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How To Set up a Business In The US as a Non-Resident

How To Set up a Business In The US as a Non-Resident

How To Set up a Business In The US as a Non-Resident
Wall Street sign with american flags and New York Stock Exchange in Manhattan, New York City, USA.

Introduction.

There are various reasons people decide to incorporate their businesses. These allow your business to operate as a standalone entity from you, making you less prone to risks.

You are protecting your personal life from any attack targeted at your business. Also, because a corporation’s ownership is contained in shares that are easy to transfer from one owner to another, a corporation is a good choice if you plan to sell the business or attract investors.

Why You Should Incorporate Your Business In The US.

The location of your business also determines how viable such a business can be. Have you ever wondered why people rush off to own a business in the US? Of course, it is the world’s economic capital; you have access to a booming global market.

There are so many reasons why people set up businesses in the US, and some of these reasons are stated below.

1. Access Top Legal Framework.

Establishing and running a business in the US enables you to create and accumulate business assets, such as money, intellectual property and even real estate, etc.

To this end, your company requires a legal framework where it will exist and operate, and One of the best incorporation jurisdictions in the world is the United States.

In this respect, the U.S. law enforcement and court systems shield your company registration, ownership, and management.

2. Your business becomes reputable globally.

Most people holding offshore companies now run into huge problems opening a bank account globally.

It would be best to consider reputation when deciding what jurisdiction you want your business to reside in.

In contrast, corporate America is undoubtedly way more attractive than any other offshore company jurisdiction.

Moreover, American companies are generally more reputable than companies from other startup jurisdictions, including Europe and Asia.

3. Americans only trust Made-in-America.

The truth remains clear, Americans usually prefer to deal with American companies rather than any company incorporated globally.

Americans prefer to conclude contracts with companies in the States so that, if something goes wrong, they could resolve a dispute at home rather than somewhere abroad. This is a significant reason your company should be incorporated in the US.

4. US Bank Account Only for American Company.

If you are an alien on American soil, it’s become impossible for you to open a business bank account in the US without an American company.

Without a US bank account, you may be unable to receive payments from Amazon or still do business in the US. One of the most viable ways to go about this is to create a company in the USA.

5. Gain access to Loans.

In the long run, your business might need help, and You may eventually need to borrow money from an American bank.

In so doing, the bank would certainly request your US business credit history.
Most times, the bank policy may, for instance, require an American company to exist for at least a couple of years.

This means one thing, the sooner you incorporate your American company, the sooner you create your business credit history.

There are many benefits of getting your business registered in the US that could not be listed here; you can drop off others in the comment section below so that others may be enlightened.

6. Access To US Immigration.

There are many ways to ease migration in the US, just in case, you intend to move to the USA as a legal immigrant and not the other way round.

In this case, your American company registration and US business immigration would help you a long way.

For instance, having formed a US company, you may become a US treaty investor and get an E-2 visa (aka a US investor visa).

In the long run, having a US-registered business may help you get an EB-5 visa (aka Immigrant investment card in the USA).

Which State Is Best to Register an LLC for an Online Business?

When you want to register your business in the US, you are left with two locations: Delaware or Wyoming, or even more. These states have become popular because of the reputation built over the years.

To help you make better decisions, I will do a breakdown of what makes the difference between the two. I’m going to oversimplify this so as not to confuse you.

1. Delaware.

If you know your business will be taking funds from investors, the chances are that Delaware will be the best place to start. This is essentially due to the legal system in Delaware.

Delaware’s laws are very business-friendly, and the court is known to be quick in reaching decisions. However, Delaware has no income tax, a “franchise tax” of $300 per year (flat fee).

2. Wyoming.

If your business is designed around Small Partnerships and Single Members, Wyoming is a better option for you.

Wyoming comes with most of the benefits of Delaware; the difference is that cheaper to set up, more affordable to renew, and involves less paperwork. In conclusion, Wyoming is cheaper and easier to register and operate.

This is just a fraction of what I could uncover; I recommend that you research how these states operate both business and tax laws.

If you found this article online and understand how these states operate, feel free to share your knowledge in the section below.

How To Set up a Business In The US as a Non-Resident

The good news is that the steps to incorporating as a non-citizen are relatively simple, making it easy for anyone worldwide to do the same. This guide will help break down the complexities of opening your US company.

1. Get Your Business Name ready.

Your business needs to identify and can only be done by having a unique name. You should also know that rules about business names vary from state to state, but most include these general guidelines.

Your business name must be different from any other business entity registered to do business in your state.  Most states have an online search tool to check for similar business names.

You are restricted from using certain words in your names, such as obscene words or the word “bank,” unless you are a financial institution.

The name of your business must end with “Incorporated,” “Company,” or “Corporation”, or an abbreviation for one of those words.

It would be best if you also remembered that there are two types of corporate entities non-citizens can open in the US: Limited Liability Company (LLC) and Corporation (C-Corp).

There is an additional option, S-Corporations often recommended to foreigners. I recommend you do an in-depth study as to how these entities operate. 

2. Get a valid Business Address.

Your business address is simply the place where your business receives mail. As a non-US resident, you might not have found footings in the US already, but you need someone on the ground to do that for you.

A physical location is needed to represent your business to make your business genuine. Therefore, it is usually acceptable to use a P.O. Box as your business address.

The address is sometimes referred to as a registered office. In most states, your business location can serve as the registered office, and a corporation or anyone aged 18 or over can be the registered agent.

However, if you don’t have an office in the state where you incorporate or prefer to have someone else act as an agent for you, you can hire a registered professional agent to work on your behalf.

3. Go with an online Incorporation Broker.

Incorporating your business in the US requires so much that you may eventually get worn out, but the process only got more accessible with the advent of technology.

I am happy to tell you that you don’t need an active presence in the US to start your company, as you have third-party solutions created to address these challenges on your behalf.

With these online incorporation brokers, you can sit anywhere in a remote country in Africa and get your business incorporated in the United States. Then, you only have to pay a token to get it all sorted out.

In this section, I will make a complete list of services that can help you achieve this in just a few clicks from anywhere around the world.

1. Firstbase.io.

How To Set up a Business In The US as a Non-Resident

Firstbase is one of many companies that allows non-US residents to register a business in the US.

Firstbase.io was founded in 2018, making it a relatively new establishment. 

It has helped thousands of businesses from over one hundred and twenty countries register their businesses in the US within three years of establishment.

It’s different from many incorporation services available because it helps founders worldwide incorporate a business in the United States. 

When signing up with Firstbase.io, you can choose the category you want your business to operate and select the desired location mentioned above, such as Delaware or Wyoming.

It also helps get an EIN, open a business bank account, and provide tens of thousands of dollars in perks to clients.

Incorporating your business with Firstbase.io comes with the following perks such as.

1. US business address set up.

2. US bank account.

3. Obtaining an Employer’s Identification Number (EIN) for newly formed companies and thousands of dollars in perks.

TRY IT NOW – firstbase.io

2. Startupglobal. co.

How To Set up a Business In The US as a Non-Resident

Have you ever thought about the bottleneck involved in starting a business in the US? First of all, you need to get yourself a visa from whatever country you are to the US; this can also become a gruesome process because you have to convince the US embassy to grant you access in the first place.

StartGlobal makes it easier to start a new business by removing lengthy paperwork, legal complexity, and numerous fees. 

StartGlobal handles company formation, business bank accounts, taxes, accounting, and compliance, all in one place.

All you need to get started is an active internet connection, log in to the official website (startupglobal. co), complete the simple signup process with all your information like name, current address and business name, and get verified with your passport or national ID, and that solves it all. 

You also will be given a time frame of nothing less than one month to complete the process.

Some of the perks that come with using this service include.

1. Preparation filings of all Documents in state and federal

2. State Incorporation with Secretary of State.

3. All state government and any other fees associated with filings.

4. One Complete Year (12 Full Months) of Registered Agent Service.

5. Name Check, Clearance and same-day electronic filing.

6. A local address in the US with mail forwarding mail scanning services.

7. Certificate of Incorporation.

8. A US phone number wherein the calls are forwarded to your local number.

9. Obtain a Tax ID or Employer Identification Number (EIN)

10. Business Bank account with Debit card.

TRY IT NOW – Startupglobal. co

3. e-Delaware.

How To Set up a Business In The US as a Non-Resident

E-Delaware makes it easy for founders to incorporate in the US and get access to startup infrastructure, venture capital, seamless payment processing, and other benefits no matter where you are located globally.

E-Delaware will help you obtain your tax ID numbers, EIN, and ITIN, provide you with a US SimCard and a US address you can use for your business and get your documents authenticated with the State of Delaware only. 

You already should know that there are different business laws across the states in the US; most people prefer Delaware because it is a tax haven for businesses.

E-Delaware offers you the following after successful registration.

1. US Company Formation.

2. Employer Identification Number (US EIN Tax ID).

3. Individual Tax Identification Number.

4. US Sim Card

5. E-Delaware LLC will be your registered agent in the State of Delaware.

6. virtual addresses for Companies may be provided by the registered agent, making your business financially compliant.

TRY IT NOW – e-Delaware.com

4. Stripe Atlas.

How To Set up a Business In The US as a Non-Resident

Stripe is a mighty payments processing startup that allows online businesses to accept payments online.

It also comes bundled with other services that help tech startups register a business in the US, and that service is called Stripe Atlas.

Stripe Atlas is part of the stripe company group that helps you establish a business in the US from anywhere in the world in Delaware.

Stripe Atlas makes it easy for non-US citizens to remotely corporate their company in Delaware. That means you don’t need to physically travel to the State of Delaware in the US to sign all the documents, as all can be done online.

As mentioned in this article, that’s the unique value proposition offer that no one else has except the Stripe Atlas and other companies.

Subscribing to Stripe Atlas gives you additional value, such as.

1. Setting up your new company in the state of Delaware and also creating the needed legal documents, filing the paperwork, and applying for your Tax ID number. 

2. Activate your Stripe account to start accepting payments from customers in 100+ currencies from various world regions.

TRY IT NOW – Stripe.com/Atlas.

5. Doola.

How To Set up a Business In The US as a Non-Resident

Doola allows anyone from the world to form their company in the US from any part of the world.

Doola works like the previous solution mentioned before; the only different service you get when using Doola is that you get to register your LLC business in any chosen state in the US; your preference is not just limited to Wyoming and Delaware alone.

Doola comes with tons of perks, most of which include;

1. US company formation.

2. EIN application.

3. Express US bank setup.

4. Stripe payment gateway.

5. Registered agents.

6. Register your business in more than one state.

7. Digital documentation access.

8. Amazon starter pack

TRY IT NOW – Doola.com

5. Choose a Reliable Global Payroll and Recruitment System.

You need to ensure that you are 100% compliant once you set up a business in the US. Taxes should be serious business if you want to build a reputable company in the US.

Also, chances are you will hire from various parts of the world if you run a software company that must be 100% compliant with US laws guiding employment.

Doing this on your own can be a pain in the butt. Hence it would be best to source a solution to ease the process.

International hiring can be messy.,With confusing local laws and complicated taxes, the bottom line is that you need a whole new solution to guide this process.

This section will make a complete list of payroll software that eases the process attached to international recruitment.

1. Deel.

How To Set up a Business In The US as a Non-Resident

Deel is the payroll platform for remote teams that links localized compliance and payments in one system.

It also helps businesses hire anyone anywhere, either independent contractors or full-time employees, as stated on their website.

Using Deel saves you tons of stress regarding recruitment, management of remote teams and total compliance with tax laws.

Deel helps you hire employees globally, hire contractors, and run a global payroll system on one platform. 

TRY IT NOW – Deel.com

2. Pilot.

How To Set up a Business In The US as a Non-Resident

The Pilot was designed to carry out payroll, benefits, and compliance for US-based companies with remote teams, just as other startups mentioned in this section before now.

Pilot makes it easy to onboard and pay employees in 160+ countries and contractors in 240+ countries.

With Pilot, you get the following features as 

1. local compliance contracts.

2. Insurance and other benefits.

3. Integrated eSignature.

4. W-8 (BEN and BEN-E) and W-9 tax forms.

5. Local currency payments and bank transfers are available for contractors.

6. Contractors can submit payment requests and check their payment status.

7. Get help with visas, work permits, and other immigration processes for your global employees.

8. Contract amendments and more.

TRY IT NOW – Pilot. co

3. Remote.com.

How To Set up a Business In The US as a Non-Resident

Remote.com is a global payment and compliance platform created by Job van der Voort and Marcelo Lebre to simplify how companies employ international talent.

Remote.com started initially not as a global payroll and compliance platform but as a freelance and talent platform.

Remote empowers companies of all sizes to pay and manage full-time and contract workers worldwide. 

We take care of international payroll, benefits, taxes, stock options, and compliance in dozens of countries. 

Remote allows digital businesses to do the following.

1. Hire employees,

2. Hire contractors.

3. Run payroll.

4. Offer benefits.

5. Expand globally.

The good news is that Remote has four plans which can be used for free, going up to $349 per month. You should know that prices increase with a more added feature.

TRY IT NOW –  Remote.com

4. Breezy HR.

How To Set up a Business In The US as a Non-Resident

Breezy is an applicant tracking system that streamlines your entire hiring process giving you more time to connect with candidates by automating tasks like advertising job boards, screening, interview scheduling & follow-ups. 

Breezy HR includes all the tools your team needs to hire more efficiently, from referrals & sourcing tools for LinkedIn and dozens of others to help HR make better hiring decisions in less time.

Using Breezy, hiring managers can streamline and organize your candidate pipeline and recruitment interviews. 

With BreezeHR, you can send emails in bulk with custom templates to make it easier to send responses to potential candidates. 

You can analyze your applicants’ data, such as what channels their applications came from and how many have been referred.

This feature lets you and your team examine your entire candidate pipeline. Different pipelines can be created based on the positions available. 

If you need to make a new form, BreezyHR lets you create one from scratch with options to add different fields to suit your operations.

TRY IT NOW – Breezy.hr

5. Loom.com.

How To Set up a Business In The US as a Non-Resident

Loom’s interactive video messaging was created during the pandemic as many people began working remotely. 

In 2021, the company’s user base has grown at a rate of 900% year-over-year, leading to more than 14 Million users worldwide.

Loom is the leading video communication platform for async work. Engineered for simplicity and speed, you can record, share, and interact with videos to move work forward whether you’re at your desk or on the move.

It is important to note that the basic version of the loom screen recorder is free to download. 

This version, although has limitations, can record the screen as well as loom video screen webcam and mic, allowing you to capture both audio and video. 

If you don’t want to download the loom program, you can choose to use the free loom screen recorder extension that can be deployed from your Google Chrome browser.

TRY IT NOW – Loom.com

5. Start tracking your remote employees.

With the new cost of wages going up in developed countries in the US and EU, it’s safe to say that it’s now time to build workforces from other parts of the world.

The pandemic has caused more employers to switch from traditional office employees to remote employees.

According to some recent remote work statistics in the United States alone, 5 million employees work from home at least half the week, which is taking effect worldwide.

The downside of remote work is that it’s pretty difficult to track the day to day activities of the people on your payroll; remember that they live across various parts of the world, including time different timezones.

Here are some online tools that can help you deal with this in a jiffy.

1. Time Doctor.

 

How To Set up a Business In The US as a Non-Resident

Time Doctor is a cloud-based time tracking and management solution used by businesses for monitoring workforce productivity. 

It offers tools for time tracking, web activity monitoring, payroll management and reporting.

Time Doctor lets users enter the time spent on each project and calculate their billable and nonbillable working hours. 

The screen monitoring feature reports on team member activity via screenshot capture. 

The solution can also help users keep track of the time spent on chats, meetings, calls, internet usage and other activities. 

The payroll functionality allows businesses to document team members working hours and generate weekly and monthly payslips.

TRY IT NOW – Timedoctor.com

6. Set up a business website.

Did you know that having a website gives you a fair chance to compete with the giants of your industry?

Now that you have your business incorporated in the USA, the next step is to set up a website to showcase what your company does.

Most businesses set up by non-residents are usually tech startups, maybe your business does not fall into this category, and you will need a website to get started with.

If you want to show the world that you take your business seriously, then it is time to invest in a professional website.

In an age when more than 50% of smartphone users discover a new company or product while searching on their smartphones, not having a website can hurt your credibility.

According to a study, 75% of online users are more likely to judge a company’s credibility based on its website’s design.

Owning a website would help expose your business to the world so that you are perceived to be trustworthy and reliable.

I wrote a comprehensive guide on how your business can create the best website of their dreams using online tools called website builders. Check out the article below to learn more.

7. Promote Your Business.

Finally, it would help if you started promoting your business. For any business to remain operational and profitable, you need a marketing strategy. To survive and grow any business, you need to promote your business.

In the good old days, it was a matter of deciding between a flyer, a brochure, a postcard, or an ad in the local newspaper. But in today’s digital world, the possibilities are endless.

There are many options for promoting your business, no matter your budget.

You can decide to start with Listing your business on search engines to help local customers find you, Owning a website as mentioned above, creating pages on social media and making content marketing a priority.

I wrote a comprehensive guide on this blog on how any business can utilize digital tools to start their business. Check out the link to the article to learn more.

8.  Register Your Business In Canada.

How To Set up a Business In The US as a Non-Resident

Now that you have registered your business in the US, the next thing to do is to explore the closest market nearer to it.

Canada is another option for choosing a proper destination for a business that already has the USA market; the only difference is that you need to get your business registered the same way you did when about to enter the US market.

Ownr is a web platform designed to help entrepreneurs register or incorporate their businesses in Canada.

As of this writing, over 50,000 businesses have been registered using Ownr. Ownr is currently available in Ontario, Alberta, and British Columbia.

Whichever route you decide to take, Ownr can assist you in stick-handle the process while you focus on running your business’s day-to-day operations.

If your company is already incorporated, you can use the service to manage your government filings, business and team member agreements, and more.

Ownr sends off your application for processing to get your business license via email within one business day in Ontario and Alberta.

It takes a lot more time when you intend to register your business in British Columbia; a business name reservation takes up to 15 business days.

All you have to do is search for available online business names via your Ownr account; after you have secured a unique business name, complete your business details, and pay for registration.

Ownr finalizes and sends your incorporation application for processing, and you can receive your business documents within one business day.

TRY IT NOW –  Ownr.com

What do you think?

Written by Udemezue John

I teach you how to make money online.

You can connect with me on Twitter Twitter.com/_udemezue

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