Are you thinking of setting up a company in the United States but you are not a citizen or resident? In this article we explain the regulations you need to know to create a company in the USA as a foreigner, and how the State of Texas and the IRS can affect the process.

Requirements to set up a company in the USA

To set up a business in the USA as a foreigner, you must follow certain requirements. First, you will need a tax identification number, known as an EIN, which is issued by the IRS. This number is necessary to open a bank account and hire employees in the future. In addition, you will need to choose a state to register and comply with state and local regulations.

The role of the State of Texas in business start-up for foreigners

If you plan to establish a business in Texas, you should know that the state is known for having a favorable business environment. However, you must follow local regulations and comply with federal and state laws. For example, you must register your business with the Texas Secretary of State and obtain the necessary permits to operate in the state.

Some of the benefits of creating a business in Texas is that the state does not require you to renew your business every year, a process which in other states is done every year and costs up to $150 for renewal. In addition, foreigners can create companies in Texas.

How the IRS can affect business formation for foreigners

In addition to state regulations, the IRS also has specific requirements for businesses that are not owned by U.S. citizens or residents. For example, if you are the sole proprietor of your business, you must file a Form 5472 to report transactions and services performed between the business and related parties. You must also file a corporate income tax return.