At first instance, the thought of forming a company in the US as a non-resident may seem daunting. However, you don’t have to be a citizen, reside or be physically present in the US to register a company there. With the right partner like Norebase, you can successfully run a company from any part of the world in the US. In this article, we compiled some FAQs for non-resident US company registration.
FAQs for Non-residents Registering a Business in Delaware.
Delaware is one of the most welcoming states to foreigners in the US. Because of its favourable economic policies, it has become a point of attraction to foreign entrepreneurs.
Listed below are some common questions asked for non-resident US company registration.
What is EIN, and why do I need It?
EIN is short for Employer Identification Number. An EIN is necessary to conduct business in the US, open bank accounts, hire employees, etc. Additionally, it is required to file and pay taxes as a company. Foreigners do not need a social security number or ITIN to apply for EIN. However, you can do so with your passport or any government-issued ID.
Can you Convert An LLC to a C-Corp?
If you initially registered your company as a Delaware LLC, you can do a statutory conversion to C-Corp. To achieve this, you will file a certificate of conversion and then a certificate of incorporation at the Delaware Division of Corporation.
Can a CEO double as the president and CFO in Delaware incorporation?
Yes, one foreigner who is the CEO can act as president and Chief Financial Officer in a Delaware corporation. In many cases, especially at the company’s inception, one person can comprise an entire Delaware corporation.
What are the documents I will need to incorporate a Delaware C-Corp?
After reserving a name, you must file a certificate of incorporation with Delaware’s secretary of state to incorporate a C-corp in Delaware. Additionally, you will need a registered agent to facilitate the process. An EIN is also necessary in tax filing and payment.
What are the tax implications of setting up in the US when one is a resident of Nigeria?
In Delaware, there are tax requirements for non-residents specific to both LLC and C-corp. You will only be taxed for all US-sourced incomes for a foreigner living in Nigeria with a registered Delaware LLC in the US. Simply put, you only pay taxes if your members are residents and working in the US. If the reverse is the case, then taxation is avoided. On the other hand, for a Delaware C-corporation, the tax is removed from the total earnings whether they are US sourced or not.
What are the types of incorporation one can do in the US?
As a foreigner non-resident in the US, you can either register your company as a Limited Liability Company or as a C-Corporation. Upon registering, you will be given a certificate of organization for Delaware LLC and a certificate of incorporation for Delaware C-Corp.
How do I open a business bank account in the US?
After successfully registering your company, you can open a business account in the US. Although opening a bank account may be stressful if you’re not physically present, With Norebase, you can get a USD bank account from anywhere. All you have to do is provide the needed documents. These requirements may vary from bank to bank, but the essentials are the Certificate of incorporation or Organization and EIN. The bank will specify other needed documents.
How do I maintain compliance for my company?
After registering your company in Delaware, it is essential to maintain their annual corporate compliance and keep up with the requirements. Failure to do this may attract penalties or, in some cases, outright company closure. The essential requirements for compliance are; maintaining a registered agent, franchise tax, and an annual report.
Do I need a physical address to incorporate in Delaware?
As earlier established, you don’t need to be a resident of the US to register a company. However, you need a physical address registered with your company to receive mail. Therefore, your agent will often provide you with a virtual office address or act as a mail forwarding service on your behalf.
How long does it take to register a company in Delaware?
With a dependable agent like Norebase assisting you, you can get your certificate of incorporation or organization within 5 to 7 working days. Check here for more information.
Having examined these FAQs for non-resident US company registration, you can agree that the process is pretty straightforward. With Norebase, you can rest easy knowing everything will be sorted.
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