Foreign nationals open US businesses on a daily basis, ranging from small shops to large corporations. For many businesses worldwide, the secret to success is getting into the US marketplace. To take advantage of the largest, best integrated national market in the world at the lowest tax rate, working with a US firm is the most efficient approach to enter this market. With the assistance of a team knowledgeable on company formation, immigration, import-export, international tax, real estate, and supply chain, establishing a business in the US as a non-resident is easy. For an international employee of a US business, it is:
- Easier to sell in the US market in terms of taxes and customs
- Gain access to the US capital markets for public markets, venture capital, and angel investors.
- Boost your company’s reputation with US clients and in numerous international markets.
- Obtaining a visa to work in the US is easier, but acceptance is not assured!
- You might be able to lower your tax on money earned in the US.
Directions for forming a non-resident US company
If you are a non-resident and want to incorporate company in USA, the process is more complicated than for a US person, and the consequences are higher for mistakes. For instance, non-residents who wish to withdraw their money from the US face higher income tax complications. There are further issues with creating a bank account and obtaining the proper US work visa. These are all pretty complex subjects. Put simply, you need to not only develop a viable company plan but also ensure that it operates inside the legal, tax, and economic framework of the United States.
The following six phases list the essential tasks that need to be completed before a business can be started:
- What kind of business is being established?
- Tax Comparison between S-Corporation, C-Corporation, and LLC. Non-US citizens are not eligible for (“S” company status).
- Which state will the business be formed in?
- Where in the United States will the business operate?
- The kind of business, what it does, and whether it needs any licenses, permits, registrations, etc.
- The requirements for staffing have an impact on the size and geographical location of facilities.
Where should I locate my US business?
Selecting a location for your company registration in USA from India is perhaps the most important choice you will have to make if you intend to open one in the United States. Demographic analysis, supply chain evaluation, competitive analysis, budgetary management, knowledge of state and local taxation, and many other aspects are all part of it. Fortunately, you are not required to incorporate your company in the state where it is physically situated.
A US resident who intends to open a new business will probably end up doing so in their home country. A non-resident who wishes to establish a business in the United States may do so in any state they choose.
The 50 states plus the District of Columbia are typically referred to as the United States of America. Since choosing a state to incorporate a corporation in and establish a business in the US requires careful consideration, it is preferable for an entrepreneur or firm entering the country to think in terms of states. The states are highly diverse, with populations ranging from less than 600,000 in Wyoming to about 40,000,000 in California, the largest state, and sizes varying from tiny Rhode Island to huge Alaska.
This decision, which balances cost and quality considerations, should be made in the most economical manner to achieve company goals. An organization must first determine what factors—such as market accessibility—are the most important in determining where to locate. Is there a labor pool of qualified workers? Infrastructure for transportation? It is most likely a concoction of all of these and additional factors. A collection of quantitative and qualitative data points can be produced by resolving these issues.