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Are Non-U.S. Residents Allowed to Own a Corporation or LLC?

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Contemplating whether you can start a business in the U.S. without citizenship?

The short answer is yes! The more extended answer, though, is that there might be sure restrictions on the kind of business substance a non-resident can form.

But prior to diving into those restrictions, you should consider the additional steps you'll have to take while forming a corporation or LLC for non-U.S. residents.

Requirements for Forming a Corporation or LLC as a Non-Resident
For U.S. citizens and residents hoping to start a business, their first steps are moderately straightforward. They probably as of now have a Social Security Number (SSN), so they simply have to start by getting an EIN number.

But on the off chance that you're a non-U.S. resident who wants to form an LLC or corporation in the U.S., you could have to make a couple of additional strides:

Apply for a visa with the U.S. government. Assuming that you expect on working in the business that you are wanting to form in the U.S., you'll require a visa. This might be an E-2 Settlement Investor visa or an EB-5 Worker Investor Program visa, contingent upon your needs. An E-2 visa will permit you the opportunity to head out to and from the U.S. for function as lengthy as you're a public of a settlement country. On the other hand, the EB-5 visa is designed for far off nationals investing in a U.S. business that will also utilize something like 10 American workers.
Get an ITIN. Non-U.S. citizens probably won't have the option to have a SSN, but they can apply for an Individual Taxpayer Identification Number (ITIN) through the U.S. Internal Revenue Service (IRS). When you have an ITIN, you can apply for an EIN using Form SS-4 without expecting to provide a SSN.
Choose a Registered Agent. Although you can list an address outside of the U.S. as your business address, you will still have to assign a Registered Agent who resides in the state where you formed your business to acknowledge your significant documents in general. On the off chance that you don't have anybody as a top priority, you could profit from using a Registered Agent service.
Check for unique state requirements. This step applies to all prospective U.S. business owners, not just unfamiliar ones: Make certain to check the individual requirements of the state in which you're starting your corporation. Each state's provisions can differ extraordinarily from each other, so remember to take care of business beforehand.
When your ducks are all straight, you're prepared to make things official and apply to start your business. After your application is endorsed, you'll officially be the proprietor of a U.S. business — that reality alone will surely make all your diligent effort worth the effort.

Types of U.S. Businesses a Non-Resident Can Form
By and large, there are no citizenship or residence requirements for ownership of a C Corporation or a LLC — yes, an outsider can be important for a LLC in the U.S.

The same, in any case, can't be said for S Corporations.

As indicated by the IRS's S Corp requirements, non-resident aliens are not permitted to be S Corp shareholders, but rather resident aliens are. At the end of the day, a non-U.S. resident who resides in the U.S. (i.e., a resident outsider) can claim a S Corp, while a non-U.S. resident who is also a non-U.S. resident (i.e., a non-resident outsider) can't possess a S Corp. That is because a S Corp proprietor must reside in the jurisdiction, or have a physical presence, to be consolidated.

Not sure in the event that you're a resident outsider or not? The IRS states that to qualify as one, you must meet either the green card test or the substantial presence test for the schedule year.

Opening a Bank Account and Covering Taxes
A critical step for any business proprietor, whether they're a U.S. resident or not, is opening and keeping a business bank account.

But if you have any desire to open up a bank account in the U.S., then you'll have to provide the legitimate desk work. On account of a non-resident, that will include business formation documents, a legal address, your EIN and proof of identity, which would be satisfied with a passport.

Unfamiliar business owners must also make certain to cover taxes and remember to document their tax returns on time. Seeing the reason why: Failure to do so will result in fines and penalties and may try and prompt the dissolution of the business is easy.

With regards to regular business support, the requirements for resident and non-resident corporation owners are practically the same. Contingent upon the individual requirements of the state where the business was formed, you might be required to perform tasks such as:

submitting an annual report;
paying fees;
recharging licenses and permits; and
holding shareholder meetings.
On the off chance that you stay on top of your corporation's reporting and consistence requirements, you'll have the option to keep your business running like clockwork for a long time.

Make Your Fantasy about Possessing a U.S. Corporation a Reality
By the day's end, being a non-resident can't hold you back from following your dreams and starting a corporation or LLC as a non-U.S. resident. In any case, there are rules you'll have to adhere to if you have any desire to make that "American dream" happen as expected. That is the reason it's so critical to consult with a movement attorney or professional who's qualified to assist you with exploring through the business formation process.

Need to make the process of starting your business as easy as possible? Form your C Corp or S Corp with Incfile. We've assisted hundreds of thousands of entrepreneurs with starting U.S. businesses (including unfamiliar nationals), and we'd very much want to help you as well.

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