There are different corporate structures that you can choose from and multiple jurisdictions with excellent conditions in this regard. Mundo has written about Panama, Madeira, Georgia, Singapore, and Hong Kong. But today we want to discuss opening a company in the United States. Although many people don't even consider this country as a place of business, it offers quite interesting options. If you don't know the benefits of a company in the US for foreigners, keep on reading. 

Company incorporation: USA LLC

Like we were saying, when you open a company, you need to consider which structure you choose, e.g., C corporation, company, IBC, LLC, sole proprietorship, partnership, etc. Each of these has its advantages and disadvantages but the bottom line is that you need to choose the one that best fits your plan.

In this regard, the LLC is a great option because it offers unique flexibility and tax advantages. Moreover, if you open a company in USA, an LLC to be more precise, you'll find enormous benefits. Many people don't consider this country due to the high taxation, but this is not necessarily so for non-resident companies.

Coming back to the LLC, next we present some of its advantages, which make this structure a viable option for the international entrepreneur.

Why open a company in the US: benefits of an LLC

Simply speaking, an LLC combines the benefits of all the other corporate structures, providing, as a result, a tax-efficient and totally flexible solution.

Protect your assets

LLC is short for “limited liability company”. In its name, we find the very nature of this structure: the main point is that corporate and personal assets remain separate, i.e., they are protected. 

Instead of shareholders, LLCs have members, and they are only liable for the amount they invest. If the company shall have legal issues, debts, or other liabilities, members are not obligated to respond with their own assets like their car, house, bank account, etc.

Tax benefits

Company registration in the US also brings tax advantages. In the case of an LLC, the structure is taxed automatically as a partnership or a sole proprietorship. This will depend solely on how many members the structure has.

LLCs are also known as “pass-through” instruments. This means that members report the company's income through their personal tax returns, thus paying personal income tax. 

To better illustrate this point, think about members as self-employed individuals. They are responsible for their own taxes on their profit share and are bound to pay for their own Social Security and health insurance. 

But there's an option in which the company can be taxed as a partnership or sole proprietorship. All you have to do is choose whether your LLC is taxed as a C corporation or an S corporation. In this case, the members receive payment as if they were employees and participate in the company’s benefit programs. 

If you choose the C corporation option, as an owner, you'll pay taxes on the distributions that you receive and the company is subject to corporate tax. On the other hand, the S corporation is a pass-through entity that doesn't pay corporate tax. Instead, each member is subject to personal income tax as we explained above. Keep in mind that if you want your LLC to qualify for an S corporation status, it must meet the IRS conditions.

Flexibility

If you choose an LLC as your Company in the United States, you have a super flexible structure. An LLC doesn’t require annual members meetings or maintaining a board of directors. In line with this, these companies don't have as many administrative requirements as other structures. All in all, the members can manage their operations as they see fit.

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Why open a company in the US?

At this point, the reader may be asking why Mundo would recommend the United States if this is a high-taxation country. While this is so for residents and citizens, it's not the same for foreigners. 

A great advantage of the United States is that it's not part of the CRS. This is one of the few countries left where we can say this. Also, as a foreigner, you won't have any tax responsibilities in the United States and the LLC is exempt from withholding tax.

Likewise, for many countries having access to bank accounts in U.S. dollars, payment processors, etc., is a great plus. If your country is subject to exchange controls, inflation, and other currency issues, having an account in U.S. dollars is not a bad option.

Moreover, a company in the United States, specifically an LLC, it's a flexible and low-cost structure, which means that you can run it quite easily without large expenses or great time investment.

Requirements and fees for company formation: USA

Our package includes: 

• LLC Registration.
• Registered agent and legal registered office.
• U.S. mailing address.
• Tax registration fees (EIN).
• Owner's U.S. tax identification number.
• Open merchant accounts in the USA. (PayPal, Stripe).

Price: 

LLC: US$1,500

LLC + bank account: US$3,000

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Register a company in the United States with Mundo 

Mundo is connected to the best experts in each jurisdiction where we offer services. Registering companies is one of our strongest points. If you're still wondering why open a company in the US, consider the tax benefits and flexibility that this structure can bring to foreign businesspeople.

From our side, our Mundo representatives have wide experience incorporating structures worldwide and have excellent relationships with local registrars, providers, banking institutions, and bankers. They also handle due diligence processes, pre-approval processes, and other resources that help get the job done.

If you're looking for reliability and commitment, we're here to help you. We're more than just a corporate provider, we are a team that derives from one of the strongest corporate groups in the financial arena.

In combination with our online portal, our partners, and our staff, we are committed to the philosophy of freedom, and this is what we offer our readers. Contact your Mundo representative now and open a company in USA.

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