Starting a Company in the U.S. and Work Authorization Options

Curated by WorkingFromHome

This article is an excerpt from the original article found in the Read More link – please follow for full article.

Opinions expressed by Entrepreneur contributors are their own.

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.

The next natural step in the business plans of many foreign nationals and companies is to expand their operations to the United States by setting up a legal entity in order to avail themselves of the benefits of the U.S. market. Fortunately for foreign nationals, setting up a company in the United States does not require citizenship and therefore they are permitted to incorporate a business in the U.S. There are various reasons why non-U.S. citizens choose to set up their companies in the United States, including, but not limited to, access to stable banking services, the relatively low costs of setting up a company and a higher reputation associated with one set up in the U.S. Additionally, there are a number of key considerations such as the legal entity type to be used for the business, the state in which to incorporate and the requirement for work authorization to be able to manage the business. 

Similar to the corporate laws of many countries that allow for the incorporation of various entity types, the United States’ system also accommodates various types of legal entities, including C-Corporations, S-Corporations, Limited Liability Companies, Partnerships and Sole Proprietorships. In general, foreigners incorporate their U.S. businesses as a Limited Liability Company (LLC) or as a C-Corp; the preference being that these two entity types limit the liability of the owners. In comparison, Partnerships and Sole Proprietorships do not limit personal liability and are therefore not popular choices. It is important to note that S-Corporations are the only entity type that are exclusive to citizens of the U.S. and permanent residents — foreigners are not permitted to choose this entity type.

Related: Choose Your Business Structure

The next consideration for a foreigner is to choose a state in which to register the business. Two states are popular amongst foreigners, Delaware and Wyoming. The reason is that operating a business in these two states is less expensive; there is no income tax (if not carrying out business in the state in which the business is registered), and there is no sales tax (if not carrying out business in the state). 

Last but not least, an important consideration for foreign nationals with U.S. businesses is to obtain the proper work authorization required for the management of the business from within the U.S. Setting up a business and managing it without being physically present in the United States is a possibility for foreign nationals, however, managing the company m

Source: Entrepreneur.com

Read the original here:
Starting a Company in the U.S. and Work Authorization Options

You May Also Like…

Trying to Start a Business and Feeling Lost? 10 Books to Guide You Forward.

Trying to Start a Business and Feeling Lost? 10 Books to Guide You Forward.

When you’re in the startup phase, you can get overwhelmed quickly. Get out of that loop by tapping into the knowledge of these 10 inspirational authors. Opinions expressed by Entrepreneur contributors are their own. You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. Forget about pandemics, recessions and supply chain snags. You want to start a business,

4 Qualities That Could Make You the Next Arlan Hamilton

4 Qualities That Could Make You the Next Arlan Hamilton

Opinions expressed by Entrepreneur contributors are their own. You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media. If you identify as a Black woman and live in the United States, listen up: our cohort is among the fastest-growing demographics for entrepreneurs in America. According to the recent survey Black Entrepreneurs – 2021 Trends, conducted by Guidant Financial and the Small Business Trends Alliance, “…women [make] up 46% of Black entrepreneurs, this group shows one of the highest percentages of female small business owners in any segment – 53% higher than white small business owners.” Meanwhile, an article published this year in the Harvard Business Review, “Black Women Are More Likely to Start a Business than White Men,” stated that fully 17% of Black women are in the process of starting or running new businesses, compared to just 10% of white women and 15% of white men. Who is Arlan…

Working From Home TV …

Tips to enhance your own website…

How to Properly Rename Categories in WordPress (Beginner’s Guide) – Website Tips

How to Properly Rename Categories in WordPress (Beginner’s Guide) – Website Tips

Do you need to rename some categories on your WordPress site? As your site grows, you might need to change the name of some of your categories or merge them with other categories. In this article, we will show you how to properly rename categories in WordPress without affecting your SEO strategies. Why Rename Categories in WordPress? If you’ve recently created a WordPress website, then creating a good organizational structure will make it easier for your visitors to find your content and can help your site rank higher in search engine results pages. That’s why WordPress offers categories and tags. You can learn how to organize your content effectively in our guide on best practices for categories and tags. As you add more content, you may wish to improve the way you organize your posts, and you may decide to rename some of your categories. Let’s have a look at…

How to Clear Your Cache in WordPress (Step by Step) – Website Tips

How to Clear Your Cache in WordPress (Step by Step) – Website Tips

Recently, one of our readers asked us how to clear cache in WordPress? Your web browser, hosting server, and caching plugins can all serve cached content which can make it difficult for you to see the changes you made to your website right away. Clearing your WordPress cache is also the first troubleshooting advice that you’ll often hear. In this article, we will show you how to properly clear the cache in WordPress. We’ll cover browser cache, web hosting cache, and top WordPress caching plugins in this guide. What is Caching in WordPress? Caching solutions will store static versions of your website in a cache. This allows WordPress to skip running heavier PHP scripts every time your site loads. The caching process helps to improve WordPress speed and performance, and the overall user experience. Here’s an example of what the caching process looks like: There are several different types of…

0 Comments

Submit a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.