What is 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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