How to Form an LLC from Portugal

Having Portuguese citizenship gives you the opportunity to start expanding your business all over the globe by creating an LLC in the United States.

Americans as well as foreign nationals can register to form an LLC in the US as there are no requirements such as possessing citizenship or a residence permit.

This guide is useful in the sense that it helps step by step to go through the entire process of starting an LLC from Portugal as well as understanding the legal obligations that exist in the American business world.

Step 1: Choose the State for Your LLC

The very first thing that you want to do is to make a decision in the particular state of the US you want to register your LLC. Some of the commonly used states when it comes to LLC registration include:

Delaware: That has friendly policies and also has flexible terms in operating agreements.

Wyoming: That has low fee structures and even good protection of privacy for the adherents of LLC.

Nevada: Business activities are prevalent as there is no corporate tax for business partnerships.

Several factors determine this specific choice such as aimed tax incentives, rules and regulations as well the location of potential customers or business partners.

For instance, when forming a business that sees no need for any physical activity in the US one could consider Wyoming and Delaware as these states have less stringent laws when it comes to businesses.

Moreover, it is important to note the annual filings and franchise taxes of every state in order to make a decision.

Step 2: Select a Unique Name for Your LLC

It is also necessary to adhere to the naming standards of the state in which the new LLC is being created. In general, the title:

• Should be distinguishable from that of other existing enterprises in the same state.
• It ought to have the expression “Limited Liability Company,” or some contraction, such as “LLC” or “L.L.C.” as descriptive features.

To find out whether a name is available, consult the Secretary of State’s designated state online database. If the name you like is unavailable, think of names that are more in tune with your brand but are allowed in your state.

Step 3: Appoint a Registered Agent

The Registered Agent is the individual or company noting the individual that receives legal correspondence on your behalf. There are a few requirements:

• He must have a physical address, to act as the registered agent in the same state where the LLC is made.
• The agent can be a professional service, an individual, or even a company like EasyFiling.

Considering your location in Portugal, engaging a registered professional agent service aids in conforming to the requirements of the regulatory frameworks of the United States. Furthermore, these services provide security by not allowing you to miss legal notifications like reminders.

Step 4: File Articles of Organization

It is the Articles of Organization (also known as Certificate of Formation) By-Laws, which enable one to register a company as an LLC. To do so one must:

• Fill in the application form with the LLC Name, the registered agent, and the purpose of the business of the company.
• To file the form, mail it to the Secretary of State with the prescribed filing fees (each State has its fees).

In most cases, online filing is allowed because many foreign investors find it easier to do so. As processing times vary a great deal, appropriate planning is critical to facilitate effective registration.

Step 5: Obtain an EIN (Employer Identification Number)

An EIN is specifically useful in signing up for an LLC as it will provide convenience in opening a US bank account, filing taxes, and hiring staff. The EIN can be requested through the IRS in the following manner;

• Fill, it out and either submit it by mail or do it online, Form SS-4.
• Filing forms and completing documents indicating that foreign applicants don’t have an SSI/Social Security Number American Residency.

Key to the operations of the business is the EIN as it is quite often necessary for a number of registrations and filings. Make sure you file for it soon after your LLC is incorporated.

Step 6: Open a U.S. Bank Account

To run your LLC the right way, opening a business bank account in the United States will most likely be necessary. Since you do not reside in the USA, you might have to do the following:

• Depending on the banking institution, enter the US to physically open the account.
• Present documents including but not limited to: EIN Number, Articles of Incorporation, and a passport.
• Otherwise, look for alternatives such as online-based banking services like Mercury or Brex which allow non-residents to register accounts.

Considering that U.S. banks are able to facilitate this, you would be able to easily make financial transactions as well as receive payment from your American clients and pay vendors based in the US which would eliminate reporting hassle when tax season comes around.

Step 7: Create an Operating Agreement

Although not always required by law, an Operating Agreement outlines the ownership structure, roles, and responsibilities of LLC members. This document:

• Helps prevent disputes among members.
• Provides clarity on how the LLC operates.
• Strengthens your LLC’s credibility.

Having an operating agreement would still be useful even in operating one-member LLCs as it helps in defining procedures as well as showing the professional capacity to potential partners or investors.

Step 8: Understand Your Tax Obligations

As an outsider, a foreign property owner of a U.S. LLC, you may have something of an issue with tax customs:

• Single-member LLCs: For tax purposes, foreign owners of a single-owned LLC are taxed as ‘disregarded entities’, and thus income is reported through their tax returns.
• Multi-member LLCs: Classified as a partnership requiring Form 1065 for returns of Partnership.
• If your LLC does business in America and develops income you might also have to file a few more forms like the 5472 form.

Also, the type of income you will be taxed on may be subjected to the tax treaties between Portugal and the U.S. which is why getting in touch with a tax expert complying with the US tax policy is wise.

Step 9: Obtain Necessary Licenses and Permits

For performing a business activity at the highest possible level without any losses, specific operating licenses or other forms of documents may be necessary for certain activities. Investigate the compliance requirements at the federal level as well as at the local level. Not having the ability to get the right permits can cause sanctions or halting business activity.

Step 10: Maintain Compliance

In such a case whereby your LLC is in distress in the business you need to:

• File annual reports or pay franchise taxes (requirements vary by state).
• Keep your registered agent information up to date.
• Renew necessary licenses and permits.

Allowing time to dive into the policies of compliance on a regular basis will protect you from facing extra sanctions as well as make sure that everything runs smoothly.

Benefits of Forming an LLC from Portugal

Portugal-based entrepreneurs can obtain several benefits by establishing an LLC in the US such as;

Access to the U.S. Market: Move your company into one of the biggest and most profitable markets which allows the company to have many clients and more partners.

Limited Liability Protection: Your position as a member allows you to insulate your earnings and assets from business debts and liabilities.

Tax Flexibility: An LLC can be construed as a non-taxable entity which means earnings can only be taxed once. Furthermore, any other business structures can also be used to own and operate the LLC, including a sole proprietorship or a corporation.

Ease of Formation and Operation: A US LLC requires a small number of formalities as compared to a corporation, making it easier to set up and maintain the business.

Enhanced Credibility: Registering a US-based company will give your business image a boost when dealing with American suppliers and clients.

Access to Banking and Financial Services: Using the banking and financial services of US-based firms eases the process of making transactions, sending invoices, and receiving payments.

Privacy Protection: In states such as Wyoming and Delaware, privacy is enhanced due to a lack of member information being made public.

No Residency Requirements: In order to register and run an LLC company, you are not required to immigrate to the U.S., thus this form is great for foreign businesses.

Opportunity for Global Growth: Incorporating a U. S. LLC can provide access to relations, funds, or some investments that are unavailable in Portugal.

Leverage U.S. Business Ecosystems: Make use of well-established business networks, broad tech-centric hubs, and nurturing ecosystems that are in the U.S. to augment business.

Why Choose EasyFiling to Form Your LLC?

Our primary goal is to assist international entrepreneurs like you in registering and maintaining their LLCs in the U.S Our services incorporate:

• Assisting with registered agent services.
• Preparation and submission of Articles of Organization
• EIN procurement and aid in US bank opening
• Keeping the business within the compliance of US laws.
• Assisting in taxes and complying with requirements.

With EasyFiling, you can scale your business and grow, completely hands-free, while we do the hard work.