Are you a non-US resident looking to open an LLC in the United States? While the process may seem overwhelming, it is actually quite straightforward and can be completed in just a few simple steps. By following these steps, you can legally establish your business in the US and enjoy the benefits of operating as an LLC.
The first step in opening an LLC as a non-US resident is to select a registered agent. A registered agent is required in each state for an LLC and will act as the point of contact between your business and the state government. Once you have selected a registered agent, you can proceed with choosing a name for your LLC. It is important to ensure that your chosen name is not already in use by another business and complies with your state's naming guidelines.
After selecting a name, you can file your LLC directly with the state online. This process involves completing the necessary paperwork and paying any associated fees. Once your LLC has been approved, you can then create an operating agreement, obtain an Employer Identification Number (EIN), and open a US business bank account. By following these eight easy steps, you can successfully open an LLC as a non-US resident and start operating your business in the United States.
How Doola can help you start an LLC
Doola has helps entrepreneurs turn ideas into businesses. Here's how you can start the process today:
1. Tell Doola your business name, if you've picked one.
2. Answer a few questions.
3. They'll complete and file your paperwork
Step 1: Choose a State
One of the first steps in opening an LLC as a non-US resident is to choose a state in which to form your LLC. Some states are more favorable for federal tax reasons, while others may offer additional benefits for business owners. However, if you need to open a physical office or job site, you will need to form an LLC in that state.
It's important to carefully consider which state to choose. One factor to consider is the state's tax laws. Taxes can be a difficult issue for noncitizens, so it's important to choose a state that has favorable tax laws for business owners. If you work in a state that doesn't have income taxes, you'll only have to worry about federal taxes.
Another factor to consider is the state's requirements for forming an LLC. Some states may have more stringent requirements than others. For example, some states may require that you have a registered agent in the state, while others may not. It's important to research the requirements of each state to determine which state is the best fit for your business needs.
Furthermore, some states may offer additional benefits to business owners. For example, Delaware is known for offering business owners anonymity, while Wyoming is known for its low fees and simple requirements for forming an LLC. However, it's important to weigh the pros and cons of each state to determine which state is the best fit for your business.
In summary, choosing the right state to form your LLC is an important first step in the process. Consider factors such as tax laws, formation requirements, and additional benefits when making your decision.
Step 2: Choose a Name for Your LLC
Choosing a name for your LLC is an important step in the process of starting your business. Your LLC name is the first thing potential clients will see, so it's important to choose a name that is memorable and professional.
When choosing a name for your LLC, there are a few things you need to keep in mind:
- Check the availability of the name: Before you can use a name for your LLC, you need to check if it's available in the state where you plan to register your business. You can check the availability of a name by searching the state's business name database. Most states require that your LLC name be unique and not too similar to the names of other businesses.
- Include the words "Limited Liability Company" or "LLC" in the name: Most states require that your LLC name include the words "Limited Liability Company" or "LLC." This helps to identify your business as an LLC and provides legal protection for your personal assets.
- Avoid using restricted words: Some words are restricted and cannot be used in an LLC name. For example, words that imply your business is a government agency or that it provides professional services that require a license.
Once you have chosen a name for your LLC, you should consider registering it as a trademark to protect it from being used by other businesses. You can register your trademark with the United States Patent and Trademark Office.
In summary, choosing a name for your LLC requires careful consideration and research to ensure that it's available and meets all the legal requirements. By following these steps, you can choose a name that will help your business stand out and provide legal protection for your personal assets.
Step 3: Hire a Registered Agent
One of the requirements for opening an LLC in the United States is to hire a registered agent. A registered agent is a person or company that is authorized to receive legal documents, such as lawsuits and subpoenas, on behalf of your LLC. The registered agent must have a physical address in the state where your LLC is registered.
As a non-US resident, you may not have a physical address in the United States. Therefore, it is important to hire a registered agent who can receive legal documents on your behalf. You can hire a registered agent service, which will act as your LLC's registered agent for a fee.
When choosing a registered agent service, it is important to consider the following factors:
- Cost: Some registered agent services charge more than others. Make sure to compare prices and services before choosing a registered agent.
- Reliability: You want to make sure that your registered agent is reliable and will receive important legal documents on your behalf. Look for a registered agent with a good reputation and positive reviews.
- Additional Services: Some registered agent services offer additional services, such as mail forwarding and compliance reminders. Consider whether these services are important to you before choosing a registered agent.
Step 4: File Articles of Organization
After you have chosen a state and a name for your LLC, the next step is to file Articles of Organization with the state's Secretary of State office. This document officially creates your LLC and registers it with the state.
The Articles of Organization typically include basic information about your LLC, such as its name, address, purpose, and management structure. Some states may require additional information, such as the names and addresses of all LLC members.
You can file the Articles of Organization online or by mail, depending on the state's requirements. Most states charge a filing fee, which can range from $40 to $500. The fee must be paid at the time of filing, and some states may require payment by credit or debit card.
It is important to carefully review and follow the state's instructions for filing the Articles of Organization. Failure to do so may result in delays or rejection of your application. Once your Articles of Organization are approved, you will receive a certificate of formation or similar document from the state.
It is important to keep a copy of your Articles of Organization and certificate of formation in your LLC's records. These documents may be required when opening bank accounts, applying for business licenses, or entering into contracts on behalf of the LLC.
Step 5: Obtain an EIN
Once you have formed your LLC, the next step is to obtain an Employer Identification Number (EIN). This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your business for tax purposes.
To apply for an EIN, you can either do it online, by mail or by fax. If you choose to apply online, you will need to have a valid Taxpayer Identification Number (TIN), such as a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). If you do not have a TIN, you will need to apply by mail or fax.
If you choose to apply by mail or fax, you will need to fill out Form SS-4, which is the Application for Employer Identification Number. You can download the form from the IRS website or request it by phone or mail. Once you have completed the form, you can mail or fax it to the IRS, and they will process your application within four weeks.
Alternatively, you can apply by phone by calling the IRS Business and Specialty Tax Line at 1-800-829-4933. This service is available Monday through Friday, from 7:00 a.m. to 7:00 p.m. local time. International applicants can call 267-941-1099 to obtain their EIN.
It is important to note that you will need an EIN to open a US business bank account, hire employees, and file taxes. Therefore, it is recommended that you obtain your EIN as soon as possible after forming your LLC.
Step 6: Obtain Necessary Business Licenses and Permits
Once you have formed your LLC, you may need to obtain certain licenses and permits to operate your business. The requirements for licenses and permits can vary depending on the state and industry in which your LLC operates. Here are some common licenses and permits you may need to obtain:
| License/Permit | Description |
|---|---|
| Business License | A general license required by most cities and counties to operate a business. |
| Professional License | Required for certain professions, such as doctors, lawyers, and accountants. |
| Sales Tax Permit | Required if you plan to sell products or services subject to sales tax. |
| Health Department Permit | Required for businesses that handle food or other health-related products. |
| Building Permit | Required for businesses that plan to make structural changes to a building. |
It's important to research the specific licenses and permits required for your industry and location. You can check with your state's business licensing department or local Small Business Administration office for more information.
Keep in mind that failure to obtain necessary licenses and permits can result in fines or legal issues for your LLC. Make sure to complete this step before opening your business to avoid any potential problems down the line.
Step 7: Create an Operating Agreement
Once you have formed your LLC, it is important to create an operating agreement. This document outlines the financial, legal, and management rights of all members of the LLC. It can include details such as how profits and losses will be allocated, how decisions will be made, and what happens if a member wants to leave the LLC.
While not all states require an operating agreement, it is still recommended that you create one. It can help prevent disputes and misunderstandings among members, and it can also provide clarity in case of legal issues.
When creating an operating agreement, it is important to include all necessary details and to make sure that all members of the LLC agree to the terms. You may want to consult with a lawyer to ensure that the agreement is legally sound and that it covers all important aspects of your LLC.
Overall, creating an operating agreement is an important step in forming your LLC. It can provide clarity and prevent disputes among members, and it can also help protect your business in case of legal issues.
Step 8: Open a Business Bank Account
Once you have completed the formation of your non-US resident LLC, it's time to open a business bank account in your state. Having a local bank account is important for receiving wire transfers, paying bills and invoices, and it can also help with merchant accounts and payment processors.
When opening a business bank account, it's important to do your research beforehand and gather all the proper documentation. Some of the most common documents banks ask for when you open a business bank account include:
- Employer Identification Number (EIN) or Social Security number if you are a sole proprietorship
- Your business's formation documents
- Ownership agreements
It's also important to choose a bank that is familiar with working with non-US resident LLCs. Some banks may have specific requirements or restrictions, so it's important to inquire about these before opening an account.
When you meet with your banker to open a business bank account for your non-US resident LLC, make sure to bring all the required documentation with you. This will make the process much smoother and quicker.
Opening a business bank account is an important step in the process of forming your non-US resident LLC. By doing your research and gathering all the necessary documentation, you can ensure that the process is as smooth and efficient as possible.
How Doola can help you start an LLC
Doola has helps entrepreneurs turn ideas into businesses. Here's how you can start the process today:
1. Tell Doola your business name, if you've picked one.
2. Answer a few questions.
3. They'll complete and file your paperwork
Santi Hamlin
