How to Register a Business as a Non-Resident

Setting up a business in another state (or country) where you are a non-resident can be daunting. You can register a business as a non-resident, with some exceptions, and this can be very beneficial. There are several entities to choose from, such as a limited liability company (LLC) or a corporation. You might decide to set up a California foreign LLC. 

An LLC is a type of legal business entity where the business owner has limited liability. This means that their personal assets are protected should anything happen to the business, only personal funds invested in the business can be used to secure debts, for example. The business is made up of members and there should also be an operating agreement.

To be registered as an LLC, a business must have registered with the Secretary of State where the business is located and received a certificate of articles of organization. For example, a business operating in California will register with the California Secretary of State and have their articles of organization approved to identify as a California LLC. 

For a business set up in Oregon, who has had their articles of organization approved by the Oregon Secretary of State, if they want to set up in California as well, they need to register as a California Foreign LLC. If they wish to do significant business in the state. If you live outside the US, you can register your business as a non-resident.

Why Register a Business as a Non-Resident?

There are advantages to opening a business in the US as a non-resident with the main reason being that you open up your business to a potentially huge market. It can also make it easier for you to secure investment within the US and also make taxation more straightforward. 

What is a Registered Agent?

You will need to hire the services of a registered agent. A registered agent receives legal documents on behalf of a company, such as licensing, renewals, etc. You need to have a registered agent name and address to put on your formation documents. The agent will ensure that you receive your documents promptly.

You can find a registered agent by looking on the Secretary of State's website, searching online, or asking other professionals you know for a recommendation. 

Steps to Registering a Business as a Non-Resident in California

To register a business as a non-resident, you will first need to form your business. This step involves selecting your business entity and registering with the Secretary of State of the State you wish to set up your business in. 

Then you need to hire a registered agent. Have their information to hand when you form your business, such as their name and address. You will also need to appoint members to run your business and produce an operating agreement.

If you plan to set up your limited liability company in California, you will want to set up a California foreign LLC. File your articles of organization with the California Secretary of State and receive approval.

You can then apply for your EIN number or Employee Identification Number. This is essential for hiring employees to work in your business. You can then seek investment and enquire about business loans. You will need your EIN to set up a business banking account.

You might also need to secure business permits depending on your business.

What are the Costs to Register a Business as a Non-Resident?

You will need to pay the state filing fees, and there may be an additional administration fee. These can vary by state, so check on the Secretary of State website of the state you wish to set up your business in. If you wish to set up a California foreign LLC, you will need to see what the filling and administration fees are on the California Secretary of State website.

Final Word: How to Register a Business as a Non-Resident in California

It is relatively easy to register a business as a non-resident in California and as a California foreign LLC. There are some exceptions, but for many business owners, this can expand their customer base significantly. It can also make taxation and financing easier. If you would like to find out more about forming a business in the US take a look at the Legal Stepz website.