Company Registration in USA for Non-Residents: Complete Guide

Navigating the complexities of registering a company in the USA as a non-resident may feel like an intimidating task. However, with the right guidance and knowledge, this task can turn into a seamless process of establishing a company. Whether you’re an entrepreneur or a foreign business looking to expand your footprint, this guide is tailored to shed light on the essentials. From selecting the right state for your business to understanding tax regulations and compliance requirements, we will discuss the common pitfalls that can arise if you are a non-resident trying to register a company in the USA.

Selecting a State to Register a Non-Resident Company

For non-residents looking to establish a company in the United States, the freedom to choose any state for registration is a significant advantage. However, this choice should be made with careful consideration of several factors. While setting up your US company registration, there are two key aspects to think about:

Picking a State for Marketing Purposes

Your business location can have significant implications on your branding. Therefore, depending on the business activity, it is crucial to showcase that your company is located in a particular state for operations. For Example, if you are starting a tech company, it may be important for you to showcase that your company is located in California, or if you are a financial services company, it may be important to showcase that you are in New York. Aligning your state selection with your business’s sector and target market can enhance your company’s appeal to potential clients and partners.

Picking a State for Tax Purposes

The U.S. has several states that are considered tax-free for businesses, meaning they don’t impose a state income tax, but you are still required to pay a federal tax. These tax-advantageous states include- Wyoming, Nevada, Delaware, and New Mexico. However, it is advisable to conduct thorough research to determine which state aligns best when you are registering a company in the USA as a Non-Resident.

EIN Registration for Non-Residents

An Employer Identification Number (“EIN”) is the federal Identification number of your business. It allows you to conduct financial transactions and file taxes. This number is vital for company registration in the USA, particularly for non-residents aiming to establish a company in the USA. If you are a resident of the United States, the process of obtaining this number is straightforward and can be done in as little as 24 hours. However, the process differs for non-residents. Non-residents must apply for an EIN manually through the IRS. This involves faxing your company’s documents and identification to the IRS, which can take up to 7 to 10 business days just to accept the requests.

In this process, the one main challenge is the inefficiency of the IRS’s fax system, often necessitating multiple attempts before successfully obtaining an EIN. In some cases, the IRS may require a more thorough review of the EIN application. Under these circumstances, the process could extend up to 30 days. Unfortunately, there is no way to expedite the process. At BusinessRocket, our team calls the IRS 3 times per week to review all of our files to ensure applications are not missed.

Registered Agent for Non-Resident Owners

In the United States, having a Registered Agent for your LLC or Corporation is a requirement, and this rule applies to everyone. For U.S. residents, it’s simple – they can be their own Registered Agent. However, non-residents don’t have this luxury and often need to hire a commercial registered agent. However, if the non-resident owner has a friend or family member living in the state of formation, they can elect them to act as the Registered Agent of the company, given that person has an actual address in the state of formation.

Business Address for Non-Resident Owners

Having a Registered Agent in your company’s state is one thing, but when it comes to your business address, that’s a different story. The state does not allow the company to use this particular address as the business address of the company. As a non-resident, you generally need to get a virtual address in the state of formation or elect to use their foreign address as the business address of the company. Therefore, if you are in search of experts who can help you in navigating the complex process of LLC registration in the USA, BusinessRocket can help you with that. We work with iPostal1.com to provide addresses in all 50 states to our clients, which start as low as $9.99 per month.

Opening a Bank Account for Non-Resident Owners

In the United States, only a selected number of banks offer the service of opening business checking accounts for businesses with non-resident owners. Most banks require non-resident owners to physically visit the branch and showcase identification documents like a passport. In this chaos, BusinessRocket is here to help you. We are well-versed in this process and collaborate with several banks to facilitate it. Besides, there are certain countries that are sanctioned by the United States, and if the owners hold a passport from those countries, the process of opening a bank account for non-resident owners can be difficult. If your country is among those sanctioned countries, you can create a bank account for your business with several online options, like Payoneer.com or Wise.com.

Moreover, we at BusinessRocket work with Relayfi.com to help our international clients. We handle the submission of the entire application on your behalf, ensuring it is accurately structured for prompt processing. Non-resident owners will need to provide a copy of their passport, bank statement, or utility bill from the origin country, which features the name of the owner along with the specific address being used for mailing to the foreign country.

BusinessRocket Covers it All!

Company registration in the USA for non-residents involves navigating through various procedures, each with its own set of challenges and requirements. That’s why we at BusinessRocket specialize in US company registration for non-residents. Our team works with clients from all around the world who are looking to open a company in the USA while being Non-Resident. From LLC Registration in the USA to Corporation Registration in the USA, we give non-residents a chance to expand their business. 

At our company, non-residents are encouraged to select the Essentials package to ensure they get everything they need to start their business. Priced at $147 plus the applicable state government fee, our package is designed to provide everything necessary to kickstart your business in the USA. Click here to see Real-Time Processing times and Government fees. For the EIN upgrade, non-resident owners can leverage our tailored $79 add-on. In addition, we provide the first-year Registered Agent services for Free and $149 thereafter. Moreover, if you require a business address in the USA, we at BusinessRocket collaborate directly with iPostal1 to secure an address that suits your business needs, even before we begin your application process.