How to register an LLC in the USA without problems

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With the beginning of the new year, we are forced to reconsider the obligations and formalities associated with maintaining our business abroad. One of the most used tools within the technology business is the enclosure LLC company (limited liability company) U.S.A.

Brief description of the path to outsourcing

The accelerated digitalization process in recent years has allowed for significant development cross-border business technologies. Global demand for services software development, mobile technology, online sales, trading, digital marketing and programming has grown exponentially in recent years, and its growth curve is expected to become even steeper.

This trend, promoted by companies and government programs to promote computer tools, has allowed it to be well received locally. Through continuous training in technological tools that equip professionals with skills that meet the standards required around the world. Technological knowledge is vast and the means to achieve it are relatively simple. And according to this premise they go through the contagion effect as if they were cases equal to each other. If the items are the same, everything works the same!

Thus, part of society, mainly young people, understands that Your business can be moved abroad with dynamics and mostly financial benefits. A place where, although there may not be any special measures to promote their activities, there are no obstacles that hinder the development of their business, and this leads to extremely rapid growth.

Selected destination: USA.

Creation foreign corporate transport It is presented as an option for developing activities abroad. Current and numerous offers presented in digital media offerings. quickly create a society in a state that allows you to issue invoices for services abroad. This creates one of the most used and promoted corporate cars. American companies LLC. Apart from the tax benefits they provide, they have other aspects that make them most popular among the people. subjects residing outside the United Statesand who have decided to expand their business in this jurisdiction.

Basically they companies that are easy to incorporate, where its executive body may consist of non-US citizens, as well as all of its partners. Another important point is that Opening bank accounts is relatively easy.. They may also be are exempt from Income tax, While there is no physical presence in the country, they offer a simplified regime for issuing receipts and, above all, are very flexible in terms of administration.

Is Argentina a foreign country for my overseas business?

Argentina’s tax laws have changed since the 2018 tax reform, expanding international tax transparency regime.

In that art. 130 of the Income Tax Law This regime is being developed in relation to the moment of imputation of profits and expenses from foreign sources. Subsection e) specifically addresses the income of residents of the country received from their participation in companies or other organizations abroadand provides that they will accrue for the fiscal year or fiscal year in which the annual fiscal year of such companies ends, in proportion to their participation.

However, the most interesting thing in the article is in the second paragraph, where it is indicated that the indicated imputation corresponds to when the vehicle does not have tax status. A concept that has been included in the statutory regulation of the Income Tax Act. Article 288 of the above-mentioned provision determines that a company or other legal entity of any type domiciled abroad does not have tax personality unless it is considered to be subject to tax under tax laws similar to income tax in the jurisdiction outside the country. .

This regulatory association aims to directly LLCwhich have the characteristics of a capital company, but also have some of the characteristics of a company without personality.

For example, in the USA they usually “transparent“. At the federal tax level, an LLC may elect to be taxed as essencetreat like partnership or in the case of one partner, it will be considered as ignored entity. In the last two cases income received is not taxed, since they are taxed on the heads of LLC partners. Thus, Argentine residents who own shares in companies that do not have tax status, as in this case, must allocate their income and expenses in proportion to their ownership in the tax period that corresponds to the closure of the company or legal entity abroad. distribution of such profits among its partners.

Responsibilities of an LLC in the USA

The method of registering a company of this type is very simple, as is its administration and functioning. This may lead to breach of obligation that these organizations require in their registration jurisdiction both registration obligations regarding government fees and agents and filing with the IRS (Tax service) relatively tax return annual.

In most cases, there are US professionals who file the appropriate forms on time or request an extension from the IRS. On the contrary, it also happens that the owners are completely unaware of the obligations associated with liability to the IRS for a company registered in the United States. This action leads to amount of fines which, when it comes to non-compliance by foreign investors, tend to be extremely onerous.

In addition to formal fines for failure to appear at federal tax returnsthere are those associated with international information statements.

As part of the latter, one of the most severe penalties worth mentioning was published on December 13, 2016, and which has attracted increased attention from those responsible for companies in the United States since its last regulatory change. The IRS has added new obligations to Code of Federal Regulations Section 1.6038A-1. These new changes took effect on January 1, 2017 and now also apply to all foreign-owned single-member LLCs. This section covers obligation to submit a significant amount of information annually with respect to foreign-owned entities where ownership is by a non-U.S. person/entity equal to or greater than 25% their votes.

Regarding the sanction itself, the organization will be responsible for $25,000 fine for each year of non-compliance for submitting information on time or for failing to keep records up to date.

Moreover, as stated in paragraph 2 of paragraph d) of Article 6083 of the Code, if any non-compliance continues more than 90 days after notification, it will also be fined. $25,000 per 30 day period during which non-compliance continues after the expiration of the 90-day period.

To conclude this brief description of the main characteristics and obligations LLC companies, not everything ends with simple online creativity. We must consider both sides of the coin, as profit distribution foreign source from a local point of view, as well as his annual obligations and significant penalties before the US Treasury.

Moreover, it is important to realize existing agreements on automatic exchange of financial information signed between both countries, and their possible consequences for the people of Argentina.

Also consider the extensive responsibilities that include being the corporate entity’s representative to the IRS, complying with formal annual tax or international information return obligations, and, as of January 1, 2024, complying with the FINCEN ultimate beneficiary regime. .

The establishment of any foreign company should be based not only on ease of incorporation, administration or commercial image, but also on extensive knowledge of international issues and the accounting, legal and tax implications that may arise from its selection.