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Universal business advantages through US company formation for foreign entrepreneurs

Establishing a company in the USA lucrative opportunities

Setting up a company in the USA fabulous opportunities

For business people and creative professionals from abroad, setting up a Non-domicile LLC in the USA offer amazing opportunities. It is possible to run a company, do business, earn money and save taxes even without a permanent residence and completely independent of location.

Whether you are interested in Delaware, Wyoming, Nevada, New Mexico or another state, there are some universal advantages that you can benefit from as a foreign entrepreneur.

For example, as a German resident, you have to deal with the establishment of a LLC in the USA tax-free business outside the USA in terms of corporation and trade tax.

The mechanics behind this control strategy are easy to understand:

Non-domestic LLCs in the USA are generally exempt from federal tax and are not classified as corporations, so they are not subject to corporate tax. All income is attributed to the shareholder (director). USCitizens in the USA must Income tax foreigners do not, as they pay their income tax in their country. Since the profits of the LLC are attributed to the owner, you must pay income tax on them, as they are taxed in the respective tax domicile as the owner's personal income, regardless of whether they are transferred to an account in the respective tax domicile. More on enforcing the Income tax regime for anonymous LLC, in this article: Non-Domicil-Company. Since the income of the LLC also comes from abroad, there is no tax (withholding tax 30%) on profit distributions by the director in the USA. So be careful not to generate income from the USA. What the Value added tax it may rarely be necessary to transfer these to the country in which you generate profits. Find out more here: Value added tax

Practical application example

If you are a German citizen and own a non-domestic LLC in the USA and provide services in Germany in the USA generally fall under the no taxes on. This is the case because non-domestic LLCs are exempt from US federal tax and you provide your services in Germany and not in the USA.

Strong legal protection

Limitation of liability for their owners. This means that the owners are generally not personally liable for debts, obligations or judgments arising out of the LLC's activities. Instead, liability is limited to the company itself. This aspect protects the owners' personal assets, such as their personal property or income, in the event of litigation or insolvency of the LLC.

The US legal system is considered to be one of the most stable and reliable in the world. With a company founded in the USA, you benefit from a high degree of legal certainty and creditor protection. This significantly reduces your entrepreneurial risk.

Practical Example:
Suppose a web designer in Germany sets up a non-domestic LLC in the USA to offer his web design services to customers in the USA. In the course of his work, a dispute arises with a customer who eventually sues the LLC.
In this case, the LLC's limitation of liability would ensure that only the assets of the LLC itself would be eligible for potential damages or compensation. The web designer's personal assets would be protected and would not be used to cover claims for damages or other financial obligations.

Renown and reputation

One Company foundation in the USA gives your company a certain reputation. Many business partners, customers and investors see the "Made in the USA" stamp as a seal of quality. This can set your company apart from the competition.

Very inexpensive to set up and maintain

The costs of forming and maintaining an LLC in the USA are generally affordable. They consist of a one-time fee upon formation and annual costs for reports and bank accounts. The exact amount depends on the state in which the LLC is registered. In general, the costs are less than 1000 euros.

Cost comparison in (USD)

Anonymity

The guarantee of Anonymity and data protection in some US states offers companies an advantage as they can better protect their personal data and business activities. Due to its national legislation and potential problems with double taxation for American citizens, the USA has so far refused to comply with the AIA to join.

Please be sure to read the article (regarding the enforcement of income tax rules for anonymous LLC), in which this is explained in detail: Non-Domicil-Company

Additional advantages of the individual states:

Delaware:

  • Renowned legal system with a high level of legal certainty
  • No corporation or income tax on LLCs
  • Annual Franchise fee from $300

Wyoming:

  • No income, wealth or inheritance tax
  • Annual fee of only $50 for LLCs
  • Extremely high anonymity of shareholders

Nevada:

  • No income or corporation tax
  • Annual franchise fee of approx. $500
  • High degree of shareholder discretion

New Mexico (Santa Fe):

  • No corporation tax or other taxes on LLCs
  • Annual registration fee of only $50
  • Well-developed infrastructure and international flair

What do "annual franchise fee" and "annual fee", etc. mean?

Conclusion

So whether you are an e-commerce company, creative, service provider or technology startup, forming an LLC in the United States will bring tremendous benefits to your business. Contact me to find the best strategy and location for your business.

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Disclaimer: Please note that the above dates, tax rates and regulations may change over time. Do not make any independent decisions without first consulting an expert for your individual situation. It is in your interest to always receive individual information from an experienced expert who knows your situation.

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