If you live in Argentina and do business abroad or are about to start, you’re probably considering opening an LLC in the United States from Argentina.
We know that many questions arise when contemplating this idea.
So in this article, we will show you the requirements for opening your LLC, the step-by-step process, and focus on addressing the most common questions.
Let’s get started.
What are the requirements for opening an LLC in the United States from Argentina?
The only requirement to open an LLC from Argentina is that you must be over 18 years old.
Therefore, to dispel misconceptions, we want to clarify that:
- You don’t need to travel to the USA.
- You don’t have to live in the USA to open your LLC.
- You don’t need a US address.
- You won’t be asked for a Visa or a passport.
- You don’t need a US phone number.
- You don’t need any US taxpayer identification like the SSN or ITIN.
- You can open your LLC as the sole member.
Now, let’s go through the step-by-step process to register your company
Choose the state
Here, you need to select the state where you want to register your company.
It’s important to know that if your LLC won’t have physical activity within the USA, you don’t need to worry too much (in legal and procedural terms) about which state you choose.
Most people opt for Delaware, Wyoming, New Mexico, and a few others that are the most common.
However, we recommend choosing the one that best suits your needs and financial capacity because each state has different opening costs.
It’s best to get well-informed before choosing the state. At Rex Legal, we can provide you with personalized advice when making this decision.
Determine who the members will be
It’s important to know who the owners of the company will be.
Provide data for each member, such as name, percentage of ownership, nationality, country of residence, and date of birth.
If your LLC will consist only of you, you should still add these personal details, as it doesn’t matter if an LLC has one member or more, it functions the same way.
Create a name
Choosing a name, although it sounds easy, can be a lengthy stage (if you aim to do it right).
Because a name must be thought out strategically to convey the true essence and message of the company.
Here are some tips when creating your brand name:
- It should be easy to remember and pronounce.
- It can have a simple meaning like your last name or a family nickname. Or it can have a simple meaning like a story.
- This name must make sense with the type of company you’re creating.
Choosing a name is a step-by-step process so extensive that it would make this article infinite. So, we’ll leave you with this article on how to choose your brand name in 6 steps.
Create an Operating Agreement
An Operating Agreement is a document that establishes the internal rules of the company and must be signed by each of the members.
Even though in many states it’s not a requirement to have an operating agreement, we recommend doing it anyway.
Well, this document is more than just a requirement. It serves perfectly to establish certain rules, conditions, and procedures that improve the company’s operation and prevent misunderstandings among members.
Even if the company is composed of a single member, it is highly recommended to have an Operating Agreement as it will establish the procedures and how the company will be managed.
So, if you want your LLC to operate correctly, it’s important to have an operating agreement.
Describe the Activity
Finally, describe the business’s activity, whether it will sell products or services, what type, and for what purpose.
You can do this both internally and as an explanation to the IRS.
Taxes for an LLC Registered in the U.S. from Argentina
Before we start discussing taxes, we want to clarify the difference between tax filing and tax payment.
Every company that registers in the United States (regardless of whether it is registered from abroad) is subject to the U.S. legal framework, which requires tax filing without exceptions.
Tax filing is a document that must be completed to report the amount of income, expenses, and other financial information of the company during the fiscal year.
However, the requirement to file taxes doesn’t always mean taxes must be paid.
So, can you be exempt from paying taxes with an LLC created from Argentina?
Yes. Let’s address this by answering the most frequently asked questions.
My LLC is not physically in the U.S., do I have to pay taxes?
The answer varies depending on the business. To help you understand, we’ll give you an example of when you don’t have to pay and when you do.
In the first case, let’s assume that your company will provide international services.
In this situation, nothing physical will be sold within the United States; all transactions will be online.
Whether you’re selling online courses, consultations, audits, marketing services, etc.
In this case, you must file taxes every year but not pay them because there is no physical activity within the U.S.
Now, let’s look at the second case.
If your LLC will sell products and export them to the United States, the tax situation changes.
It depends a lot on the source of income (source income). For example, if you export a product within the United States that must be delivered to a customer’s address located, for instance, in Houston, you are engaging in physical activity within the country.
If the source of income is from within the United States, you not only have to file taxes but also pay them.
Need Help Opening Your LLC in the U.S. from Argentina?
We know that this topic can be quite complicated to understand in a written post. Although we’ve tried to answer most of your questions, you may still have other inquiries or simply want to delegate the entire process.
Rex Legal can assist you with either of these cases – advising you or handling the processes. We will guide you, provide advice, and carry out every step required to correctly open your LLC from Argentina, avoiding bad practices or procedures.
So, if you need assistance, contact us now.