Can foreigners form an LLC in the USA?

Starting a new business in the US is still a top choice with foreigners seeking a base for their international business, especially in the digital economy.

 (photo credit: TRUIC-LLC-FORMATION)
(photo credit: TRUIC-LLC-FORMATION)
The complexity of opening a business in a foreign country may sound daunting, yet it can be an invigorating experience. You may not even be sure that you want to do so, given any stories you have heard, or things you have seen. However, the U.S. is a great place to start a business, and they continue to welcome foreign businesses as they have for a long time.
Amit Seyani in London, a serial entrepreneur who is the MD of both Snatchable and The App Lads says that “As new digital companies launch, many may find European jurisdictions too limiting for incorporation and turn to the U.S. either to be better positioned for venture capital, or simply to benefit from more business-friendly rules that can in turn create more shareholder value. Good iInformation resources can simplify and fast-track the entire process for foreigners who are unfamiliar with U.S. procedures ”. 
Some have made it so easy in the U.S. that the process is almost as simple as if you were a citizen there, and there are plenty of resources to help you along the way if you ever feel lost. Arguably one of the best resources for anyone seeking to form an LLC in the U.S. would be “The really useful information company” known as TRUiC. A few things we learned from them can be seen below:
Is an LLC the only structure to use in the US?
The good thing is - no! Non-citizens in the U.S. can form two types of entities - corporations or LLCs - specifically C corporations. S corporations are also popular among foreigners, but in order to have this kind of business you’ll have to have some type of U.S. citizenship.
Why should I form an LLC instead of a C corporation?
A lot of foreigners are recommended C corps. But, there are some distinct advantages to forming an LLC. These reasons include limited liability, so that you personally aren’t responsible for anything in your business, and LLCs aren’t nearly as strict - you do not have to have strict recordkeeping and there are no restrictions on how you share your profits between members.
How would I form and operate an LLC, being a foreigner?
Apply to register in a specific state
You can generally select any state for this, but Delaware is strongly recommended, because of its low tax rates for any business. It also has low maintenance fees and rigid corporate laws, so you and your business are safer than in other states. But, sometimes it is better to start in a state where your type of business thrives, just so that you can generate more income.
Get an EIN and an Operating Agreement
An EIN is an Employee Identification Number which will differentiate your businesses from others. To get one, you need a few key things, such as a business name. An Operating Agreement is a legal document defining rights of each LLC member, and many states require LLCs to have one. While it is not required in every state, it is recommended, as it is needed for a business bank account, which you will need once you start obtaining profits.
Choose a registered agent
A registered agent is a third party, registered in the same state as the business, who is nominated to receive and send official documents on your behalf, such as tax forms.
Licenses, permits and other requirements
You may be required to get licenses and permits depending on your choice of business, and to maintain an LLC in good standing, you also generally have to file an annual report with the state and renew the registered agent service.
Open a bank account
This part is not absolutely necessary either, but it is highly recommended. If you start mixing your personal money with that of your business, you could end up losing the limited liability part of your business, which defeats the purpose.
What if I want to form a C corporation instead?
If you do not want to or cannot form an LLC, there is still another option for you. The advantages of forming a C corp are significant - you can offer unlimited stock, which is attractive to investors, as well as being well-protected from IRS involvement. But this shield does unfortunately come with the price of double taxation - but this can be avoided through careful planning. Forming a corporation has relatively the same steps, and if you are ever struggling it is never hard to find help.
Who is using LLC formation services in the U.S?
Besides the numerous businesses targeting the U.S. domestic market with physical service-related businesses, companies targeting a global base of internet users through channels such as Spotify, iTunes, Amazon etc. tend to favor the U.S. So it is common to see, for example, music and entertainment startups opt for an entire range of services like web hosting, Instagram Verification, online branding, video production, company formation, accounting and so forth being carried out from within the U.S. Even companies seeking a safe haven for their IP assets, tend to love the U.S. as a base.
What experts say about LLC formation in the U.S:
TRUiC CEO Nagabhushanam "Bobby" Peddi has helped around 250K businesses being formed. He says “Our team of 40 researchers and content producers aim to provide the most accurate and up to date information on who the best formation services are in the U.S. and outlining cost-saving steps along with vital information on why certain structures are more preferred. We also have a business idea generator that can help people match their individual style with the best business for their needs, so they can be happier along their entrepreneurial journey”.
Final take:
It seems that forming a new business in the U.S. has become a trend that is guided by some of the most advanced “how-to” resources on how to pick a business type, find a great business name and even packaged legal services that taps into the experience of formation lawyers to put forward the most popular services in an “off the shelf” solution.