Last Updated on November 25, 2022 by
Do you want to establish a company in the USA through an LLC or a Corporation? Doing business in the US can be very interesting for many entrepreneurs, for example selling products via Amazon USA. You do not need to be a resident of the US, for example to start a business in Delaware, you can also start a business in the US as a non-resident. Starting your own business in the USA increases your credibility with local customers and ensures efficient business because your USA company has a US bank account and an EIN number. An EIN number is a tax registration number.
Establish company USA through LLC or Corporation
In the US we can distinguish 2 company types, namely the LLC (Limited Liability Company), and the C-Corporation. (also Incorporate company in USA).
The LLC’s profits are attributed to the owners of the LLC and not the LLC itself (as with a BV) and as a result, are usually not taxed in the US. The profits at the Corporation belong to the legal entity itself and are not directly allocated to the shareholders. Therefore, the Corporation is independently taxable. The LLC is tax transparent and is not independently taxable for its profits. As a result, the LLC is often the most suitable form for Dutch entrepreneurs who only want a presence in the US for their internet company or their Amazon webshop in the US, for example.
If there is a presence in the US (personnel, supplies, management) then the Corporation is a better variant. The profit is then taxed in the US and attributed to the Corporation. The Corporation issues shares on which dividends can be paid. This dividend is then taxed in the shareholder’s country of residence.
In the US it is also possible to set up a so-called S-Corporation, but this only applies if the shareholders actually reside in the US. Special rules apply regarding shareholders and directors. This form is often chosen for the participation of larger groups and listed companies.
There are several providers in the US who can set up a local company for you. However, these are almost all aimed at American owners. That is why it is advisable to have the establishment carried out by a non-American party that has knowledge of specific legislation in the India.
Probably the easiest way to get into America is making an investment. Although you can now be sure of a permanent residence permit, you are of course not done with making this investment. Filing Income tax return in USA becomes easy. Whether you are already an experienced self-employed entrepreneur or are just starting your own business for the first time, setting up a business is a process that takes a lot of time and depth.
Small and medium-sized enterprise When you have decided to set up a company in America, you fall under a ‘small and medium-sized enterprise’ (SME), or a small and medium-sized company (SME). In America these are farms and businesses with less than 500 employees.
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