Incorporating in the USA as a Foreigner

Overview

Company incorporation is an important step when establishing your company’s presence in the USA. Incorporation is a business topic that many people do not know much about, however, incorporating in the USA is very easy, even for foreigners. The entire incorporation process consists of filling only a few documents – there are no ID checks, no notarized signatures needed, and it can be done completely online. 

You don’t need to hire an expensive lawyer either. There are companies that specialize in incorporation such as IncParadise. We will help you with filling the documents and walk you through every step like we have for many international clients before you.

Types of corporations

The two main types of companies are a C-Corporation and a LLC. The main difference between these 2 types of corporations is in the way they report taxes and in the amount of paperwork necessary to administer these companies. Both types of companies can be owned by a foreigner.

EIN

Each company has to have its own EIN (Tax ID number) which is received by applying with a SS4 form on which you can choose the type of taxation. There are two ways of taxation – Corporation and Partnership (pass through) taxation. A Corporation is taxed as separate entity which is the best form of taxation for a foreigner.

Bank account

While it’s true that the bank account for your company doesn’t have to be in a US bank, we highly recommend that it be. To open a US bank account, you will have to come personally to the US. 

Registered agent

Every company in the US is required to have registered agent in the state of incorporation. In the case you’re sued, the documents will be sent to your registered agent who will forward these documents to you. This service is also provided by IncParadise and costs $89/year.

Virtual office & mail forwarding

You can use any address for your company but it’s better that you have your own US address. The best choice is a Virtual office or Mail forwarding service - this will enable any mail you receive to be scanned and sent to your online account.

Now let’s look at which states are the best choices for foreigners:
 

Delaware 

If you have big ambitions and are expecting venture capital from investors, incorporation in Delaware is the best fit for you. The main advantages of incorporating in Delaware are C-Corporation stuctures that are a great fit for big companies and a court that specializes in company lawsuits. 
 

Wyoming

Wyoming is, thanks to their ultra-friendly business environment, ultra-low bureaucracy and very low fees, a very popular state for incorporating. Unlike Delaware, it doesn’t have any franchise taxes and has no state corporate income tax.

Conclusion

As you can see, it’s really a very easy and uncomplicated process. Whether you decide to incorporate in Wyoming, in Delaware, or any other state, IncParadise is always here to help and will be with you throgh the entire incorporation process.