It’s not necessary to be a U.S. citizen or to have a green card to own and operate a Nevada LLC. Accessing the U.S. marketplace is the key to success for many businesses around the world. The most effective way to reach this “land of opportunity” is with a U.S. company. As one of the most business-friendly states, Nevada offers undeniable benefits. A Nevada LLC can become an effective business tool for both non-U.S. citizens and US citizens alike.
Why choose a Nevada LLC as a non-U.S. resident?
Non-U.S. residents should form a Nevada LLC for optimizing their tax burden and protecting their assets. Non-U.S. citizens that are seeking to incorporate a business in the United States generally follow procedures similar to those required for a U.S. resident. U.S. citizenship and residency are not necessary, as non-U.S. citizens are welcome to start or expand on American soil without jumping through any more hoops than a U.S.-born business owner.
With a Nevada LLC, it’s easier to sell in the U.S. market and enhance the reputation of your company, both to U.S. and overseas customers. You also have access to financing outlets in the U.S. for venture capital, angel investors, and public markets. A Nevada LLC has no limitations on the number of people who can own interest in the business. There are also no restrictions on non-U.S. citizens assuming roles as owners. If you form a Nevada LLC and currently have a foreign company, then you’re in luck. Instead of appointing an individual as a “managing member,” you can appoint your own foreign company. This will allow your foreign company to own 100% of your Nevada LLC.
What you need as a non-US resident to form a Nevada LLC
To incorporate your company as a Nevada LLC, you’ll need to file and pay for formation documents with the Secretary of State. The Articles of Incorporation, List of Managers, and List of Officers serve as a formal record of reference of your Nevada LLC’s existence. Once approved, you can then apply for a business license with the Secretary of State.
You don’t need a U.S. address to incorporate a business in the United States. However, having a Registered Agent is the only requirement related to a physical address. The registered agent is responsible for important legal and tax documents on behalf of incorporated companies, such as Service of Process, sometimes called Notice of Litigation. This initiates a lawsuit; as well as important state mail, such as annual reports or statements, and even tax documents sent by the state’s department of taxation. Having a Nevada Registered Agent will allow you to form a Nevada LLC while living outside of the country.
What about finances?
Some non-U.S. businesses may want to become American companies to gain easier access to capital. Banks in the United States lend money to small businesses more readily than many of their foreign counterparts. Once a non-U.S. business has been operating in the United States for at least two years, this business has the same access to capital through U.S. banks as wholly-U.S. companies do.
However, in order to open up a bank account, or obtain an Employer Identification Number you are going to need a U.S. mailing address, not necessarily in the state of formation. A mail forwarding service will allow you to create a physical U.S. address. For foreign businesses, an Individual Taxpayer Identification Number (ITIN) may satisfy the requirement. The Internal Revenue Service (IRS) issues these tax processing numbers to individuals who have to pay U.S. taxes, but are not eligible for a Social Security number. Residents and non-resident aliens, as well as foreign nationals, fall into this category. To obtain an ITIN from the IRS, complete and mail IRS Form W-7. You can get started by printing Form W-7 and the associated instruction sheet.
The requirements for opening a business bank account vary from bank to bank, but typically you will need your incorporation documents (Articles of Organization for an LLC ), your Employer Identification Number (EIN), and 2 pieces of photo identification (such as a Passport or ID card).
What’s your resident status?
If you are a non-resident, you’re taxed in the United States only on U.S. source income, e.g. your share of the LLC’s income. If you plan on having an office in the U.S. or spending a substantial amount of time here, you may qualify for residency. Determine how long you’ve lived in the U.S. and if that amount of time makes you a resident. U.S. residents are taxed on their worldwide income. Non-U.S. businesses that don’t operate in the United States, and don’t have any income from U.S. sources, do not owe any federal income taxes. However, there are annual state charges and fees for maintaining compliance as a Nevada LLC.
There’s no simple answer to every non-U.S. company’s needs when it comes to selling or incorporating in the United States. The necessary steps depend on careful assessment of the business plans, legal rules in the United States and abroad, financing issues, and more. Nevada, one of the most business-friendly states, offers a myriad of benefits. The main goal for both foreign nationals and U.S. citizens is to be able to operate their businesses without risking their personal assets. Nevada offers a smart and safe option for business formation in the U.S.
To learn more, contact Nevada Corporate Headquarters at 1-800-508-1729.