If you’re interested in starting a business in the United States, it’s important to be familiar with the Limited Liability Company (LLC) structure, as well as the process for creating one from Spain and the benefits it can offer. In this post, we’ll provide you with all the details you need to know.
With the help of the internet, many businesses have been able to expand internationally, and the US market is particularly attractive. While many assume that establishing a company in the US requires residency or a visa, the process can actually be done remotely and is relatively simple.
What is an LLC?
An LLC is a limited liability company, which means, like a Spanish SL, that the company’s liability is limited to its capital, unlike a self-employed worker who is personally responsible for their activity and all their present and future assets.
Advantages of creating an LLC in the USA
Creating an LLC is a good option for technology startups, online store owners, software services, online education, real estate investment, or advisory service companies. It offers several advantages, such as the following:
- Technology companies are booming in the United States.
- The company does not pay taxes. The owners pay them directly.
- The company structure can be personalized and adapted to the specific situation you need. You can create it yourself or with other partners. In the last case, you would have to regulate the way of operating, voting rights, and percentage of participation in the so-called operating agreement.
- The LLC can be created online. It’s not necessary to travel to the USA.
- With an LLC, you protect your assets because, as we mentioned before, the liability of the company is limited to the social capital.
- The dissolution or closure of the LLC is a simple and inexpensive process, as it can cost around $100. Therefore, if the business does not go as you expected, it is possible to close the company.
The cost of creating an LLC in the United States depends on several factors, such as the fees of the Registered Agent, someone we will mention in the next section. The total cost can vary between $300 and $800 USD.
How to create an LLC
The steps or requirements to create an LLC in the United States are as follows:
- You first need to choose a name for your company that differs from any other existing company name in the state where you want to register the LLC. This requires choosing the best state to form the LLC. It is important to note that in some states, it may be more expensive to create an LLC due to state filing fees or annual report fees. Therefore, you should ask each Secretary of State the specific conditions for registering an LLC.
- Additionally, you will need to have an address in the United States, which can be a virtual address.
- Furthermore, you will need to hire a Registered Agent, who is a person or entity that will inform you about the obligations of the LLC and will receive official notifications on behalf of your company if it cannot be reached.
- Next, you will need to obtain an NIE (Employer Identification Number), which is a free process.
- Other important steps include drafting operating rules or corporate agreements (similar to bylaws in Spain). These agreements should be prepared even if there is only one member and they will outline the company’s operations. If there are multiple members, these agreements are essential to regulate several aspects such as each member’s responsibilities, voting requirements for decision-making, transfer of member rights, admission of new members, and profit distribution.
- Opening a bank account is necessary for financial purposes and for tax payments in the USA.
- Additionally, you will need to register the LLC with the chosen state’s Secretary of State. This involves submitting the necessary documents for company formation and paying the applicable fees according to the state’s requirements.
If you want to operate in the United States with a company, you also have the option to create a corporation, which will have different tax implications and a more rigid management structure.
There are also other structures, such as a corporation. The easiest way to choose between an LLC and a corporation is by comparing the structure, company liability, and capital contribution.
Leialta website: https://www.leialta.com/en/
Blog for doing business in Spain: https://www.leialta.com/en/blog-for-doing-business-in-spain/
Linkedin: https://www.linkedin.com/company/leialta-s-l-/mycompany/
