Can a foreigner create a corporation in the US?

Each year thousands of entrepreneurs worldwide start businesses in the US as the country has so far been the most popular destination for startups The most simple answer if thatrsquos what yoursquore looking for is yes In fact most foreign nationals choose to establish a C Corporation as their chosen business structureIn Michigan US Nagabhushanam ldquoBobbyrdquo Peddi TRUiC CEO says that they have helped more than 250K entrepreneurs to start a new business but that foreigners often have a few questions before they get startedDo I need a visaWhile a lot of the rules for making a corporation are the same as for everybody else there are some key differences You do NOT need a visa to start off a business literally anybody can But if you want to work for your own company that is when you would need a visa you are NOT allowed to work without a valid visa unfortunately so make sure you have one you will need to look into thisWhat can I actually formForeigners have a more limited choice when it comes to business structures They can only form an LLC or a C corporationWhy should I form a C corpMiguel de Vega Rodrigo a serial entrepreneur who successfully formed multiple businesses in the US while being a nonresident recommends choosing C corps because they are more scalable can be made public and investors prefer C corps if you would like to be funded The only downside is the double taxation you get with C corpsCorporate shareholders prefer C corps because they qualify for a lower dividend rate so as long as the company doesnrsquot hold real estate corporate parents wonrsquot have to pay capital gains when it sells the US affiliateAs well as this foreigners are saved from IRS Internal Revenue Service scrutiny by having a C corp which is good because most foreigners are very hesitant to put their names on US tax rollsThe reason why many people do not go for a C corp is because of its wellknown double taxation but in many cases tax planners can use salaries pension costs and other expenses to reduce corporate income and get rid of a lot of the double taxationWhat about LLCsIn some cases that depend on particulars of a personrsquos native tax laws a limited partnership may be the most ideal business structure LLCs have attractive tax and legal benefits as well as providing personal liability protection The process for foreigners is very similar to the process for US residents everyone is welcome In an LLC specific details include the fact that partners without management control have limited liability and profits are passed through to the members who are the ones who pay income tax based on their individual tax returnChoose a state to register inUS companies are incorporated at a state level rather than federal Your companyrsquos business should ideally determine where it locates itself You would choose the state in which the service or products you are marketing are popularThe most popular states chosen by foreigners are Delaware and Nevada This is because both states are known as lowburden states It is important to note says Richard Hartnig Schwartz International tax adviser and lawyer that being in these states does not in any way exempt you from business obligations in highcost states like California So you are best off finding a state in which you plan to dominate the market Delaware and Nevada should be second choicesDelaware is highly recommended before Nevada Some of the reasons it is so highly recommended include the fact that you do not need a bank account nor a physical address in Delaware the laws are fair and consistent offering generous protection to you and investors also prefer it because for instance in contrast to California common stockholders cannot block a mergerYes it is possible to run a US company while not even being in the US Your company can be registered online and business formation specialists online can function as registered agents to facilitate the processRegister and obtain an EINRegistering your company is a fairly easy process An EIN is necessary for things like opening a bank account securing a business license obtaining loans etc Opening a US bank account can be tricky because of the Patriot Act but when this is done your business is relatively sortedConclusionMichael Stemley a top US accountant and author says that foreign business owners have a very positive impact on innovation and the economy overall Another reliable source the spokesperson for one nationsrsquo leading property experts also said ldquoYou only have to look at how many successful foreign business owners buy property in the US to appreciate their level of success and impact on our economy That is precisely why the US government created tax incentives to attract them hererdquo So while forming a business being a foreigner is not the easiest thing ever it is very possible as long as you know your various options TRUiC has a more detailed stepbystep plan on how to form a corporationCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updates MidDay is now on Telegram Click here to join our channel middayinfomedialtd and stay updated with the latest newsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever