Assuming that’s true, simply follow the steps below to get started. As a non-resident, setting up a larger business, such as a corporation or LLC, can be more complicated and expensive than for citizens and green card holders. Most states do not permit non-residents to incorporate, even though there are exceptions in some states and you may have good reason to set up a US company as a non-resident. There are two types of LLCs, a single-member LLC and a multi-member LLC. However, there are other taxes like sales tax, self-employment tax, and franchise taxes that need to be paid.

That’s a lot of benefits to draw you close to using their service. Another option is to find a bank that has branches in your native country.

Choosing a Business Name

Read more to find out about these critical points in your company’s formation. On the other hand, ‘C’ corporations are considered as a separate entity when it comes to taxation. This means that your ecommerce business will be subject to ‘double-taxation’, which means that you’ll be taxed on your business’ profits and you’ll still be taxed on your personal income.

Steps to Incorporate a US Company

The Articles of Incorporation is a document that formally establishes a corporation and is required for registration with the state. The document contains important information to incorporate into a business and outlines the corporation’s corporate governance. In some states, this document is known as the Certificate of Incorporation.

Read more about Open a company in the US here. But no court system or government likes someone trying to hide behind a company to do bad deeds. Yes, your U.S. business will need to get a federal employer identification number (FEIN or EIN) from the IRS to file your business’s yearly federal tax returns. If your business signs up for one of Northwest’s USA Company Packages, we will get your federal EIN for you as soon as the state has approved the formation of your business. The cost of the EIN service is $50 if you have a social security number and $200 if you don’t. Another tax-friendly state, most businesses in Florida are exempt from taxation. Partners and owners simply pay income tax on their earnings, but there are a variety of other fees that you’ll have to pay when setting up a business here.

These are some of the steps we assist our clients with, so if you are seeking professional guidance to assure correct procedures are followed, form your company online here. The registration process varies by state, with some allowing online registration and others requiring paper filings in-person or by mail. The registration is typically done with the Secretary of State’s office, a Business Bureau, or a Business Agency. InDinero gave us a quote for $1,200 to fill it for our upcoming tax return, but you might be able to find someone who can do it for less. Again, the catch here is knowing what you need to file and making sure that you don’t miss anything. Same as before, the fine here will set you back at least $10,000.

In the end, it all comes down to how you want to be taxed and an LLC is the most convenient way to go. And at the end of this article, we will also give you some recommendations about how to setup your company with no struggle by using a 3rd party company that does everything for you. Give the address of any of your reference (relative or friend) as the mailing address in the US but this scheme not always come true. Another good news is that the IRS now allows an online process of getting an EIN. Foreigner entrepreneurs can submit the fax or mail for getting an EIN. When you are selecting a state for LLC generation from outside the USA, the best option is to go for the states that are offering minimal or zero taxes. Nevada, Delaware (link to Iqra’s article), and Wyoming are notoriously inexpensive in this regard.