General Questions

Yes, you can register a company in the US from India.

LLC and C-Corp are the two structures for the foreign national non-US residents to choose from.

In general, there are 5 types of company structures that are recognized by the IRS in the US:

• Sole Proprietorship
• Partnership
• LLC
• S Corp
• C Corp

It is hard to say which one is better. C-Corp is taxed as a separate entity. LLC, on the other hand, is not taxed as a separate entity and that means that the income from LLC will pass through to the owners. For small businesses, LLC is preferred.

C Corp is a more formal, standardized, and stiff structure than an LLC. Both reporting and record-keeping requirements are more strict in C-Corp than in LLC. C-Corp is often the preferred incorporation choice for developing a business since owners are not responsible for business debts and liabilities. It is preferred by startups interested in raising venture funds for their business.

If you form an LLC, you have fewer state-imposed obligations. LLC is a simpler structure to manage which means that LLC offers greater flexibility in running the business. Taxwise, LLCs have more options than corporations. Meeting notes are not required by law.

If you form an LLC then you, as a beneficiary or owner, may have to report your global income in the US whereas in a C Corp you report the income that you have under this corporation, and you're not exposed to report everything else that you have in your country of residence like India.

Cost depends on whether you have a partner in the US or not. If a US resident, with a Social Security number or ITIN, is your partner, the cost of opening a company in the US is lower.

Generally speaking, the cost can very well depend on the expert's (CPA) experience, approach (one-on-one personalized manner) to guide better business structure decisions, and, of course, on all the registrations you obtain including Federal Tax ID, State registration, Tax & Labor registration.

Every business is unique in its functioning and its growth plan. You may be selling services, like IT or staffing, or you may be selling products via e-commerce marketplaces like Amazon or Walmart. If you are not sure about which structure (C-Corp or LLC) is good for your business then you certainly may require an expert's guidance. If you require to understand a) why a particulate structure is better for your business and that helps you further expand and scale your business in the US, b) how the tax structure will work, etc., then the cost of company formation in the US will get around $1,200.

Yes, non-US resident foreign citizens or foreign companies can open a company in the US as a single-person owner.

The following are the items required for starting up company in the US from India:

• Two picture IDs for each owner or shareholder
• Owner or shareholder's full legal name
• Address for each owner or shareholder
• Percentage of ownership for each owner or shareholder
• Name of business
• Address for the business
• Purpose of the business

Yes, Indian firms are allowed to buy assets in the US once they are registered with State and Federal governments in the US. The first step in the process is to register your business in the US.

Yes, you can work from India in any capacity in your company in the US. But, this does not mean that you can travel to the US because you have a company here.

However, once your business grows you can apply for L-1 Visa after fulfilling certain requirements. In case you get an L-1 visa, you can stay in the US and also apply for your Green-card through your own company.

You don't have to register a company in every state. You register a company in the US where you have nexus. Nexus can be created by having a client in that state, having a location in that state, or having some sort of vendor/supply chain in that state. So, most companies in the US will register in only one state unless needed to register in another state.

Every state may offer different benefits or may have different tax formalities. The way you should decide the State for your company formation is where you will have 'nexus' like where you have company relationships (for example - your partner), company office, warehouse, or employees.

Let us say, for example, New Jersey is the state where the taxes are lower than New York and you decide to register your business in New Jersey. But you end up doing business in New York or you get clients in New York. Now, in this example, you will end up filing the taxes in New Jersey and as well as in New York because now you have 'nexus' there.

So it will be simpler, easier and more streamlined to register your business in the state where you will be doing the business.

No, you don't require a lawyer for starting a company in the US.

Generally, there are no restrictions on foreign ownership in a US-based LLC or a Corporation. The procedure for a foreign citizen to form a company or become a partner in a US-based firm is the same as for a US resident. It is not necessary to be a US citizen or to have a green card to own a corporation or LLC. However, to add a foreign-resident partner with a US company, the requirements are a) two picture IDs (e.g. Driving License, passport copy), & b) the percentage of ownership to make such changes with the state and the federal government.

Yes, establishing a branch office in the United States means establishing a company in the United States that is owned by the company in India, which can be an LLC or a C-corp. The main distinction between the two is how operations can be funded and the ownership structure. A subsidiary is a separate legal entity, whereas a branch is a division of the parent company. A branch office concept is applicable only when you already have a company in US in one state, and then you want to have the same company having a branch in the other state, then you are allowed to use the same EIN that you have received with the company incorporation in the first state.