If you are a business owner from outside the United States but are interested in scaling and conducting business in this country, there’s much for you to consider.
However, one of the most important things you’ll want to brush up on is setting up an LLC for your company. An LLC, or limited liability company, is a kind of business entity used to separate you and your assets from the company you own.
Keep reading for some of the most commonly asked questions on applying for an LLC, to help you expand your business into the USA.
1. What does an LLC do for you?
As the name implies, a limited liability company limits your personal liability for legal, tax, and cost matters. If someone sues your company for something, only your business assets will be at stake — not your personal ones.
However, setting up an LLC also means that you’ll need to file taxes with the federal government every year. Depending on the state you file your LLC paperwork with, you may be subject to high setup costs as well.
2. Can you set up an LLC for any business venture?
Yes, with some contingencies. The United States prevents entities from setting up an LLC for business ventures like banking and insurance. You’ll want to check with federal and state regulations for more information, especially since the details can vary from state to state.
3. Is there a limit to the number of people who own an LLC?
Owners of an LLC are called “members,” and can be made up of any, several, or all of the following:
- Other LLCs
- Foreign people or entities
The government does not impose any limits on the amount of owners that an LLC can have. This also means that an entity can be made up of, and owned by, a single member (making these businesses “single-member LLCs”).
4. How is an LLC taxed?
As we mentioned earlier, LLCs act like separate business entities in many cases. However, the federal government doesn’t tax them like separate entities.
The members of an LLC must report the company’s profits and losses on their own personal tax returns, similar to how those in a partnership would.
However, keep in mind that some states enforce an annual tax on these entities, so it’s worth working with an accountant and lawyer that understands these nuances so you don’t face any negative consequences down the road.
Get in touch with Accountants without Borders today
If you’re thinking about expanding your business into the USA, you’ll want to learn everything you need to know about starting a company stateside. That’s what Accountants without Borders is here for.
Making sure your business adheres to government regulations is complicated and convoluted, and it usually requires the help of an expert who is well-versed in these matters. Luckily, that’s what our San Diego-based organization specializes in.
Our goal is to connect with business owners abroad and help them start a business here in the US as easily as possible. Whether this will be your first business venture or your fiftieth, we’re here to give you the tools you need to succeed in the American market.
Contact us with any questions or concerns you may have by filling out the form on our website. Alternatively, you can also send us an email at firstname.lastname@example.org.