Starting a US Company From Abroad, Done Well

Yes, you can start a company in the United States without living there or travelling. The process has four parts: choosing the structure, choosing the state, forming the company and bringing it to life with its EIN and bank account. What separates a well-made company from one that causes problems a year later is not the speed of the filing, but the decisions taken before it.

Formation

Or a Corporation.

Built to raise capital, hire, and issue shares.

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01Can I start a US company if I live in Latin America or Europe?

Yes. Every state allows a foreign person to own an LLC or a corporation, and formation is filed remotely. Owning one requires no citizenship, residency or visa. We cover the details in forming an LLC without travelling. It is worth remembering that owning the company does not give you a visa or residency.

02LLC or corporation?

For most non-resident owners, an LLC is the simpler structure to maintain. A corporation makes sense when investors are involved, when profits will be reinvested in the US, or when the plan is to sell the company. The choice has tax consequences in the United States and at home, which we set out in LLC vs corporation for a non-US resident.

03Which state should I choose?

There is no best state for everyone. Delaware, Wyoming and Florida are the most common choices for foreign owners, each for a different reason: legal tradition, maintenance cost and privacy, or proximity to clients and operations. If the business will have a physical presence in a particular state, that state is usually the answer. We compare them in the best state for a non-resident to form an LLC.

Formation

Establish your LLC.

The flexible structure most founders choose, set up for your state.

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04What follows formation?

• Forming the company in the chosen state, with a registered agent to receive official mail
• Obtaining the EIN from the IRS, the company's tax number, with no Social Security number needed
• Opening the business bank account in the company's name
• Signing the operating agreement, which sets out ownership and decisions
• Calendaring the annual obligations from day one: the state report and the IRS returns

Each step has its own guide: the EIN for non-residents and the business bank account.

05What will the company owe each year?

Two kinds of obligation, and neither depends on whether the company earned anything. With the state, the annual renewal that keeps the company in good standing. With the IRS, the returns that match its structure and owner; a single-member LLC with a foreign owner files Form 5472 with a pro forma Form 1120. We detail them in what a foreign-owned US LLC owes the IRS.

06How does it affect my taxes at home?

That depends on your country and how it treats the US company. Some countries treat it as transparent, others as a separate company, and several have their own rules for foreign companies controlled by their residents. It is the question to answer with an advisor at home before forming, not after.

Prodezk has guided founders from Latin America and Spain for more than twenty years. We form the company, obtain its EIN, prepare the bank application and look after its obligations, so you run the business rather than the paperwork. You can begin here.