RESOURCES

Frequently Asked Questions

Starting a company in the United States can seem complicated, especially if you are starting from another country. Here we answer the most common questions about incorporation, EIN, administration and the tools you will have available to operate your business.

An LLC (Limited Liability Company) is a type of legal entity within the American business system that provides key benefits for those who are building a business: shielding of personal assets, agile operation and tax advantages.

By default, this entity is not taxed as such before the federal government; Instead, the tax burden is transferred directly to their owners. This feature makes it a very convenient option for those who manage their business from another country.

If you are a foreign entrepreneur, opening an LLC in the United States allows you to:

By default, this entity is not taxed as such before the federal government; Instead, the tax burden is transferred directly to their owners. This feature makes it a very convenient option for those who manage their business from another country.

  • Issue invoices in dollars to clients anywhere in the world
  • Use international payment platforms such as Stripe, Squareor PayPal Business
  • Formalize your digital operations without having to leave your country
  • Open online bank accounts such as Mercury, Novo, Wise Business, Payoneer, and others

It works especially well for ecommerce businesses, consulting, software development, creative agencies and startups in general. The legal figure you choose can set the course for your growth, and an LLC could well be that solid foundation that your project needs to take off.

As a foreigner, these are some of the reasons why it is worth opening an LLC in the US:

  • Protection of your assets: in case of debts or lawsuits related to the business, your personal assets are protected
  • Tax advantage: when there is no income generated within the US, you may not have to pay taxes there (although there is still a requirement to file)
  • You do not require a visa or live in the country: you can manage everything remotely
  • 100% digital procedures: from the creation of the company to the accounting management, everything is done online

It is not surprising that it has become the favorite choice of thousands of Latin American freelancers, startup entrepreneurs and consultants.

Yes, absolutely. You have the option to register the company on your own—as a single member—or jointly with other partners (whether individuals or companies), which is known as a multi-member LLC.

The number of owners determines how the IRS classifies the business for tax purposes by default:

  • Single-member: It is considered a “disregarded entity,” meaning it is treated as an extension of the owner.
  • Multi-member: It is classified as a partnership.

When an LLC is owned by a foreign national, there is an obligation to comply with certain IRS reporting requirements, even if the business generates no income within U.S. territory. This does not necessarily mean taxes must be paid, but filing the relevant information is mandatory.

By default, a single-member LLC is classified as a “disregarded entity.” When the owner is not a U.S. tax resident and there are transactions between the owner and the company, there is an obligation to file Form 5472 along with a pro forma Form 1120.

Conversely, when an LLC has more than one member, it is treated as a partnership, which requires filing Form 1065.

What are Form 5472 and the pro forma Form 1120, and when must they be filed?

When your company makes capital contributions, transfers funds between the LLC and its members, or shares expenses, these operations qualify as “reportable transactions.”

Failure to file these forms is not a minor error; penalties start at $25,000 for each year the filing was missed.

When does an actual obligation to pay taxes in the United States arise?

Only when the income is derived from U.S. sources. To illustrate:

If you provide online marketing services to clients located in Latin America or Europe, that income is not subject to U.S. federal tax.
However, if you sell products via Amazon, eBay, your own online store, or Shopify to buyers within the United States, that income is subject to taxation.

Yes. Both individuals and legal entities can be owners—sole or shared—of an LLC. If a foreign company is the owner, the LLC would be a subsidiary.

Yes. In many cases, you can form a company in the United States even if you are not a resident and do not currently live in the country. Requirements may vary depending on the state and the type of company you wish to create.

We primarily help entrepreneurs set up LLCs and corporations in the United States. We guide you through the available options and the requirements specific to the state where you wish to form your company.

Requirements depend on the state and type of business. Incorporalia can help you with services related to commercial address and Registered Agent when necessary for your business structure.

The EIN (Employer Identification Number) is a company’s tax identification number for the U.S. IRS. It may be required for activities such as opening a business bank account, hiring employees, and meeting certain tax obligations.

No. You can complete the entire process using identification documents from your home country, provided you follow certain specific steps, such as filling out Form SS-4 to obtain an EIN.

The timeframe depends on the state, the type of entity, and the applicable processing times. Once we receive the necessary information, we will outline the steps and estimated timeframes for your case.

In many cases, it is not necessary to travel to the United States to form a company. The process can be carried out remotely, although certain subsequent services – such as some banking processes – may have additional requirements established by each institution.

Yes, a US business can use business bank accounts, but each bank sets its own identification, documentation, and eligibility requirements. Incorporalia can help you prepare the structure and documentation necessary to move forward.

Once the state issues your entity’s official documents, the process does not stop. Our team manages obtaining your EIN from the IRS and, in parallel, we grant you access credentials to your private Incorporalia panel. From that moment, we begin the guided pipeline for opening your bank account and activate your suite of operational tools so that you can begin managing clients, billing in dollars and structuring your business immediately.

It acts as the digital command center for your global business. Your active subscription grants you access to a centralized environment that includes a customer relationship management (CRM) system, tools for generating quotes and legal contracts, email and communication automation, sales funnels, and a human support module in your language to address administrative compliance questions as your company grows.

Yes, definitely. At Incorporalia we firmly believe in human support. That’s why we offer you a free 15-minute clarity session with our team of advisors. In this call we evaluate your business model, confirm which jurisdiction is best for you based on your country of origin, and resolve any legal or technical questions before you make the official payment of state fees.

100% of operations are managed remotely. Thanks to the combined infrastructure—comprising your mandatory Registered Agent, a U.S. business address with a digital mailbox, and our online suite—you can sign contracts, receive scanned official correspondence, manage your bank accounts, and issue international invoices from your computer or phone, no matter where in the world you are located.

Absolutely. We don’t just hand over the initial legal paperwork. Our digital suite is specifically designed to give you the operational infrastructure you need to scale: from automated monitoring of your prospects to advanced tools for structuring workflows. In addition, our Marketplace connects you directly with strategic allies in banking, payment gateways and complementary corporate services.

We have plans from zero dollars for self-service administration, and plans from $97 dollars for an all-in-one plan.

Yes, you can start the process today. To legally form the LLC or corporation, you simply need to provide a proposed company name (which we then verify with the state registry). Business elements—such as your logo, public-facing brand, or website—can be designed, integrated, and launched later using the same management tools already included in your Incorporalia platform.