US LLC Set Up
The client operates as an online clothing line on Etsy and Shopify from outside the US, but their customer base is mainly in the US and Canada. They understood the risk of running a new clothing line as it does not always guarantee profits in the initial phase. If you start your business as a sole proprietor your creditors can come after your personal assets for unpaid business debts. You could lose your house, car, or savings if your business defaults on loan payments. Forming an LLC for a clothing brand startup offers great protection against creditors if your startup isn’t profitable. They also wanted to register their business without compromising the identity of the founders/owners associated with their business. We explained to them that setting up a Delaware LLC is the best option for a non US resident if they want to gain tax benefits and protect their privacy at the same time.
“If you’re looking to start a company in the US as a non-resident, we can help you file your formation documents and set up your new US company in less than a day! “
Delaware non-resident LLCs do not need to pay taxes on income sourced outside of the US, and will only be taxed on a sliding scale from 2.2% to 6.6% only for US-based income.
The Challenge Of Project
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The type of address for FinCEN’s BOI reporting
FinCEN requires a real U.S. address for BOI reporting (US Street address), and that can't be a virtual office or just a PO box. But here's the good news: if your business doesn't have a physical location in the U.S., then the address of your registered agent is perfectly acceptable to use. That's because your registered agent is the one legally authorized to receive important papers on your behalf anyway.
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Registered Agent address
While you definitely need a registered agent address to file your LLC or corporation papers, it's not the only address you might need. Registered Agent Address is a physical address in the state you're registered in. It's the place where you'll get all your legal documents and official mail from the state. You can hire a registered agent service for this, and this address will be on public record. Business Address can be a different address from your registered agent. It's where you actually run your business or get your customer mail. Depending on your setup, this address might not be public record.
Results
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Name reservation application
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Prepared LLC operating agreement
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Drafted LLC Articles of Organization
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Choose a registered agent
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Registered to do business in other states
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Filed beneficial ownership information report
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Obtained an EIN, sales tax ID, and licenses
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Applied for an Employer Identification Number (EIN)
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Opened US business bank account
