Why US LLC

A Limited Liability Company (LLC) is a popular choice for small businesses because of its many advantages.

With the US being the wealthiest and most powerful nation today, having a US LLC to run your business can be highly beneficial.

For a non-resident remote entrepreneur, a US LLC is appealing because compliance requirements are minimal—just two forms to file each year (pro-forma Form 1120 and Form 5472) and an annual state report or fee—much less hassle than the filings required in many other countries.

The most significant benefits of an LLC include:

1. Limited liability protection: An LLC shields your personal assets from the company's losses, debts, and obligations.
2. Separate legal entity: An LLC can own property, enter into contracts, and sue or be sued independently. It also continues to exist even if ownership changes.
3. Pass-through taxation: Read more in the Taxes chapter.
4. Fewer formalities: LLCs usually have fewer ongoing requirements and simpler filings than corporations, making them cheaper and easier to maintain.

Benefits of a US LLC for non-residents include:

1. Disregarded entity for tax purposes: Read more in the Taxes chapter.
2. Lower transaction fees: Dealing in USD means you avoid the roughly 10% lost to forex conversion by keeping and spending dollars directly from a US bank account.
3. Enhanced privacy: In Delaware and Wyoming, owners' and managers' names aren't public. In contrast, many countries list a company's address, phone number, email, and directors publicly, inviting spam calls and emails.
4. Better financial infrastructure: Access to a robust and innovative ecosystem — Stripe, Mercury, and many other tools.
5. Credibility: Having a US business entity adds social proof and credibility.
6. No sales tax in Delaware: Delaware doesn't levy sales tax on purchases within its borders.
7. Fewer compliance requirements: Compliance is much simpler compared to many other jurisdictions.

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Disclaimer: All content here is for general informational purposes only and not intended as legal, tax, or financial advice. Always consult a qualified professional before taking any action. Use at your own risk; the author assumes no liability.