Formation and operation are different

A non-U.S. person may be able to own or form certain U.S. entities, but entity formation alone does not answer immigration, work authorization, tax residence, U.S. trade or business, withholding, reporting, banking, payment processing, beneficial ownership, state registration, or home-country tax questions.

Questions that need separate answers

  • Who owns and controls the entity?
  • Where are management decisions made?
  • Where is work physically performed?
  • Where are employees, contractors, inventory, property, and customers?
  • Which U.S. federal and state returns or information reports may apply?
  • What must be reported in the owner's home country?
  • What documents will a bank or payment provider require?
  • Does the owner need authorization to enter or work in the United States?

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Do not buy a package before mapping the whole system

Commercial formation packages often make the filing step look like the entire project. Before paying, map annual state fees, registered-agent costs, federal and state tax filings, bookkeeping, banking, payment processing, address requirements, home-country reporting, and professional advice.

Immigration caution: Owning a U.S. entity does not by itself authorize someone to enter the United States, live there, or perform work there. Immigration status and business ownership are separate questions.