Setting up a Legal U.S. presence

The corporation remains the preferred legal form used to establish a legal U.S. business entity. Laws for setting up a corporation vary by state, so a “U.S. corporation” means a corporation set up under the laws of a particular U.S. state. A corporation provides a liability shield for the foreign parent corporation, although under certain circumstances that shield can be pierced.

Another form of doing business is through the creation of a limited liability company (LLC). In general, an LLC is a very efficient tax vehicle for a business and provides the same type of liability protection as do corporations. An LLC pays no tax as income or losses are directly passed through to the LLC’s equity owners.

There are no requirements that shareholders or board members of a U.S. company be it a corporation or a LLC, be entirely composed of U.S. citizens or residents.