Foreign drop-shippers can choose primarily between two types of entities: LLC and C- Corporation. LLC is the most common type of entity chosen by our foreign clients due to its simplicity, flexibility and single taxation. C-Corporation mostly chosen by young entrepreneurs looking to obtain Angel or VC financing.
You can see a comparison between LLC and C-Corporation here: LLC vs. Corporation.
It is important to understand that as a foreigner the choice between LLC and Corporation typically comes down to how one wants to be personally taxed. We cover many questions of taxation in our article U.S. Taxation for Foreign Entrepreneurs, and would like to invite you to go over that article, as well as consult a U.S. tax specialist, prior to making a decision on which type of company to register.
There is one tip that is worth giving here - you certainly can't go wrong with registering an LLC, simply because an LLC is such a flexible entity in terms of taxation that if you at some point decide that you would rather have your company taxed as C-Corporation, you can just file a C- Corporation election for your LLC with IRS. You don't get such flexibility with corporation.
First of all, to register a company in the U.S. you don't need to present any documents - only information. Documents would be necessary in case you want a US address or need to open a bank account, but not for company registration.
You also don't need to be present in the U.S. to register a company. All filings can be done remotely, with us serving as your proxy in the U.S. In almost all cases when we need a signature from our clients this can be done electronically.
Other important things that many foreigners are concerned about - as a foreigner you are not required to have Social Security Number to open your company and obtain EIN (company tax ID). You also don’t need to have a U.S. address or phone number, however if you like to have
U.S. address and/or phone it’s possible to obtain them from specializing vendors (see phone
vendors here, and our U.S. address solution here).
You do need to hire a Registered Agent that is located in the state of registration, however this is a standard service that we provide in all 50 states and DC, so there is no need to worry about it (just make sure to select this item on the form).
Banking in the US is a more complicated topic. There are some companies on the internet that promise international clients help in opening a bank account remotely, but we warn our clients to be careful with those who claim they can help that way. To learn more about banking in the