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USA
USA INCORPORATION
Why incorporate in the USA and which State is Best for Non-Residents?
The USA has many advantages for non-residents seeking to incorporate there but not trade in the USA.
First, and most important, non-residents are not taxed, which provides a significant advantage for those incorporating LLCs. An LLC (Limited Liability Company) in international terms is more akin to a Limited Partnership.
Members are liable to taxation (if any) on profit share from the LLC.
The other principal type of US business entity is the C Corporation (a standard limited company in most countries). C Corporations are taxed on their profits wherever sales are made and whatever the ownership structure.
The standard rate of Federal corporate tax in the USA is 21% for 2021. It is important to understand that each state determines its own taxation rates (in addition to Federal Taxes), and the States are certainly not equal in their taxation policies.
There is a shortlist of States which are generally considered to be business-friendly.
Top of the list is Delaware, which not only created LLCs but also has a well regarded Chancery (business) court.
Other contenders include :
- Florida – downsides include corporate tax, more applicable to C Corps.
- Nevada – licensing requirements for certain businesses can make this unattractive.
- Texas – this is a business-friendly state with low taxes.
- Wyoming – our choice due to minimal requirements and low costs.