Questions
The ones we are asked before anybody signs anything, answered without a sales angle.
Choosing an entity
LLC or corporation?
An LLC for most owner operated businesses. A corporation when you are raising outside investment, issuing equity to employees, or when an S corporation election saves more than the payroll it requires. See company formation for the full comparison.
Which state should I form in?
Your home state if you live in the US. If you have no US physical presence, the choice is real and usually comes down to Wyoming or New Mexico on cost. Forming in Wyoming while living in California means paying both.
I live in Canada. Can you incorporate my Canadian company?
No. We file in the United States only. What we do a great deal of is forming US companies for people who live in Canada, which is a different job. See the page for Canadian founders.
Can I change entity type later?
Yes, and it costs something. An LLC can elect corporate taxation with a form. Converting to an actual corporation is a state filing and can be a taxable event. Worth deciding properly at the start.
Founders outside the US
Do I need a visa, an SSN or a US partner?
None of the three. Owning a US company and being permitted to work in the US are separate questions.
How do I get an EIN without an SSN?
By prepared Form SS-4 submitted to the IRS by fax or mail. The online tool is closed to applicants whose principal place of business is outside the US. Expect four to eight weeks.
What is Form 5472?
An annual information return required when a foreign person owns twenty five percent or more of a US entity. Due whether or not the company traded. The penalty for missing it starts at twenty five thousand dollars.
Can I open a US bank account remotely?
Sometimes, and it depends heavily on your country of residence. We prepare the document set and tell you what we currently see working. No bank pays us anything.
Cost and timing
What does a formation cost in total?
Our fee from $349 for a US LLC, plus the government filing fee which varies by jurisdiction. Both are shown to you before you pay either. Full detail on the pricing page.
How long does it take?
Same day to about two weeks for the filing depending on jurisdiction. The EIN is same day with an SSN and four to eight weeks without one.
Do you charge for the EIN?
We charge for preparing and following up the application. The number itself is free from the IRS and we say so on the EIN page.
Is there a minimum term?
No. Monthly services end at the end of any month.
Running the company
What is a registered agent and do I need one?
A physical address in the state of formation where the state and the courts can serve documents. Every US entity needs one. It can be you if you have such an address in that state and do not mind it being public.
What happens if I miss an annual report?
A penalty, then loss of good standing, then eventually administrative dissolution. Reinstatement is usually possible and costs more than the report would have.
Do I have to file if the company made nothing?
Often yes. State annual reports are due regardless. A foreign owned single member LLC files Form 5472 regardless. A multi member LLC files a partnership return regardless.
Do I still need to file a BOI report?
If your company was formed in the United States, no. FinCEN made that exemption permanent. Only entities formed under foreign law and registered to do business in a US state are reporting companies, and they never report US persons.
Working with us
Do you take clients whose companies you did not form?
Yes, about half of our accounting clients. Catch up and reinstatement work is ordinary for us.
Are you a law firm?
No. We do not give legal advice and we will tell you when you need a lawyer.
What software do you work in?
Whatever you already use, usually QuickBooks Online or Xero, with the subscription in your name.
How do I leave if I want to?
Tell us. Monthly services stop at the end of the month, your files are yours, and we will hand over to whoever comes next without making it difficult.