Before forming an llc in the USA or making a business plan abroad, there are many unanswered questions in mind. In this guide, I will include frequently asked questions (FAQ) and the answers you can get to these questions.
Frequently Asked Questions (FAQ)
Anyone can form a corporation as an alien who does not live or reside in the United States. Anyone can start an llc in the United States, except those residing in restricted countries (Cuba, Iran, North Korea, and Syria).
In the USA, you can form LLC or C-Corporation type companies, but you cannot form an S-Corporation type company, you must be a citizen for this.
When establishing a company in the USA, you must provide an address. The address may also be an address where you can receive physical mail. It can be a virtual address or virtual office. This address does not have to be in the state where you established the company. (The situation may be different in some states. Please, if you are going to establish a company in a state other than Kentucky, Wyoming, Delaware, New Mexico, Northwest Registered Agent because this agency allows establishment in each state with its own addresses)
LLC stands for Limited Liability Company. LLC stands for “Limited Liability Company”. In our language, it can be translated as limited liability company.
A Limited Liability Company also called an LLC , is a legal business structure that protects the personal assets of its owners (a home, car, real estate, property, or your personal bank accounts) in the event your company is sued by others.
An LLC is usually formed for the purpose of operating a business. The same person can own more than one LLC. At the same time, an LLC can also be used to obtain asset ownership. Examples of asset ownership include purchasing real estate, a car, a boat, a yacht or an airplane.
C-Corporation is a type of company that can be formed remotely without being a US citizen. In the C-Corporation company type, shareholders must pay taxes at the individual and company levels. This type of company has different taxation models at the federal level and the established state level. C-corp type company can be preferred for more serious projects, for example, if you have a business model that will be valued in the future and that you plan to invest in, you can choose C-corp. If you do not have such a situation, LLC is the best choice.
A normal US citizen forming an LLC type company in the state where he/she is located under normal circumstances provides some advantages for him/her. Since this is where he lives, he has legal obligations.
Since the important thing here is to minimize the expenses for the entrepreneur along with the tax advantage, the most preferred states to establish a company Kentucky , Delaware , New Mexico and Wyoming .
Kentucky, which is a foreigner-friendly state with low annual costs, can be a very good choice. at the guide to establishing a company in Kentucky here .
When you decide to form an LLC company in Usa, there are some filing fees depending on the states where the formment will take place. These filing fees are divided into two:
- One-time filing fee paid during installation
- Filing fees to be paid to the state in the next year following the formment and every year thereafter (called Franchise tax)
The costs of establishing a company in the USA vary depending on the states and the Registered Agent company you choose . You can access the costs by state from this guide
Authorized representatives who will undertake your work on your behalf to form an llc remotely in the USA are Registered Agents.
LLC company remotely in America, it is mandatory to work with a Registered Agent. Because if you are not an American citizen, no one will know you there, nobody will contact you, and there is no such thing as contacting you anyway, because the state has licensed and authorized these representative offices for such practices.
You must also maintain your connection with a Registered Agent after installation.
The fact that the company is reliable and has old roots, and that its annual costs are affordable are a few important factors to consider when choosing.
Some of the companies that I will recommend to you and where many companies have been successfully formed through these Agents:
If you do not exceed the annual limits and transaction thresholds of the states in which you sell, you do not have to collect taxes as a foreign LLC. Annual limits on a state basis are sufficient for an entrepreneur.
For a list of state-by-state transaction and turnover limits and steps to follow once the limits are exceeded, you can check out Limits by US State for Foreigners
If you exceed the limits, you need to collect sales tax from your customers and transfer this tax to the state. Here, as a trader, you act as an intermediary who collects taxes from customers. To declare this, you can easily have these declarations made by contracting with an accounting company in the USA.
There are many different types of taxation models in the United States. The situation becomes different when a foreign company factor is involved. Since there is a mutual tax agreement between Turkey and the USA, if you do not have a real estate property or a branch or a physical connection there, you will not pay the income you earn from e-commerce to the US government. Because you (speaking for online commerce) earn the income in your own country, the money flows to the country you are in, so you pay your income tax to the country you are in. To do this, you must make an agreement with a tax expert in Turkey, declare the income you earn in the USA and pay your taxes here.
By the way, some expenses can be deducted from taxes by an expert accountant. I recommend that you talk about this issue in detail with your accountant.
Note: If you do not declare your taxes here, you may be followed by a bank or tax inspector in the future, depending on the amount of money you transfer. It may not attract attention unless you have very large turnover, but as your business increases, it is the best option to deduct your expenses and pay your taxes instead of avoiding and fearing taxes.
As mentioned before, you don't have to collect sales tax from your customers unless you exceed state limits There is no 18% general tax rate as in TR.
a list of state-by-state sales tax rates in this guide I prepared . It should not be forgotten that these rates are updated by the states from time to time and these rates should be followed.
EIN is the abbreviation of Employer Identification Number and can be translated into Turkish as "Federal Employer Identification Number" or "Federal Tax Identification Number". The EIN is issued by the IRS. IRS is the National Tax Office of the USA and is the authorized institution for all tax-related transactions.
Why is EIN Required?
An EIN is like a tax identification number for your business (LLC). The IRS will use this nine-digit number to identify your business in tax purposes. required when opening bank account in the US A business that does not have this number cannot open a bank account. In addition, payment gateways such as Stripe
In short, after forming an LLC company in the USA, you cannot do anything without this number. That's why it's essential to request this number from the IRS.
It is a separate certification required by foreign parties to the 1961 Hague Convention (most US allies) that proves the validity of a signature on a US document (including your certificate of incorporation). Apostille is the document that allows and authorizes a foreign country to use these documents on its own territory. If you are not going to use a document in the USA in Turkey, it is not a necessary document. In short, if the US document is not Apostille, it is not valid in any other country.
To keep your company in good standing and operating, you must pay the annual franchise fee and maintain your affiliation with the Registered Agent each year.
This cost varies depending on the state's fixed installation fees and the registered agent you choose. For the cheapest method of establishing a company in America as of this date, on Establishing a Company in America with Inc Authority . You can set up your company in a few days for between $100 and $150, including all expenses.
It does not take too long, it may take between 3 and 7.8 days depending on the density of the state. The quick action of the registered agent you choose here will also shorten the installation time considerably. your company with Inc Authority, the installation will be completed in a maximum of 7 days and your documents will be delivered to you.
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