Are you a non-US citizen that is thinking about setup an LLC to start a business? It’s a great idea as you will see in this article. We will outline the number of advantages that you can get and why the small investment is worth the effort.
1 in 5 new businesses fail within their first year of operation, which means you need to tilt the odds of success in your favor. The setup an LLC process is a step in the right direction that’s inexpensive, simple, and anyone can do it.
What is an LLC?
An LLC or Limited Liability Company that you can register in a specific state. As a non-US citizen, it may not matter what state you choose when registering for an LLC – especially if you intend to sell products across the entire United States.
In most cases, LLCs are usually hybrid entities that can be used by individuals or small businesses to improve the corporate structure of their business. You can set up your LLC yourself, or do so under the guidance of a professional service or business layer to help you make the most of the advantages.
Open a Bank Account in the United States
As a non-US citizen you’ll have trouble opening a bank account in the United States unless you have an LLC. Therefore, you should strongly consider getting an LLC for the bank account alone. Here are the advantages of getting a bank account in the United States to do business:
- Avoid currency conversions: you can accept payments and pay suppliers in USD without the need to convert to different currencies. This means you can avoid paying the fees that are associated with currency conversions – there is usually around 1-4% markup.
- Bank loans: once you have a US bank account, you’ll be eligible to get a bank loan, which can help you start a business. You can use the bank loan to buy inventory, rent commercial real estate and pay employees. Also, having an LLC may force banks to take your business more seriously, which could increase the chances of getting a bank loan.
- Business buyers: if you’re interested in selling your business in the future, potential business buyers will appreciate the fact that you have improved the business structure with an LLC.
Avoid Tax Complications
Setting up an LLC helps you avoid paying income tax in the United States, which means you can use the LLC as a pass-through organization. However, if you have business partners, then the situation can become more complicated – you should consult a tax accountant in the United States to help you figure out the details.
However, you still need to pay sales tax for the products and services that you sell. Also, the sales taxes differ for each state in the United States. It can get really complicated fast, so you should make the effort to get professional advice on how to structure your business with the LLC.
Easy to Get an LLC
You may think that setting up an LLC for your business is a complicated process. However, you can get the entire process completed in just one session in front of your computer. That’s because these many services exist that help non-US citizens set up an LLC via the optimized user interface.
Make sure you have your documentation is handy when setting up the LLC. This includes your passport number, business details, address, contact details, and more. Hence, you won’t need to stop the setup process to find the details.
LLCs are Inexpensive
Overall, LLCs are one of the smallest expenses your business will have since they cost around $200-500 to set up. It depends on the service that you choose and if you need add-ons during the LLC setup process.
When choosing a services to set up the PPC here are a few things you should keep in mind:
- Price: it’s important to shop around and find a good deal when looking for a setup an LLC service. However, in some cases you get what you pay for, so don’t look for the cheapest service. Ideally, you’ll get value for money with your choice.
- User interface: the UI of the website where you plan on registering for the LLC should be easy to follow and optimized. This makes the registration process more pleasant.
- Reputation: check the online reputation of a company you plan on using to ensure that it’s safe and trusted. You can view social media portals and and review websites like TrustPilot. Also, you can check Google Reviews to see what experiences other customers have had in the past. Note you should take testimonials on the service’s official website with a grain of salt.
Increase Your Business Reputation
Some customers in the United States do background research on the companies they decide to buy from. Hence, if they see that you’ve taken the step to set up an LLC, you may have a higher chance of getting more customers and sales.
Furthermore, improving the reputation of your business makes it a better prospect for potential buyers. Therefore, you can expect to increase the sale price of your business when you’re ready for the exit. Hence, the cost and effort put into setting up an LLC will pay for itself in the future.
Final Thoughts
To conclude, you should setup an LLC for your business if you’re a non-US citizen to take advantage of the benefits outlined in this article. You can get a bank account bank loan, higher exit prices and the set up process is inexpensive and easy.
Now you simply need to find a high-quality service that supports setting up an LLC for non-US residents. With such a big upside you should strongly consider the step no matter what industry you are operating in.
