Question

Explain why a foreign owned company which company should incorporate as a resident company after years of operations.

Answer 1

Although the rules for incorporation in United States vary from states to states, but broadly they can be considered in common rules for incorporation. Quoting directly from U.S. Tax Guide -

If you are working from long time in USA and meet the substantial presence test for 2019, you can choose to be treated as a U.S. resident for part of 2018. To make this choice, you must:

1. Be present in the United States for at least 31 days in a row in 2018, and
2. Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2018. For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States.

So in short if you are working from long time, you can be considered as resident company after years of incorporation.