In the very beginning, the thought of – “how to start a remote US company from Austria” may seem like a difficult undertaking. On second look, it’s an exciting and very promising possibility.
From the comfort of your Austrian home, access a worldwide market, take advantage of the US’s 0% taxes on foreign-earned revenue and use top-notch payment methods.
It’s an amazing opportunity to transform and grow your business on another level.
Why Start a US Company
Benefits of a US LLC
There are several benefits to forming a US LLC, particularly for Austrian business owners who wish to broaden their business.
First, there’s the appealing possibility of no US taxes on revenue made abroad, which may boost profitability considerably. You may reinvest more in your company as a result of this tax gain, which will spur development. A US LLC also gives access to a huge and varied international market. The US economy’s strength makes it simpler and more effective to reach clients abroad.
Additionally, you’ll have access to top-notch payment options and financial services that facilitate smooth transactions and simple monitoring of corporate funds.
Global Market Reach
When you are a US company owner, you have an exceptional gateway to the global market. The US is known across the globe as the hub for innovation and corporate excellence, which may provide the legitimacy and confidence of your operation. This results in increased exposure and accessibility to a wider market for Austrian business owners.
You may reach a far wider audience of customers outside of Europe by having a presence in the US and taking advantage of one of the biggest consumer bases globally.
Participating in the US market also gives you access to cutting-edge logistical and digital infrastructures. These tools facilitate international product and service distribution, fostering the expansion of your company. The strategic location of the US also makes it easier for the country to engage with other international markets, which opens up possibilities for strategic alliances and joint ventures.
Zero US Taxes
The fact that there are no taxes on money made abroad is one of the strongest arguments for Austrian entrepreneurs.
There are only three requirements you need to meet to avoid paying taxes in the US:
- You are a non-resident of the US.
- Your payroll employees do not live in the US.
- You don’t own premises or warehouses in the US.
With this advantage, you may keep more of your hard-earned profits and lessen your tax burden dramatically. You may spend more on new technology, grow your product line, or scale your firm with the help of this tax benefit. It also makes tax planning easier since you can concentrate on your local tax requirements without having to worry about double taxation.
Tax planning becomes easier as well since you may concentrate on your local tax responsibilities without having to worry about paying taxes twice.
That being said, it’s critical to remain aware of any Austrian local tax rules that can affect your company. You may set up your business for long-term, profitable growth in the cutthroat global market by utilizing this special edge.
Steps to Form a US LLC From Austria
Choose a State for Your LLC
The first step in forming a US LLC is deciding which state to register in. Each state has different regulations, taxes, and fees, so it’s important to choose wisely.
Popular States: Delaware and Wyoming, are popular due to their business-friendly laws and lower fees.
We always recommend Wyoming, unless there is a very strong reason for any other state. Another thing that you should always consider is that Delaware includes a $300 yearly franchise tax, which you need to pay.
State Requirements: Research the specific requirements for each state, such as annual report fees and franchise taxes.
Business Location: Consider where your primary business operations will occur, as some states may require foreign qualifications if your business operates in multiple states.
File the Articles of Organization
Once you’ve chosen your state, the next step is to file the Articles of Organization.
Prepare Your Documents: Make sure you have all the required data, including the name, address, and registered agent information of your LLC.
Procedure for Filing: Send the Articles of Organization to the Secretary of State’s office in the state. Usually, you may accomplish this via mail or online.
Filing Fees: A filing fee, which differs by state, must be anticipated.
After filing, your LLC will be officially recognized by the state.
Draft the Operating Agreement
The Operating Agreement is a critical step, even if it’s not legally required in your state.
- Define Roles: Clearly state each member’s obligations and roles.
- Set Procedures: Establish protocols for allocating profits, resolving disputes, and making decisions.
- Customize Terms: Adjust the terms to your own company requirements and situation.
A well-drafted Operating Agreement can prevent future conflicts and ensure smooth operations.
Obtain an EIN
For your LLC to operate, an Employer Identification Number (EIN) is required.
Apply Online: The IRS website offers a direct application process for an EIN. The program is simple to use and is free.
Details Needed: Give specifics like the name of your LLC, the date of creation, and the identity of the accountable person.
Instant Issuance: Your EIN will be issued to you as soon as your application has been processed.
Having an EIN is necessary for tax reporting, opening a bank account, and hiring employees.
Appoint a Registered Agent
Your LLC must have a registered agent in the state of formation.
Choose Wisely: Choose a reputable registered agent who can manage official notices and legal paperwork on time.
Service Providers: If you don’t have a physical presence in the state, registering as an agent is a simple alternative that many organizations provide.
Maintain Compliance: To stay out of trouble with the law, make sure your registered agent information is constantly current.
A professional registered agent service can help you stay compliant and protect your privacy.
Why Choose a US LLC for Your Agency?
Benefits of a US LLC for Foreigners
Forming a US LLC offers numerous advantages for foreign entrepreneurs. Here are some key benefits:
- Limited Liability Protection
Your assets are protected from business liabilities. This means if your business faces legal issues, your personal belongings remain safe.
- Tax Flexibility
A US LLC offers pass-through taxation, meaning profits are taxed only once on your personal tax return. This can simplify your tax obligations compared to other business structures.
- Ease of Formation and Management
Setting up a US LLC is relatively straightforward. With the right guidance, you can complete the process quickly and efficiently. Once formed, the ongoing administrative requirements are minimal.
- Business Credibility
A US LLC enhances your business credibility with customers and partners. It shows you are serious about your business and committed to complying with US regulations.
- Access to the US Market
Forming a US LLC allows you to operate seamlessly in the US market, giving you access to a vast customer base and numerous business opportunities.
Managing Your US LLC Remotely
Banking and Payment Methods
Managing banking and payment methods efficiently becomes essential for running your US LLC from Austria. It is quite beneficial to open a US business bank account since it makes transactions easier. Also makes US financial services accessible and helps in keeping personal and business money separate.
You may manage your funds remotely by selecting banks that provide strong online banking services. Plus, payment processors like Stripe handle international transactions quickly and effectively. These systems facilitate payments from international clients and support several currencies.
With these banking and payment processes in place increases your reputation among partners and customers throughout the globe.
Conclusion
A remote US company from Austria is a fantastic and strategic move that has several possibilities. You may take advantage of advantages like no taxes on money generated abroad, entry into an international market, and world-class banking solutions.
Following a step-by-step guide will guarantee that you handle the registration process complications with simplicity and enable you to conveniently administer your US LLC from any location in the globe.
Another option to think through is partnering up with Nebase, and learn more about the Nebase process and packages.
Grab your free ‘1-on-1’ 15-minute consultation with Petar.
