Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!


LLC Formation in US + online bank account
New on LowEndTalk? Please Register and read our Community Rules.

All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.

LLC Formation in US + online bank account

marcin.mmarcin.m Member

First and foremost, thanks for taking the time to read my post.

Can anyone recommend a good company that can do LLC formation in the US? Specifically, I am looking at Wyoming but Nevada and Delaware could be suitable as well.

I already checked out https://www.legalzoom.com , https://stripe.com/atlas and a few smaller companies that specialize in just this.

After forming the LLC, I need to open a bank account as well. I am a U.S. citizen but I live abroad. Bank of America can open business accounts online, but a signature card must be submitted in-person (or mailed) and possibly some LLC docs. Ideally, this formation company could do all this for me.

Thanked by 1hanoi

Comments

  • First, the regulations will differ from one state to the next. But you will most likely need to pay for a registered agent in the state where you'd like to locate the LLC. These are normally lawyers that charge a yearly fee so that you can use their postal address for the LLC registration. They can also help you with the formation of the LLC.

    In most cases, you will find that you can form the LLC online through the relevant state's corporation commission (i.e., secretary of state Web site). That will almost certainly be cheaper than using a service to do it for you. For instance, Nevada has a very easy-to-use portal for corporate registration.

    The banking question might be a little more difficult. Most banks will want to see the LLC registration documents and will want to use the LLC's registered address as the account address. But typically this can be changed later if you don't want your banking info to be sent to your registered agent (normally you wouldn't want this). As long as you are a U.S. citizen, I don't foresee any big problems with the account setup. In the worst case, you'll need to visit the U.S. once so you can setup the account in person at a branch.

    Before you move forward with this, be sure to carefully review each state's requirements for LLCs. There can be some very important things that you don't want to mess up. For example, some states require you to file a tax return for the LLC, while others do not. If you fail to do this, it could potentially render the LLC invalid, which means you could lose the benefits of having it (primarily the limited liability).

    Thanked by 2raindog308 marcin.m
  • raindog308raindog308 Administrator, Veteran

    I’m in the process of opening an account with Ally, an online bank in the US. However I live in the US sonthe experience may not be the same. So far, it’s all been web based.

    Thanked by 1marcin.m
  • I'm US based too. Ally still made me do a signature card that I mailed to them. If you can prove you're a US citizen, it still shouldn't be a huge problem though.

    Thanked by 1marcin.m
  • MasonRMasonR Community Contributor
    edited June 2018

    Check out CSC (Corporation Services Company) -- they can handle incorporation and many other business services for you. I have a few friends that work for them and they seem like a solid company. Pretty sure you can set up a free consultation call and they'll outline the process for you and may even be able to help you establish a bank account in the States. They are a Delaware-based company.

    Thanked by 1marcin.m
  • raindog308raindog308 Administrator, Veteran

    fuzzygerbil said: Ally still made me do a signature card

    No doubt they do a signature card because it's completely impossible to fake a signature, and there is a universal database of human signatures that they can use to verify your signature is authentic...

    I suspect if you wrote Mickey Mouse in block letters no one would notice :-)

    Thanked by 2marcin.m Aidan
  • marcin.mmarcin.m Member
    edited June 2018

    Thanks for the comments!

    aj_potc said: Before you move forward with this, be sure to carefully review each state's requirements for LLCs. There can be some very important things that you don't want to mess up. For example, some states require you to file a tax return for the LLC, while others do not.

    WY, NV and DE don't have corporate income taxes (for LLCs at least) so I don't think there exists any State return to file. (may be wrong)

    raindog308 said: I’m in the process of opening an account with Ally, an online bank in the US. However I live in the US sonthe experience may not be the same. So far, it’s all been web based.

    Are you opening an account for an LLC? Ally doesn't support international wires, though, which I occasionally need when TransferWise won't work. But nevertheless I agree that it shouldn't be a problem since I am a citizen.

  • adxnadxn Member, Host Rep
    edited June 2018

    Stripe Atlas is the best option

  • A single member LLC (meaning just one owner) is a "disregarded entity", which means it does not file a Federal tax return, but instead the income is reported on the owner's tax return. Also, you'll have to pay self-employment tax (employer's Social Security tax + employee's SS + Medicare = 15.3%) on the income in addition to regular income tax. If, for some reason, you're not filing with the IRS, then the new LLC will probably raise a flag with them.

  • qpsqps Member, Host Rep

    Maybe go into a branch of a US-bank in the country where you are located?

  • aj_potc said: Before you move forward with this, be sure to carefully review each state's requirements for LLCs. There can be some very important things that you don't want to mess up. For example, some states require you to file a tax return for the LLC, while others do not.

    WY, NV and DE don't have corporate income taxes (for LLCs at least) so I don't think there exists any State return to file. (may be wrong)

    Careful, no tax owed may not mean that you can get away with no filing. :-)

    For NV, you're correct that they exclude businesses from taxes -- but only up to a certain level of revenue (I think $4m). You are still required, each year, to file an online return that certifies you are below that threshold.

    As nductiv noted, a single member LLC is a disregarded entity from a federal tax perspective, so you just report the income to the IRS on your personal Schedule C. But you will need to pay attention to the fee and filing requirements of the state, because that's where the LLC exists.

  • StevieStevie Member

    But if you put a family member and put (for example)they own 1 percent of the company (so now it is now a 2 person llc) can you then get your company to pay the ss and medicare tax and then you personal tax would be half? also putting another person would allow you to get that 20% pass through/reduction correct? (in the 2018 tax)

    @nductiv said:
    A single member LLC (meaning just one owner) is a "disregarded entity", which means it does not file a Federal tax return, but instead the income is reported on the owner's tax return. Also, you'll have to pay self-employment tax (employer's Social Security tax + employee's SS + Medicare = 15.3%) on the income in addition to regular income tax. If, for some reason, you're not filing with the IRS, then the new LLC will probably raise a flag with them.

  • You get the 20% deduction whether you're a single member LLC or multiple member. There are some thresholds for high earners and different high earner thresholds for service businesses.

    An owner of a single member LLC can deduct from their personal income 50% of the self-employment tax.

    With multiple members in an LLC, the members still pay their own self-employment tax and also receive the 50% deduction.

    It makes little difference whether the LLC or the owner(s) pay the self-employment tax. The 50% deduction on the owner's personal tax results in exactly the same after-tax income as the reduced income they would receive if the LLC paid their share (50%) of the employment tax.

    A multiple member LLC has the disadvantage of having to file a separate tax return for the LLC in addition to their personal filing.

    You can reduce self-employment tax by forming an S Corporation and paying yourself the minimum "reasonable compensation" and employment taxes on that salary (company pays 1/2 and employee pays 1/2). The remainder of your profit can be distributed to the owner and taxed like a dividend. That distribution is eligible for the 20% deduction, but your salary is not.

    @Stevie said:
    But if you put a family member and put (for example)they own 1 percent of the company (so now it is now a 2 person llc) can you then get your company to pay the ss and medicare tax and then you personal tax would be half? also putting another person would allow you to get that 20% pass through/reduction correct? (in the 2018 tax)

    @nductiv said:
    A single member LLC (meaning just one owner) is a "disregarded entity", which means it does not file a Federal tax return, but instead the income is reported on the owner's tax return. Also, you'll have to pay self-employment tax (employer's Social Security tax + employee's SS + Medicare = 15.3%) on the income in addition to regular income tax. If, for some reason, you're not filing with the IRS, then the new LLC will probably raise a flag with them.

  • raindog308raindog308 Administrator, Veteran

    I love how people rail against corporate greed and tax evasion yet when given the chance to evade taxes, they openly scheme :-)

    Thanked by 1Clouvider
  • AidanAidan Member

    I love how people rail against corporate greed and tax evasion yet when given the chance to evade taxes, they openly scheme :-)

    It's not corporate greed. It's looking out for your stakeholders. If you want to be pissed off at someone - then be mad at the legislators who blatantly allow said loopholes to continue uncontested - often for decades at a time.

    Thanked by 2classy Clouvider
Sign In or Register to comment.