Every year, nearly two million LLC and Corporation are established in the United States. Many of them are created by foreigners, tempted by some states’ ability to create entities that are not liable to pay US income tax, have almost no reporting obligations and are outside the sphere of interest of the local tax authority IRS.
On the other hand, many people company registration in USA from India are not familiar with the specific laws that apply to them, and also do not understand some of the nuances that characterize these companies. The main reason why this is happening is the fact that many people establish companies in the USA via the Internet through local registration agents who, unlike professional law firms, do not present comprehensive legal information about these companies, but are content to present only the positives of this structure.
In In this article, we will try to present both the basic benefits and disadvantages of managing wealth through a company founded in the United States. First, such a company provides the owner with a high level of confidentiality. Very few states collect useful information on the identity of the owners of these companies and some state administrations are content only with illegibly signed reports that do not disclose the company’s assets at all, and indicate a virtual office located anywhere in the world as the address. Secondly, this type of company provides easy access to the US market, which still remains the most stable economy in the world, including the possibility of investing in American banks.
Also, these deposits are very discreet because American financial institutions inform the American tax office, the Internal Revenue Service, only about deposits on which interest is paid to US residents. Since there is no interest payable to US residents on non-resident deposits, their existence is not reported at all in Internal Revenue Service. Information on the holders of these deposits is collected automatically only for residents of Canada with which the United States conduct automatic tax information exchange.
Best Option as the Company
LLC is a synthesis of the best features of capital and personal companies. Like a capital company, LLC has a legal personality independent of its owners, so that owners and managers are not personally responsible for the debts and obligations of that company. However, like a partnership, an LLC is a tax transparent company, which allows it not to pay its own income tax (unless it chooses to tax at the company level). Its revenues are attributed directly to partners, which allows avoiding the effect of double taxation of the profit spun off from companies, characteristic of classic capital companies (as a rule, in the case of a classic capital company, the income is subject to corporate income tax and – for the second time – tax on payments dividend partners). LLC tax transparency brings even greater benefits when the sole shareholder of a sole proprietorship LLC is a non-resident of the United States. CFO services for small business handle all the financial work for your company.
LLC tax transparency brings even greater benefits when the sole shareholder of a sole proprietorship LLC is a non-resident of the United States. In the event that the LLC generates income only outside the United States and the sole shareholder of the company is not resident in the United States for tax purposes, its tax transparency means in practice that the LLC does not pay any income tax in the United States.
