What is the best company to establish in the US – a corporation or an LLC?

Photo of author

By admin

The most popular form of doing business in the United States is – private companies, corporations and limited liability companies. If you are a foreigner of the United States, you are basically left with two registration options – one corporation or LLC.

LLC form combines a limited liability corporation with a flexible partnership. The founders are not responsible for the personal property obligations of the LLC. When doing business in the United States or receiving income from a source in the United States, the company pays VAT. In international trade transactions and the lack of income from sources in the United States, the company becomes virtually tax-free tool, as applied “transparent” taxation. Tax reporting is done to the members of the company – a foreign person, who will be responsible for taxes only in the country. At the same tax liability in the United States does not arise.

The corporation is considered the most prestigious and safest form of business in the United States. One of the main advantages of this form for an Indian businessman is that even non-US citizens can become shareholders of the corporation. If doing business outside of the United States, this form of business can be partially used as an offshore gear. Unlike a limited liability company, a corporation’s LLC has an unlimited existence, pays profit taxes, and all business expenses are deductible from the tax base. The founders of the corporation are not responsible for the personal property of their obligations.

Filing Income Tax Return every year to avoid fines

When you open a company in USA, it is obligation to file the income tax return. In recent years, the U.S. income tax has greatly increased oversight in India, so that sooner or later every Indian U.S. citizen will be required to file US Tax filing from India.

Taxation in the United States is one of the most complex but important in light of the extent of the phenomenon of Indians migrating to the United States and the extent of Indian’ investments in real estate or American companies. The following is intended to explain the taxation system in the United States as complex and as simple as possible. It should be emphasized that there is a tax treaty between India and the United States, but on the other hand there is no treaty for social security or social security between the countries.

Non-residents – including Indians who are considered U.S. residents – U.S. income generators are classified as (Non-resident Alien) and as such are required to file taxes in the United States and file an annual tax return as non-residents for income that originates in the U.S. or is effectively connected to the U.S. with a US trade or business).

Who has to file the income tax return in USA?

A person who is considered a tax resident or U.S. citizen is subject to taxation in the United States and pays tax in the United States on all of their profits worldwide. Also, non-residents (including Indians) are subject to taxation in the United States with respect to FEMA (Foreign Exchange Management Act) only on income derived from the United States – subject to exemptions from taxation obligations in the United States that are provided by law or tax treaty with the United States.