I am a mexican independent IT consultant. I have some prospect clients in the US, but they require that I have a US based corporation. I know that I can form an LLC even as a foreigner, but I've seen so many choices and have so many questions and I was hoping someone here could share some insight on the matter.
1) The Where. I understand that each state has its own tax and corporate laws, and it seems to me that my best choices are Delaware, Nevada or Texas (Texas only because it is physically close to where I live in Mexico). I think many people go with Delaware because it's easier, but I've read Nevada provides more tax incentives like no income tax. If I incorporate in any of these states, would I need a CPA or accountant based in that state, or could I use any CPA in the US? I'd probably want to consult with a CPA before I create the company, so I do everything according to law.
2) The What. From what I've read, I think an LLC is my best choice (being a foreign national) but there's also something about filing as a S-Corp or something which isn't clear to me. Any tips on this matter are welcome.
3) The Who. I will of course be a member of the company, but should I include anyone else (foreign or US citizen) that might help with the incorporation of the company? I've also read that some people include their spouses as members of the company, but I'm not clear on why or what are the advantages.
4) Last but not least, most of the work I've done so far has been remote so I haven't had any issues with requiring a work VISA. However, this might not always be the case. As the owner of a company, can I apply for myself for a L1B or TN-1 (NAFTA) VISA so that I'm able to travel to the US? Let's say I have a client that wants me onsite for a period of 6-12 months for a project. Can I be in the US with a non-working VISA for that period of time, or do I need to get a work VISA?
ChristineL | Former Moderator |
8/21/2009 - 5:51 pm
Hello iGeek,
We recently wrote a blog about Starting a Business in the U.S. as a Foreign National that should answer some of your questions. However, it’d be helpful to read about 10 Steps to Starting a Business for general tips. We also have a thread discussing this on our Community already that may provide you with some insight.
In terms of taxes, it may be helpful to look into the IRS website. This link also has information about tax incentives. For state specific tax laws, you can look here. We also have a great resource for state and local laws and regulations, so feel free to check out this page.
The Department of State has a helpful guide for visas and business travel, so feel free to look into that as well.
To answer your question about whether you should file as an LLC or S-Corp, you should look into our blog article, Should My Company be an LLC, an S-Corp or Both? It provides a very detailed analysis of the pros and cons of each. Also check out our Business Incorporation page for more resources and information about registering your business.
I hope this helps. If anyone else has suggestions or ideas, feel free to comment!
Message Edited by Christine_Lai on 08-21-2009 05:53 PM
ChristineL | Former Moderator | 8/21/2009 - 5:51 pm
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