If you’re trying to determine “what states allow a business without physical presence?” you’re in the right place.
In this article, we’re going to explore US business activities and registration in several states. More specifically, in states that don’t require the business (or the business owner) to be physically present.
After this article, you can also use our other free resources to help navigate banking for your LLC including how to request an EIN verification letter 147c, how to open a bank account in the United States, and even US LLC taxes.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- What Are the Physical Presence Requirements for a US Company?
- Where Can a Foreign Business Register Without Physically Being Present
- Frequently Asked Questions on Where to Register Businesses in the United States
- Ready to Open Accounts With Banks in the USA?
What Are the Physical Presence Requirements for a US Company?
Surprisingly, most US states do not require US businesses to have a physical presence in the state. Instead, they allow non-resident foreign-owned US limited liability companies (LLCs) to register and operate from elsewhere.
In fact, some of the most popular US states for US LLC registration allow business owners to operate in this way.
- Wyoming LLCs
- Delaware LLCs
- Nevada LLCs
- New Mexico LLCs
If these LLCs do operate in their state of registration, they will be treated differently from a tax perspective. Likewise, there may be additional registration and licensing requirements depending on the type of businesses they operate.
It’s important to note that businesses can run into company naming conflicts, where an EIN reference number 101 is issued by the IRS stating the IRS has found another company with the same name or a similar name, or there has been a typo in the name provided. We explain the EIN reference number 101 and how to solve it in the link above.
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Where Can a Foreign Business Register Without Physically Being Present?
As mentioned, business owners can choose from some of the most popular US states for company registration, including Wyoming and Delaware.
The reason for this is that most business owners choose to use a local registered agent when setting up their US limited liability company. This registered agent then becomes the point of contact for the company and is listed on all state documents.
In fact, in places like Wyoming, business owners can choose to only list the registered agent information on company documents. This effectively makes the LLC anonymous and all information hidden from the public.
Alternatively, if you’re looking for other address alternatives, and whether or not you can use your home address for your LLC, you can check out our link here for more information.
Frequently Asked Questions on Where to Register Businesses in the United States
Below are three of the most common questions we receive from people exploring which states allow companies to operate their business without a physical presence. If you have further questions you would like answered, don’t hesitate to get in touch.
Does a US LLC Need to Have a Physical Presence Locally?
No, a US LLC does not need to have a physical presence locally in the state where it is registered. Instead, it can operate in a different state or even a different country. In certain instances, a business may not have any operations at all, in such instances, the business is often registered for the purpose of holding assets.
Can a US LLC Be Registered in a Different State?
Yes, a US LLC can be registered and operate in different states. This multi-state approach to operating an LLC is called a “Foreign LLC”. However, in most cases, out-of-state LLCs still need to register locally in order to operate legally. States differ in the way that they treat and register out-of-state LLCs. So, it’s best to contact the specific state that you are interested in operating from before proceeding.
Do You Have to Be in the State in Which Your Company Is Located?
No, you do not have to be in the state in which your company is located. It is 100% legal to live in a different state than where your business operates and is registered. Of course, depending on where the companies are registered, the state’s laws, taxes, filings, and regulations will differ.
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In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
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