How can a Non US Resident register a company in USA?
Generally, A Non US Resident who wants to open either a domestic company or a branch office in the USA have following questions:
Do I need an sponsor or a middleman to set up company in the USA?
The secretary of state and the division of taxation and finance do not distinguish between a US resident or Non Resident to transact business in the US which motivates to a foreign investor to do business in the USA. The only distinction is in time; generally the Internal Revenue Service process the employer identification number same day, whereas a Non US Resident SS4 form process manually and it takes five to seven working days before the Internal Revenue Service issue EIN for a Non US Resident.
Can A Non US Resident open a bank account without being here or someone can open a bank account on his/her behalf?
Most banks want company owner/owners must present at the bank to open a bank account or otherwise authorize to someone but it all depends on each bank policy. Banks also require a physical place of business where the business will be conducted and most banks do not accept the virtual office and registered agent address to open a bank account.
Social security number is required to open a company and bank account?
No, it is not applicable for a Non USA Resident either to open bank account or registering a company.
Does the USA have any Tax Free State to avoid paying USA taxes?
There is no tax, free state in the USA.
How can a Non US Resident gets An Individual Taxpayer Identification Number (ITIN)?
A Non US Taxpayer files a Form W-7 along with the income tax returns to get ITIN and generally the Internal Revenue Service takes a couple of months to process an ITIN application
Does physical address require to open a company in the USA?
Yes, the secretary of state does not allow PO Box or a foreign address to register a company in the USA.
What is the purpose of a Registered Agent and who can serve?
A US citizen or a company which is registered with the secretary of state serve a registered agent. The registered agent is required to transact business and one can serve him/herself a registered agent if he/she is a US citizen and live in the state where the business is being conducted.
Do I have to register company in every state if transacting business?
- One needs to register business in each state if physically involved. For example; if you have employees in that state or a physical office/store.
- It is not required to register company in each state if there is not a physical presence.
How does a Non US Resident file income tax?
A person who conducts business as a non US resident file income tax based on the residency. For example; A Chinese resident opens a company in New York but lives in China. End of the year, Chinese resident will file a form 1040NR to report income to the Internal Revenue Service.Additionally, a Chinese resident is not allowed to apply the tax credit without a valid social security number like a US resident or citizen does. A Chinese resident also does not do funding in social security due to the Non US Resident status.
Can a Non US Resident extract or pull the salary for him/herself?
Yes, A non US alien can withdraw salary from the company, but some special rules are applied by the Internal Revue Service, which are defined in Chapter 9 of Publication 15 (Circular E) and Publication 515, Withholding Taxes for Nonresident Aliens.
Other Tips To Maintain Company in the USA As A Non US Resident:
- File annual report/franchise reports each year to operate a business under an active company.
- File sales tax and payroll tax on time if applicable.
- File business and income tax return on time to avoid complications.
Roberta Breeden
6th Jan 2010
I just got inc. but I am not an S-Corp. I still have to get a new ein # and how do I add on S-Corp. to my Inc
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