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Corporate Structures

Companies in the US: Florida LLC and Delaware LLC for non-US people

5/24/2024 8:00:00 AM
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When thinking about the best place to incorporate a company, the United States is probably not the first jurisdiction that comes to mind. In this regard, islands like the Seychelles or the Caymans, and even countries like Panama, have gained popularity as business-friendly/tax-friendly hubs.

Nonetheless, starting an LLC may bring benefits beyond those popular jurisdictions. In the US some states offer alluring perks which may be very well compared with the destinations mentioned above. We're talking about Florida LLC and Delaware LLC and their advantages focused mainly on foreign owners.

LLC registration: companies in the US can bring more benefits than you imagined

LLC formation is interesting in and of itself as a corporate approach. If you get an LLC, you will enjoy more flexibility, enhanced protection, privacy, and financial benefits than with typical entities. Instead of shareholders, LLCs have members and they are liable only for the amount of money invested rather than their personal assets.

They also enjoy much more flexible reporting conditions with the possibility in some jurisdictions to pass through the tax liability. In simple terms, the member transfers corporate tax liabilities to his or her personal tax return. As a result, when you get an LLC, you can simplify your taxes.

Furthermore, depending on the jurisdiction, LLC formation can bring even more convenient advantages simplifying corporate incorporation and management.

Corporate USA: Why choose Uncle Sam?

From the libertarian point of view, the US is far from being the perfect haven. Its worldwide income tax policies, high taxation, and controlling methods (like FATCA) may be discouraging. This is what drives many Americans to renounce their citizenship and find places where they are treated better.

Nonetheless, the picture changes widely from a foreign person's perspective (not living in the US). 

This is why we dedicated several articles to Puerto Rico, a territory of the United States that provides banking advantages to foreigners. Advantages that can be easily compared to what a Delaware LLC or a Florida LLC brings to the table.

Let's keep digging into starting an LLC and analyze why companies in the US can be the solution for many businesspeople worldwide.

Corporate USA: open LLC in Delaware or Florida and enjoy these benefits

An advantage that a businessperson can't overlook is reporting flexibility. If the Florida LLC or Delaware LLC doesn’t have income tax payable, submitting accounting records is not required. Although this may seem like a minor detail, it gains relevancy when we consider the hassle of running a business and consolidating a complex business plan.

In both states, registering the UBO's information is mandatory, however, it will be kept in a confidential government database. In simple words, beneficiaries must be clearly stated but privacy and confidentiality are respected and assured. Personal information will be released only if requested by a judge and to law enforcement agencies.

Those who get an LLC are usually looking for simplicity and this is what they get as the UBO information must only be registered once upon registration. After incorporation, you have between three to four months to submit the required information.

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LLC registration and tax returns with companies in the US

Under certain conditions, a Delaware LLC or a Florida LLC are not obliged to file tax returns. If the owner is not a U.S. citizen, if the Delaware or Florida LLC has only one owner, and if the entity operates outside the US, tax returns are not mandatory.

At this point, we invite you to take a moment and analyze the benefits of starting an LLC in the US as a foreigner. Flexible conditions are surely an advantage when it comes to optimizing the company's profits and simplifying processes.

Nonetheless, Mundo makes an important note: the fact that you don't have to file tax returns with your Delaware LLC, or your Florida LLC doesn't exempt you from your responsibilities in other country or countries. This is why international corporate operations must be approached carefully, cleverly, and with the support of a professional.

Finally, at the time of registering the ultimate beneficial owners, the company must obtain an EIN (employer identification number) to identify the business entity. 

Florida LLC and Delaware LLC registration: what do I need?

LLC registration or incorporation of any kind always requires mainly 3 things: proving your identity, proving where you live, and proving that you are of good character. Hence the registry agent will ask you to present two valid IDs, proof of place of residency, and a reference letter.

Generally, owners present a passport and the country’s identification card or a driver's license. As proof of address utility bills (issued under the applicant's name) are usually presented and they must state the address, city, and country of the client.

Reference letters can be of various kinds and the right one will depend on the local regulations at the time, but they may entail references from banking and financial institutions. In some cases, personal references are added as a separate requirement. While the former testifies to the client's financial capability for incorporating the company, the latter is a testimony of the client’s good character and professional qualifications.

Next, we present the specific requirements for the said structures.

Florida LLC and Delaware LLC requirements

  • Certified passport copy
  • Certified copy of the second ID
  • Proof of address which must be not older than 3 months
  • Bank reference letter
  • CV
  • KYC1 form
  • Order form

Disclaimer: this article was created and written based on editorial research, but it doesn't constitute professional advice. Furthermore, this article presents only general information about Delaware LLC and Florida LLC, their benefits, requirements, and incorporation conditions. Before making any important financial decisions or before you decide to get an LLC make sure to consult with a qualified advisor.

LLC formation and corporate services hand in hand with Mundo

Mundo is a publication specially geared for the nomad capitalist and perpetual traveler because we are committed to the philosophy of financial freedom. With this motto as our basis, we help readers achieve their financial goals.

This is a complex matter that involves several aspects in the same way a puzzle is finished by putting together the right pieces in place. LLC formation can be the answer to your corporate needs, especially with companies in the US. 

For non-us people, a Delaware LLC or a Florida LLC can bring significant advantages when it comes to financial optimization and management.

Combined with services like trusts, second residency or citizenship, bank accounts in the right jurisdictions, and clever investments worldwide, your LLC registration in the US may be the perfect fit.

Ask for a consultation with our team and you'll be assigned a Mundo expert who will guide you through the process and provide you with the necessary information in your path to corporate USA.

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