Forming a company in the U.S. as a foreigner is not easy; however, it is possible. In fact, the greatest economy in the world may be far closer to you than you think. Many people are unaware that forming a company in the U.S. without being a U.S. citizen or without even being physically present in the country is not only possible but a large number of foreign entrepreneurs do it every single year.
If you are looking to form a company in the United States, read on to learn what you need to know about the process.
Things to Consider When Forming a Company in the U.S.
Although foreigners should expect to undergo the same process as U.S. nationals and citizens when creating a business, there are certain limitations and conditions that are specific to foreigners. For instance, as a foreigner, you can form either a C Corporation or a Limited Liability Company (LLC), as the S Corporation structure is exclusive to U.S. residents and citizens. When forming a company in the United States, one of the first decisions you will need to make is what type of structure you will form.
There are advantages and disadvantages to both C-Corps and LLCs, so you must consider them and base your decision on your individual needs, goals, and circumstances. Although the LLC structure is the most popular structure amongst first-time business owners and foreign entrepreneurs because it is drastically easier to set up and maintain than a corporation, you should not be intimidated. If the C Corporation structure is the right structure for you, then you should absolutely go for it. However, make sure you work with an experienced Business Formation Lawyer.
Another important thing to consider when forming a company in the U.S. as a foreigner is the process of opening a business bank account. Having a proper U.S. business bank account is one of the critical requirements you need to meet in order to successfully register a business in the United States as a foreigner. However, opening a business bank account in the U.S. has become difficult for foreigners since The Patriot Act was passed, as it requires that U.S. banks verify the identity of any person that attempts to open an account with them and that they pass mandatory anti-terrorism and anti-money laundering checks.
In addition to the above, to open a bank account – as well as to apply for business licenses, obtain loans, hire employees, and pay taxes – business owners need an Employer Identification Number (EIN). You can apply for an EIN directly from the IRS for free; however, it is best to let an experienced Business Formation Lawyer take care of the process. Before you start the process of setting up a business entity in the U.S, make sure you can actually open a U.S. business bank account, as the process can be trickier than it looks on paper.
Forming a Company in the U.S. is not easy… but the Process Does Not Have to Be a Nightmare
The process of forming a company in the U.S. is not precisely a walk in the park; however, if you work with the right team of legal experts, it can be an incredibly rewarding experience that you will remember for the rest of your life as the beginning of a great story. Admittedly, the U.S. business formation process becomes a bit harder if you are a foreigner, and even harder still if you are not currently residing in the U.S. This is why it is vital to work with a legal team that specializes in helping foreign entrepreneurs start the business of their dreams in the United States.
Business Formation & Immigration Lawyer Romy B. Jurado and the skilled and experienced lawyers at Jurado & Farshchian, P.L. can provide everything you will need when forming your business in the U.S. Get in touch today by calling (305) 921-0440 or by emailing Romy@jflawfirm.com to schedule a consultation.