If you are considering starting an LLC in the United States, you are making a strategic decision to establish a robust and flexible business. The LLC, or Limited Liability Company, provides its members with the valuable advantage of separating their personal assets from those of the company, thus providing solid security and stability in the face of potential business debts.
When starting an LLC, profits and losses are directly transferred to the members, who must report them on their individual tax returns. An additional benefit is that this type of company is not subject to income tax; it is the members who are responsible for filing and paying the corresponding taxes.
LLCs are distinguished by organizing themselves based on memberships or ownership percentages (Membership interest), and the sale of these percentages is governed by what is established in the Operating Agreement.
A noteworthy feature of LLCs is their lack of restrictions regarding citizenship or nationality, greatly facilitating the process of establishing the business. Basic requirements include a identification document from the country of residence, a physical address in the state of formation, the availability of the company name, and the convenience of having at least one partner with a valid American visa to facilitate the opening of a bank account.
Remember that once your company is established, you can initiate the opening of bank accounts in the United States, allowing you to receive income from anywhere in the world. This will provide you with access to business opportunities and bids that are often closed to Latin American entrepreneurs.
In addition, U.S. companies are taxed only on the net profits of the business, unlike most Latin American countries that tax the income generated, regardless of margins. If you want to learn more about what an LLC is, we invite you to read our related article here.
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The creation of a Limited Liability Company (LLC) in the United States is a process open to individuals from all over the world. To initiate this process, it is essential to comply with certain requirements that ensure the validity and legality of the LLC. Two fundamental aspects to consider are the identification document and the physical address in the state of incorporation.
The first key requirement is an identification document, which can be a DNI or passport from the country of residence. This inclusivity allows for the participation of non-resident individuals in the United States, facilitating the formation of an LLC on a global basis.
A physical address in the state of incorporation is crucial. Not only does it serve as the official location of the company, but it also acts as the point of receipt of notices and documents at both the state and federal level. This address is vital for maintaining communication with authorities and ensuring regulatory compliance.
The distinction between a Disregarded LLC and a Partnership LLC is crucial and depends on the number of members involved in the creation process.
If there is only one member, the LLC will be classified as "Disregarded". This implies that, from a tax point of view, the LLC and the owner are considered a single entity. This approach simplifies tax filing and liability, offering flexibility to the sole proprietor.
When there are two or more members, the legal structure will be an LLC Partnership. This format implies a more extensive collaboration, where members share responsibilities and benefits. Decision making and management of the company are shared among the members, offering a more collaborative dynamic.
In conclusion, the creation of an LLC is an accessible process with fundamental requirements that allow global participation. The distinction between LLC Disregarded and LLC Partnership adds a crucial element, as it defines the structure and operational dynamics of the company, adapting to the specific needs of the entrepreneurs.
The creation of an LLC presents a number of key advantages for entrepreneurs:
The creation of this structure, with these advantages, not only protects members' personal assets, but also offers flexibility, tax benefits and access to international opportunities.
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There are two types of business any foreigner can form
A Limited Liability Company has become one of the most popular business structures for companies in the United States, in which the owners keep their personal assets separate from those of the company, as it limits liability when it comes to the debts of this.
A Corporation (C-Corp) is a type of company managed by a board of directors elected by the shareholders. This type of company can trade shares on the stock market. The commercial debts of the business are separated from the liabilities of the directors, investors, and shareholders.