You can easily set up a company in the US from India with the help of a registered agents like MyCompanyWorks or Inc Authority who will act as a representative for you. You do not need to be in the USA or have a Green Card, Social Security Number or even a partner to be able to form a company in the US.
But first, let’s consider the following important points so that you can define your objectives clearly and know exactly what you want and what is involved before contacting an agent.
What sort of company do you want to form in the USA?
You certainly don’t wanna be the anything goes type of entrepreneur.
Just like every other country, there are different types of companies that can be formed in the USA from India and they include LLC, C-Corp or S-Corp. As a foreigner you cannot form S-Corp since that is restricted only to US citizens, however, you have the liberty to either form an LLC or a C-Corp with the help of a reputable agent like MyCompanyWorks
So which one should you go for as a foreigner? Should you register an LLC or a C-Corp in the US?
A C-Corp is formed and taxed as a separate entity and can be subject to double taxation if profits are distributed to the owners as dividends. This type of company formation is often preferred by established or larger companies that wish to hold separate stock interests or maintain the company’s assets and liabilities independent from the owners.
On the other hand a LLC is perfect for small businesses and is a pass-through entity from taxation point of view. Meaning LLC in the USA represents the owner in the same manner a sole proprietorship or general partnership does, but it is considered to be treated as a C-Corp in the aspect of taxation. It is advisable to start with an LLC then upgrade to C-Corp as your business expands. You can learn more about other free options at Inc Authority
What Are The Reasons For USA Company Formation From India?
- My actual business location will be in India but I want a brand front-end in the US.
- The company will be a subsidiary of your Indian business and you will operate it in the USA
- The company will be a branch or a US office of an Indian firm
No worries! We got the right answers.
Now you know that it is possible to set up a company in the USA from India without ever traveling to the US and you have also learnt the different types of companies that can be formed and where to get a Registered Agent to help you with the registration process for free. You have also defined your core reason or purpose for wanting to set up a company in the USA from India. Now, you have to decide which state or city you would like to register your company.
Your choice for which State or City to register your company will greatly affect your tax rate both in the short and long run. For instance, if you choose to set up your company in the state of Delaware, then your annual tax and fees for the first year could be few hundred Dollars only. However, it quickly becomes very high from the second year when compared to other states. Overall, it is established that New Mexico has the least tax rate in the long and short run, but you also have to consider which State or City will benefit your business the most in terms of revenue.
The Tough Part
You should know that nothing worthy comes easy and this is where most entrepreneurs or companies face lot of headaches. The issue about what documents to prepare or submit for the registration and how to open a USA company bank account without having to travel down there. According to the USA PATRIOT Act, banks must have valid way of knowing who their client is before opening an account for them, and the most effective way banks can do this is to interview you physically in your registered place of business (US Office).
So, to open an account for your newly registered USA Company you may need to travel to the US or even perform other frustrating activities like geting a valid US phone number, looking for a US guarantor or worse case scenario, showing a credit history to be able to open an account.
Thanks to the smart innovations, we now have an online payment provider like Payoneer who will open a US, UK or Canada Bank account for you from the comfort of your home and without any USA address or Social Security Number (I personally have a checking account with Bank of America through Payoneer). Payoneer will accept all payments into your chosen account and will transfer the money to your local (Indian) bank account and also issue a US credit card for you, if you require.
On the other hand, with the help of online company registration agents like Inc Authority and MyCompanyWorks, all your hassles with document preparation and submission for USA company formation will be eliminated without extra cost to you. Simply visit them to learn more about their free and affordable services to get started.
To get a valid US business phone number you can visit MightyCall to view the best options available in the market.
Note: It is imperative that you find a reliable online INSURANCE provider who can protect your brand when needed and also a reputable Accountant (if you go with MyCompanyWorks you won’t need an extra accountant) who knows US international tax laws well enough to help you avoid unnecessary fines and penalties ranging from $10,000 due to failures in filing federal tax returns on schedule.
Before you create a company in the USA from India, you must do your homework and be certain of what you want and what is involved. Avoid taking shortcuts in order to avoid spending money cause you may end up spending much more than you can imagine, sooner or soonest.
So there you have it, how to open a US Company from India. Hope you got value from this article and can easily get started with your US company formation without any more worries. Please help us by sharing this article with your friends and colleagues. Thanks!