USA incorporation is possible without a Social Security Number (SSN) for both US residents and non-US residents.
Corporation in Delaware: For a non-US resident, incorporating a business in Delaware state is the best idea as it is the most business-friendly and popular state for incorporating.
Delaware offers flexible favourable laws for businesses, privacy (Delaware does not require any director, members, or officers to be listed on the company formation documents), and cheaper filing fees.
The next step is to decide whether your business should be considered as C Corporation or S Corporation.
- A C Corporation is a separately taxable entity, where tax is paid on the corporate level and the individual level on dividends.
- An S Corporation is a pass-through tax entity. That means it pays no corporate income tax. The profits and losses pass through the business and are reported on the personal income tax returns of the owner.
Although ownership of a C Corporation is unrestricted, an S Corporation is restricted to no more than 100 shareholders, and all of them must be citizens of the United States.
So, without a Social Security Number (SSN) you can only open a C Corporation, and not an S Corporation.
After forming C Corporation, you would require an Employer Identification Number (EIN) which will allow you to legally operate your business in the United States.
You need an EIN to start your business, file company tax, take loans for business purposes, open a business bank account in the USA, hire employees and apply for licenses.
If you do not have a Social Security Number (SSN), you can still apply for an EIN.
- Take the help of a business lawyer to act as a third-party designee for you.
- He will prepare an EIN application and contact the IRS.
- He will receive your EIN on your behalf.
Now you are ready to operate your business in the USA.