What are the benefits of opening a business in the U.S.A as a non-us citizen?
Many foreigners are familiarized with the United States of America. Many foreigners are familiar with the United States. However, they don’t realize that it is easy to set up and run a business there. We believe that the United States should be your first choice for registering your company.
This article will explain why a US company is a good choice for your online business. This article is part the US LLC For Non-Residents Ultimate Guide. We recommend that you first read the article on the differences between an LLC or a Corporation before you return to this article.
Let’s now look at all the benefits that a US company offers foreigners.
Reputation
The United States of America is home to the largest economy in the world. US-based companies are considered more trustworthy. Your European clients may have difficulty accepting an invoice from you if you use an offshore tax haven such as the Bermuda Islands or Seychelles. These transactions are often closely monitored by European tax authorities.
This problem will not exist if you use a US-based company to send invoices to customers.
Because the USA is not generally considered a tax haven, customers won’t hesitate to accept your invoice.
Tax benefits
Taxes are a major concern if you plan to register a US-based company. The good news is that the LLC structure can be used to structure your US business to avoid paying taxes in the USA.
You’ve probably read our article How to Start a Tax-Free US Business with the US LLC Structure. This means that you can open a tax-free US online business with a US LLC structure even if there is no physical presence or employees in the US. This applies to all services, including copywriting, consulting and software development. There are many caveats, so I recommend you read the guide to understand what a US LLC.
Access to the US Market
The US consumer market is one of the most important and lucrative in the world, as we all know. The United States has a GDP of $20 Trillion and 325 million Americans with the highest household spending. This accounts for over a quarter of the global household consumption.
A US company gives you easy access to the US market and allows you to sell directly to them without the need for middlemen. A US-based company is preferred by US customers over a company from another country.
Access to US Capital
The US has some of the most respected venture capitalists anywhere. There are more deals and VCs here than any other country. It is best to establish a US company if you have an innovative startup idea.
This route is best for you if you choose to go it alone. Delaware C-Corps are better than US LLCs. Venture capitalists and angel investors prefer Delaware Corporations as they are more familiar with Delaware Corporations Laws.
However, the tax benefit mentioned above would be negated if you formed a C Corporation. It is therefore important to assess your situation before deciding whether to form a corporation, or an LLC.
A great banking system
We don’t mean to be critical of the American banking system. It has many advantages. Bank fees are very low and the US dollar is widely accepted everywhere. The U.S. government insures bank accounts up to $250,000, which is higher than most European or first-world countries. When compared with credit cards from other countries, US banks offer more perks and bonuses to U.S. cardholders than those offered by foreign banks. With a US Bank account, you can buy and sell cryptocurrency with US dollars. To learn more, please visit our article US Business Bank accounts for Foreigners.
Credit Facilities and Payment Processors
The USA has a wide range of payment options. Almost all of the ones you know are available. Stripe, Shopify Payments and Paypal are all options for your US LLC.
Stripe is one of the most well-known payment processors for LLCs that are not US residents. Stripe and a US LLC are both required to start an online business.
A Stripe account based in the USA is the best option, even if you don’t have Stripe support. Stripe accounts are available in 2 business days and offer the fastest payouts. You can also apply for an instant payout if you need cash immediately. This will only cost 1%.
You will be able to increase your cash flow and your online business’s profitability by receiving your payouts faster. This compares to a Stripe bank account in Brazil which takes 30 days and a Stripe bank account from Singapore that takes 7 days.
Perhaps the most important thing that differentiates Stripe accounts in the U.S. from Stripe accounts elsewhere is the access to Stripe Capital. This branch of Stripe offers loans based upon your past performance. Stripe loans are available to anyone, even if they don’t have credit history. As long as your business is registered in the USA and you have had steady revenue over the last few months, you can still qualify.
There are no GST or VATs
Paid advertising is a necessity for any online business. It will be necessary to promote your products and services at some point depending on the company’s growth. Good news: If you are advertising with a Delaware or Wyoming company, you don’t have to pay sales tax or VAT for each dollar you advertise on Facebook or Google.
You pay 18% GST for an Indian company, 6% for a Chinese company, 7% for a Singaporean company, 23% for a UK company if your company is not VAT-registered. This is because you cannot reverse-charge in the UK and therefore pay 23% on Ireland’s VAT rates.
Low setup and maintenance fees
It is possible to register and renew your passport in the US, provided you select the right state. It is easy and quick to register or renew your US passport without even having to travel there. You don’t need a lawyer, local director or corporate secretary. However, you will be required to pay high fees.
Wyoming’s filing fee for an LLC is $100. This compares to Italy where the total fees can easily surpass 2000 euros.
It’s as simple to dissolve a company as it is for it to be incorporated. You can dissolve your US business if it isn’t doing well. In some states, closing your business is possible for less than $100
Simple Annual Compliance
You should be aware that some countries require businesses to spend considerable time on compliance each year. No matter how small your company is, some countries require that your books be audited annually by a certified public accountant. You may need a director local to the country in some cases. You will need to pay several thousand dollars per year to get a nominee director if you don’t have one in your country. This is especially true if your company is registered in a foreign language.
It is easy to Register an LLC in the US. You can have 100% foreign ownership. If you do not have federal tax liabilities, you can register a US LLC by paying the annual reporting fee and the annual Registered Agent Service. For more information on structuring a tax-free US LLC please refer to our guide on LLC. This company structure is powerful and you will be amazed at the results.
Conclusion
We hope you are now convinced. You can also post your thoughts in the comments section below if you believe there are other countries that offer such amazing opportunities for digital nomads or online entrepreneurs.
The US is the best choice for anyone who wishes to open an online business. There are very few fees, it is simple, you can pay online, and there are many options for payment processing. Capital is also readily available. It is also completely tax-free.
