llc for immigrants

How to Open an LLC for Illegal Immigrants

Many individuals want to set up their own business in the United States. This is why many illegal immigrants also try to start their own legal business there asking how to open an LLC for illegal immigrants. Well, the answer to this question is a bit challenging and there is a loophole in permitting the illegal immigrants to work in the United States. According to some estimates, thousands of American small businesses are owned by several undocumented immigrants yet; US can also deport them at any time.

If you need help opening an LLC, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Also, according to Harry Pachon, the late USC Professor, there are about eight to ten percent of undocumented people who are legally running their own business in the United States. Basically, individuals who are confused about the legal status in opening the business in the United States, think that illegal immigrants may not really provide taxes to the IRS in setting up the business. In real, they do provide taxes to the state. In fact, these illegal immigrants pay the taxes and even create jobs and opportunities. Also, thousands of US citizens are working under the legal firms of illegal immigrants.

If you are also looking for ways and pondering over how to open an LLC for illegal immigrants, you can do so. We will be exploring all about how to open an LLC for illegal immigrants in this blog. So, if you are planning to open a business in the United States, ensure to read this blog carefully.

How to Open an LLC for Illegal Immigrants? – Overview to Illegal Immigrants

Before we go into the details of how to open an LLC for illegal immigrants, we should first understand who these illegal immigrants really are. These illegal immigrants are undocumented immigrants. Basically, they are foreign born person who do not have legal right to remain or be in the United States until they get their green card, tax ID number or identification status by the United States. These individuals are permitted to work, live and raise families in the cities and towns across the United States. Some undocumented immigrants can quickly obtain the green card and the identification status while some of them have to wait for a long time period.

Illegal immigrants are also known as undocumented immigrants. Both of them are same but illegal alien is a more technical term used in the United States. Though, some people find it a bit insulting in terms of connotation, therefore they undocumented immigrants has become an acceptable term. Also, illegal immigrants cover a wide variety of individuals in general. According to Department of Homeland Security, there are around 11.1 million of undocumented immigrants in the United States.

Many people think that these individuals due to their illegal status, these individuals are picked up and arrested by the police, and are later deported from the country. But it is not so. There are many who are living under such misconception, generally, there are some gray areas where these illegal immigrants have all the right to remain in the United States. This is the main reason why they are still in the United States as those reasons have kept them stay there.

There are some old claims and laws that can hold the illegal immigrants in the United States. The Temporary Protected Status, asylum status, U Visa for Victims of Crime and another form of immigration relief programs which can hold the illegal immigrants in United States. Besides, the US enforcement resources are insufficient to keep up with the numbers. It would cost an average of $23,480 to deport a single person including the apprehension, legal proceedings, transportation, and detention.

How to Open an LLC for Illegal Immigrants? – Overview to Limited Liability Company

In order to properly understand how to open an LLC for illegal immigrants, you should first understand the nuts and bolts of Limited Liability Company. These companies are considered as private companies. They have combined features from partnership and sole proprietorship. These companies are protected against the personal liability for claims and debts in the businesses like in sole proprietorship and also have the flexibility of dividing the profits and losses amongst the shareholders like in partnership. In case an aggrieved creditor or client sues your business, they will have no right to touch your personal property and none of your personal assets will be at stake. This is why these companies are given limited liabilities.

Benefits of LLC

If you are interested to know how to open an LLC for illegal immigrants, you should also understand the benefits it provides. Check out the benefits of an LLC in the USA.

  • It secures the owners because of the limited liability aspect, protecting their personal assets in event of lawsuit.
  • Shareholders can also file taxes, meaning that their liability comes under the pass through taxation.
  • There is a less compliance seen on the state level as compare to any other business structure.
  • There are not big restrictions on the owners.
  • LLCs also have the ability to become a hierarchical organizational structure from the simple hierarchy approach to a complex one.

When it comes to formation of LLC, there is a complex procedure involved. Anyone in the United States can form the limited liability company. As such there is no restriction imposed by the state laws in the USA to formation of limited liability companies. So, if you are pondering over how to open an LLC for illegal immigrants, even undocumented immigrants can open up a business in the United States. There is a different procedure for them anyway, which we will be explaining in our further section. The main thing in setting up an LLC in the United States is to actually be present in the nation.

Requirement for LLC – Residents and Non-Residents

Additionally, in order to set up an LLC in the United States, residents need to get an EIN number other than other numbers. There are three types of tax ID numbers. Each one of them is given to the individuals on the basis of their residential status and what they are willing to do in the United States. Individual Taxpayer Identification Numbers (ITINs) are given to those individuals who cannot be given an SSN number. Additionally, Social Security Numbers (SSNs) are the ones that are given to those individuals who are willing to work or get an employment in the United States.

Lastly, the Employer Identification Number (EINs) are given to those individuals who are willing to direct and develop their own business in the United States. So, all those who are asking how to open an LLC for illegal immigrants, should keep in mind that obtaining EIN number is really essential in order to open an LLC in the United States. For residents of the United States, obtaining an EIN number is really easy but an undocumented immigrant would first have to apply for the ITIN number then they have to apply for the EIN number.

It is a simple and straight forward process for the residents though, to open an LLC in the United States having an EIN number. But illegal immigrants need to go through two different processes. They first have to go through the process of ITIN number and after that they can apply for the EIN number. After getting that number in hands, the IRS and US state considers them the legal business owners.

Though, the companies owned by these undocumented immigrants can be really very challenging as there are stories of customers getting aggrieved towards them and much more. But once you set up the firm, you likely are recognized by the US state as a legal business owner.

How to Open an LLC for Illegal Immigrants? – Read the Procedure Here

If you want to know how to open an LLC for illegal immigrants, you need to read this section carefully. As mentioned above, an illegal immigrant would have to go through two detailed procedures. They first need to obtain an ITIN number giving their birth certificates and other identification documents.

Once, they get that in hands, they can get EIN number later. This number will give them the actual authority to engage in entrepreneurial activities. Also, this type of visa permits you to set up an LLC and employ people in the United States. In order to help you understand how to open an LLC for illegal immigrants, we will be dividing this section into parts, obtaining ITIN number in the first part and then EIN number in the second part.

Part 1: Obtaining the ITIN Number

  • The first step that you need to take to obtain ITIN number is to see whether or not you qualify for it. There are different criteria in order to determine about the eligibility for the ITIN number. Generally, the ITIN number is given to those who are not eligible for the SSN number. Here are some more people who require ITIN number.
    • Those individuals who cannot get SSN number.
    • Those residents who have to pay the taxes in the United States.
    • Those individuals who have to file for the returns on taxes.
  • After determining about the eligibility, you can then get the Form W-7 and fill it. You should ensure to fill the form very carefully and ensure that you have provided correct information as the IRS will cross check everything. In case, anything is faulty or incorrect, they can also reject the form. Therefore, you should make sure that you read all the instructions carefully before filling the form.
  • After you are done filling the form, it is time to attach the necessary documents with the form. There are some documents which you have to attach along with the Form W-7. Your passport, foreign driving license, driving license of the United States, birth certificate, foreign voter’s registration card, foreign military identification card number, US state identification card, United States Citizenship and Immigration Services photo, medical records, and school records for the teenager under 14 to 18 years of age.
  • Along with the documents, there are some publications that you also need to consider to get the ITIN number. You should ensure to attach Form W-7, Publication 1915,, Form 13551, and Certificate of Accuracy for the Internal Revenue Service’s ITIN and Publication 4393.
  • Once, you are done filling and attaching, it is essential to proofread everything again to avoid the chances of rejection of application. After you have checked everything, it is time to submit the form to the IRS. If you are choosing to mail your form via post, you can send it to the following address. Internal Revenue Service, Austin Service Center, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342.

Part 2: Obtaining the EIN Number

  • Another main aspect is obtaining the EIN number to understand how to open an LLC for illegal immigrants.
  • You should first know if your company is eligible for the EIN number. Some of the aspects that make you eligible for the EIN number if you pay up to $600 in a year. Additionally, if you are planning to develop and direct the business in the United States. Also, if your business will withhold taxes on income then you will be eligible for the EIN number. Real estates, plan administrations, non-profit organizations, farmer’s cooperatives and trusts would require EIN number.
  • Next step is to fill out the form. The form required for obtaining the EIN number is the Form SS – 4. You can obtain this form in several ways though, such as downloading it online, faxing it and sending it to the IRS authority. This form will have some guidelines written on it; you have to read them and ensure to fill out all the information in proper manner. If you think that it is difficult to fill the application this way, you can hire a credible lawyer and ask them to help you in filling the form.
  • Your lawyer will be well versed and knowledgeable and help you prepare the application properly. Once you are done, it is necessary to proofread the application and send it to the IRS department. You can submit the application to the same address which is provided above, for the ITIN number.
  • Once you have submitted the application to the IRS, you will be receiving the Employer Identification Number in hands very soon. The information provided to the IRS should be genuine so that the EIN number can be processed soon.

While those were the two main parts that were very important to understand open an LLC in the United States, here are some other aspects that you need to go through in order to successfully complete the formation of LLC in the United States.

  • After obtaining the ITIN number and EIN number, you can take a sigh of relief about forming your LLC in the United States. You can then decide upon the form of LLC. Once you have decided over the form, you should check the state laws where you are willing to form the LLC.
  • After reviewing the laws, you have to come up with a unique name for your LLC. You need to ensure that the name you choose is designated to no other company. Additionally, the name of the company will also have to end with LLC in the end or Ltd. determining that it is a limited liability company.
  • The name of the company should not include words such as trusts, insurance, or bank. Make sure that the name of your firm is spelled and pronounced easily.
  • Once you have come up with a name of the company, you should also choose a registered agent to do the legal proceedings.
  • When you have hired the registered agent, they will help you in filing the Articles of organization. The document would cover the rules and regulations of the firm. Your registered agent will be responsible to make it.
  • Next step is to provide the EIN number to the IRS government along with the form 8832. This step finalizes the LLC incorporation.

Final Thought

Consequently, it is a bit tricky and challenging to open up an LLC in the United States for the illegal immigrants. If you are interested to form an LLC in the United States, we hope this procedure in this blog would have explained you the answer to how to open an LLC for illegal immigrants. Good luck!

If you need help opening an LLC, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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