Looking to operate in the US?
Before you do anything, and especially before you start generating revenue, you should consider what the optimal entity classification is for your business. The default categorisation of your business for US tax purposes may be different from the categorisation in the jurisdiction where your business is established. For example, a Limited Liability Partnership outside the US, may be treated by default as a Corporation in the US.
Understanding what the default treatment is for your business will enable you to opt to elect a different classification, if it’s beneficial for you to do tax-wise. This can be done by completing a form on which a box is checked to indicate the entity classification being elected (the so called, ‘Check-The-Box’ election). You should also be aware of the time-limits for making an entity classification election as there can be some negative consequences if an election is made at the wrong time.