First Things to Do After Forming an LLC Company

Once your EIN number is assigned, your company can now officially begin business operations.

There will be some useful accounts that you will need to open after installation in order to do E-commerce in global markets with your LLC company.

Let's list these with the links to the step-by-step guides we have previously created;

1. Open a bank account: Opening a Bank Account in America
2. Open a Stripe (Virtual Pos) account: Opening a Verified Stripe Account
3. Open a corporate Paypal account for your company: Opening a Paypal Account
4. Open a Wise Corporate account for cheap International money transfers: Opening a Wise Corporate Account

If you follow the 4 points above, you can do almost any type of online business through your new LLC company.

Now that you have completed all the requirements and activated your company, let's talk about what you need to do in the next process.

Making the LLC Company Sustainable

There are a few routine actions you need to take each year to keep an LLC sustainable.

You must implement these procedures one year after forming the company and every year without interruption.

Registered Agent Annual Payments

You must make your registered agent payment on time every year. Registered representatives will send you a notification email when payment is due.

If your registered agent is Northwest, you can log in to your customer panel and pay the annual registered agent invoice they created for you with your credit card.

After making the payment, you do not need to take any further action.

You don't have to pay anything else for your registered agent until at least the next year

Annual reporting and annual payments to your state

If you have formed an LLC in a state where you are required to file an annual report, you must file an annual report and make your payment the year after you form your company (and every recurring year).

You can make this payment online with your credit card on the websites of all US states, including Wyoming and Delaware.

If you formed an LLC company in a state that does not require annual reporting and payment, you do not need to take any action.

For example, there are no requirements for an annual report or payment of a fee for the report for LLCs formed in New Mexico.

Taxation of LLC Companies

There are many articles on our blog about the taxation of LLC companies.

However, it is useful to briefly revisit the issue of taxation for LLCs.

How Is an LLC Taxed?

An LLC qualifies as a disregarded entity by the IRS unless it wishes to be taxed as a corporation.

In this case, the member or members of the LLC will have to pay the tax personally. LLC members pay federal taxes on the income they earn during the year. The LLC owner (member) does not pay state income tax if he does not have a physical location (shop, store, warehouse, physical office) within the state.

In short, we can say that LLCs are taxed this way.

However, as a result of certain criteria, you may not pay taxes as an individual and be exempt from taxes.

How?

This may vary depending on some variations.

If you have a single-member LLC (where you are the only owner and member), your company's source of income and the amount of income are important.

When trading through your LLC company, it is important from which geography your earnings are obtained. effective connected income ( ECI ) in the United States, you will not pay federal taxes.

For example, if you receive payments from your customers outside the USA via Stripe virtual POS through your LLC company, effective linked income ( ECI ) does not occur in the USA.

If your customers are US residents, this may generate ECI for you after a certain level of turnover. In this case, you must pay federal taxes by filing form 1040-NR.

I don't have any effective income from the USA, will I pay tax?

You don't pay, but you must file an activity report with the IRS each year. This report is an activity report known as form 5472. You only report your income and expenses. This is not a tax payment.

This topic is quite comprehensive, so we have a separate guide on the subject on our blog.

The LLC Tax Guide for Non-US Residents guide contains a lot of information that will clarify your situation.