Incorporation
Establish an LLC.
The flexible US structure that separates a founder from the business it carries. Available to founders anywhere in the world, formed with the care the decision deserves.
General information
What an LLC actually is.
An LLC is one of the more considered structures a founder can choose in the United States: robust, flexible, and built to hold a business without exposing the person behind it.
The LLC, or Limited Liability Company, provides its members with the valuable advantage of separating their personal assets from those of the company, providing security and stability in the face of potential business debts.
When starting an LLC, profits and losses are directly transferred to the members, who must report them on their individual tax returns. The LLC itself is not subject to income tax. The members are responsible for filing and paying the corresponding taxes.
LLCs are distinguished by organizing themselves based on memberships or ownership percentages, and the sale of these percentages is governed by what is established in the Operating Agreement.
Eligibility
Who can form an LLC.
There are no restrictions on citizenship or nationality. The creation of an LLC in the United States is a process open to individuals from all over the world.
Basic requirements include an identification document from the country of residence, a physical address in the state of formation, the availability of the company name, and the convenience of having at least one partner with a valid American visa to facilitate opening a bank account.
Once your company is established, you can initiate the opening of bank accounts in the United States, allowing you to receive income from anywhere in the world. This will provide you with access to business opportunities often closed to Latin American entrepreneurs.
Two requirements stand out
- Identification document: a national ID or passport from your country of residence is sufficient. Non-residents fully welcome.
- Physical address in the state of incorporation: the official location of the company and the receiving point for state and federal notices.
Structure
Disregarded or Partnership.
The distinction between a Disregarded LLC and a Partnership LLC is crucial and depends on the number of members involved in the creation process.
Disregarded: if there is only one member, the LLC will be classified as Disregarded. From a tax point of view, the LLC and the owner are considered a single entity, simplifying tax filing and liability.
Partnership: when there are two or more members, the legal structure will be an LLC Partnership. This format implies a more extensive collaboration where members share responsibilities and benefits.
Why this structure
Five advantages worth weighing.
The advantages of an LLC extend well past liability protection. It is a structure that rewards founders with flexibility, favorable tax treatment, and access to opportunities that sit beyond their own borders.
- Personal asset protection. Only the company assumes responsibility for debts and liabilities, safeguarding the personal assets of its members.
- Tax benefits. The entity itself is not subject to income taxes; instead, taxes are transferred at the individual level to the partners.
- Flexibility in formation. Can be constituted by a single partner and upwards, allowing entrepreneurs to start and operate a business in an agile and efficient manner.
- Foreign inclusivity. The lack of residency or citizenship restrictions makes it accessible to founders from anywhere in the world.
- Transparent participation. Membership is expressed in percentages, providing a clear structure for decision making and management.
What's included
Everything in your formation package.
- IDs and documents review
- Preliminary verification of corporate name
- State registration filing
- Articles of Organization (presentation and copy)
- Certificate of Status
- BOI reporting
Questions
Frequently asked
Can LLCs sell shares?
The LLC doesn't handle stocks therefore it cannot be listed on the stock exchange. Its structure is managed by memberships, which is represented in participation percentages.
Are LLCs for small businesses only?
Not necessarily. LLCs are a popular choice for many types of businesses, not just small ones. Their flexible structure, the protections they offer, and the option to choose how income is taxed make them suitable for everything from startups to established companies.
How are LLC taxes reported?
These companies are taxed on a personal basis. Taxes are the responsibility of the partner who owns the company, not the company itself. They are calculated based on the value of the profits distributed among the partners according to their percentage of participation.
Do I need to have an American partner to create an LLC?
The partner or partners of an LLC may be foreigners. There is no requirement that an LLC have at least one American partner.
How do I protect my personal assets from LLC business debts?
LLC assets are separate from the partners' personal assets. If there were a lawsuit against the company, only the company's assets would be affected, not those of the partners.
Can I register an LLC as a single member?
Yes. An LLC can be formed by a single person, which is very common for this type of company since it protects the assets of that partner against any commercial debt.
Begin your LLC.
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