Hi Ahmed, Here's my experience - I'm not a lawyer or anything, but I run one (an American LLC). 1) Ask yourself WHY you need a company in the US. It might not

Hi Ahmed, Here's my experience - I'm not a lawyer or anything, but I run one (an American LLC). 1) Ask yourself WHY you need a company in the US. It might not be worth it. I registered one so that 1)it would be easier to accept payments from the US through their native gateways, because in my country, all of them suck.But if I had known the pitfalls first, I would rather have integrated with Paypal. 2)An American company's products are always perceived to be better than the rest. I registered an LLC and every year, I'm required to pay an annual fee of $250 USD as Franchise tax. Mine is in Delaware so its just $250, if its in California, its going to be approx. $800 or so. $250 might not sound like a big deal, but for companies like mine, that are bootstrapping, it really is. You are required to pay some more money as tax, apart from the Franchise tax on your ECI. ECI is effectively connected income - ie, The income generated by doing business with the US. This is going to get complex if you have an online internet business model. You are required to have a registered agent to represent your company in Delaware. They charge anywhere from $50 to $200 a year. The total tax you might end up paying for the same revenue stream is: Franchise tax + tax for your ECI + registered agent fee + your local country's tax. The situation gets even more complex when you hire more people. Also, the organization's taxation methods change depending on the number of members (single/partnership/multi-member, etc.) More on this: http://www.irs.gov/businesses/small/article/0,,id=98277,00.html http://www.irs.gov/businesses/small/article/0,,id=98277,00.h... The worst part is, if someone decides to sue you, suddenly you are answerable to the American government, which you were not before. Your liability is also increased (unsure of this though). Travelling to the US becomes a nightmare when you own an American company. Visa officers think you have a higher probability of settling there, rather than returning and it becomes increasingly difficult to get to the US, which I'm pretty sure is not what you want. FYI: I registered through a known friend, but the best place to get it done, if you ask me, is through Harvard business services (www.delawareinc.com). They have a lot of benefits (total cost to set up an LLC is under 600-700$ USD) and MANY of my friends have registered through them. They also are very transparent and their registered agent fee is only $50 a year! (I'm not their salesman though, for god's sake) Anyway, If I had known these disadvantages first, I might as well have gone with a local organizational structure. Just keep these in mind while registering your new company... my 2 cents.