Creating a U.S. Business Presence

Difference between an incorporation and an LLC

Corporations and LLC's (limited liability company) actually share many of the same characteristics. The most important of which is they both offer limited liability protection to its owners. This means that usually  shareholders can not be held liable for the debts and obligations of the corporation. In other words, you won't have creditors knocking on your door for the debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business. With an LLC, the members are not personally liable for the debts and obligations of the corporation.

Now, there are many important differences between the corporation and LLC but a major one is how they are taxed. An LLC is a pass-through tax entity so there is no double taxation. This means that the taxes are passed through the corporation to the individual tax return, a great benefit for a foreign individual who doesn't have to deal with taxes at the individual level. Any income or losses shown on the company tax return is passed through. 

With a standard corporation, the corporation is completely taxable and therefore corporations pay tax on their earnings. So there can be double taxation because the corporation is taxed as well as individual dividends.

For non U.S. residents the LLC is a great vehicle to do business in the U.S.

U.S. Delaware Incorporations

Welcome to our new blog where you will find lots of information in English and French for non-U.S. residents about the benefits of opening a U.S. company, what an EIN is and what it is used for, opening a corporate bank account, why you should use a U.S. mailing address, and much more.

Upcoming posts will cover the pros and cons to having your business presence in the U.S. and will blog about current events and how they might affect you as a non U.S. resident. Our blog is named U.S. Delaware incorporations, but we will also be discussing Nevada corporations. Other discussions will include how you can utilize your company to obtain an E2 Investor visa, investing in U.S. property particularly in Miami where we are based, how you can accept payments in dollars from your U.S. clients and essentially anything that could be useful to you as a non U.S. resident.

Who are your bloggers? Myself, Laura, who is an American by birth, and Stephane, a French citizen, who moved to the U.S. six years ago after traveling and doing business all over the world.

Please feel free to post questions and comments because this blog is meant to help you cut through all the confusion that exists about having a U.S. company as a foreigner.

So check back often and definitely subscribe to our mailing list!

*Miami photo from iDream_in_Infrared at Flikr.com

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