The United States of America (USA) – a country of 50 states, the third largest population in the world, and a dominant economic and military power – is undisputedly the most powerful in the world. It is a major tourist destination and its cultural imprint covers the world. Its sphere of global influence is so wide that it has even traditionally taken leading international roles, such as in organizations like the UN and NATO. All these are undoubtedly pointers to the fact that the USA is indeed an excellent choice for business.
Among the many types of businesses that can be set up in the USA is the LLC (Limited Liability Company). Limited Liability Companies are one of the most popular business types in America and this is due to the fact that setting up one is quite a very straightforward process. Also, it offers a vast amount of advantages and benefits to its owners, managers, and partners.
One major benefit of setting up a Limited Liability Company in the USA is the ease and simplicity with which one can be set up. This helps to eliminate unnecessary inconveniences and time-wasting, ultimately leading to a quick and efficient business set up.
To set up an LLC in the USA, one does not need to be an American citizen. This infers that it is no harder for a foreigner to set up an LLC than it would be for a US citizen. Also, there is no restriction on the number of owners for a US LLC or whether they are individuals or other corporations, trusts, LLCs and partnerships. It should also be noted that in many states, one-person LLC can be formed.
Another advantage of establishing a Limited Liability Company in the USA is that there are no corporate income taxes. Due to this, business owners will be able to avoid “double taxation” effects resulting from the payment of taxes both as a business entity and as an individual. This ultimately results in more returns and income for the investors and shareholders in the company.
In a US LLC, there is less paperwork and minimal recordkeeping. This is because, unlike corporations, they are not mandated to hold annual meetings, file annual reports or keep any extensive records. This surely eases off the workload that comes from substantial recordkeeping requirements.
One other benefit of setting up a Limited Liability Company in the USA is that the liabilities of shareholders are limited to their subscribed capital contributions. This way, liabilities are equally divided and no shareholder will incur more loss than the other, with respect to their level of investments in the company.
So, do you want a business that provides limited liability of a corporation to protect your personal assets in case of a lawsuit or bankruptcy and gives room for operational and management flexibility of a partnership structure, with added tax advantages? Then, setting up an LLC in the USA is one perfect choice to make in order to get that business you want.