FAQ

Answers to what we are asked most often

General information about forming and managing companies in the USA.

Can I form a US company if I don't live in the USA?

Yes. Foreign owners without US residence or citizenship can form a US company. In most cases the process can be completed remotely.

Do I need a US address?

The company must have a registered agent with a physical address in its state of registration. We arrange this service for you.

What is an EIN and do I need one?

An EIN is the company's tax identification number from the IRS. You need it to open a business account and meet tax obligations. It can be obtained even without a Social Security Number (SSN).

What is the difference between an LLC and a corporation?

An LLC is more flexible and simpler to run; a corporation suits companies that plan to take on investors and issue shares. See the comparison table below.

Asset protection

LLCLimited liability for owners (members)

CorporationLimited liability for shareholders

Taxation

LLC“Pass-through” by default — profit is taxed at the owners' level; it can elect to be taxed as a corporation

CorporationThe company pays federal corporate income tax; dividends are also taxed at the shareholder level

Formal requirements

LLCFewer formalities, flexible management

CorporationStricter: board of directors, meetings, records

Investors and shares

LLCOwnership interests are governed by agreement; less common with venture capital

CorporationCan issue shares; the usual choice for startups and investors

Formation documents

LLCArticles of Organization (or Certificate of Formation), Operating Agreement

CorporationCertificate (Articles) of Incorporation, Bylaws

Typically suited to

LLCSmall and mid-sized businesses, freelancers, online shops, consultants

CorporationStartups, growing companies, plans to raise investment

This is a general overview. Tax and legal consequences depend on your specific situation.

Does a US company pay taxes in the USA?

It depends on the company type, the ownership structure and where and from what it earns income. Even companies owned by foreign owners can have information-reporting obligations to the IRS (for example Form 5472). Owners' income taxes are also affected by the rules of their country of tax residency — we recommend consulting a tax adviser.

How long does formation take?

It depends on the state, the company type and how busy the authorities are. The state approves the registration, so we cannot guarantee an exact date; we will give you an estimate at the consultation.

What happens after the company is formed?

The company has recurring obligations — annual reports and fees in the state, a registered agent, and federal tax and information filings. We help you track and meet them.

Is forming a company in the USA legal?

Yes. A US company is a common and lawful form of doing business. What matters is that it is set up properly and that you meet your obligations in the USA and in your country of tax residence.

What documents and details do I need to form a company?

Usually basic personal details (name, address, a copy of an ID document) and your chosen company name, which must be available in the given state. We confirm the exact list based on the company type and state.

Isn't this a “tax haven” or a grey area?

No. US states are part of a transparent legal system, and the company has regular obligations to the state and the IRS. A US company does not mean you do not have to pay taxes — your tax obligations follow the rules of the country where you are tax resident. That is why we recommend discussing the structure with a tax adviser beforehand.

What if I no longer need the company?

A company can be formally dissolved or transferred to another owner. If you simply stop managing it, unpaid fees and obligations may build up, so it is better to deal with closing it in advance.

Which state is best — Wyoming or Delaware?

It depends on your goals. Wyoming is often chosen for LLCs because of low annual costs and simple upkeep. Delaware is the standard for companies planning to take on investors and issue shares, thanks to its predictable corporate law. We will recommend a suitable state based on your business.

Can a US company be used to avoid taxes in my home country?

Not automatically. If you are tax resident in a country, you may be taxed there on income from a US company too, so the structure must comply with the rules of both countries. A US company is a legal form of doing business, not a way to avoid taxes. We recommend discussing it with a tax adviser.

Can I open a business bank account without visiting the USA?

In many cases yes — fintech solutions and banks that allow remote opening are used. Approval is up to the bank and cannot be guaranteed; we help with preparing documents and the process.

Do you also provide legal and tax advice?

We do not provide legal or tax advice directly — these services are provided by our cooperating attorneys, notaries and tax advisers who are authorized to carry them out. We take care of forming and managing the company and coordinating with them.

Will you help me after the company is formed?

Yes. After formation we look after the company's management: the registered agent, annual obligations and deadlines, changes in the company and document records. You are not on your own.

The information is general in nature and does not replace legal or tax advice.

Didn't find your answer?

Write to us with what you'd like to know — we're happy to help.

Contact us

This site uses cookies to ensure core functionality and improve your experience. See our privacy policy for details.