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Hi there.

I would like to know tax implications between setting up a company in India and the US (preferably in the states of Delaware, Nevada, or Wyoming).
I aspire to deal in IT services (Web/App Dev, SaaS products, etc) and my operations will be from India, at least currently. Most of my clients will be from the US, Europe, and other parts of the world. I may have some Indian clients too.

I'd like to know where would it be more feasible for an Indian to setup up his company and why?

Some of the questions that need to be addressed-

- Should I register a company in India and open up its subsidiary in the US? Or should I open a separate company there?
- If the US company is an Indian subsidiary, how much tax would it have to pay in the US, and the parent company pays in India? How difficult are double taxation laws?
- If I open up a separate company (independent without being a subsidiary) in the US as a non-US resident, what type of taxes will I be req to pay the US, and in India, being the promoter/director/stakeholder of the said company?
- Should it be an LLC or C Corp? If LLC, single-member or more? (I do have some partners with me, but having their name isn't a deal-breaker.

- For an Indian company, the benefit is I don't have to add GST (VAT) to customer's invoices for exporting services. And most of my revenue should come from exporting services. But the downside is that company (Pvt Ltd) will have to pay 25.1% effective corporate tax annually. And post that, I'll have to pay tax (up to 30%) on the salary made. And then probably even on dividends, through capital gains tax.

- Also, I will be selling my services in USD. So having a US company will allow me to have a US bank account (through EIN) where I can directly get my revenue transacted in USD from payment processing apps like Stripe, TransferWise, PayPal, etc. This would be unlike in the Indian scenario where, apart from the credit/debit card charges that I'll have to pay the payment processors (around 2-3% that I would have paid anywhere), they also charge an additional 2-3% in currency conversion (from USD to INR) and make another 3+% by providing me low USD value that I could have realistically made in the other set scenario. So I end up losing an extra of at least 5-6% there too. Basically, the feeling of being ripped by the payment processor apps because I receive money in INR made me search for another alternative, leading to the formation of an LLC there.

Please note that operations would be from India, with staff, office space, etc. Although, we may seek services like servers, etc from the US, UK, and so on. So expenses would be made in India.
We're hoping to achieve an initial revenue of around $5k/month, and grow from there.

Please suggest and guide me if you have some fact-based knowledge about the same and could help me out. I request you to not confuse me if you aren't sure about yourself.

Thanks for stopping by. :)
 

Perry8

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Hi there.

I would like to know tax implications between setting up a company in India and the US (preferably in the states of Delaware, Nevada, or Wyoming).
I aspire to deal in IT services (Web/App Dev, SaaS products, etc) and my operations will be from India, at least currently. Most of my clients will be from the US, Europe, and other parts of the world. I may have some Indian clients too.

I'd like to know where would it be more feasible for an Indian to setup up his company and why?

Some of the questions that need to be addressed-

- Should I register a company in India and open up its subsidiary in the US? Or should I open a separate company there?
- If the US company is an Indian subsidiary, how much tax would it have to pay in the US, and the parent company pays in India? How difficult are double taxation laws?
- If I open up a separate company (independent without being a subsidiary) in the US as a non-US resident, what type of taxes will I be req to pay the US, and in India, being the promoter/director/stakeholder of the said company?
- Should it be an LLC or C Corp? If LLC, single-member or more? (I do have some partners with me, but having their name isn't a deal-breaker.

- For an Indian company, the benefit is I don't have to add GST (VAT) to customer's invoices for exporting services. And most of my revenue should come from exporting services. But the downside is that company (Pvt Ltd) will have to pay 25.1% effective corporate tax annually. And post that, I'll have to pay tax (up to 30%) on the salary made. And then probably even on dividends, through capital gains tax.

- Also, I will be selling my services in USD. So having a US company will allow me to have a US bank account (through EIN) where I can directly get my revenue transacted in USD from payment processing apps like Stripe, TransferWise, PayPal, etc. This would be unlike in the Indian scenario where, apart from the credit/debit card charges that I'll have to pay the payment processors (around 2-3% that I would have paid anywhere), they also charge an additional 2-3% in currency conversion (from USD to INR) and make another 3+% by providing me low USD value that I could have realistically made in the other set scenario. So I end up losing an extra of at least 5-6% there too. Basically, the feeling of being ripped by the payment processor apps because I receive money in INR made me search for another alternative, leading to the formation of an LLC there.

Please note that operations would be from India, with staff, office space, etc. Although, we may seek services like servers, etc from the US, UK, and so on. So expenses would be made in India.
We're hoping to achieve an initial revenue of around $5k/month, and grow from there.

Please suggest and guide me if you have some fact-based knowledge about the same and could help me out. I request you to not confuse me if you aren't sure about yourself.

Thanks for stopping by. :)

This is a huge topic and it is not easy to give an answer.

First: An US LLC is by default a "pass-thorugh" entitiy tax-wise. So, it is the member(s) that will be taxed and not the LLC. The implication here is that an LLC with foreign members are not always subject to tax in the US at all. That will depend upon the LLC having some sort of permanent establishment or not. A C-corp will always pay taxes in the US as it is a taxable entity. The taxes will differ depending on the state it is incorporated in. Please note that the US have withholdingtaxes on dividends paid to foreign persons or entities. This is normally 20%, but is often reduced in tax treaties.

Unfortunatly, I have no idea of Indian taxes.

Tax treaties are not that difficult to access or to understand, but depending on your country it can be that you need to put down an amount of work with your tax authorities to get your deductions.

VAT/GST: The normal situation for most countries is that exported goods or services are VAT/GST exempt. The question is whether you need to add, collect and pay local VAT/GST where the goods or service is sold. This again depends on local laws and regulations. In the US it depends on whether you have a permanent establishment in the state in question. If you sell via a platform GST can be added no matter what.

US payment processor: This is a very valid point. Remember that a lot of the US debit/credit cards are not open to use abroad. This is the default setting from most suppliers. So, having a local entity will make selling in the US a lot easier - unless you use a platform like Amazon.

The setup I would have used: Note! This is just a suggestion and only based on what I know. I would have opened an Indian limited liability company. I do not know to much about Indian rules here, but since you will be producing everything in India, there is really no way around this. Then I would open a US LLC in Wyoming or Delaware with the Indian company as the member. All sales to the US goes via this company. You will probably not get a bank account in the US for this company unless you go there, but there are ways around this.

Taxes would be:
No GST in the US if you do not have a permanent establishment.
No income tax in the US if you do not have a permanent establishment.
Tax in India on all income but no GST.

When you get further down the line you can consider two things:
1) Getting your US LLC taxed as an C-corp. This is something you can ask for. Then you can switch to paying US taxes and not Indian taxes. It might be better, but you have to do the math.
2) Opening an offshore company to be a new member of your LLC. This can be a setup that takes away most of the taxes from your US operations.

I hopes this helps you a bit.
 

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Thanks a lot, Perry!

It's indeed a difficult topic to answer, esp with the Indian angle to it. I'm grateful to you for taking out the time to respond in such detail.

So I took some professional advice through a CPA, and he gave me similar advice. Now I already have a Pvt Ltd Co. (we don't have LLCs, but LLPs) registered in India. He suggested I open up an LLC under my name (taxed as a C Corp) in one of the 3 states (he didn't help me choose 1 from them). Then that LLC charges my clients, and due to the fact that there are no operations and/or employees in the US, the LLC doesn't add any VAT to the clients. Good so far.
Next, he suggested that the most reasonable option is for my Indian entity to charge the US LLC. The US entity shows nil to minimal profits and gets taxed at 21% for them as federal taxes (No state taxes). In India, the profits made are taxed ar around 25-26% effective corporate taxes.
But then I was wondering, why shouldn't I get the entire income or most of it get taxed in the US, and show minimal profits in the Indian entity. Which is the other way round he suggested. That way, I'd be paying 21% in taxes in the US.

He also did not suggest I have the LLC owned by the Indian entity, but by myself. I wonder what would be the difference in both.

This is actually confusing. I think I should actually sit down and make a flowchart with all variables and possibilities. Although, I think I'll eventually go ahead forming a company in the US too. Since it's sure that there's no GST/VAT in either place applicable to me, I'll at least save some 5-6% of my overall revenue by having a US bank account. So no harm there. Btw, Mercury Bank is more than willing for me to open an account with them, remotely. All that they'd need would be an EIN, which I'd get after registering a US entity. I spoke to one of their guys over mail. And the bank is serious business. Everything about it is futuristic.

So let's just say, I go ahead with a US entity.
Where should I register it? Between Delaware and Wyoming, being my preferred choices.
Should I have an LLC or C Corp?
If LLC, how should I get it taxed as?
Should the US entity be owned by me or the Indian company?
If I generate 10k revenue monthly, profits would be around 6.5k.
For 20k, it would be around 15k.

Is there anything else I'm missing? Something I should ask the CPA or an Indian Tax consultant?

Thanks.
 

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It’s better you pay consultancy from a accountant / attorney and not rely on a public forum. I’m from Brazil and I opened a LLC in Wyoming. I get taxed as individual in the US, pass through company. Brazil has a agreement with US, so I can deduct tax here in Brazil and I only pay the difference, since US is less than Brazil.
 

nitinsy

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Go for Delaware. There are minor differences between the states and apparently Delaware has better laws. I opened mine in Delaware using HBS (google)

LLC taxation was covered above. Better to go with pass through LLC and then later convert to Corp when you have decent profits. Also depends on your future plan? Are you planning to stay in India or do you plan to move abroad? Problem with Corp is that you pay less tax at year end but when you want to bring profits to India, you have to pay taxes on that as well. Hence, nullifying any benefit of lower taxes.

Hypothetically, you can register US LLC with pass through taxation and move to zero tax countries like Dubai and pay zero taxes :)

Also, it doesn't matter who owns the LLC. Indian related party laws cover both scenarios and you have to pay taxes unless you don't declare ownership of the US LLC in India.

I suggest you own the US LLC with pass through taxation to begin with and register Indian entity separately. You can bill US entity and transfer money to Indian entity. File taxes in both.
 

VarrieD

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Go for Delaware. There are minor differences between the states and apparently Delaware has better laws. I opened mine in Delaware using HBS (google)

LLC taxation was covered above. Better to go with pass through LLC and then later convert to Corp when you have decent profits. Also depends on your future plan? Are you planning to stay in India or do you plan to move abroad? Problem with Corp is that you pay less tax at year end but when you want to bring profits to India, you have to pay taxes on that as well. Hence, nullifying any benefit of lower taxes.

Hypothetically, you can register US LLC with pass through taxation and move to zero tax countries like Dubai and pay zero taxes :)

Also, it doesn't matter who owns the LLC. Indian related party laws cover both scenarios and you have to pay taxes unless you don't declare ownership of the US LLC in India.

I suggest you own the US LLC with pass through taxation to begin with and register Indian entity separately. You can bill US entity and transfer money to Indian entity. File taxes in both.
Ain't the annual taxation "cheaper" in Wyoming than that of Delaware? I have also asked some customer support of LLC service about annual taxes I have to pay and she said that when operations/services are conducted outside the US i.e. your team is doing work for US clients from outside the US, then no taxes are needed to be paid. Not sure about that though.
 

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It’s better you pay consultancy from a accountant / attorney and not rely on a public forum. I’m from Brazil and I opened a LLC in Wyoming. I get taxed as individual in the US, pass through company. Brazil has a agreement with US, so I can deduct tax here in Brazil and I only pay the difference, since US is less than Brazil.
That's the idea, mate. And it doesn't hurt to add some more questions I can pose to a professional.

Go for Delaware. There are minor differences between the states and apparently Delaware has better laws. I opened mine in Delaware using HBS (google)

LLC taxation was covered above. Better to go with pass through LLC and then later convert to Corp when you have decent profits. Also depends on your future plan? Are you planning to stay in India or do you plan to move abroad? Problem with Corp is that you pay less tax at year end but when you want to bring profits to India, you have to pay taxes on that as well. Hence, nullifying any benefit of lower taxes.

Hypothetically, you can register US LLC with pass through taxation and move to zero tax countries like Dubai and pay zero taxes :)

Also, it doesn't matter who owns the LLC. Indian related party laws cover both scenarios and you have to pay taxes unless you don't declare ownership of the US LLC in India.

I suggest you own the US LLC with pass through taxation to begin with and register Indian entity separately. You can bill US entity and transfer money to Indian entity. File taxes in both.

Okay. +1 to Delaware. What package did you take at HBS? Any additional services you find worthy, like official business address, etc? Which Bank did you use to open a local account?

I plan to move abroad. I'd settle for a country which, besides low-nil taxes, has a stable economy and permanent residency status, if not citizenship. But that's all for another thread.

I don't think the hypothetical situation (Dubai one) would actually work. Because even with the pass-through tax, I'll have to pay federal taxes in the US (either around 21% or 10-37%).

As to your last point, I already have an Indian company registered (Pvt Ltd). That's the idea, to bill the US entity by the Indian one. Show minimal profit at one end, and maximum at another.
Depending on the taxation % and benefits. I think in this case, I should show max profits with the US entity, since they have relatively lesser taxes (at 21%). I'm talking into C-Corp based taxation for an LLC. Because in the scenario where I would be individually taxed, US federal tax would outrightly be a bigger burden if I show profits of 10k+.
 

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Ain't the annual taxation "cheaper" in Wyoming than that of Delaware? I have also asked some customer support of LLC service about annual taxes I have to pay and she said that when operations/services are conducted outside the US i.e. your team is doing work for US clients from outside the US, then no taxes are needed to be paid. Not sure about that though.
I can say for Delaware. If there's no employee of the company from the US, there's no state tax. Only a fixed annual franchise fee of $300.
Also, some trivia- Google's Alphabet Inc is registered in Delaware. So are 2/3 Fortune 500 companies. Delaware really must be something.
 
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VarrieD

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I can say for Delaware. If there's no employee of the company from the US, there's no state tax. Only a foxed annual franchise fee of $300.
Also, some trivia- Google's Alphabet Inc is registered in Delaware. So are 2/3 Fortune 500 companies. Delaware really must be something.
Which LLC service are you planning to use for this endeavor? Are you also getting EIN and planning to visit the US for a bank account or just use Mercury.com for the time being?
 

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Which LLC service are you planning to use for this endeavor? Are you also getting EIN and planning to visit the US for a bank account or just use Mercury.com for the time being?
I'm not yet sure. I will take a call today or so. I've shortlisted myusacorporation.com Harvard Business Services, and there are tons of them.

Yes, I will get an EIN with the package. One can apply for that themselves, but I'd rather pay 50 bucks and save some trouble. Not visiting US just to open up a bank account. I've spoken to Mercury. They're actually great, IMO. They're no min balance issue, no charges, except a flat $5 for domestic and $20 for int'l wire transfers. Doesn't sound bad.
 

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Ain't the annual taxation "cheaper" in Wyoming than that of Delaware? I have also asked some customer support of LLC service about annual taxes I have to pay and she said that when operations/services are conducted outside the US i.e. your team is doing work for US clients from outside the US, then no taxes are needed to be paid. Not sure about that though.

No state tax in Delaware and annual fees are around $300 for renewal.
 

nitinsy

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That's the idea, mate. And it doesn't hurt to add some more questions I can pose to a professional.



Okay. +1 to Delaware. What package did you take at HBS? Any additional services you find worthy, like official business address, etc? Which Bank did you use to open a local account?

I plan to move abroad. I'd settle for a country which, besides low-nil taxes, has a stable economy and permanent residency status, if not citizenship. But that's all for another thread.

I don't think the hypothetical situation (Dubai one) would actually work. Because even with the pass-through tax, I'll have to pay federal taxes in the US (either around 21% or 10-37%).

As to your last point, I already have an Indian company registered (Pvt Ltd). That's the idea, to bill the US entity by the Indian one. Show minimal profit at one end, and maximum at another.
Depending on the taxation % and benefits. I think in this case, I should show max profits with the US entity, since they have relatively lesser taxes (at 21%). I'm talking into C-Corp based taxation for an LLC. Because in the scenario where I would be individually taxed, US federal tax would outrightly be a bigger burden if I show profits of 10k+.

I don't remember exactly but it was with apostle and a CD with draft copies of bylaws. I used FirstTech which I already had a personal account with. Opening a US account can be tough without face to face meeting. Since I had a personal account with them, I could get it opened remotely.

Pass-through means no tax in US - assuming you an non-resident for tax purposes. Hence, the Dubai scenario works fine. You pay nothing US since your tax liability is only in your country of tax residence. In Dubai, taxes are zero.

Related party laws in India are designed so that you can't really choose to minimize profits in India and show in another country which has less tax. You have to show reasonable profit in India entity. This is of course subject to the income tax officer's assessment.

The only real way to save tax by arbitrage is to not declare your US entity in India and bill as if you are billing a non-related client of yours. They you can use C-corp in US and pay tax at 21% there. You still have to figure out a way to bring profits from the US entity to India after paying 21% (Hawala, etc)

If you declare both entities as owned by you, then you will end up paying tax at the India rate unless you don't bring the after-tax profit to India. Which only makes sense if you keep the profits in US for later use when you move out of India.
 

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That's the idea, mate. And it doesn't hurt to add some more questions I can pose to a professional.



Okay. +1 to Delaware. What package did you take at HBS? Any additional services you find worthy, like official business address, etc? Which Bank did you use to open a local account?

I plan to move abroad. I'd settle for a country which, besides low-nil taxes, has a stable economy and permanent residency status, if not citizenship. But that's all for another thread.

I don't think the hypothetical situation (Dubai one) would actually work. Because even with the pass-through tax, I'll have to pay federal taxes in the US (either around 21% or 10-37%).

As to your last point, I already have an Indian company registered (Pvt Ltd). That's the idea, to bill the US entity by the Indian one. Show minimal profit at one end, and maximum at another.
Depending on the taxation % and benefits. I think in this case, I should show max profits with the US entity, since they have relatively lesser taxes (at 21%). I'm talking into C-Corp based taxation for an LLC. Because in the scenario where I would be individually taxed, US federal tax would outrightly be a bigger burden if I show profits of 10k+.

I know that you didn’t quote me, but I thought It would be helpful for you to share my experience. I opened mine at Wyoming because the yearly fees are cheaper than Delaware, no state taxes as well. My company was opened in less than 48 hours. I paid for a Virtual address, that they store my mail, at VirtualMailbox. I decided to pick a address in Denver, Colorado. Because it’s literally less than 1 hour by car to Wyoming. When everything was done, I flew to the US to open my bank account. No bank would open my account online due to the real ID act, something like that. When I arrived in Colorado, I went to Colorado Springs, which is 1 hour from Denver. I stayed there because I heard it was beautiful, and since I was already in the US I took some days for tourism. On the second day, I went to a Chase bank in Colorado Springs, which is a relative smaller branch. The manager I spoke to said that I couldn’t open an account that I needed to be a resident and lots of bullshit. I said OK, no problem. Next day, I drove to Downtown Denver and went to the Chase tower, the biggest Chase branch in Colorado. 1 hour in and my personal and business account was open, they just asked for proof of address, passport, EIN and boom everything was setup. They had a deal that if I deposited $2.5k and kept it for 3 months I would get $600, so of course I signed up for this deal. Also had a deal for the personal checking, which they gave me $300 for opening an account and getting a incoming ACH. I legally can’t live in the US, but nothing stops me from renting a place there and stay for 6 months, leave the country after 6 months and come back. I wouldn’t be “working” so it would comply with the VISA rules. Oh and yes! I’ve been to Wyoming! There’s bunch of nothing there :p Spent a night there.
 

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:D

I know that you didn’t quote me, but I thought It would be helpful for you to share my experience. I opened mine at Wyoming because the yearly fees are cheaper than Delaware, no state taxes as well. My company was opened in less than 48 hours. I paid for a Virtual address, that they store my mail, at VirtualMailbox. I decided to pick a address in Denver, Colorado. Because it’s literally less than 1 hour by car to Wyoming. When everything was done, I flew to the US to open my bank account. No bank would open my account online due to the real ID act, something like that. When I arrived in Colorado, I went to Colorado Springs, which is 1 hour from Denver. I stayed there because I heard it was beautiful, and since I was already in the US I took some days for tourism. On the second day, I went to a Chase bank in Colorado Springs, which is a relative smaller branch. The manager I spoke to said that I couldn’t open an account that I needed to be a resident and lots of bullshit. I said OK, no problem. Next day, I drove to Downtown Denver and went to the Chase tower, the biggest Chase branch in Colorado. 1 hour in and my personal and business account was open, they just asked for proof of address, passport, EIN and boom everything was setup. They had a deal that if I deposited $2.5k and kept it for 3 months I would get $600, so of course I signed up for this deal. Also had a deal for the personal checking, which they gave me $300 for opening an account and getting a incoming ACH. I legally can’t live in the US, but nothing stops me from renting a place there and stay for 6 months, leave the country after 6 months and come back. I wouldn’t be “working” so it would comply with the VISA rules. Oh and yes! I’ve been to Wyoming! There’s bunch of nothing there :p Spent a night there.


Wow. I hope the bank still pays 20+% in 3 months! You're extremely lucky, bro.

The reason why I'm more including to Delaware than Wyoming is that 2/3 of fortune 500 companies are registered there, including Google. So there must be something. And even Delaware has no state taxes if you aren't operating from there, as far as I can tell. Just a fixed $300 annual franchise fee.

As for opening a bank account by personally visiting a bank in the US, I think laws and regulations have relaxed over time. I personally spoke to a mercury bank executive and he said I can easily open one from the comforts of my home. I just need relevant documents, including a passport. Once the company's formed, I should have all of that in place. If it still doesn't work, I'd definitely fly. I'll have a legit reason to. Lol.

Colorado springs sounds good.
 

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I know that you didn’t quote me, but I thought It would be helpful for you to share my experience. I opened mine at Wyoming because the yearly fees are cheaper than Delaware, no state taxes as well. My company was opened in less than 48 hours. I paid for a Virtual address, that they store my mail, at VirtualMailbox. I decided to pick a address in Denver, Colorado. Because it’s literally less than 1 hour by car to Wyoming. When everything was done, I flew to the US to open my bank account. No bank would open my account online due to the real ID act, something like that. When I arrived in Colorado, I went to Colorado Springs, which is 1 hour from Denver. I stayed there because I heard it was beautiful, and since I was already in the US I took some days for tourism. On the second day, I went to a Chase bank in Colorado Springs, which is a relative smaller branch. The manager I spoke to said that I couldn’t open an account that I needed to be a resident and lots of bullshit. I said OK, no problem. Next day, I drove to Downtown Denver and went to the Chase tower, the biggest Chase branch in Colorado. 1 hour in and my personal and business account was open, they just asked for proof of address, passport, EIN and boom everything was setup. They had a deal that if I deposited $2.5k and kept it for 3 months I would get $600, so of course I signed up for this deal. Also had a deal for the personal checking, which they gave me $300 for opening an account and getting a incoming ACH. I legally can’t live in the US, but nothing stops me from renting a place there and stay for 6 months, leave the country after 6 months and come back. I wouldn’t be “working” so it would comply with the VISA rules. Oh and yes! I’ve been to Wyoming! There’s bunch of nothing there :p Spent a night there.
Which proof of address did they ask from you? Some utility/electricity bill with your name in your address from your home country?
 

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Which proof of address did they ask from you? Some utility/electricity bill with your name in your address from your home country?


If it at all helps, here's an excerpt of what the guy from mercury bank had to say regarding requirements of documents-

We just have a few requirements - in addition to being actively registered in the US, you need to have or plan to have US operations and/or be serving US customers, and not be operating on one of our banking partner's restricted industries (section 4.a here: https://s3.amazonaws.com/co-mercury-prod/legal/Synapse+-+Terms+of+Service+(9.9.2017).pdf).

To complete the application, you'd need your formation document that's on file with the secretary of state where you're registered, your IRS-issued EIN document (form CP575, form 147c, completed SS-4, or a screenshot of your EIN number confirmation from the IRS's website), and an international passport or US government ID for each founder or majority owner of the company. You can get started at mercury.com.

Hope this helps somewhat!
 

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  • Which proof of address did they ask from you? Some utility/electricity bill with your name in your address from your home country?
    They asked for an address. I studied in the US for 3 years so I already had an address there. Also, I had the mailbox address. They asked for a bill, but luckily my Credit card statement still had my old address in it
 

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Wow. I hope the bank still pays 20+% in 3 months! You're extremely lucky, bro.

The reason why I'm more including to Delaware than Wyoming is that 2/3 of fortune 500 companies are registered there, including Google. So there must be something. And even Delaware has no state taxes if you aren't operating from there, as far as I can tell. Just a fixed $300 annual franchise fee.

As for opening a bank account by personally visiting a bank in the US, I think laws and regulations have relaxed over time. I personally spoke to a mercury bank executive and he said I can easily open one from the comforts of my home. I just need relevant documents, including a passport. Once the company's formed, I should have all of that in place. If it still doesn't work, I'd definitely fly. I'll have a legit reason to. Lol.

Colorado springs sounds good.
It’s a on going promotion. Now it’s less but they usually make new promos https://accounts.chase.com/consumer/banking/online/seo
 

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Wow. I hope the bank still pays 20+% in 3 months! You're extremely lucky, bro.

The reason why I'm more including to Delaware than Wyoming is that 2/3 of fortune 500 companies are registered there, including Google. So there must be something. And even Delaware has no state taxes if you aren't operating from there, as far as I can tell. Just a fixed $300 annual franchise fee.

As for opening a bank account by personally visiting a bank in the US, I think laws and regulations have relaxed over time. I personally spoke to a mercury bank executive and he said I can easily open one from the comforts of my home. I just need relevant documents, including a passport. Once the company's formed, I should have all of that in place. If it still doesn't work, I'd definitely fly. I'll have a legit reason to. Lol.

Colorado springs sounds good.
Just stumbled on some articles comparing DE and WY that I thought I may share with you. DE certainly is the go-to jurisdiction for large corporations (as you say Fortune 500 companies) and if you are raising capital or taking your company public, then chances are investors may even force you to incorporate in Delaware. It's famous for Corporations rather than LLCs. The difference between DE LLC and WY LLC is that WY does not have an annual franchise tax ($300 in the case of DE) and only requires $50 annual report fee to keep your business. WY also has asset protection in place so your assets are always safe against personal creditors whereas DE does not have statues regarding LLC asset protection.

So I guess the conclusion here is if you are registering for a corporation then go for DE while if it's an LLC, then WY is a better choice I guess. I've also seen some recommendations that to enjoy the Asset Protection laws in WY, then it's wise to use a WY LLC to hold shares in the DE corporation.
 

VarrieD

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If it at all helps, here's an excerpt of what the guy from mercury bank had to say regarding requirements of documents-

We just have a few requirements - in addition to being actively registered in the US, you need to have or plan to have US operations and/or be serving US customers, and not be operating on one of our banking partner's restricted industries (section 4.a here: https://s3.amazonaws.com/co-mercury-prod/legal/Synapse+-+Terms+of+Service+(9.9.2017).pdf).

To complete the application, you'd need your formation document that's on file with the secretary of state where you're registered, your IRS-issued EIN document (form CP575, form 147c, completed SS-4, or a screenshot of your EIN number confirmation from the IRS's website), and an international passport or US government ID for each founder or majority owner of the company. You can get started at mercury.com.

Hope this helps somewhat!
Thanks for sharing!
 
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