Forming an LLC, amongst all other business structures, is one of the easiest ways for people who are not US citizens or companies to introduce or expand their business to the US market.
The thing about LLCs in the US is that any legal adult or entity, be it another corporation or any other legal organization. What makes LLCs particularly attractive is that they offer certain characteristics if a corporation yet provides limited liability protections of an owner’s personal assets. And the process of setting up an LLC in the US is easily done as TRUiC provides a list of six steps. However, for people who are not US citizens or companies, there are a few steps added to the list. Read this guide to find out more about how foreign individuals and companies can form an LLC in the US.
8 Steps for Foreigners to Form an LLC in the US
Before we get to the 8 steps foreign individuals and companies can follow to form an LLC in the US, we must first mention that forming an LLC in the US does not automatically grant access or a visa to travel or work in the US, which if individuals want to work as an employees of their LLC, they will need to obtain. So obtaining the correct visas to travel to the US is essential for forgein individuals or companies to obtain a US banking account, one the last steps of form an LLC in the US.
But let’s get back to the first step, for foreigners to form an LLC in the US they must first choose the which US state they would want to form their LLC, and they should choose a name for their LLC, one that has not already been used by another US company and complies with the state’s LLC naming rules and regulations. In some states, it is required that LLC have physical US mailing addresses, which is why choosing the correct state is so important. If a business requires a physical space, it is best to form an LLC in a state where foreigners know the LLC will have a physical presence or employees. And this brings us to step 3, if foreigners do not have a physical address, and their type of business does not require a physical space, hiring a registered agent is the best option. Every LLC required an appointed registered agent, to receive legal and tax forms, notices of lawsuits and government correspondences on an LLC’s behalf. Hiring a registered agent in the state in which the LLC is formed is therefore crucial for foreigners who cannot always be present in the US. With the registered agent appointed, foreigners can now file their formation forms with the state, either called an Articles of Organization, Certificate of Formation, or a Certificate of Organization depending on the state. States also require a formation filing fee that should accompany the formation. The next step is creating an Operating Agreement, which outlines the ownership structure and management procedures of an LLC and avoid potential future risk. An Operating Agreement is not legally required for formation by the state but is considered good practice. The last steps are obtaining an Employer Identification Number (EIN), a US mailing address and an US bank account. An EIN can be obtained for free by the Internal Revenue Service website, a US mailing address can be provided by, and is usually included in the services of an appointed registered agent, and the correct documents and your physical presence will be required in the US to open a US banking account, so best to call ahead. A US banking account will make conduct business easier in the US for foreigners. It will also provide an LLC with more credibility and legitimacy conducting business in US markets.
Using an LLC Formation Service
Hiring an LLC formation service can really be an advantage to forgein individuals and companies seeking to introduce or expand their business into the US. LLC formation services can provide on the ground assistance to foreigners who cannot physically be in the US during formation. LLC formation services can be found available online with some offering good deals, with wide ranges of formation services, at very decent prices. Using LLC formation services is a good way for forgein individuals and companies to ensure the formation process is done correctly, LLC formation services provide assistance in filing formation documents, they provide the services of a registered agent, and templates for Operating Agreements. Some of them even go as far as obtaining an EIN on an LLC behalf and providing ongoing legal tax advice to LLC.
Find the Best Help Online
Forming an LLC for foreigners individually and companies can easily be done with the assistance of websites like TRUiC, who assist individuals and companies to form LLCs by tailoring their advice to the state in which people want to form their LLC. Some of the best online LLC formation services, which are easily found on the web, can also be of enormous help for people looking to form an LLC in the US.
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