Global commerce has become more accessible than ever. Thanks to digitalization and e-commerce, entrepreneurs can cross borders and reach customers in different parts of the world. At this point, starting a company in the US provides both trust and prestige for international entrepreneurs.
So, can foreign citizens start a company in the US? How does this process work? What are the advantages? Let's explore all the details.
Can Foreign Citizens Start a Company in the US?
Short answer: Yes.
Foreign citizens can start a company in the US, and there is no requirement for US citizenship, Green Card, or residency permit. US laws grant foreigners the right to form companies. Moreover, you can become a company owner through an online application from your home country without ever living in the US.
This is where Simple Corporate Solutions comes in. We offer international entrepreneurs the opportunity to form US companies remotely. We handle all official procedures on your behalf and establish your company quickly and securely.
Why Should You Start a US Company?
Owning a US company has many advantages for international entrepreneurs.
1. Global Prestige
A US-based company provides credibility in the eyes of business partners, suppliers, and customers. The "LLC" or "Corporation" designation adds power to your brand.
2. Access to E-Commerce Platforms
Platforms like Amazon, Etsy, eBay, and Shopify open their doors more easily to US companies. With your US company, you can access opportunities that may not be available to individual sellers from other countries.
3. Tax Advantages
In the US, some states (especially Wyoming and Delaware) offer low tax obligations for foreign entrepreneurs. This allows you to do business more profitably.
4. Banking and Financial Integration
After your company is formed, you can open a corporate bank account in the US and easily integrate payment systems like Stripe and PayPal. This speeds up receiving payments from your global customers.
5. Ability to Attract Investors
Global investors generally prefer to invest in US-based companies. This means a great opportunity when you want to grow your business.
Company Types in the US
International entrepreneurs typically prefer to form an LLC (Limited Liability Company). The reasons include:
- Low formation costs
- Tax structure flexibility
- Ease of management
- Can be formed with just one person
Additionally, a Corporation (C-Corp) can be chosen, but it is generally suitable for larger ventures that want to work with investors. In other words, if you want to find investors for your business in the future, the C Corporation type is more appropriate.
The disadvantage of C Corporations compared to LLCs is double taxation. C Corporations are taxed on company income and then taxed again on profits distributed to shareholders.
On the other hand, LLCs pass profits and losses through to the owners' individual tax returns. In this case, no corporate tax is paid, and company owners only pay tax on profits. Thus, there is only one level of taxation.
Let's take Wyoming as an example from the popular states we'll discuss shortly: Wyoming has no state income tax. In other words, an LLC or C Corporation formed in this state is only subject to federal corporate tax.
Of course, Wyoming also has annual reporting requirements and other types of taxes.
Simple Corporate Solutions provides consultation to help you choose the most suitable structure. Contact us to get information about the most appropriate state and company type for your intended business.
State Selection: Which State Should You Form Your Company In?
In the US, each state has different company formation procedures. The most popular states for international entrepreneurs are:
- Wyoming: Privacy, low cost, easy reporting
- Delaware: Investor-friendly state, reliable legal system
- California: Suitable for those who want to do physical business in the US
We guide our clients in choosing the right state based on their goals.
US Company Formation Process
The process for a foreign citizen to form a company in the US works step by step as follows:
- Company Type is Determined (LLC or Corporation)
- State Selection is Made
- Company Name is Registered
- Registered Agent is Appointed – A legal address is required.
- EIN Number (Tax ID) is Obtained – This number obtained from the IRS is essential for bank accounts and tax procedures.
- Banking and Payment Systems are Set Up – Stripe, PayPal, Payoneer, etc. are integrated.
Simple Corporate Solutions handles the company formation process for you. You focus on your business, we deal with the bureaucracy.
Frequently Asked Questions for Foreign Entrepreneurs
1. Is a visa required to form a company in the US?
No. You can own a US company while staying in your home country.
2. How long does it take to form a US company?
Formation procedures generally take a few days, and the EIN process takes a few weeks because it's federal.
3. Do I need to go to the US to form a company?
No. All procedures can be done online.
4. What do costs depend on?
They vary based on the state and preferred services. We offer transparent pricing.
Ready to Start Your US Company?
At Simple Corporate Solutions, we offer international entrepreneurs the opportunity to form US companies remotely. We handle all official procedures on your behalf and establish your company quickly and securely.
Get StartedGovernment Resources
For official guidance on the topics discussed in this article:
- IRS EIN Application – Apply for an Employer Identification Number
- IRS ITIN Information – Individual Taxpayer Identification Number for non-residents
- SBA Business Structures – Choosing the right business structure