A Guide for US Immigrants

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What is an LLC? How to open one?

13 October 2023

What is an LLC

An LLC (Limited Liability Company) is a legal business structure that protects your personal assets (home, car, personal bank accounts) in case of legal claims against the company.

Who can open an LLC in the U.S.

Almost anyone, including individuals who are not physically present in the United States.

What documents are required to open an LLC?

No documents are required. Only personal information and details about the planned business.

Can I work through an LLC without work authorization?

An LLC does not grant work authorization. You cannot be an employee of your own company or pay yourself W-2 wages.

You are considered self-employed, which is treated as employment under the law:
www.ecfr.gov/current/title-8/chapter-I/subchapter-B/part-274a

However, you may manage company profits and operate the business.

Difference between cash work and working through an LLC:

- you are self-employed
- income is transparent to the government
- you can receive checks and bank transfers
- you can deduct business expenses
- taxes are paid legally

Ultimately, how this is interpreted is up to the court.

How to open an LLC

Requirements vary by state. Basic steps:

1. Choose a company name and verify availability.
2. Register the LLC with the state and pay fees.
3. File Form SS-4 to obtain an EIN from the IRS.

At this stage, the LLC is usually considered active. EIN processing may take 2 weeks to 3 months.

Depending on the state, you may also need:
- city license
- operating agreement
- business insurance (recommended)

4. Open a business bank account after receiving the EIN.

State-by-state guide:
howtostartanllc.com/form-an-llc#select-your-state

Where to open an LLC

It is recommended to open the LLC in the state where you reside and operate.

Registering in another state leads to additional costs:
- registered agent
- foreign LLC registration
- multi-state tax compliance
- higher accounting fees

How to obtain an EIN without an SSN

- EIN is free
- U.S. citizenship or residency is not required
- SSN and ITIN are not required
- EIN cannot be obtained online or by phone without an SSN

You must submit Form SS-4 by fax or mail to the IRS.

Instructions:
www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/

Disclaimer: The information provided here is for general informational purposes only and does not constitute legal advice. Immigration rules may change. For guidance on your specific situation, always consult official sources or a qualified attorney.

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