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Start an LLC

Everything you need to know about one of the most common types of businesses in the United States is here.

happy confident and sucessful woman forming an LLC in the United States

What is an LLC?

Who can form an LLC?

Advantages of an LLC

If you are considering starting an LLC in the United States, you are making a strategic decision to establish a robust and flexible business. The LLC, or Limited Liability Company, provides its members with the valuable advantage of separating their personal assets from those of the company, thus providing solid 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. An additional benefit is that this type of company is not subject to income tax; it is the members who are responsible for filing and paying the corresponding taxes.

LLCs are distinguished by organizing themselves based on memberships or ownership percentages (Membership interest), and the sale of these percentages is governed by what is established in the Operating Agreement.

A noteworthy feature of LLCs is their lack of restrictions regarding citizenship or nationality, greatly facilitating the process of establishing the business. Basic requirements include a 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 the opening of a bank account.

Remember that 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 and bids that are often closed to Latin American entrepreneurs.

In addition, U.S. companies are taxed only on the net profits of the business, unlike most Latin American countries that tax the income generated, regardless of margins. If you want to learn more about what an LLC is, we invite you to read our related article here.
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The creation of a Limited Liability Company (LLC) in the United States is a process open to individuals from all over the world. To initiate this process, it is essential to comply with certain requirements that ensure the validity and legality of the LLC. Two fundamental aspects to consider are the identification document and the physical address in the state of incorporation.

Identification Document

The first key requirement is an identification document, which can be a DNI or passport from the country of residence. This inclusivity allows for the participation of non-resident individuals in the United States, facilitating the formation of an LLC on a global basis.

Physical Address

A physical address in the state of incorporation is crucial. Not only does it serve as the official location of the company, but it also acts as the point of receipt of notices and documents at both the state and federal level. This address is vital for maintaining communication with authorities and ensuring regulatory compliance.

Types of LLC: Disregarded and 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 LLC

If there is only one member, the LLC will be classified as "Disregarded". This implies that, from a tax point of view, the LLC and the owner are considered a single entity. This approach simplifies tax filing and liability, offering flexibility to the sole proprietor.

LLC 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. Decision making and management of the company are shared among the members, offering a more collaborative dynamic.

In conclusion, the creation of an LLC is an accessible process with fundamental requirements that allow global participation. The distinction between LLC Disregarded and LLC Partnership adds a crucial element, as it defines the structure and operational dynamics of the company, adapting to the specific needs of the entrepreneurs.

The creation of an LLC presents a number of key advantages for entrepreneurs:

  • Personal Asset Protection: By establishing this structure, only the company assumes responsibility for debts and liabilities, thus safeguarding the personal assets of the members. This separation provides an additional layer of financial security.
  • Tax Benefits: The entity itself is not subject to income taxes. Instead, taxes are transferred at the individual level to the partners, who declare them according to the profits obtained and their respective participation percentages. This approach provides flexibility and tax optimization for the owners.
  • Flexibility in the constitution: It can be constituted by a single partner and upwards, allowing entrepreneurs to start and operate a business in an agile and efficient manner. This structure is characterized by its robustness and simplicity.
  • Foreign Inclusivity: The lack of residency or citizenship restrictions makes it accessible to foreign owners. This makes it possible for individuals from anywhere in the world to own a business in the United States, encouraging investment and global participation in the U.S. market.
  • Transparent Participation Structure: Participation is clearly expressed in percentages, providing a transparent structure. This clarity facilitates decision making and management of the company.

The creation of this structure, with these advantages, not only protects members' personal assets, but also offers flexibility, tax benefits and access to international opportunities.

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$ 870 USD
$ 875 USD
$ 915 USD
$ 1090 USD

All included

  • IDs and documents review
  • Preliminary verification of corporate name
  • State registration
  • Presentation and copy of the Articles of organization
  • Certificate of Status
  • BOI reporting
The EIN, or Employer Identification Number is the commercial federal tax identification number
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Frequently Asked Questions

Can LLCs sale 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, this type of company is stipulated for small and large companies.

How are LLC taxes reported?

These companies are taxed on a personal basis, that is, the taxes are responsibility of the partner who owns the company, and not of the company itself. These are calculated depending on the value of the profits of the company distributed among the partners according to their percentage of participation. To learn more about this topic, click here.

Do I need to have an American partner to create an LLC?

The partner (s) of an LLC may be foreigners. There is no requirement that LLCs have at least one American partner.

How do I protect my personal assets from LLC business debts?

LLC assets are separate from partners' personal assets. This means that if there was a lawsuit against the company, it would be solely responsible. In other words, the company’s assets would be the only ones affected, and 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, as it protects the assets of this partner against any commercial debt.

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