There are different ways to open a company in the United States, as well as in Brazil, one of the options that stands out the most is the Limited Liability Company, the famous LLC.
An LLC in the United States is a modality of limited corporate liability, which reduces much of the bureaucracy, and consequently the expenses related to its operation, being, mainly for small companies, one of the most advantageous options.
If you are thinking of selling your product in the United States or providing services to North American customers, even if you live in another country, it is essential to know the Limited Liability Company – LLC. We at OneWorld International Partners have prepared the following paragraphs to help you:
What is an LLC or Limited Liability Company?
LLC is the acronym for Limited Liability Company, it is a type of company in the United States, this company is incorporated as a limited liability company.
If we make a parallel, it works similarly to LTDA in Brazil, being composed of one or more partners, who do not necessarily need to reside in the United States.
What are the advantages and disadvantages of an LLC?
When we talk about business, especially about opening a company in the United States, there will always be a positive and a negative side, and it all depends on the entrepreneur’s current prism, or the current moment of the business and its growth prospects, we at OneWorld We separate some points about it:
Benefits
On top of the advantages is the limited liability of the partners, because an LLC reduces the risks if there is a problem with the company;
Some US states offer tax breaks and less income tax;
The partners do not need to live in the United States, being able to open their company in the United States, living in Brazil.
Disadvantages
An LLC does not give the right to own shares on the stock exchange, so growth, depending on the follow-up, may be limited.
Differences in laws between US states also make it difficult to expand business.
If the company declares bankruptcy, it must formally be completely extinguished, and can only continue in operation if there is a duly registered success. In some cases, taxes may apply.
What taxes does an LLC have?
There are 3 types of taxation in the United States for companies, corporation, partnership or sole proprietorship. For an LLC, fees apply according to the number of partners:
Sole proprietorship: If you are only a partner/owner. In this case the owner must declare the expenses and income on the personal Tax Return.
Ownership: If 2 or more partners. In this modality, the Tax Return must be made, which is similar to the income tax, specifying income and expenses.
In practice, how is the management of an LLC?
In an LLC, the management is done by the partners themselves, who can also delegate part of the operation to a specific team and/or person. We at OneWorld International Partners strongly recommend that the internal responsibilities and powers of each partner are defined and recorded.
How to open an LLC in the United States?
One of the advantages of opening a company in the United States is that the process is not bureaucratic and in a few days everything will be officially working, but having the expertise of a professional in the area will help to avoid common mistakes, giving more security to the entire process. .
One of the necessary things is the elaboration of a social contract that defines the responsibilities of each partner, as well as the powers of each one, when this does not exist, each state defines the ways to regularize the LLC.
You can open a company in the United States while living in Brazil, the American government allows this, but it is necessary to have a business address, which can be a physical or virtual office.
The United States is the world’s largest power in many aspects, so investing in the North American market is always a smart move, especially considering the medium and long term.
Having your Limited Liability Company-LLC properly regularized will avoid any obstacles in your business processes.
The OneWorld International Partners team is experienced in the process of internationalization of companies, if you are interested in having more information on how to take your product or service to the United States, click here and speak directly with our experts.
