Position Your New U.S. Company to Sell on Amazon, Leverage Joint Venture Opportunities, U.S. Real Estate, U.S. Tax Lien Certificates or Other Investments!
If you are based outside the United States, whether in Canada, the UK, Europe, Asia, Australia, New Zealand, South America.there are many compelling reasons to establish a U.S. corporation or LLC (Limited Liability Company).
Here are some of the many benefits of forming a Corporation or LLC in the United States:
Invest in other U.S. assets that may prefer a U.S. company to hold title for ownership!
Establish the gateway for Business VISAs, like the L-1 VISA, and other opportunities.
Immigration Rules and Business VISA Training
When you become a client of NCP’s you will receive full access to our Immigration resource to help you with the requirements for work VISAs when required and your best options. If you have specific questions on your situation, you will be provided with the contact information of a recommended immigration attorney.
What is the Best Legal Structure?
Your options are either an LLC taxed as a partnership, an LLC disregarded for tax purposes, an LLC taxed as a C corporation or a C corporation. An S corporation is not an option for a foreign owner because you would not meet the S corporation shareholder rules.
What are the Important Factors to Consider When You Form the Best U.S. Entity for Your Situation?*
- Annual gross revenue
- Annual net profits. This is an important part of your U.S. company formation
- Goal of net profits to reinvest or distribute
- Number of partners
- Sales Tax Compliance when selling products. Even if no inventory nexus in the U.S.
- Safe vs. risk assets (should be in separate entities)
- If real estate, what states will the entity own the real estate
- Partner’s ownership (individual, foreign trust, foreign corporation other)
- Type of income
- U.S. 30% withholding rates
- U.S. tax treaty with your country
- Your individual situation
* When you incorporate with NCP these questions will be addressed in our 45-minute video overview as to which state and entity is best. Separately, we have paid strategy sessions available. When you become a client we have 36 partners that specialize in other areas for support including legal, tax, trademarks, and immigration resources...
U.S. Banking Options
Rules have changed a lot over the last couple of years with your ability to establish a U.S. bank account without having to travel to the U.S. If you are planning to travel to the U.S. there are many options for you and you will want to make sure the bank account is established in the proper jurisdiction. Please email us at email@example.com for our most current banking solutions and what is possible.
If you are not planning to travel to the U.S. your options are limited but there are payment gateways to help get your money back to your country (many times saving you money over wiring via a U.S. bank). NCP does have an option for your U.S. business to establish a U.S. bank account when you travel to the U.S. (even if a foreign entity- which has additional steps) Keep in mind banks are subject to change their policies at any time.
Discover the best options to open a U.S. bank account or similar solutions!
Read full details and investment details.
Some banks require a U.S. utility bill. We have solutions with our bank providers to help get your account opened when you travel in person.
E-Commerce Virtual Address & Mail Services
Establish a U.S. Virtual Premium Address, Scan Sales Tax Permits, Merchant Statements
& Other Virtual Business Mail for Timely Execution. Receiving your Sales Tax Registrations, Late & Demand Notices, or Merchant Chargebacks late, or
not at all, leads to unnecessary massive costs to your business. Letís solve this for you.
Only need a U.S. address for mail purposes and looking to avoid a permantent establishment? Are you selling on Amazon.com via FBA and don't need a conference room or presence? Our mail service package which including scanning and linking your sales tax permits with our sales tax permit service will help you avoid excessive penalties and interest from all the FBA states. Read more
An EIN (employer identification number) is required for each new entity (corporation or LLC) in the U.S. NCP will send you the form SS-4 completed via email for your signature to scan and email back to our offices. We will obtain the EIN through the IRS within 3-10 business days of receipt. This requires us to fax the application to the IRS with our address and as the third party designee. It is a different process as a foreign individual or foreign enitty which involves calling the IRS.
Forming a U.S. entity will trigger U.S. tax returns required for your
business. This may include both a federal return, such as
a 1065 for an LLC taxed as a partnership, and a 1040NR on
the partners (if individuals) or 1120F or 1065 if a foreign
corporation or partnership is the owner of the U.S. entity (along with IRS forms 5472 and 8833).
There are several other reporting and U.S. tax filings requirements*.
As a client of NCPs you will receive timely emails throughout
the year to remind you of the U.S. tax requirements and
a referral to the U.S. CPA firm we work with to make sure
you are compliant with U.S. taxes and your countries tax
*U.S. Federal Taxes Due when a U.S. Entity is Owned by a
Foreign Entity or Individual
There are two categories the U.S. entity and situation may
1. ECI (Effectively Connected Income)
is defined as income from sources within the U.S. connected
with a foreign person’s conduct of a trade or business
in the U.S. ECI is taxed on a net basis after deductions
for allocable expenses at regular U.S. income tax rates,
2. FDAP: fixed or determinable annual
or periodical income is subject to withholding at a 30%
flat rate. This is a FLAT TAX on GROSS INCOME (with NO deductions
that come into play). This is designed for a U.S. entity
that is involved in a “holding” or “passive”
type activity in the U.S.
A regular C corporation would have its own federal tax
rates. A single member LLC disregarded for tax purposes
or a sole proprietorship would be required to file estimated
quarterly taxes but there is no withholding. Working with
tax professionals in the U.S. is highly recommended who
have experience with non-U.S. clients.
Sales Tax for E-commerce sellers: Since the 2018 Wayfair vs South Dakota U.S. Supreme Court Case, e-commerce sellers need to track both physical and e-conomic nexus to know when to collect and remit sales tax. NCP sister brand, Sales Tax System, has filed thousands of sales tax registrations for e-commerce sellers since 2015.
U.S. Entity Formation Key Points
We’ve talked to literally hundreds of international business owners over the past 22 years. If there’s one thing I’ve learned, beyond the shadow of a doubt, from those who have needlessly poured money down bottomless tax or expense holes after being sued and from those whose businesses have failed, it’s this:
NOT ONE was excited over the few bucks they saved by using a low cost incorporator -- or worse, flying solo -- to incorporate or establish a U.S. Entity for their business.
Years and untold dollars later, they sorely regret the hard work, stress, and many, many lost hours of time with family and friends -- consumed instead dealing with lawyers, bankers, accountants and creditors, while picking up the pieces of the wreckage from a devastating lawsuit or bankruptcy.
All those losses could have been prevented by proper planning with the right company to support them. All those losses were the indirect and sometimes direct result of “penny-wise, pound foolish” thinking. They’ve learned (the hard way) the value of having a company like NCP to be at their side, constantly guarding against missteps and roadblocks.
I hear the same basic horror stories told over and over again. And while I’d never say “I told you so,” I’ve learned from them as well. Let me share with you the factors you MUST consider BEFORE | DURING | AFTER and costly mistakes they’ve made during the process of establishing a U.S. Entity.
When investing in any services, you want to get what you pay for, maximize your investment, not get more than you need, and not find out after it is too late that you purchased a “tripwire” get-you-in-the-door package that was low-priced and causes you a lot of serious issues months or years from now (from issues with your bank account being closed in the middle of your next big promotion to U.S. federal or state tax notices or, even worse, a lawsuit, and come to find out you had ZERO protection.
Below is a 2-minute preview of our 43-minute video helping you determine which state and entity is best. You will gain full access to the training when you sign up with one of our packages below:
You (rightfully so) may have thought or read that a U.S. LLC is a U.S. LLC (or corporation); “How complex could this be? Therefore, let me find the lowest-cost service for what I need to process merchant payments, provide a legal entity separate from my home country, open a U.S. bank account…
This is all a reasonable process, and no one really laid out the connecting points until now.
Here is the list of factors (basic and advanced) that go into before | during | after forming a U.S. company:
- Which State is Best and Factors to Consider
- Level of protection of entity veil
- Level of protection of managers or directors
- Level of Privacy (if Required)
- Ease of Operation vs Protection Offer
- Jurisdiction Advantage for Business
- Raise Capital/Investors
- Geographic location
- Time frame to file
- State filing fees
- Which Entity is Best and Factors to Consider
- Taxation of U.S entity
- U.S. tax responsibilities
- Getting money to home country
- U.S. and Home Country Tax results
- U.S. address create a Permanent Establishment or Not
- U.S. Tax Treaty
- Tax Treaty factors
- No Tax Treaty
- U.S. Tax Return Required
- Different Options for LLC Taxation
- Different LLC Operating Agreements
- Matching Operating Agreements with Taxation Type
- Manager or Director of Entity vs Ownership of U.S. Entity
- Number of owners/partners
- 2018 U.S. Tax Law Changes
- Partners or not
- Ownership Options for managers (Banking implications)
- State fees
- Timing Frame to Form
- Time frame to determine best entity and state
- State of Formation (Expedited Options)
- Need entity formatted and EIN
- EIN time frame with U.S. address vs foreign address
- U.S. Banking
- Travel time
- EIN ready (don’t form a week before coming to an event)
- U.S. Merchant Account
- Even possible
- Underwriting time frame
- U.S address agreement of Mail Service Agreement
- State Fees to be paid
- Mail deposit
- Managers or Officers Names
- Best address
- IRS Start Date for EIN
- Signer for SS4 for EIN
- EIN time frame and follow up
- Filing Time Frame
- Correct Operating Agreement if LLC
- Shared Files Options
- Corporate or LLC formalities
- Document delivery
- U.S. banking options
- Documents required
- Personal ID
- Address check
- Time and forms
- Debit Card Process
- U.S. travel
- Transition from foreign individual or entity to U.S. Entity
- Merchant Account (if required)
- Sale Tax Nexus
- Sale Tax Permit Process
- Time frame to apply
- Collect and Remitting Sale Tax
- Foreign Qualification
- Capitalization and issuing stock or membership interests for ownership
- State Tax Reports
- State Tax Returns
- Federal Tax Returns
- Corporate or LLC formalities
- Accounting Options
As you are able to see, there is much more to forming a U.S. entity than just filing articles with a company online, grabbing a U.S. address service, and getting an EIN for $500 (a common “tripwire” price to get you in the door. Most of the time, this leads to unforeseen problems from 3 months to 2-3 years down the road.
What is different with NCP is we ONLY do a COMPLETE U.S. FORMATION and either have training, checklists or resources that covers ALL three phases of U.S. Formation, Before | During | After formation.
Doing business in the U.S. is one of the best opportunities to grow, especially if you are operating online. The U.S. has the largest online consumer market in the world! The key is to develop trust with a legitimate U.S. company.
Our goal is to work with you to help you avoid these costly mistakes and to be successful in the U.S. If you still need support, here is a review of our packages and process:
Our Complete U.S. LLC/Corporation Formation Packages:
On page 4 is a review of the packages we covered and there is a video link review of our process and links to invest online.
Once you get started, you will have immediate access to our video training on which state and entity is best for you. You will also have access to our webinar replay with our U.S. tax attorney on U.S. tax responsibilities.
Get Started Now with our Complete Nevada U.S. Entity Package (state fees are separate).
Get Started Now with our Complete Wyoming U.S. Entity Package (state fees are separate).
Here is a review of the process to establish a complete U.S. company:
- Select a Package
- Schedule next appointment to review which state and entity is best
- We send you an email to verify your information
- Process to customer service for processing
- Entity filed within 3-7 business days, record book in another 5-7 business days, EIN 5-10 business days, Bank account details are sent to you to let us know when you would like to travel to the U.S. to establish your account.
- Ncpmembers.com with online videos on record book and training
- Email questions to customer service
- Videos on every form to make it simple
- Launch with Confidence checklists
- Referral partners for legal, tax, immigration....support.
Here are what other international entrepreneurs have said about their experience working with NCP (and others in the U.S. too):http://www.nvinc.com/testimonials.htm
Questions? Send us an email to firstname.lastname@example.org or call us at 001-702-367-7373.
U.S. Customer Service Support
As a client of NCP's, you will have full access to our
support team.. Plus you will
have access to our ncpmembers.com filled with recorded
training to help you with your common questions, including
U.S. taxes, payroll, immigration and others. You will receive
a fast start checklist to keep you on track and our team
will walk you through the entire record book to complete
the necessary forms and documents.
You will also have access to online training videos to guide you through the entire record book online. NCP offers other strategy sessions, sales tax compliance, and tax resources to help you Launch Your U.S. Business with Confidence!
Three Costly Mistakes to Avoid When Establishing
Your U.S. Company
1. Blowing Your One Chance at Setting up a U.S. Merchant Account! Most banks or merchant account providers will NOT open up a U.S. Merchant Account for a U.S. company that is 100% foreign owned. Why? No recourse. Some banks may set it up but they require a large hold-back of your sales to keep as a safety net. If you attempt to set up your merchant account and fail, it will show up as a bad mark in the merchant account data base. When you go to get it done right, you may have blown your only chance because the next merchant account company will know you already failed to set up a merchant account.
2. Inconsistency in Your U.S. Company Set-Up! This happens when someone will set up a corporation in one state, a bank account in another state and a mail forwarding program only with a virtual U.S. phone number. You may get your bank account set up, but this will back fire when it comes to developing trust in the U.S. market. Only having a U.S. P.O. Box as your U.S. address sends a strong message to the U.S. consumer that you are a flake or you are attempting to hide something. Trust is the name of the game...don't get cheap to save a few dollars and lose out on sales and joint ventures because of it!
3. Costly Tax Mistakes with the U.S. Internal Revenue Service (IRS). There are many pitfalls and hidden land mines that can cause you a lot of damage with your U.S. company if you do not have all the facts up front. You must know which entity is best and the U.S. tax ramifications if the entity is taxed as a C corporation vs. an LLC. Both have very different U.S. tax structures. You must have an ITIN number and an EIN number. You must file the proper tax returns the following year. Setting up your company in the wrong state may cause you to pay an extra 5-8% of unnecessary state taxes. An LLC can be taxed in different methods; one will result in a flat 30% withholding tax on all profits before they flow back to you in your home country. If you are planning to expense out profits to your home country, you must be familiar with IRS form 5472 with the IRS (missing this form may create a $10K penalty for you)! Having the IRS auditing your U.S. company can be a fast way to go out of business with penalties and interest!
CAUTION: Online companies may make this appear to be simple. Meaning, very few steps for a low price. You do not want surprises, especially when you are not based in the United States. NCP's goal is to remove surprises and provide the support you need!
Make it easy on yourself - team up with the most efficient entity formation/business support partners in the world. If you are outside the U.S. call us at 001-702-367-7373 or e-mail us with your complete contact information at: support@IncorporateWithConfidence.com.
Once we receive your contact information we are able to speak to you through Skype® . You'll be very glad you did. Fill our the information for more information.
*Nevada State business license does have a few exceptions.
** Keep in mind that most companies will not choose the Nevada Office Package. Most will need to foreign register or qualify to do business in their home state.
***Keep in mind that you must have an operating business in Nevada to qualify for this service.