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I am in India and I provide projects to Indian companies that i get from US, but lots of companies asking me to open a LLC company and Bank account as they feel comfortable in paying in my US account instead of Indian account.

  1. How I can open an LLC company in US and US bank account sitting in India ?

  2. Should I ask my cousin who is US National to open a company on his name and I will pay him lets say 20% of total income and rest he will sent it to my Indian account? But I feel its not a good idea like its hard to trust people nowadays?

  3. Can I co own the LLC company with my cousin ? But can a Foreign do that ?

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How I can open an LLC company in US and US bank account sitting in India ?

Opening LLC is easy and can be done on-line/via mail. Opening a bank account is a much tougher task. You're probably not going to be able to open a bank account without visiting the branch in person, in your situation.

Should I ask my cousin who is US National to open a company on his name and I will pay him lets say 20% of total income and rest he will sent it to my Indian account? But I feel its not a good idea like its hard to trust people nowadays?

Whether you trust your cousin or not is really up to you, I can't see how we can advise you on this.

Keep in mind that your cousin will have to register the LLC in the State where he/she lives, since the nexus will be established. In some States, LLCs cost a lot. In California for example it is $800/year.

Some States also tax LLC income (again, California as an example). So establishing/registering LLC in that State may subject you to income taxes you would otherwise not pay.

Can I co own the LLC company with my cousin ? But can a Foreign do that ?

Yes, as long as it is not taxed as S-Corp you can partner with your cousin and form an LLC.


I'd suggest you talk to a lawyer and a tax adviser (EA/CPA licensed in the US, and probably also an Indian one) about the legal and tax ramifications of these issues.

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  • Thanks for responding. I have done a bit of research and I found these details in an article which was written back in 2010 so do these things/rules still apply? Please advice .
    – Jeff
    Commented Jun 9, 2014 at 4:04
  • 1. Article suggested that I should registered LLC co in state of Delware since its easy and cheap .. and also suggested this website ( delawareinc.com) A registered agent service is mandatory to incorporate a delaware corporation if you live outside Delaware)
    – Jeff
    Commented Jun 9, 2014 at 4:08
  • Once I registered LLC co I will get Employer ID Number (EIN – TAX Number) and For Bank accounts article suggested... Almost all the banks would want me to physically be present for opening of a bank account except Silicon Valley Bank(svb.com) (who are considered very startup friendly) and they have opened similar bank accounts for Indian companies in the past .. so my question are these points still valid or should I call them and clarify? Thanks a ton once again.
    – Jeff
    Commented Jun 9, 2014 at 4:14
  • @Jeff you should really talk to a lawyer about benefits of incorporating in DE. From what I researched - for a LLC there are no benefits whatsoever. There are some benefits for C-Corporations interested in going public. For most parts, it is being used as a selling point to people who don't know any better. As to the specific service - there are hundreds of these, and I suggest to shop around and check reviews before choosing the one you want to use.
    – littleadv
    Commented Jun 9, 2014 at 6:36
  • Re EIN - if you're doing a single-member LLC (i.e.: only for yourself), EIN is of no use for you. The companies paying you cannot use SMLLC EIN as a tax ID. You have to get your own personal ITIN. If you do it together with your cousin, you could use LLC EIN as the tax ID, but your cousin would be on the hook for taxes through his SSN unless he can report payments made to you - you'll need your own ITIN for that, again.
    – littleadv
    Commented Jun 9, 2014 at 6:38

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