It is one of the best ways for the Indian citizen to manage his business. This corporate vehicle allows access to multiple advantages of an advanced jurisdiction such as the United States and manages to also maintain a low tax rate with very manageable accounting and bureaucracy levels.
In Asia there are many nations that, to avoid problems with the foreign investment corporate, have implemented very strict regulations to which attention must be paid when it intends to open a foreign company.
Jurisdiction in the USA
Incredible but true, the American LLC is much more convenient for those who are not American citizens. These are economic companies to be incorporated and which can be opened in less than a week at ridiculously low prices.
Some of the merits of American jurisdiction are:
- Good international reputation (registering your company in the USA will make you enjoy a high level of trust worldwide)
- Irriding opening costs
- Access to very easy means of payment and banking
- Taxation can also be eliminated
The benefits for non-resident or non-US citizens
For all those who the USA does not hold US residence it can represent a real tax haven. Earnings can go almost completely tax free!
This is because LLC is a defined entity transparent (pass-through) therefore tax obligations are all borne by the members of the LLC which must be included in the personal income statement to be made in the USA.
Therefore, for CLL members not resident in the United States or non-citizens of the latter, there will be no tax to pay.
Open LLC in the USA by residing in India
According to the US tax preparers in India, opening an LLC in the USA from a non-resident is possible and very interesting for save significantly (or totally) on taxes. But this does not mean that you can operate on the Indian market by taking advantage of the US advantages.
Many entrepreneurs, especially in the digital field, believe they can take advantage of the tax advantages of the USA to open their online businesses by continuing to operate in other states, such as India.
It is a crime that is punished with very salty penalties, that’s why I invite you to be very careful before taking any steps and getting advice properly.
If you set up your LLC in the USA by taking advantage of the tax advantages, you will also have to operate and invoice in that market. Otherwise, expect the Indian tax authorities to knock on your door to ask you for compensation for everything you have escaped.
What it is and how to get EIN?
The Employer Identification Number is a unique 9-digit number assigned to your LLC by ’IRS. It is used to tax identify a company and is necessary for the establishment of the business.
You will need to fill in a specific application to obtain the EIN (Module SS-4) and you will need to:
- A trade name
- A commercial address in the USA
- An explanation of the main business and the main product / service you will sell
In short, at this point of reading you will now be clear about the advantages for non-residents of setting up a company in the United States. What must be equally clear to you is that this is not a way to evade the tax authorities and not pay taxes.
Although the USA company registration offers many advantages to foreign activities, it is important to comply with certain requirements and operate in maximum transparency to take advantage of them and not take risks.
