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There are two popular forms of company formation in the USA:
Limited Liability Company
A Limited Liability Company (LLC) in the USA is an amalgam of a limited company and a partnership.
The members of a limited liability company have limited liability protection and either manage the business affairs of the company themselves via an operating agreement or appoint a manager to operate the company.
This form of entity is a suitable vehicle for overseas applicants as there is no requirement for any shareholders to be US residents. It is also well suited for real estate or new business ventures.
While normally taxed as a partnership, with the members including income and expenditure on their own personal income tax returns, the LLC has an option to be taxed as a corporation. A big advantage of being taxed as a partnership, however, is that the company doesn't pay any income tax but "passes through" its profits or losses to its partners. Another plus is that the partners must only pay and file a US tax return if they are doing business in the USA or have US-source income.
Business Incorporation
A Incorporation (Inc)., sometimes referred to as a Business Incorporation, is a statutory body and is similar to the UK Limited company. As an independent legal and tax entity, a corporation is responsible for its tax dealings and limits the liability of its stockholders like the UK Limited company.
Foreign Incorporation
In the US, a company can be incorporated in any State, normally the State in which it intends to undertake business – Domestic Corporation. If it wishes to trade elsewhere then it will need to qualify as a Foreign Corporation. Thus, a Foreign Corporation is one incorporated in one State and authorised to do business in an additional State(s) or jurisdiction(s).
WCA can incorporate a company in all fifty U.S. States and in all U.S. Territories and provide Registered Agent and Compliance Services. Please contact us for further information and prices.