For many people, the United States is still a place where they can fulfill their “American dream.” The US also has its doors open to companies whose owners are not residents of the US state. You can easily own a company in the USA, but do business from the India. How is the company established in the USA, how does the tax system work and which American states are the best for business?
The system of companies in the USA
The United States allows both onshore and offshore companies to exist. An offshore company, for which legal entities do not pay any income taxes, is undoubtedly ideal for running an American company from the India.
The most common types of companies include INC and LLC, which may be owned by non-residents.
INC (Corporation, C-corp)
An INC company is something like a Indian joint stock company. The main difference between INC and LLC is in the method of taxation. INC also requires regular shareholder meetings. If you want to do business directly in the USA, then INC is a better choice.
LLC (Limited Liability Company)
LLC is similar to a Indian Private limited company. Compared to Incorporated Company in USA, it is less burdened with administrative burdens. Taxation of foreign income is transferred to partners.
Although there is a double taxation ban between the United States and the India, offshore LLCs are subject to withholding tax. For direct sales of goods or services to the India, offshore LLC is not very suitable.
Under certain conditions, companies of this type do not have to keep accounts or file tax returns.
The condition for these benefits, including zero taxation, is that the company does not do business in the US and its income and expenses are from foreign sources.
Register of companies in the USA
The register of companies in the United States is similar to that in the India. The Commercial Register is available online, but the information contained in it varies from country to country. However, basic information should always be traceable.
Establishment of the company in the USA
Establishing an LLC company in the USA is not difficult and time consuming, nor is the presence of a founder required. The conditions vary slightly from country to country, for example in fees or licensing.
Where to start a company?
One of the first steps in setting up an offshore business in the US should be choosing a location. As already mentioned here, the conditions vary slightly from country to country, so it is necessary to choose the most suitable variant.
The most used countries for setting up an offshore company include the following:
- Delaware
- Oregon
- Wyoming
- Nevada
- Arkansas
The necessary address of the company’s registered office can be obtained, for example, through a virtual office or the purchase of a so-called ready-made company, which is ready for immediate use. There is a better option to choose the CFO services for small business.
A virtual office in the USA is ideal for LLC companies whose owners are based in the India and thus do not need to conduct business directly in the United States.
