The USA has many advantages for non-residents seeking to incorporate there but not trade in the USA.
First, and most important, non-residents are not taxed, which provides a significant advantage for those incorporating LLCs. An LLC (Limited Liability Company) in international terms is more akin to a Limited Partnership. Members are liable to taxation (if any) on profit share from the LLC.
The other principal type of US business entity is the C Corporation (a standard limited company in most countries). C Corporations are taxed on their profits wherever sales are made and whatever the ownership structure. The standard rate of Federal corporate tax in the USA is 21% for 2021.
It is important to understand that each state determines its own taxation rates (in addition to Federal Taxes), and the States are certainly not equal in their taxation policies. Throughout this article, we refer to ‘incorporate’, but in fact, we mean forming an LLC (Limited Liability Company).
There is a shortlist of States which are generally considered to be business-friendly. Top of the list is Delaware, which not only created LLCs but also has a well regarded Chancery (business) court. Other contenders include
You might ask why California and New York are not on the list above. Simply, bureaucracy and state-level obligations.
Compared to other states in the US, Wyoming offers numerous advantages to non-residents that want to set up an LLC there.
To recapitulate, these include:
You will, however, need an EIN (US tax number), and we can arrange this for you when you form an LLC with us. An EIN (formally Employer Identification Number) is a tax registration certificate and will be required by banks/e-Wallets before they will open an account for an LLC.
The Wyoming registry does not ask for information to be filed, and therefore there is no public disclosure concerning your business or its structure. Once instructions have been received, it should take just a couple of days to set up your company.
First, is to decide on a company name, better to give us three choices which we can check for you.
Second, is to decide who will be the Manager and, of course, your co-investors as Members. If you have multiple Members it’s probably a good idea to have a Members agreement in place – we can provide a draft.
Finally, after formation you will need to apply for an EIN and subsequently open a bank account, both of which we can assist with.