It may appear difficult to set up a US firm as a non-resident, but it is actually a quite simple procedure. A number of actions must be completed, including picking the appropriate state, registering your business, obtaining an EIN, and opening a bank account with a US-based institution. Here is a step-by-step instruction manual to get you going. Selecting the Proper State
Selecting the appropriate state is one of your first choices when starting a US business. Although you can legally register a business in any state, some states are friendlier to business than others. For instance, Wyoming is a well-liked option for non-residents due to its minimal filing costs and lack of both corporate and personal income taxes. Due to their benevolent business legislation, other states like Delaware and Nevada are also well-liked possibilities for non-residents. Registering Your Business
The next step after selecting the appropriate state is to register your business. This entails submitting the proper paperwork, including the articles of incorporation, to the state. Additionally, you will need to select a registered agent who will accept legal paperwork on your company’s behalf. This can be a person or a business that is permitted to conduct business in the state. The process of obtaining an EIN An employment identification number, or EIN, is a special nine-digit number that the IRS issues to your business. An EIN is required to open a bank account in the US and to submit taxes there. On the IRS website, you can submit an online application for an EIN.
Opening a Bank Account in the US
You must open a bank account with a US institution in order to conduct business in the US. Since many banks demand a physical presence in the US in order to create an account, this might be difficult for non-residents. Some banks, on the other hand, focus specifically on working with non-residents and can assist you in opening an account online.
Due to its low filing costs and lack of both company and personal income taxes, Wyoming is a popular state in which to incorporate an LLC. Wyoming also permits LLC members to remain anonymous and has strict asset protection rules. However, your unique requirements and business objectives will determine the ideal state to incorporate an LLC.
Wyoming does not impose any state income tax or franchise tax on LLCs. Nevertheless, depending on how the LLC is categorized for tax reasons, it may be subject to self-employment tax and federal income tax. LLCs have the option of being taxed as a partnership, S company, C corporation, or sole proprietorship.
Two procedures that enable LLCs to relocate their business to a new state are continuation and domestication. While domestication entails dissolving the LLC in the originating state and creating a new LLC in the new state, continuation maintains the LLC’s existing formation date and legal position. Your particular demands and objectives will determine the process you go for.
What Is One Requirement for the Formation of New Companies in the State of Wyoming Keeping This in Mind? The appointment of a registered agent is a prerequisite for the creation of new businesses in Wyoming. A Wyoming resident or a business with a permit to operate there must serve as the registered agent. In the event of a lawsuit or tax notice, the registered agent is in charge of receiving them on the company’s behalf.
Wyoming domestication is the process of relocating an existing business from another state to Wyoming while preserving the legal background and records of the original business. It enables non-residents to create a Wyoming-based business while still enjoying the advantages of an existing corporate structure. Non-residents who want to benefit from Wyoming’s advantageous business climate and tax rules may find this process useful.