refine above message
Options for Non-US Citizens
Non-US citizens or non-resident aliens can form a C Corporation or an LLC (with a C Corporation election for IRS purposes). S Corporations are not an option for them.
Tax Considerations
There are tax implications on receipts of income in the USA if the entity owner cannot show that US tax returns will be filed. This includes potential tax deductions at source.
Factors to Consider for State Registration
When deciding which state to register and start the business, consider the following factors:
- Business Reasons for Location: Consider strategic business benefits of a specific location (home state).
- State Taxes: Evaluate state income taxes applicable to the business.
- Franchise Taxes and Annual Costs: Check for franchise taxes and recurring annual costs.
- Ease of Doing Business: Consider states known for business-friendly laws and regulations.
- Physical Presence: If an office, physical presence, employees, or a job site is needed, you must form an LLC in that state to comply with local requirements. Operating in multiple states may complicate compliance.
State Options
- No State Taxes:
- Texas and Florida: These states do not impose state taxes, which can be a significant cost saving.
- Popular States for LLCs:
- Delaware: Known for its business-friendly environment and long-standing popularity, despite having ‘in-state’ taxes. Ideal if there is little or no in-state business.
- Nevada: Offers benefits in tax, privacy laws, and ease of doing business.
- Wyoming: Attracting businesses with unique advantages and a business-friendly environment.
Each state has its own advantages and costs. The choice should be based on the specific business factors faced by the company and its owners or shareholders.