A big perk of being a digital nomad? You have the freedom to choose where you hold residency and where you register your business. In other words, it’s up to you where and how you pay your taxes.
While too much responsibility worries most people; we’re notorious for making things work in our favor and investigating the possibilities.
In that spirit, let’s dive into why registering your business in the US might be a good option for you.
It’s easy and gives you access to the top economy in the world, world-class banking, and better investor opportunities. On top of that, it’s tax-free. No, your eyes aren’t fooling you, you won’t have to pay tax in the US. Keep reading to find out why and how you can register your business in the USA today.
Table of Contents
Why Are Digital Nomads Choosing to Register Their Business in the US?
Accessibility
You can form your business in the USA online. You don’t have to file for a visa, buy a flight, pay for Ubers and hotels. You don’t have to wait in queues and deal with unfriendly officials from the state. All you have to do is fill out a simple online application and pay the formation fee.
Openness
Top Banking
The US has some of the best banking institutions in the world. Unless you’re a resident, you will not be able to stroll into an American bank and open an account.
However, when you register a business in the US you’ll be able to open business accounts without any issues.
If you take payments in USD and suffer from exchange rates set by Paypal or other payment processing platforms, you’ll be relieved to use a US bank account. It’ll give you more control over how and when you exchange your money. You’ll also have the choice of simply not exchanging and operating in USD.
Investors
If you’re a startup or are looking for investors and funding then registering your business in the US might be a smart move.
Investors are more familiar with the laws in the US and feel safer investing in businesses that are under US jurisdiction as opposed to a country they’re not familiar with.
Furthermore, there are many grants and schemes available to US businesses. This could potentially open many doors for you in terms of funding your business and expanding.
American Dream
The US is known for being the place of expansion and growth. Individuals and businesses have fled here for decades because it’s the most favourable economy to make big dreams come true.
If you want your business to operate in an environment that encourages growth then the US will be your best pick.
Tax Savings
When you register your business in the US you’ll choose from 50 states. Each one has different rules and regulations. Some states are income-tax-free, sales-tax-free, and so on.
Furthermore, if you’re not a resident/citizen you won’t be liable to pay personal tax with the IRS.
Which States Are Best For Business Formation For Digital Nomads?
With 50 states, it’s not an easy task to research each one and figures out which is the best for business formation.
We reached out to the founder of Businessanywhere.io. These guys specialize in forming businesses for digital nomads and were able to give us a rundown on the best states to form a business in.
Here’s the rundown:
1. Wyoming
Wyoming is the most popular choice among digital nomads here’s why:
- No personal or corporation income tax.
- Low sales tax.
- Personal information doesn’t have to be listed with the state when forming a business
- No minimum capitalization, you can open your business with $1
- Low annual maintenance cost—the annual fee is just over $50.
2. Delaware
Businesses love Delaware. It’s famous for its ‘pro-business’ justice system.
- Non-jury court (cases are heard by chancellors trained in corporate law) so you can expect faster and less expensive hearings
- No personal income tax, sales tax or corporate income tax
- Fast incorporation; you can register your business in as little as three days
- Low incorporation and annual maintenance cost
3. New Mexico
A little privacy, please? New Mexico is the state to register your business in if you value your privacy..
- No information kept on the manager or owner of the business (LLC)
- Save on annual report fees! New Mexico doesn’t require an annual filing
- Speedy registration time, even as little as one business day!
4. Florida
Florida is the smiley, friendly state that invites all businesses and makes them feel right at home.
- No state income tax for LLCs
- A stable state with great economic growth
- Popular for small to medium sized businesses
- Relatively low admin fees
Final piece of advice
Business formation in the US is easy even if you’re a foreigner and has many benefits that could help you save money and expand your business.
You can read more about it you at businessanywhere.io.
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