedures with IRS and the authorities of the state as my official agents?

Since we do not prepare tax returns we recommend you to contact an accountant.

 

If we don’t have a physical office in the USA, do we need a business license?

Some business licenses are related to the county and city where your office is located. In this case, since you will not have a local US office, you may not be required to hold a license. However, there are other kind of licenses, called specific licenses, that are related to the activity that you perform.

 

How do I pay taxes for my business?

If you’re a non-US resident, you’re taxed in the US only on US-source income. If you’re a US resident, you’re taxed on your worldwide income. We advise that you consult with an accountant about how to deal with business taxes. I’ll be happy to refer you to an accountant after you become my client.

 

What makes your service better than the others?

My clients love my extremely personal service. I’m extremely responsive via email and I pride myself in answering my clients within minutes. Once you become my client, I will always make myself available to you and follow up with you throughout the entire process.

 

What To Do Next

Email me at sam@mollaeilaw.com to continue the process.