Best jurisdictions that we recommend: The United States

The United States is, for many reasons, an attractive place for any entrepreneur. Some of the benefits that attract a large number of people to the United States include the following:

  • The choice is vast: 50 states, all with a variety of rules and regulations. Moreover, there is a heterogeneity of people with different income levels, demographic characteristics, and interests. Therefore, starting a business in the United States offers many opportunities.
  • Slightly lower income tax rates than those of European countries.
  • Greater financial privacy, since the United States is not required to share your financial data with other countries.
  • The creation of an LLC (equivalent to a SARL) and its management outside the United States are simple operations.

Going to the United States

Currently, there is no visa program in the United States as interesting as the Portuguese Golden Visa. There is, however, the EB5 program, which for an investment of $900,000 in one of the targeted employment sectors, or elsewhere for an investment of $1.8 million, gives you a Visa.

Without this investment or sponsorship by a family member, only the skilled worker visa option exists.

While it is possible to obtain a tourist visa in the United States for up to six months, it is best for a digital nomad to go with the three-month ESTA visa waiver form. Otherwise, it is possible to be considered subject to tax due to the criteria called the “substantial presence test”. Although the requirements for this test are detailed on the IRS website, in general, if you spend more than 120 days per year on average in the United States, you are at risk of being taxed.

It should be noted that working under a tourist visa is still in the gray area of ​​the law. As long as a worker is not tied to a US employer or the income received is not from the US, he is allowed to work on a tourist visa. However, it is preferable to avoid any mentions of professional activity. This will avoid much confusion for immigration officials.

Business & Taxes in the United States

To develop a business in the United States as a foreigner, the steps are relatively simple. All you have to do is create an LLC (Limited Liability Company) which can be considered the equivalent of a Limited Liability Company – SARL in France. This is an operation that can be done online very quickly. An LLC does not provide access to a visa to work in the United States. It is, however, a great way to access the US market. This allows hiring qualified employees and having a US business bank account, all without being based in the United States.

When it comes to registering an LLC as a foreigner, the best states are probably Delaware, Wyoming, New Mexico, or Nevada. These states have slightly better laws for businesses. In addition, deposit fees and annual fees are reduced. Finally, state taxes are low or, in some cases, zero.

Another possibility is the C-corp. The difference lies in how the business and the owner are taxed. With a C-corp, the entrepreneur is double taxed, unlike an LLC which is taxed only once on the profits of the business (note: the taxation of an LLC may vary depending on whether the activity is carried out with US customers or not). In a C-corp, the fact tax on the profits of the company and again when the profits are paid out as dividends. The advantage, however, is that there is no tax to pay on reinvested profits, unlike an LLC. This makes it a more attractive solution for a freelancer who wants to grow a business. It is also easier to gain investor buy-in through the structure of a corporation.

Banking in the United States

Non-residents can open a bank account in the United States, either for business or personal purposes. It should be noted that opening a professional account is easier. For a personal account, most banks require a tax identification number, such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Taxes in the United States

The United States is certainly one of the most complex tax jurisdictions in the world. It is one of only two countries in the world where citizens and green card holders must declare and pay taxes on their worldwide income, even if they live abroad.

To make things easier, we’re planning to write an in-depth tax guide for US nomads and ex-pats.

Want to know more? Check out our other articles on the best offshore jurisdictions!

Author

Jared Young

Entrepreneur Leadership Network Contributor
I’m a digital nomad from Germany. I help companies thrive in their digital marketing strategies and help them build sustainable remote work strategies.
I have been running a digital marketing agency for 8 years. Light Spark helped more than 60 happy customers.I recently launched Gpoint, a company focused on remote work productivity and well-being for companies, freelancers and digital nomad.
Over the last 6 years, I have been working remotely as a digital nomad from 40+ destinations such as Kazakhstan, Chile, Budapest, London.
I love writing and want to share insights and advice to remote workers and digital nomads.

Latest News

The Impact of FATCA and CRS on Offshore Company Banking

by | Jul 22, 2024 | Offshore | 0 Comments

Company Banking The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) were created to fight tax evasion and promote transparency in...

How to Protect Your Offshore Bank Account from Cyberattacks?

by | Jul 19, 2024 | business | 0 Comments

Choose a Reputable Offshore Bank Offshore Bank Account Cyberattacks Offshore accounts are often targeted by fraudsters and cyber criminals so it  is essential that...

Online Bank

How To Check If An Online Bank Is Legitimate?

by | Jul 16, 2024 | Banking | 0 Comments

Online banking has developed as a convenient and efficient way to manage personal finances but with increased fraud and scams, vigilance regarding the legitimacy of...

Why a Will Alone is Not Enough?

by | Jul 15, 2024 | Investment | 0 Comments

Your Will For inheritance planning, just having a Will may not be enough to ensure a smooth succession of assets.  Making a Will is a solid start when it comes to...

Assets

Advanced Asset Protection Strategies 

by | Jul 11, 2024 | Investment | 0 Comments

An essential part of financial planning lies in establishing strategies for protecting assets from potential risks and threats.  In this article, some advanced...

What is Asset Protection?

by | Jul 10, 2024 | Investment | 0 Comments

Asset protection is about taking proactive steps to protect your wealth from risks such as lawsuits, creditors, business failures, and economic downturns. In an...

What is an IBC?

by | Jul 9, 2024 | Investment | 0 Comments

Introduction It is not a surprise that in today's globalised economy, both individuals and businesses are increasingly seeking opportunities to optimise their financial...

Top Countries To Protect Your Business’s Privacy in 2024

by | Jul 8, 2024 | business | 0 Comments

Introduction In an era dominated by data-driven business strategies and global connectivity, the protection of business privacy has become a paramount concern. Choosing...