Ask HN: Setting up an LLC in America for a non-resident

https://news.ycombinator.com/item?id=465532

by opeadeoye1 • 17 years ago

18 12 17 years ago

news.ycombinator.com

Does anyone know the process of (or a reliable service, or anyone to go to) for setting up an LLC and opening a bank account in the US for a non American citizen for the purpose of accepting payments by credit card on a subscription based web app about to launch? Thanks.

yrashk4• 17 years ago

Organizing LLC is not a problem for non-residents at all — you can do it either yourself (could be tricky if you don't know what to do) or use some incorporation service (there are plenty of them available).

Getting a bank account for it is way more tricky. First of all, you'll need a EIN for your LLC, which you can get with your own SSN or ITIN only. Since you're not a resident, you're not eligible for SSN, and getting ITIN is a little bit of "catch-22" problem.

And even if you'll get ITIN and, respectively, EIN, you might have hard times opening a bank account. I personally was able to do that by e-mail/mail, but I was introduced to financial specialist by a friend of mine.

opeadeoye1• 17 years ago

Thanks. Can I get urls, a phone number, a contact email, anything?

yrashk4• 17 years ago

first you have decide in which state you want to organize your LLC.

terpua• 17 years ago

International applicants must call (215) 516-6999.

The specialist gives you an EIN over the phone. They then snail mail you a hardcopy in about a week.

From: http://www.irs.gov/businesses/small/article/0,,id=97860,00.h...

c1sc0• 17 years ago

Another thing you may want to consider is that with most incorporation services you can use the company address only for legal correspondence related to the LLC. A real address you can use for business correspondence will cost you more.

yrashk4• 17 years ago

however it is not that expensive. for $15/mo or so you can get some pretty awesome online mailbox with either po box or street address

also some incorporation services do offer mail services on top of their "registered agent" service; although it is not that cheap and not that competitive, I guess

GiantCrayon• 17 years ago

I am not certain about LLCs, but IME, once you have formed a corporation, you can apply for an EIN (Employer Identification Number, also sometimes called Tax ID) as a corporation, in which case, your personal citizenship may not matter.

While I would probably agree with the advice given here about contacting a lawyer, you could start with BizFilings.com's 800#, and see if they can give you some good advice for free first. (I've used them in the past, and while I had a few minor complaints, they do a generally decent job for little money. In any case, they won't charge you anywhere near what a lawyer would.)

HTH

jacquesm• 17 years ago

Spend the $10 on an international phone call with any laywer in the state of your choice.

They'll be able to handle the whole process for you, all you'll probably need to do is have a few signatures witnessed in your country of origin.

mindaugas• 17 years ago

I think this is related

http://news.ycombinator.com/item?id=354508

markup• 17 years ago

This is why I love HN. Thank you, I managed to miss that discussion :-)

anthony_barker• 17 years ago

Make sure you consider the added expense vs just using other credit card clearing company in your country and eating the exchange rate costs.

Officially with the LLC you will also have to submit taxes each year. LLC Taxes in the US are not low and are complex.

Other processors include Quickbook merchant account Costco Nova Networks Beanstream, PSiGate or InternetSecure. Chase Paymentech These are available from Canada - but most countries have clearing companies. Panama, Costa Rica etc with much better tax advantages then having a US Account.

Ask HN: Setting up an LLC in America for a non-resident

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