Expand Your Business: Set Up an LLC in the U.S. From Spain

Expanding your business to the U.S. market is a great strategy for Spanish entrepreneurs looking to reduce their tax burden and seize new global opportunities. In Spain, personal income taxes can reach up to 45%, which is a significant load for successful entrepreneurs. Setting up a business in the U.S. offers tax benefits, asset protection, and an easy way to receive payments in dollars.

In this guide, we’ll show you how to set up a business in the U.S. from Spain, the benefits of doing so, and the steps to maximize your profits.

1. Tax and Business Advantages of Setting Up a U.S. Business From Spain

Starting a business in the U.S. offers multiple benefits that can significantly improve the financial management of Spanish entrepreneurs. The high tax rate in Spain, which can go up to 45%, makes many business owners seek more favorable business structures in the U.S.

Tax Comparison: Spain vs. U.S.

• Spain: Personal income is taxed up to 45%, along with social security contributions and other taxes.
• U.S.: Starting a business in states like Delaware or Florida allows access to lower and more flexible tax structures, as well as asset protection.

Additional Benefits of Starting a Business in the U.S.:

• Access to an international market: The United States is one of the world’s largest economies and a center for business opportunities.
• Asset protection: Forming an LLC or C-Corp in the U.S. protects your personal assets from legal or financial issues.
• Payments in dollars: Operating in the U.S. allows you to receive payments in dollars, shielding your income from currency fluctuations and easing international transactions.

When Joan, an entrepreneur from Barcelona, decided to expand his startup to the U.S., he chose a Delaware LLC. This allowed him to reduce his tax burden and expand his U.S. operations without worrying about euro fluctuations.

2. Business Structures in the U.S.: Which Is Best for Spanish Entrepreneurs?

The type of business you choose to create will depend on your business goals. The most common options for Spanish entrepreneurs are the LLC and the C-Corp.

2.1 LLC (Limited Liability Company)

‍The LLC is the most recommended structure for international entrepreneurs due to its flexibility and protection:

• Personal asset protection: Your personal assets are not at risk in case of debts or legal issues.
• Tax flexibility: LLC allow profits to pass directly to the owners, who report them on their personal tax returns, avoiding double taxation.

2.2 C-Corp (Corporation)

‍If you plan to attract investors or expand your business through shares, a C-Corp is the best option. However, this structure includes double taxation, as both company income and dividends are taxed.

An LLC is ideal if you prefer a flexible structure and want to avoid double taxation. However, if you plan to attract significant investment, a C-Corp can provide the backing you need to grow with external capital.

3. How to Set Up Your U.S. Business From Spain in 5 Simple Steps

Setting up a business in the U.S. from Spain is a straightforward process if you follow the right steps. Here’s how to do it:

Step 1: Choose the Right State

‍Not all U.S. states have the same tax and business regulations. The best states to start a business from Spain include:

• Delaware: Offers a legal system that protects businesses, low fees, and sales tax exemptions.
• Wyoming: Popular among international entrepreneurs for its lack of personal income tax and low maintenance costs.
• Florida: Ideal if you plan to operate a physical office in the U.S. and take advantage of its booming economy.

When choosing a state, consider your needs and the type of operation you’ll have. A state like Delaware is an excellent option if you’re looking for a favorable structure without a physical location.

Step 2: Register the Business

‍To register your business in the U.S., follow these steps:

• Choose a name: The business name must be unique in the state where it’s registered.
• Designate a registered agent: The registered agent receives legal documents on behalf of the company.
• File legal documents: Depending on whether you choose an LLC or C-Corp, you’ll submit the Articles of Organization or Articles of Incorporation in the selected state.

Step 3: Obtain an EIN (Employer Identification Number)

‍The EIN is the tax identification number needed to file taxes and open a bank account, similar to the NIF in Spain. This number is crucial for your business to operate legally in the U.S., and Prodezk can assist you with this process to avoid complications.

Step 4: Open a U.S. Bank Account

‍Opening a business bank account in the U.S. allows you to receive payments in dollars, make international transactions, and manage your business income more efficiently. Banks like Chase, Bank of America, and digital options like Mercury make it easy to access international business accounts.

Choosing digital banks like Mercury allows you to manage your account from Spain, providing a practical solution without the need to reside in the U.S.

4. Benefits of Starting Your Business in the U.S. Compared to Spain

Setting up a business in the U.S. offers significant tax benefits that can be very attractive compared to tax rates in Spain:

• Lower tax burden: In the U.S., you can optimize taxes by forming an LLC, which allows you to avoid high personal taxes in Spain, which can reach up to 45%.
• Asset protection: Unlike operating as a freelancer or business owner in Spain, an LLC in the U.S. protects your personal assets from any legal liabilities.
• Benefits for foreign investors: States like Wyoming and Delaware offer tax incentives to international entrepreneurs, helping them avoid double taxation and maximize benefits.

María, an entrepreneur from Madrid, decided to establish her business in the U.S. and chose Wyoming to take advantage of tax benefits. This allowed her to significantly reduce her tax costs and protect her personal income from potential legal risks.

5. How Prodezk Helps You Set Up Your U.S. Business From Spain

At Prodezk, we offer a full-service solution to help you set up your business in the United States, from choosing the business structure to opening bank accounts.

• LLC or C-Corp registration: We guide you through the process of selecting and registering the best structure for your business.
• EIN acquisition: We assist you in obtaining your tax identification number.
• Bank account setup: We facilitate the opening of business accounts in the U.S. so you can manage your international operations.
• Tax advisory: We provide advice to optimize your tax structure and avoid double taxation between the U.S. and Spain.

Ready to Expand Your Business in the U.S.?

Contact us for a free consultation and discover how Prodezk can help you set up your business in the U.S. from Spain easily and securely.

Frequently Asked Questions (FAQ)

• Do I need a NIF to open a business in the U.S. from Spain?
  No, instead of a NIF, you need an EIN (Employer Identification Number) to operate legally in the U.S.
• How long does the registration process take?
  The registration process varies by state, but typically takes 1 to 3 weeks. Prodezk can help speed up this process.
• What’s the best business structure for a small business?
  The LLC is usually the best option for small businesses, as it offers tax flexibility and personal asset protection.
• What taxes do I need to pay if I register a business in the U.S. from Spain?
  Taxes depend on the business structure and the state where you register your business. Consult a tax advisor to ensure proper compliance.