Can an Indian Citizen Register a Company in the USA?
Well, the answer is Yes!
- You can start your own company in the U.S. even if you are a non-resident.
- You don't have to be a US resident or visa holder to register a company in the US from India.
Advantages of Starting a Business in the USA
- Easy Market Entry: The USA provides a business-friendly environment with fewer barriers for growth.
- Favorable Regulations: States like Delaware, Nevada, and Wyoming have low taxes and business-friendly rules.
- Global Appeal: Operating in the US biz ecosystem attracts international clients, simplifies payments, and appeals to investors.
- Access to the Largest VC Ecosystem: The US sees $130 billion/year startup investments, while India targets a $30 billion market by 2025.
Which Business Structure to opt for?
LLCs and C-corps are two of the most popular Business Structures in the USA. Let's understand which one suits you the best.
1. LLC
- Opt for Flexibility, Simplicity, and Pass-through Taxation.
- Perfect for Small Businesses, Freelancers, and Startups.
- Enjoy Personal Liability Protection without Complex Formalities.
2. C corp
- Opt for Robust Structure, Scalability, and Potential for Investment.
- Ideal for High-growth Ventures and those Seeking Funding.
- However, get ready for Double Taxation and increased compliance burden.
Pro Tip
- If you are running an online or e-commerce business, choose an LLC for simplicity and adaptability.
- Also, pass-through taxation ensures all income flows into your hands and is taxed in India.
Where to Incorporate?
Delaware and Wyoming are two of the top states to Incorporate your company in the USA due to their favorable regulations, and tax advantages.
In fact, 68% of Fortune 500 companies, including Apple,Google, and Microsoft, are registered in Delaware.
Delaware
- no state income tax
- no inheritance tax on non-residents' stock
- no sales tax on intangible personal property
- corporations not operating within the state don't need a business license.
Wyoming
- no corporate tax
- personal income tax
- Streamlined processes and supportive regulations
- lower annual fees ($60 vs $300 in Delaware),
- low filing fee ($100)
Wyoming is favored for non-resident entrepreneurs running online or e-commerce businesses due to its simplicity, lower fees, and business-friendly env.
Now that we have decided on the form of company and where to start, let's understand the Steps to start a US Company from India.
1. Choose a Unique Business Name. You will need to check availability in your chosen state.
2. Select a Registered Agent in your chosen state.
3. Apply for an employer identification number (EIN). Required for taxes and bank accounts.
4. Get a US Mailing Address. There are a ton of different ways to get a mailing adress that you can remotely operate from India.
5. Get a US Phone Number: Essential for customer support.
6. Open a US Business Bank Account. Find banks supporting non-US residents. Check out Mercury, Relay, Doola.
7. Set Up a US Stripe/PayPal Account.
8. Keep accurate financial records to track income and expenses.
Doing this on your own might seem overwhelming!
If you're looking for a “one-stop-shop” 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, check out doola (@doolaHQ)
Tax Filing and Compliance for Your LLC
Different requirements based on your business structure and engagement:
- Non- Resident Single/Multi-Member LLC - Online Business: Income and expenses flow to your home country's tax return ( taxed in India).
- Non-Resident Single/Multi-Member LLC - Engaged in US Trade: Report income on US federal tax return.
- Non-Resident C-Corp - Online Business: Taxed at 21%, file Form 1120 and 5472.
- Non-Resident C-Corp - Engaged in US Trade: File Form 1120 and report income on Form 1040NR.
How much does it cost to Register a US Company from India?
Depending on the state of registration, entity type, and specific business needs, registration costs can run from as little as $500 to as high as $1700.
But, with Doola, you can register it for as low as $297
Visit the link to register your LLC with Doola
CAclubindia
