Question 1

LLC or C-Corp — which one won't screw me over?

Accepted Answer

The contradictory advice exists because both are right for different goals. Choose an LLC if you want to invoice US clients and take home profits without investors. Choose a C-Corporation if you plan to raise venture capital, as investors will not fund an LLC. We offer free consulting before you pay to ensure you get this right.

Question 2

Is Delaware just expensive hype for a non-US founder? Why not Wyoming?

Accepted Answer

Delaware is the gold standard for C-Corporations raising money because of its investor-friendly laws. For a bootstrapped LLC, Wyoming is almost always better. It offers similar protection but costs only $62 per year to maintain versus Delaware's $300. We will help you pick based on your actual business goals, not just hype.

Question 3

Do I need a US co-founder or resident on my team to incorporate?

Accepted Answer

No, and this is a critical advantage of the US system. Unlike Singapore or India, you can be a single non-US founder and own 100% of your US company. There is no requirement for a local director or partner. The entire process can be completed from your home country.

Question 4

I picked a state but now I think it's the wrong one. Did I just make a huge mistake?

Accepted Answer

This is fixable but needs correct handling. If you've just started, dissolve the first company and form a new one. If it's been operating, we can handle domestication or conversion to move your company to the correct state without losing its history. This is complex but we handle it in all 50 states.

Question 5

What documents do I actually need to get started? Do I need a US visa?

Accepted Answer

For most non-US founders, only a valid passport copy is required. You do not need a US visa, and you do not need to physically visit the United States at any point during the formation process. This is one of the biggest advantages for foreign entrepreneurs.

Question 6

Can forming a US company help me get a visa to live there?

Accepted Answer

No, and it's dangerous to confuse these two things. Forming a company is a commercial process with the state. Getting a visa is an immigration process with USCIS. Your US company can be used to petition for an L-1 or O-1 work visa, but company formation itself provides no immigration benefits whatsoever.

Question 7

The website says $500 for formation. Is that really it, or are there hidden fees for other states?

Accepted Answer

The $500 price and 7-10 day timeline are fixed for Delaware and Wyoming. For other states, price and timeline change based on that state's filing fees. Our system is transparent; when you select a state at checkout, it shows adjusted total cost before you enter card details.

Question 8

How much money do I need to put into the company to start it? Is there a minimum?

Accepted Answer

There is no minimum capital requirement. This is a huge relief for bootstrapped founders. You can start an LLC with $0 capital. For a C-Corp, you can technically start with a par value as low as $1. Don't let lack of starting capital stop you from getting properly incorporated.

Question 9

My business model changed. Can I change my LLC to a C-Corp later when I want to raise money?

Accepted Answer

Yes, absolutely. This is a common lifecycle event for successful startups. We handle entity conversion filings in all 50 states. It's a precise legal process to ensure your ownership, assets, and history transfer correctly without interruption.

Question 10

I just found out about Form 5472. I haven't filed anything. Am I already in trouble?

Accepted Answer

This is the filing that ruins founders who don't know about it. Form 5472 is mandatory every year for foreign-owned LLCs, even with zero revenue. The penalty for failing to file is a staggering $25,000, and the IRS does enforce it. If you haven't received a notice, you can still file. We prepare and file this form for our clients.

Question 11

My first US client is demanding a W-9 form, but someone told me I can't sign it. What do I do?

Accepted Answer

Your client is following standard procedure. If you have a C-Corporation, you can and should provide a W-9. If you have a single-member LLC, you must provide Form W-8BEN-E instead. Giving the wrong form causes payment delays and tax withholding issues. We assist in preparing the correct form for your clients.

Question 12

I made $0 this year, so I don't need to file any tax forms, right?

Accepted Answer

This is the single most expensive mistake a founder can make. Even with zero income, a foreign-owned single-member LLC must file a pro-forma Form 1120 and Form 5472. Failure triggers the same $25,000 penalty as a multi-million dollar company. We handle these essential zero-income filings.

Question 13

Do I really have to pay taxes quarterly? I was planning to just pay at the end of the year.

Accepted Answer

Yes, you cannot wait. The US operates on pay-as-you-go. If you expect to owe more than $1,000 in tax for the year, you are required to make quarterly estimated tax payments. Ignoring this leads to underpayment penalties, even if you pay the full amount later. We help our clients manage these payments.

Question 14

Everyone keeps saying "disregarded entity" like I should know what that means. What is it?

Accepted Answer

It sounds like a bad thing, but it's just IRS jargon. It means the IRS ignores your single-member LLC for income tax purposes and treats the business activity as your personal activity. You provide a W-8BEN instead of a W-9. It's "disregarded" for income tax but NOT disregarded for Form 5472 reporting.

Question 15

What are the absolute minimum things I have to do every year to keep my company from being shut down?

Accepted Answer

There are three non-negotiable obligations. First, maintain a Registered Agent in your state of incorporation. Second, file your State Annual Report or Franchise Tax, like the Delaware Franchise Tax. Third, file your federal tax forms with the IRS, even if you owe no tax. Missing any leads to losing 'good standing' status.

Question 16

What does "US Connected Income" actually mean? Am I creating it by selling online to US customers?

Accepted Answer

The trigger is usually having a physical presence or dependent agents in the US. If you have employees, an office, a warehouse, or an exclusive contractor working for you in the US, you likely have Effectively Connected Income. Simply selling digital products to US clients generally does not create this, but specifics matter.

Question 17

If I keep my profits in the US bank account and don't send them home, do I still have to pay tax in my home country?

Accepted Answer

Yes, in almost all cases. Most countries, including India, the UK, Australia, and Canada, tax their residents on worldwide income. The money is considered earned the moment it hits your US company's bank account, not when you repatriate it. Waiting does not defer the tax liability.

Question 18

I heard my LLC can be taxed like a C-Corp. Why would I ever want to do that?

Accepted Answer

This is a strategic move. By filing an election with the IRS, your LLC can be taxed at the flat 21% corporate rate instead of your personal income tax rate. This can be beneficial if your personal tax rate is very high and you plan to reinvest most profits back into the business rather than taking distributions.

Question 19

Mercury rejected me and won't tell me why. Is my business dead before it even started?

Accepted Answer

You got rejected by a robot, not a human. Fintech banks use automated systems that flag certain countries, industries, and keywords in business descriptions. It's incredibly frustrating, but not a final judgment. That's why we offer $1 Banking Assistance sessions because most rejections are fixable small mistakes.

Question 20

Is it even possible to get a US bank account from my country? It feels like the system is rigged.

Accepted Answer

The system is genuinely harder for certain countries. Banks have tightened compliance, making applications unforgiving. It is still possible, but your application must be perfect. Every address must match, your business description must be clear, and documents must be in order. We sit with you and guide you line-by-line.

Question 21

I incorporated with someone else and they just gave me a link to Mercury. Can I use your banking help?

Accepted Answer

Yes. This happens constantly. Most services consider their job done after formation and leave you to handle banking alone. You can purchase our $1 Banking Assistance session as a standalone product. Create an account, uncheck other products, select only the banking session. We will help you get this critical step done right.

Question 22

The bank application is asking for a US address, but I don't have one. What do I put?

Accepted Answer

You cannot use a PO Box or your Registered Agent's address for bank applications; it will be rejected immediately. You need a unique business mailing address. We provide a Mail Forwarding product that gives you a real street address in any of the 50 states. This can be used for your bank application and website.

Question 23

Do I have to fly to the US just to open a bank account?

Accepted Answer

No, you do not need to visit the US. Thanks to partnerships with fintech banks like Mercury, the entire process can be completed online from your home country. This is one of the biggest advantages for non-US founders forming companies.

Question 24

I already have a Payoneer or Wise account. Isn't that enough?

Accepted Answer

While Payoneer and Wise are excellent for receiving payments, they are not true US business bank accounts. Many clients, B2B platforms, and payment processors like Stripe require a real US bank account with a US routing and account number. Operating with only a money service account will eventually create problems.

Question 25

What happens if the bank closes my account later without warning?

Accepted Answer

This is a real risk with online banks. It often happens when your business activity doesn't match your initial application, or if you receive funds from a flagged source. The best defense is a perfect initial application that clearly describes your business model and expected transaction patterns. We help you frame this correctly from day one.

Question 26

Can I open more than one US bank account for my company?

Accepted Answer

Yes, and it can be a smart strategy. Once your company is established and has one active bank account, opening a second with another provider is often easier. This provides redundancy in case one account is ever frozen or closed unexpectedly, ensuring your business can continue.

Question 27

I want an address in a cool city like Boston or DC. Is that going to be super expensive?

Accepted Answer

No. While some providers charge premiums for prestigious addresses, we have a simple flat-rate model. Our Mail Forwarding product is capped at $200 per year, regardless of location. You can get an address in New York City, Washington DC, or Boston for the same price as Wyoming.

Question 28

It's been 6 weeks and I still don't have my EIN. Did the IRS lose my application?

Accepted Answer

They probably didn't lose it, but you have no way to know. That's the core problem with the standard process. The industry norm is 4-6 weeks of waiting in the dark, unable to open a bank account or start billing clients. This delay can kill a new business. Our process bypasses this uncertainty.

Question 29

I'm launching in 10 days and my current provider says the EIN takes 4 weeks. Am I screwed?

Accepted Answer

You're not screwed, but you need to act fast. You can use our standalone EIN Expedite product for $99 even if another company filed your formation. We will take over the process and secure your official EIN letter in 7-10 days. Don't let another provider's slow timeline derail your launch.

Question 30

Why is everyone so slow with the EIN? How can you get it in 7-10 days?

Accepted Answer

The industry is slow because they rely on the IRS's most backlogged methods like faxing. We've combined technology with deep process expertise as an authorized agent to cut through red tape. While others blame the IRS for delays, we've built a system that gets it done on a predictable, radically faster timeline.

Question 31

Is the EIN I get over the phone the same as the official letter? A guy on Fiverr said he could get it in a day.

Accepted Answer

They are not the same, and this is a dangerous shortcut. The EIN confirmation received by phone is not the official document (Form CP 575) that banks require. Those "24-hour" services often leave you without the one document you actually need. Our 7-10 day process delivers the official, bank-ready EIN letter.

Question 32

My whole business is stalled waiting for this one number. Is there any way to check the status?

Accepted Answer

Unfortunately, the IRS provides no public way to check the status of a pending EIN application. This is why the waiting period is so frustrating; you are completely blind. Using an expedited service like ours is the only way to get certainty and a confirmed timeline.

Question 33

If I form my company with you, is the expedited EIN included?

Accepted Answer

Yes. We believe a company isn't truly 'formed' until it's operational. Being operational requires an EIN. The expedited 7-10 day EIN service is included in our standard company formation package at no extra cost. We don't believe in selling you a car and then charging you extra for the keys.

Question 34

I thought this would cost $500. Now I'm hearing it's actually way more. What's the real number?

Accepted Answer

You're right to be suspicious. The industry survives on founders not knowing the real cost. A $500 formation fee is not the full picture. Year 1 cost for a Delaware LLC is closer to $900: $500 formation, $300 Delaware Franchise Tax, $99 Registered Agent. We show you the complete breakdown before you pay.

Question 35

What is this Delaware Franchise Tax bill I just got? Nobody told me about this.

Accepted Answer

This surprise bill is why many founders feel scammed. The Delaware Franchise Tax is a mandatory annual tax levied by the state just for existing. It's approximately $300 for an LLC with zero revenue or profit. We make sure clients know about this on day one and remind them of deadlines.

Question 36

After the first year, what will this cost me annually just to keep the lights on?

Accepted Answer

To keep a Wyoming LLC in good standing, budget around $161 per year ($62 state report, $99 Registered Agent). For a Delaware LLC, budget about $399 per year ($300 franchise tax, $99 Registered Agent). This doesn't include tax filing, which depends on your business activity.

Question 37

Are there any hidden monthly fees or subscriptions I'm going to get hit with?

Accepted Answer

Absolutely not. We are against surprise subscriptions. All our pricing is listed upfront as annual fees. When you buy our Registered Agent service for $99, it's for the entire year. We will not auto-enroll you in other products or hit you with monthly charges.

Question 38

Why do some services offer a "free" first year Registered Agent and you don't?

Accepted Answer

Because it isn't free. That's a classic marketing trick to lock you in. Those services often charge $200-300 the second year, making it difficult to switch. We believe in transparent pricing from the start. Our Registered Agent fee is a flat, fair $99 every single year.

Question 39

Is it expensive to make changes later, like adding a partner?

Accepted Answer

It depends on the change. Simple updates are often included. More complex changes like converting an LLC to a C-Corp or adding/removing members require new state filings and legal document updates. We scope these as custom products with fixed pricing, so you know the exact cost before we begin.

Question 40

My formation service took my money and now they're gone. What am I supposed to do next?

Accepted Answer

Getting incorporated then abandoned is the sad industry standard. You need five things to operate: Formation Certificate, Operating Agreement, official EIN Letter, Business Bank Account, and BOIR Filing Acknowledgment. If you're missing any, you're stuck. We can pick up where your old provider left off.

Question 41

I have my formation certificate. Am I ready to start my business and open a bank account?

Accepted Answer

No, and this is a common and dangerous assumption. The formation certificate is step one. You are not ready until you also have your official EIN letter from the IRS. Without the EIN, no legitimate US bank will open an account for you, and you can't properly file taxes.

Question 42

What happens if I want to shut my company down? Can I just abandon it?

Accepted Answer

Never abandon a company. The state will eventually dissolve it, but not before penalties and missed filing fees rack up. This can create personal liability and problems for you in the future. The correct way is to formally file a Certificate of Dissolution with the state. We handle these filings to ensure a clean exit.

Question 43

A partner is leaving my multi-member LLC. Do I have to start a whole new company?

Accepted Answer

No, you don't have to start over. This is a common business change. The process involves updating your Operating Agreement, filing a final partnership tax return (Form 1065), and reclassifying as a single-member LLC with the IRS. We manage these multi-step amendments to ensure seamless transition.

Question 44

How will I know when all these deadlines for taxes and state reports are due?

Accepted Answer

You shouldn't have to track this yourself. After we form your company, your StartEase dashboard becomes your compliance calendar. It shows upcoming deadlines for State Annual Report, franchise taxes, and federal filings. We proactively notify you so you never miss a critical filing.

Question 45

I need to change the company name. Is that a simple thing to do?

Accepted Answer

It's a formal legal process called Articles of Amendment. You can't just start using a new name. We have to file the official name change with the Secretary of State. Once the state approves it, you can then update your bank, clients, and the IRS. We handle these charter amendments in all 50 states.

Question 46

Someone on Fiverr offered me an EIN in 24 hours for $50. Is this legit?

Accepted Answer

If it sounds too good to be true, it is. These are almost always scams. To get an EIN that fast, they use stolen personal information or submit fraudulent applications, getting your company red-flagged by the IRS from day one. Our 7-10 day process is the fastest legitimate way to get official, bank-ready documents.

Question 47

I got an official-looking email demanding $200 for a 'Certificate of Good Standing'. Do I have to pay it?

Accepted Answer

You are right to be skeptical; this is a very common scam targeting new business owners. These companies send misleading notices that look like government bills but are overpriced offers for documents you don't need. All official notices will be delivered through us as your Registered Agent. We will scan them and tell you what is real.

Question 48

I saw a warning about a "BOIR" filing. Is this another scam I need to watch out for?

Accepted Answer

The BOIR (Beneficial Ownership Information Report) is a real and mandatory filing requirement from FinCEN as of 2024. However, scammers are taking advantage of confusion. You will receive phishing emails demanding payment to file it. The actual filing is free. We handle this mandatory filing for you to ensure it's done correctly.

Question 49

Why do I have to pay for a Registered Agent every year? Can't I just use my own address?

Accepted Answer

It feels like an unnecessary fee, but it is a legal requirement in every state. You must have a physical address in your state of incorporation to receive official legal and tax notices. As a non-US founder, you don't have one. The Registered Agent serves as this physical presence. Ignoring this leads to state dissolution.

Question 50

How will I know if I get important mail or a legal notice at my US address?

Accepted Answer

You'll know immediately. The moment physical mail arrives at your Registered Agent or Mail Forwarding address, our team opens it, scans it, and emails a digital copy directly to you. You'll never have to worry about a critical notice sitting in a mailbox thousands of miles away.

Question 51

I'm really unhappy with my current Registered Agent. Is it a huge pain to switch to you?

Accepted Answer

It's much easier than you think. We provide Registered Agent services in all 50 states for a flat $99 per year. Just create an account, indicate you're an existing company, and select the 'Change of Registered Agent' product. We handle all the paperwork with the state, typically completed within 7 business days.

Question 52

My bank needs proof of address. Can I use the Mail Forwarding address for that?

Accepted Answer

Generally, no. A mail forwarding address is for mail, not proving your residence. Banks are very strict due to anti-money laundering laws. They typically require a utility bill or bank statement showing your residential address in your home country. We can provide a utility bill for the business address if required.

Question 53

Do you handle company changes after formation, or do I have to hire a lawyer?

Accepted Answer

We handle many post-formation changes including Registered Agent changes, amendments, name changes, and membership updates. We don't require you to hire a lawyer for standard filings. For complex matters, we can connect you with qualified attorneys, but most changes are handled in-house.

Question 54

I'm in India. Can I just transfer money from my savings to fund my US company?

Accepted Answer

No, and this trips up almost every Indian founder. Any transfer to your US company is an Overseas Direct Investment under RBI rules. You must go through an Authorized Dealer bank with proper ODI forms filed under FEMA. Skipping this makes the transfer illegal under Indian law. We connect you with Indian CAs.

Question 55

If I'm the director running my US LLC from India, am I creating a huge Indian tax problem?

Accepted Answer

You could be. This is a risk known as 'Place of Effective Management' or POEM. If Indian tax authorities determine key decisions are made in India, they can treat your US LLC as an Indian resident company for tax purposes, subjecting its worldwide income to Indian corporate tax. This requires careful structuring.

Question 56

I heard there are limits on how much money I can send from India to my US company. Is this true?

Accepted Answer

Yes, governed by the RBI's Liberalised Remittance Scheme (LRS). There is an annual limit for individuals for overseas investments. Exceeding this limit requires special RBI approval. It is critical to work with an Indian Chartered Accountant to ensure your capital contributions comply with current LRS rules.

Question 57

Are Indian founders being rejected by US banks more often now?

Accepted Answer

Yes, rejection rates are higher. Due to increased compliance checks, applications from India face more scrutiny from fintech banks. It doesn't mean it's impossible, but your application must be flawless. Even small inconsistencies trigger automated rejection. We know which banks currently accept Indian founders.

Question 58

I'm in India and heard a US LLC is a tax nightmare with my home country. Is that true?

Accepted Answer

It can be a nightmare if not handled correctly. The IRS sees a single-member LLC as transparent. However, Indian authorities may treat it differently. This mismatch can lead to double taxation. It's a serious issue requiring expert advice before choosing your entity type. We can connect you with Indian tax specialists.

Question 59

I'm in the UK and heard a US LLC is a tax nightmare with HMRC. Is that true?

Accepted Answer

It can be if not handled correctly. The IRS sees a single-member LLC as transparent. However, HMRC may treat it as opaque. This mismatch can lead to double taxation or inability to claim US tax credits. It's a serious issue requiring expert advice before you choose your entity.

Question 60

Won't the US-UK tax treaty automatically prevent me from being double-taxed?

Accepted Answer

The treaty is designed to prevent double taxation, but it's not automatic. You have to actively claim its benefits on your tax returns, and how you do this depends on how HMRC classifies your LLC. If there's a mismatch, claiming treaty benefits becomes very complex, requiring additional forms.

Question 61

I'm in Germany. If I run my US company from my home office, am I creating a German tax problem?

Accepted Answer

Yes, almost certainly. German tax law has a strict 'place of management' rule. If you make key decisions for your US company from Germany, German authorities will likely treat your company as a German tax resident. This subjects its worldwide profits to German corporate and trade taxes.

Question 62

I'm in Australia. Can I keep profits in my US LLC to defer paying Australian tax?

Accepted Answer

No, you can't. Australia's Controlled Foreign Corporation (CFC) rules are designed to prevent this. Because you control the US LLC, its income is typically attributed back to you in the same year it is earned. You cannot use a US LLC to delay your Australian tax obligations.

Question 63

Does the ATO in Australia see my US LLC the same way the IRS does?

Accepted Answer

Not necessarily. The IRS sees a single-member LLC as disregarded pass-through. The ATO may view it differently depending on circumstances, sometimes treating it more like a company. This mismatch in classification creates tax complexities requiring careful planning with a professional familiar with both systems.

Question 64

I'm from the Philippines. Why did a US bank tell me they can't serve my country?

Accepted Answer

This is incredibly frustrating, but it's a reality for founders in several countries. Due to international banking regulations, some fintech banks have put blanket restrictions on certain jurisdictions. It's not personal, but an automated policy. We stay on top of which banks are currently most friendly to founders from specific regions.

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