How to open your LLC from Argentina?

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Opening an LLC from Argentina can seem complicated: requirements, legal procedures and doubts about taxes are often barriers that discourage many entrepreneurs. However, with the right information, this process is easier than you imagine. 

If you are looking to protect your assets, operate in international markets and manage your income in dollars, this article is for you. Below, we explaineverything you need to know to open an LLC in the USA as an Argentine resident.

What is an LLC?

A LLC (Limited Liability Company) is a legal structure in the United States that combines the benefits of partnerships and corporations, offering flexibility and protection for owners. It is very popular among entrepreneurs and small businesses due to its administrative simplicity and tax advantages. 

The main characteristic of an LLC is that it protects the personal assets of its owners, known as members. This means that, in the event of debt or legal problems, personal assets, such as houses or cars, are protected and cannot be used to cover company obligations. 

In addition, an LLC allows you to choose how it will be taxed: 

• As an independent entity.  
• Through the personal income of the members. 

In this way, we have a structure that offers greater flexibility to adapt to the needs of the business. 

Requirements to open an LLC from Argentina

Opening an LLC from Argentina may seem like a challenge, but the requirements are simpler than you think. This is what you need to get started:

1. Minimum age: You must be over 18 years old to establish an LLC in the United States. 
2. Basic documentation: You only need your valid passport. No importa si es argentino o de otra nacionalidad, ya que no se requiere ciudadanía estadounidense para formar la empresa. 
3. Registered Agent: This is a mandatory requirement in all states. The registered agent acts as a legal intermediary who receives important documents for your business, such as notices or subpoenas. It must be located in the state where you will register your LLC. 
4. Unique name for your LLC: The business name must be unique and comply with the rules of the state in which it will be registered. This includes including the ending "LLC" and avoiding classified or confusing terms. 
5. Physical or virtual address in the United States: Although it is not necessary to reside in the United States, you will need a local address, which can be physical or a virtual address service. This facilitates official communication with state authorities and the receipt of legal documents. 

With these requirements in hand, you are ready to begin the process of forming your LLC in the United States from Argentina. The first step towards the international expansion of your business is getting closer!

Requirements to open an LLC from Argentina

Opening an LLC in the United States as an Argentine resident is an accessible process if the appropriate steps are followed. Below, we explain the detailed procedure to establish your company remotely:

1. Choose registration status

Not all states have the same conditions for LLCs. The most recommended for non-residents tend to be:

• Delaware: Low regulatory burden and privacy.
• Wyoming: Lower taxes and low maintenance costs.
• Florida: Ideal for those who need local banking services.

It is important to investigate which state best suits your business model.

To choose the best option, we recommend weighing these three criteria: 

• Opening cost or registration fee: This is a one-time amount that you must pay to the state when you register your LLC. 
• Annual report in which you must provide updated data about your company. Some states may apply annual fees for this requirement.
• Confidentiality: The names of members or owners will not be publicly disclosed, ensuring a higher level of privacy.

However, confidentiality does not imply exemption from tax responsibilities. The corresponding authorities, such as the IRS (Treasury), will have access to the information necessary to ensure compliance with tax obligations.

In this analysis, we compare the main states in the United States to form your LLC, so that you can choose the option that best suits your needs. needs.

Some states, such as New Mexico, They offer competitive rates, which can be ideal for minimizing upfront costs. Additionally, New Mexico does not require the submission of an annual report. On the other hand, if you prioritize privacy and favorable jurisprudence, Delaware is an excellent alternative.

The choice of the state where to incorporate your LLC has a significant impact on both the costs and operation of your business. Analyze your priorities, such as rates, confidentiality and ease of administration, to make the most strategic and beneficial decision for your company.

2. Define the name of the LLC

Your LLC name must be unique and comply with the regulations of your chosen state. Some basic rules include:

• Must include the words "Limited Liability Company" or the abbreviation "LLC."
• You cannot include reserved terms, such as "Bank" or "Insurance," unless you have the necessary permits.
• It must be distinguished from other companies registered in the same state.

You can check the availability of the name on the website of the Secretary of State of the chosen state. For example, in Delaware, you can use the Delaware Division of Corporations.

3. Appoint a registered agent

A Registered Agent is a mandatory requirement in all states. This person or company acts as a legal intermediary and receives important documents on behalf of your LLC, such as court notices or tax notices.

Registered Agent Requirements:

• Must have a physical address in the state where the LLC is registered.
• Must be available during business hours to receive documents.

Among other requirements and responsibilities that a registered agent must fulfill. 

If you do not have a US address, you can retain the services of professional registered agents. These services typically cost between $50 and $300 per year.

4. Submit the "Articles of Organization" form

The Articles of Organization (also called the "Certificate of Formation" in some states) are the legal document that formalizes the creation of your LLC. This document must be filed with the Secretary of State of the chosen state.

Required Information:

• Name of the LLC.
• Address of the Registered Agent.
• Name and address of the members (owners) of the LLC.
• Purpose of the LLC (can be general, such as "to conduct any lawful business").

The filing fee varies by state, but generally It ranges between $50 and $500.

Once the registration process is approved, you will receive a certificate of incorporation. This document is official proof that your LLC has been properly registered and is ready to operate. With this certificate in hand, you will have the necessary basis to move forward with other essential procedures, such as opening a bank account in the United States, applying for a Tax Identification Number (EIN) with the IRS, and managing other key requirements to start your business. This certificate is, in essence, the first big step to formalize your company and start operating legally.

5. Write your Operating Agreement

The Operating Agreement is a key document that establishes the management rules of your LLC, defining the rights and responsibilities of its members. Although it is not a mandatory legal requirement, having this document in writing is highly recommended to protect the structure and operation of your company.

This agreement details fundamental aspects such as the distribution of profits and losses, capital contributions, procedures for resolving disputes and the conditions for the departure of a partner. In addition, it allows you to adapt the management of the LLC, either by keeping it in the hands of the members or by delegating it to an external administrator.

Having a well-structured and personalized Operating Agreement according to the needs of your business guarantees greater clarity in administration, reduces risks of conflicts and improves the credibility of your LLC before banks and investors.

6. Get an EIN (Employer Identification Number)

The EIN is a tax identification number issued by the IRS (Internal Revenue Service) of the United States. It is essential for opening a bank account, hiring employees, and filing tax returns.

You can apply for the EIN for free on the IRS website: IRS EIN Application. Additionally, you do not need to be a US citizen or physically be in the US to obtain an EIN. The process can be completed online.

Delegate the creation of your LLC and avoid all these complex processes

What to do after creating my LLC?

After registering your LLC, it is important to take the following steps to start operating smoothly:

Opening a bank account in the United States

A bank account makes it easier to manage your income and expenses in dollars. If you cannot travel, some entities allow you to do so remotely or with the support of specialized services

Among the most recommended banks are: Mercury, Relay, Revolut, AirWallex, Wise, Bank of America, Chase. 

How are LLCs taxed?

LLCs have a transparent tax regime, which means that the income generated is not taxed directly at the corporate level, but rather each member must declare and pay taxes personally on the profits obtained.

If you are a non-resident, the tax burden of your LLC may be affected by its classification as ETBUS (Engaged in Trade or Business in the U.S.), which could generate additional tax obligations in the United States.

Planning is essential. Carefully consider the taxation of your LLC, since taxes may vary depending on the type of activity you carry out, such as sales of physical products in the US, trading, FBA, dropshipping, among others. Having an appropriate tax strategy will help you optimize costs and comply with current regulations.

Meet your obligations

Once your LLC is up and running, it is important to comply with tax and legal obligations in both the US and Argentina.

In the US:

• File annual reports (if required by the state).
• Pay LLC renewal fees.

In Argentina:

• Report your LLC income on your tax return. taxes, since Argentina taxes global income.
• Consider hiring an accountant specialized in international taxes to optimize your tax burden.

Although the US and Argentina do not have a treaty to avoid double taxation, you can deduct taxes paid in the US from your return in Argentina.

FAQs: Opening an LLC from Argentina

Is it necessary to travel to the United States to open an LLC?

No, you don't need to travel. The entire process can be completed remotely with the help of a registered agent in the state where your LLC will be formed. This includes submitting documents and obtaining the EIN.

What is the best state to open an LLC?

It depends on your needs. States like Delaware and Wyoming are popular for their low maintenance costs and tax flexibility. Florida is also an attractive option if you plan to physically operate there or are looking for local financial services.

How much does it cost and how long does it take to open an LLC?

The average cost to form an LLC varies between $300 and $800, depending on the state and the additional services you hire. Processing time is typically 2 to 3 weeks, although some states offer expedited registration options.

Is it legal to open an LLC as an Argentine resident?

Yes, it is completely legal. You do not need to be a US citizen or reside in the country. However, as an Argentine tax resident, you must comply with local tax obligations regarding the income you generate through the LLC.

What types of business are ideal for an LLC from Argentina?

An LLC is ideal for freelancers, service exporters, technology startups, and sellers on platforms such as Amazon, eBay or Etsy. Its tax flexibility and ability to operate in dollars make it a convenient option for global businesses.

What happens if I want to open a bank account in the United States?

Although it is not mandatory, opening a bank account makes the financial management of your business easier. Some banks allow you to do it online, but in other cases, you may need the help of specialized services or a physical visit, depending on the bank and the state chosen.

What obligations must I comply with after opening my LLC?

You must comply with annual state renewals, maintain updated accounting records, and file the required tax returns, both in the United States and Argentina. Additionally, it is essential to renew your registered agent if you decide to change providers.

Do the United States and Argentina have an agreement to avoid double taxation?

No, currently the United States and Argentina do not have an agreement to avoid double taxation. However, both countries signed a Tax Information Exchange Agreement in 2022, which came into force on January 1, 2023. This agreement allows the automatic exchange of financial information between tax authorities, promoting transparency and combating tax evasion.

Although this does not eliminate double taxation, Argentine tax residents with income from an LLC in the United States must comply with tax obligations in both countries. For greater clarity, it is advisable to consult a tax advisor who will allow you to correctly manage these obligations and optimize the tax burden.