How To Start an LLC In The US From India

Introduction.

Starting your own business is an exciting journey and one that a lot of people across the world are taking these days.

If you’re in India and thinking about starting a business in the United States, the good news is that it’s possible!

One of the most popular ways to get started is by forming an LLC, or Limited Liability Company. It’s a simple and flexible business structure that offers great protection and tax benefits.

But how exactly do you go about it? The steps might feel a bit tricky, especially since the US has its own set of rules and regulations. Don’t worry though—I’m here to guide you through it!

This guide will break down everything you need to know, from the basics of an LLC to the specific steps for setting one up as a non-US resident.

We’ll cover topics like legal requirements, documents you need, choosing your state, and even how to deal with taxes.

By the end of this article, you’ll have a clear understanding of how to start your own LLC in the US, no matter where you’re located.

What is an LLC, and Why Should You Start One?

First things first—what is an LLC, and why is it such a popular choice? An LLC (Limited Liability Company) is a business structure that protects your assets (like your home or car) from the debts and liabilities of the business.

So if something goes wrong with your business, your personal property won’t be at risk. It’s a pretty great benefit, right?

Plus, LLCs are easy to manage and offer flexibility when it comes to taxes. You can choose to have your LLC taxed like a corporation or just pay taxes as an individual. Many small business owners prefer the LLC structure because of these advantages.

It gives you the freedom to run your business without the complex rules that apply to larger companies.

Now, let’s talk about the steps you need to take to start your LLC in the US from India.

How Do I Start an LLC In The US From India?

Step 1: Choose the Right State for Your LLC

The United States is made up of 50 states, each with its own set of rules for businesses. When you start an LLC, one of the first decisions you’ll need to make is which state to form it in.

While you can technically set up an LLC in any state, some states are more popular for LLC formation because they have business-friendly laws and lower costs.

For example:

Delaware: Known for being business-friendly with no sales tax, it’s a popular choice for LLCs. Delaware is often chosen by entrepreneurs because of its strong legal protections and flexible structure.
Wyoming: Another state that’s friendly to small business owners. Wyoming has low fees and doesn’t require you to live in the state to form an LLC there.
Nevada: Like Wyoming, Nevada is a great option for LLC formation due to low fees and no state income tax.

If you don’t plan to do business in a specific state, forming an LLC in one of these states can make sense.

But if you want to open a physical office or hire employees in a particular state, it’s best to register your LLC in that state to avoid extra paperwork and fees.

Step 2: Pick a Name for Your LLC

Next up, you’ll need to choose a name for your LLC. This step is important because your business name is how customers will recognize you.

It should be unique, easy to remember, and relevant to your business. Here are a few things to keep in mind when picking a name:

Your LLC name must be distinguishable from other businesses registered in your state.
It has to include the words “Limited Liability Company” or “LLC” at the end of the name.
You may also need to check if the name is available as a domain for your website (optional, but very helpful).

Before you finalize your name, it’s a good idea to check the availability of your LLC name by doing a name search on the Secretary of State’s website for the state you’ve chosen. If the name is already taken, you’ll need to choose a different one.

Step 3: Appoint a Registered Agent

A registered agent is a person or business entity that will receive legal documents and government notices on behalf of your LLC.

Since you’re based in India, you can’t physically be present in the US to handle these matters. That’s where a registered agent comes in.

The good news is you don’t have to worry about hiring a person directly. Some companies specialize in acting as registered agents for international LLC owners.

When you hire one of these companies, they’ll make sure you get any legal documents sent to you promptly.

Step 4: File the Articles of Organization

Once you’ve decided on your state, LLC name, and registered agent, it’s time to file the Articles of Organization (sometimes called the Certificate of Formation).

This document officially creates your LLC and is required by the state you’re forming your LLC in. It includes basic information about your LLC, such as its name, address, registered agent, and whether it will be managed by members or managers.

You can file the Articles of Organization online in most states. The filing fee usually ranges from $50 to $200, depending on the state.

Step 5: Create an Operating Agreement

While not every state requires it, having an Operating Agreement is a smart idea for your LLC. This is a legal document that outlines how your LLC will be run, including the roles and responsibilities of its members (owners).

It’s not required in every state, but it can help prevent misunderstandings between business partners or investors in the future.

Even if your LLC only has one owner (like most solo entrepreneurs), an Operating Agreement is still a good practice because it provides clarity on how your business will operate and protects your limited liability status.

Step 6: Get an EIN (Employer Identification Number)

Once your LLC is official, you’ll need an EIN. This is a Social Security number for your business, and it’s required for tax purposes. You can apply for an EIN for free through the IRS website.

It’s needed to open a business bank account, file taxes, and hire employees (if applicable). Since you’re based in India, you can apply for an EIN online, even if you don’t have a Social Security number.

Step 7: Open a US Bank Account

Having a separate business bank account is an essential step for keeping your business finances organized. Opening a US bank account as a non-resident can be a bit tricky, but it’s possible.

Many banks will require you to visit the US in person to open an account. However, there are also online options that allow you to open a business account remotely.

To open an account, you’ll typically need to provide:

Your EIN
Your Articles of Organization
Your Operating Agreement
A passport and proof of identity

It’s important to shop around and find a bank that can accommodate your needs as a non-resident.

Step 8: Take Care of Your Ongoing Compliance

After your LLC is set up, you’ll need to keep it compliant with state and federal regulations. This typically involves filing annual reports, paying any necessary fees, and submitting taxes.

Since you’re in India, it’s a good idea to hire a tax professional to help you navigate the US tax system.

Remember, the US tax system can be complex, and failing to comply with local laws can result in penalties or the loss of your LLC status. So, make sure you stay on top of your compliance responsibilities!

FAQs

1. Do I need to be a US citizen to start an LLC in the US?

No, you don’t need to be a US citizen to start an LLC. Non-US residents, including those from India, can form an LLC in the US.

2. Can I run my LLC remotely from India?

Yes, you can run your LLC from anywhere in the world, including India. However, you’ll need a US bank account and a registered agent in the US to handle legal matters.

3. Will I have to pay US taxes as a non-resident?

Yes, your LLC will generally be subject to US taxes. However, the specific tax obligations will depend on your business’s structure and where it operates. It’s a good idea to consult with a tax professional familiar with international tax laws.