Are you an entrepreneur contemplating about running a Limited Liability Company (LLC?) An LLC is a structure that protects your personal assets in case of business liabilities like lawsuits. Is the United States (US) one of your preferred business operating locations? If you have the same thing in mind, feel right at home with this read.
Did you know you can set up an LLC in the US even if you don’t live there? How, you might wonder. This post guides the process as a US non-resident; read on.
It’d help to do the following:
- Locate A Registered Agent
An agent is a necessary party for your LLC. It’d be hectic operating without one, especially if you have many partners in your LLC. Imagine having to send company documents to each partner. Some won’t even see the documents, no matter how crucial the contents are, leading to conflict.
The agent prevents such possibilities by being the LLC’s messenger. They’ll receive official documents like lawsuits on behalf of the LL members. With the receipt, they’ll pass the documents to each partner as needed.
It’s important to work with a registered agent in Texas or one in your preferred US location. Be sure to counter-check certifications.
- Find A Suitable Business Name
A business name is one of the crucial elements of any business. It’s what the public will refer to you as they mention your business for various reasons, hopefully due to good customer service. Therefore, you should find a suitable business name.
A suitable business name is one that’s not currently in use in the US. Be sure that the name is unique in your country and the United States. You can utilize various sources to find out if another business is using the same name as yours.
- Find A Suitable State To Setup Shop
The United States is made up of several states. Each of these has its advantages and disadvantages, especially regarding business operations. As a result, you ought to find the one favorable to your LLC, all factors considered.
You might prefer a given location because that’s where your target audience resides. You’ll provide convenience for them, which is good for business.
As you choose an ideal state, you’ll also learn that, in some, you’ll pay fewer taxes than in others. For example, Delaware is popular for low maintenance and taxes, which is ideal if you have a small budget.
Besides costs and target audience, you should also consider other factors like laws and regulations, such as data privacy.
- Acquire The Necessary Permits And Licenses
Setting up an LLC in the US doesn’t end with you successfully registering it. The registration only works to more or less approve your business existence. Most states in the US will require you to acquire licenses and permits to legalize your operations.
Be sure to find out the permits and licenses you need in your preferred state of operations. These licenses often depend on your business operations, although some apply to most, if not all, states. Use online sources to find out what you need or seek assistance from the area’s municipal offices.
- Create An Articles Of Organization Document
An article of organization more or less summarizes a business. Most states require that you have this document and file it with the necessary body. This document consists of the business name, address, and the LLC members’ names and addresses.
It’s important to note that different states will require varying information on the articles of agreement. Be sure to find out what yours needs and avail the information accordingly.
- Open A Business Bank Account
As a business, you expect to make sales as soon as you set up or as your business grows. Some entrepreneurs make the mistake of using their personal bank accounts for business, especially in the initial stages. It’s something you want to avoid from the onset.
You might worry about how to do it now that you don’t live in the US. Here, you don’t have to visit the US physically to open a business bank account. Thanks to technology, you can remotely open a bank account. As you do this, choose the appropriate bank account based on your operations. Also, find a suitable banking partner. Their terms and fees should be favorable to you today and in the long term.
As you open these accounts, consider opening other accounts besides a transaction account. Consider a savings account to help your business money grow instead of sitting idly in your account. The higher the interest rate, the better for your company’s future.
An LLC is one of the business structures ideal for entrepreneurs who want to separate their personal and business assets, among other reasons. The discussion above has revealed that you don’t need to be a US resident to open an LLC in the US. It has given a guide on doing this as a US non-resident. Therefore, be sure to implement this guide for a smooth process.