How to open an LLC in the United States from Spain

Would you like to start a business in the United States without having to pay high taxes or deal with bureaucracy? If so, you might be interested in learning how to open an LLC from Spain. An LLC, or Limited Liability Company, is a legal structure that allows you to create a company in the United States with tax advantages, liability protection, and management flexibility. In this article, we will explain what an LLC is, how to open an LLC from Spain, and how to handle the taxation of an LLC in Spain and the United States.

Firstly, What is an LLC?

An LLC is a form of business organization that combines the characteristics of a partnership and a corporation. In other words, the owners of an LLC are not personally liable for the debts and obligations of the company. This means that the personal assets of the members are protected. On the other hand, an LLC does not pay taxes as an entity; instead, the income and expenses are passed through to the members, who report them on their personal taxes. Additionally, an LLC can establish its own internal rules and regulations in an operating agreement, which defines the rights and responsibilities of the members, the distribution of profits and losses, and the decision-making process.

But how do you open an LLC from Spain?

Opening an LLC from Spain is a relatively simple process and can be done remotely, without the need to travel to the United States. Here we will show you how easy it is to open an LLC in the United States from Spain.

Step 1: Name your LLC

Your LLC's name must be unique and available in the state of the United States where you want to register your company.

Step 2: Registered Agent

This entity, with a domicile in the United States, receives notifications and legal documents on behalf of your LLC and forwards them to you.

Step 3: File the formation documents

The formation documents are the forms you need to fill out and submit to the relevant state entity to create your LLC. These documents should include the following information: the name and address of your registered agent, the purpose of your company, the duration of your LLC, and member information.

Step 4: Obtain an Employer Identification Number (EIN)

The EIN is necessary for tax procedures, opening a bank account, hiring employees, and applying for licenses and permits in the United States.

Step 5: Open a bank account

Opening a bank account will allow you to separate your personal finances from those of your company, facilitating payments and transactions originating from your business.

How is an LLC taxed in Spain?

If you have an LLC in Spain, you need to comply with certain tax obligations. Although the LLC does not pay taxes itself, the income generated with it must be declared in your personal tax return. This means that the LLC's profits are considered part of your personal income and are subject to personal income tax (IRPF) in Spain.

It is important to note that if your LLC operates only in the United States, you may not be required to pay taxes in Spain. However, this will depend on your situation and the double taxation agreement between both countries. Therefore, it is advisable to seek guidance from a professional for appropriate tax advice.

How is an LLC taxed in the United States?

The taxation of an LLC in the United States varies depending on several factors, such as the structure of the LLC, the income generated by the company, and the state where the LLC is registered. Generally, LLCs involve the income generated by them being transferred directly to the members and taxed in their personal tax returns. Additionally, LLCs can choose how they will be treated for tax purposes. They can opt to be treated as a disregarded entity, a sole proprietorship, a partnership, or even as a corporation.

As you can see, opening an LLC from Spain is a relatively simple process with multiple benefits. If you are considering opening an LLC from Spain, it is important to consider the requirements and obligations of both Spain and the United States. If you are interested in opening your LLC from Spain and want more information, Wayfrontier allows you to streamline the entire process with just one click. Don't miss this opportunity and open your business in the United States from the comfort of your home!