Below we will cover:

Benefits of choosing the US to start your business

The US has one of the best reputations in the world for being business-friendly! The US also has a very competitive corporate tax system and a relatively easy LLC formation system. One of the biggest perks is the low startup costs in comparison to many other countries and the prestige of having a company based out of the US.

One common misconception about creating US companies is that you have to be a US citizen to start one and have a US SSN (Social Security Number).

This is wrong. You don’t have to be a US citizen, be a US resident (i.e. “green card holder”), or have a US SSN.

That means you can start a US LLC as a non-resident, online, as a foreigner and get

One of the biggest benefits of being a non-US resident starting a US LLC is that an LLC is a "pass-through entity", meaning that taxes can pass through to the owners. This means that your business would not be subject to US tax as long as your LLC:

An LLC gives you a business entity to then set up a bank account, take payments, and as the name "limited liability company" might imply, it protects you from "liability!"

"With an LLC, only the assets owned in the name of the LLC are subject to the claims of business creditors, including lawsuits against the business. The personal assets of the LLC members cannot be claimed to satisfy business debts. For most people, this is the most important reason to form an LLC."

You can read more about LLCs in this post from Investopedia: https://www.investopedia.com/terms/l/llc.asp

Here is a full blog post that dives into this topic in much more detail: https://www.unstack.com/blog/llc-vs-c-corp

The best state to form your limited liability company (LLC) in is nearly always your home state. This is because your company is doing business primarily in that state, whether it is a physical business or an online business.

There are two exceptions to this rule:

Some people may also want anonymity in which case Delaware, which does not require owners to list their names, and Wyoming, which allows a "nominee" to list their name as the owner, are what we recommend.

Here is a full blog post that dives in to this topic in much more detail: https://www.doola.com/blog/what-is-the-best-state-to-form-my-llc-in

If you want to get more in the weeds on the differences between Wyoming and Delaware, check out this guide here: https://www.doola.com/blog/wyoming-vs-delaware-llc-the-ultimate-guide-to-decide-where-to-form-your-llc

If you'd like to file on your own in Wyoming or Delaware:

If you're looking for a "one-stop-shop" long-term solution that helps you not only form your LLC but also help you with getting a registered agent, US address, EIN, Phone Number, IRS tax filings and more + serves as a long-term partner, check out doola

There are a ton of different options out there to get a US Mailing Address. Here are a few options:

I'll break this up into a few sections! But if you want to skip ahead and see how long it is currently taking to receive an EIN in real-time check out this page which has real-time updates from the IRS: https://www.doola.com/how-long-will-it-take-to-get-an-ein

In order to apply for an EIN online, the person applying must have a valid Taxpayer Identification Number (SSN or ITIN).

If you don’t have a Social Security Number or Individual Taxpayer Identification Number (which international founders might not have), then you have to mail or fax an application in to get an EIN for your US company.

Check out this website for real-time updates on how long it will take to get an EIN: https://www.doola.comhow-long-will-it-take-to-get-an-ein

If you want to contact the IRS to check on your EIN Application, here are the steps:

You will need your SS-4 form readily available to confirm any information the IRS may ask for.

These acronyms can get pretty confusing so thought it'd be helpful to define them!

EIN stands for Employer Identification Number.

The IRS issues an EIN to a business for tax reporting requirements and you also need an EIN to open a US business bank account once you have opened an LLC.

Check out this blog post here on how to get an EIN!

SSN stands for Social Security Number.

The US SSA (Social Security Administration) issues an SSN in order to identify a US Citizen, Permanent Resident, or Temporary Nonimmigrant Worker

ITIN stands for Individual Taxpayer Identification Number.

The IRS issues an ITIN to people who have a US tax filing (or informational reporting requirement) and are not eligible for an SSN.

Check out this blog post here on how to get an ITIN! Unless you are filing a US tax return OR are trying to set up a US PayPal account, you don't need an ITIN (more on this coming up in how to set up a Stripe / PayPal account).

You will need a US Phone number to apply for a US bank account and to set up your Stripe account (and more). Here are some of the main reasons why a US Phone Number is important to get:

In terms of phone number options, there are many many providers online! A quick Google search can show you a ton of different possibilities.

If you're looking for a Phone line with a utility bill that also has SMS, unlimited international text and calling, and "digital access via a computer" check out: https://www.doola.com/blog/us-phone-number-with-utility-bill-proof

Unfortunately, there are very limited options when it comes to banking in terms of who can support:

You can apply with our partner Mercury Bank, https://doola.com/go/banking

Stripe does not require a US SSN and only requires an EIN + Formation documents.

PayPal does require a US SSN or ITIN in addition to an EIN + Formation documents. Unfortunately, if you do not have a US SSN or ITIN, PayPal is not an option.

This is why Stripe is a much more convenient option!

To open a US Stripe Account you'll need

You should also make sure you are not on Stripe's list of restricted businesses! As long as you don't see your business on the list, there is little reason to believe you won't be able to work with Stripe :) https://stripe.com/restricted-businesses

To read more in full about how to open a US Stripe Account as well as learn more about their exact requirements (as directly told by Stripe) check out: https://www.doola.com/blog/how-to-create-a-us-stripe-account

To create a Business PayPal account, you'll need:

To read more in full about how to open a US PayPal Account as well as learn more about their exact requirements (as directly told by PayPal) check out: https://www.doola.com/blog/how-to-create-a-us-paypal-account

Taxes and IRS filing requirements can be extremely confusing. So below is an overview of the required filings + key deadlines to keep in mind to stay on top of taxes and/or IRS filing requirements for your LLC.

If you own a Foreign Single Member LLC, and you are not considered as “Engaged in US Trade or Business” you are not required to file 1040NR or pay personal income taxes.

As a "Non-Resident Alien" (aka foreigner), you are only required to file and pay taxes in the U.S if you have FDAP income for which withholding was not done at source, or have effectively connected income with US Trade or Business.

However, as of 2017, you still report information like a corporation (see Section 1.6038A-1). Therefore, unless you have registered as a corporation, all single-member LLCs are subject to these requirements. Failure to file or incorrect filing will incur a minimum penalty of $25,000.

Key Filings

Key Dates

Key Filings

Key Dates

No you are not required to do so. But folks sometimes find these forms confusing, or stressful to fill out so working with a professional is always an option to remove some stress here. To read about this in more detail + see an option for professional help check out this guide here: https://www.doola.com/blog/us-tax-filing-requirements-for-my-llc

As mentioned above in Wyoming there is a $50 payment + an annual report due each year to the state and in Delaware there is a $300 annual franchise fee tax.

Both of these can be paid online, directly to the state!