HERE TO USE THE AMBASSADOR PACKAGE TO CREATE YOUR COMPANY IN
Many US non-residents are forming companies in the United
States, some of which are operating within the country, others
of which are operating entirely outside. With the proliferation
of the Internet, many non-US citizens are forming US companies
to own their web sites even though they have no tangible connection
with the US other than the registration of their company.
In general, there are no citizenship or residency requirements
to forming a company in the US. However. there are several
factors that should be considered.
NOTE: Most states will not require disclosure of Director
information at the time of formation but almost all will ask
for this information at the time of filing the next year's
Annual Report. Please ask about our Nominee Services if appropriate.
Passthrough Taxation from the home page for more information.)
For many people, passthrough taxation, or the ability to have
their entity treated as a non-tax-paying (transparent) entity
is important. For US non-residents, use of an S Corporation
is not possible because one of the requirements of becoming
an S Corporation is that all shareholders must be US residents.
This objective can be achieved by forming a Limited Liability
Company (LLC) instead of a corporation. (See Corporation v
LLC from the home page.)
TAXED AS PARTNERSHIP OR CORPORATION
The LLC can, with the filing of it's Application for Employer
Identification Number (TaxID), elect to be taxed as either
a partnership or a corporation. This election, with certain
restraints, may be changed in subsequent years.
FILING A US RETURN
For a corporation formed in the US, there is an absolute requirement
that it file a US tax return regardless of whether there is
US income. In contrast, the LLC is taxed as a partnership
and the partners (principals) must file and pay individual
US taxes only if they operate a trade or business in the US
or if they have US-source (effectively-connected) income.
MIXED US AND NON-US SOURCE INCOME
In this situation, it will usually also be more advantageous
to form a Limited Liability Company instead of a corporation.
With a US corporation, it is taxable on its global income
whereas the LLC will be taxed as discussed above.
An Apostille is a seal authenticating a document for use in
international transactions according to the Hague convention.
Many countries will require that official documents created
in another country bear an Apostille as evidence that they
are what they purport to be. The AMBASSADOR package includes
an Apostille from the jurisdiction in which your company will
WHERE TO FORM YOUR COMPANY
In the US, you can create your company in any state you choose.
If you plan to eventually have an office in the US, it may
be cost-effective to form your company in that state. The
majority of US non-residents without a strong reason to form
in any given jurisdiction choose Delaware or Nevada because
of their business-friendly environment and easy compliance
WHAT'S MY ADDRESS?
Every state will require a Registered Agent/Registered Office
with an address in that state for receipt of service of process
or other official communications. We will serve as your RA/RO
(see What is a Registered Agent from our home page.) However,
this is not your business address or mailing address which
can generally be anywhere you wish. Please remember NOT to
use your RA/RO address for anything other than official purposes
as described above.
NOTE: In many cases, you may have other factors which will
strongly compel the choice of a corporation instead of a Limited
Liability Company in your choice of structure. For example,
you may want to unequivocally establish tax residency in the
US. Or you may be planning to sell stock to investors or eventually
plan for an Initial Public Offering (IPO.)
CLICK HERE TO USE THE AMBASSADOR
PACKAGE TO CREATE YOUR COMPANY IN THE US.
FOR A DISCUSSION OF US IMMIGRATION LAW IMPLICATIONS