Indianapolis, Indiana Law Firm of
Hocker & Associates
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Non-Resident of United States and the Formation of an LLC

Forming an LLC correctly is the first step to a successful business. I represent small business owners from different countries - people from Israel, Mexico and Canada who are property investors looking to purchase, sell and lease homes in Indiana. Often, these clients need to create a business entity. A properly formed LLC can protect a business owner personally from liability and reduce his or her tax liabilities.

I frequently recommend the formation of an LLC. An LLC has a benefit to small business owners because it allows pass-through taxation. An LLC operates in most ways as a corporation, yet the distributions to its "members" (shareholders) are not subject to taxation at the corporate level. Instead, the distributions are "passed through" the corporate level and are taxed only at the individual level. The LLC avoids "double taxation" that Corporations must endure. Still, an LLC gives their owners limited liability protection since LLCs are separate entities from their owners. Because the two are separate, the personal assets of the owners (such as their personal residences and personal bank accounts) are not reachable by business creditors.

How to Do Business in U.S. Without an Social Security Number

In order to engage in business in the United States, a person must have a Social Security Number or Individual Taxpayer Identification Number (ITIN). With my clients who are not residents of this country, this presents a problem. They must apply for an ITIN which can take up to 18 weeks. You can find information on an ITIN here: http://www.irs.gov/Individuals/General-ITIN-Information. Obtaining an ITIN is how a non-resident can legally conduct business in the United States because it is how the LLC obtains its official taxation number, an Employer Identification Number (EIN).

If my non-resident client is partnering with a United States citizen or legal resident, things are simplified because the U.S. Citizen's SSN or legal resident or ITIN may be used to apply for an EIN. There are different processes if the only owner of the LLC is a non-resident than if there is an American citizen or legal resident who is a partner.

If you are a non-resident of the United States and need help with forming an LLC or have questions about creating a business entity, contact attorney Kassandra Green of Hocker & Associates LLC. Call (317) 559-4477 today.

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