The ownership structure of an LLC can be tricky for non-residents because State laws, not federal law, govern LLCs. This means that if you operate an LLC in the U.S., there are different rules for your responsibilities depending on which state you’re in. And because laws vary so much from state to state, it isn’t easy to generalize.
But it’s also important to know that the state-by-state laws are significant because they will determine your specific tax liabilities. Remember, all LLCs are required to pay taxes, but it’s the type of taxes and due dates that vary depending on your state and how you use your US LLC for non-us residents.
Can a foreigner have an LLC?
The short answer: yes. Non-residents can create an LLC in the U.S., assuming they fulfill the requirements of having a physical office in the state where they will operate their business.
Your first step is to find a business formation specialist who can clarify the requirements of your state.
Can I personally get sued if my business has an LLC?
No, you can’t. It’s important to understand that you cannot get sued personally just because your LLC is sued. The only way you can get sued for your LLC’s debt is if your LLC’s debt comes from a personal guarantee. If you have personally guaranteed a loan for your LLC, your personal assets are at risk if the business defaults on the loan.
If you are an LLC owner, the law sees you as a distinct entity from your company. It is possible that your company can be sued if it fails to pay the vendors or employees, but that does not put you personally at risk.
Should I form an LLC to do business in the U.S.?
Generally, yes. Forming an LLC is the most brilliant way to do business in the U.S. However, it’s important to note that you can’t just open an account in your LLC’s name, place it in the mail, and call it a day. If you plan to have an LLC conduct business in the U.S., you have to register it by filing the appropriate documents formally.
How do I form an LLC?
It depends on which state you are operating in. The federal government does not require you to register your us company formation, but your state may. Therefore, it’s essential to check with your state’s business licensing bureau before establishing an LLC.
Is it cheaper for me to form an LLC than a corporation?
Usually, yes. Forming an LLC can sometimes be more expensive than incorporating, but it’s generally cheaper than creating a corporation.
Can I put my LLC in my name?
Yes. Many times, business owners choose to put their LLC in their own name. This is because it’s easier to operate the company under your personal name than set up an LLC in your company’s name. It also makes it easier for the public to know that the individual owns the company.
Conclusion
LLCs are a great way to start and run a business in the U.S. Many non-residents who use their LLC for business purposes prefer them to corporations, and the reason is simple: they don’t have shareholders to please. You can do almost everything that a corporation can do with an LLC, and most states allow you to choose between an S-Corp and an LLC.
However, it is crucial to understand that State laws, not federal law, govern LLCs. And that is why it’s necessary to clarify the LLC laws in your state before you start operating your LLC, especially if you are a non-resident.
