How to Open a US LLC as a Non-Resident

Non-US residents can form a US Limited Liability Company without a visa, a US address, or a Social Security Number. The process is more accessible than many people expect, but getting the structure, state selection, and compliance setup right from the beginning makes a significant difference in how the business runs long-term.

This guide walks through how to form a US LLC as a foreign national: the steps involved, the decisions that matter most, and the compliance obligations you take on from day one.

Can a Non-US Resident Own a US LLC?

Yes. There is no US citizenship or residency requirement to form or own a US LLC. Non-US individuals and foreign companies can own US LLCs. The US actively allows foreign ownership of US business entities, and the LLC structure is one of the most popular for international entrepreneurs precisely because of its flexibility and relatively light domestic compliance requirements.

Owning a US LLC does not, by itself, grant any right to live or work in the United States. A separate visa is required to physically work inside the country.

Why International Entrepreneurs Form US LLCs

There are several practical reasons why non-US founders choose to establish a US LLC:

• Access to US payment processors and banking infrastructure, including platforms like Stripe, PayPal, and Shopify Payments that may not be available in every country
• Credibility with US customers and business partners
• Ability to receive payments in US dollars without currency conversion friction
• Access to US-based business services, software subscriptions, and vendor relationships
• Potential tax efficiency, depending on where the business’s income is sourced and where the owner resides

Choosing the Right State

LLCs are formed at the state level in the US, and the state you choose has implications for cost, privacy, and annual maintenance requirements. The three states most commonly used by non-residents are Delaware, Wyoming, and New Mexico.

Delaware is the most recognized US business jurisdiction and is often preferred by businesses that plan to raise venture capital or deal with institutional partners who expect a Delaware entity. It has well-established corporate law but does require a registered agent and annual fees.

Wyoming is popular for its strong privacy protections and lower annual costs. It does not require members or managers to be listed in public filings.

New Mexico allows anonymous LLCs and has no annual report requirement, making it one of the lowest-maintenance options.

The right state depends on your business model, who you are selling to, whether you have US customers or operations, and your longer-term plans. This decision also has tax implications at the state level that are worth understanding before you file.

Steps to Form the LLC

The formation process itself involves a few distinct steps:

• Choose your state and file Articles of Organization with the state’s Secretary of State office. This is the official document that creates the LLC.
• Appoint a registered agent in the state. The registered agent is a person or company with a physical US address who can receive legal and government correspondence on behalf of the LLC.
• Draft an Operating Agreement. This is an internal document that describes how the LLC is owned, managed, and governed. Even for single-member LLCs, having one is good practice and may be required by some banks.
• Obtain an Employer Identification Number (EIN) from the IRS. The EIN is the LLC’s tax identification number, required for opening a US bank account and for IRS filings.
• Open a US business bank account. This is often the most challenging step for non-residents and is covered in a separate guide on our site.

Getting an EIN as a Foreign Owner

An EIN is a nine-digit number assigned by the IRS to identify the business for tax purposes. As a foreign person without a US Social Security Number or Individual Taxpayer Identification Number, you apply for an EIN using Form SS-4.

Foreign applicants who cannot file the SS-4 online can apply by phone (calling the IRS Business and Specialty Tax Line) or by mailing or faxing the form. Phone applications are typically the fastest route. The IRS issues the EIN immediately over the phone during the call.

Some formation services apply for the EIN on your behalf, which can simplify the process. However, the information on the SS-4 needs to be accurate, as it forms part of the IRS’s record for your LLC from day one.

Understanding Your Tax Obligations Before You Start

This is one of the areas where we see international entrepreneurs make the most avoidable mistakes. Forming the LLC is relatively simple, but understanding the tax obligations that attach from day one is critical.

Every foreign-owned single-member LLC must file Form 5472 with a pro forma Form 1120 with the IRS every year, starting with the first year the LLC exists. This applies even if the LLC has no income and owes no US tax. The penalty for not filing is $25,000.

Whether you owe US income tax depends on where your income is sourced. A service provider working entirely from outside the US on clients anywhere in the world typically does not generate US-taxable income. But an e-commerce business with inventory in the US, or a business with US-based employees, likely does.

Forming a US LLC through an online service is fast and inexpensive. But those services rarely explain the tax and compliance obligations that begin immediately after formation. Understanding these before you start protects you from penalties down the line.

Maintaining the LLC After Formation

Once your LLC is active, there are ongoing obligations to keep it in good standing:

• Annual reports or fees to the state, depending on which state you formed in
• Renewal of your registered agent service each year
• Annual IRS filing of Form 5472 and pro forma Form 1120 by April 15
• US income tax filings if the LLC generates US-source income
• Bookkeeping: maintaining records of transactions between the LLC and its owner, which is required for proper Form 5472 compliance

Common Mistakes to Avoid

• Choosing a state based on familiarity rather than what makes sense for your business model
• Forming an LLC without understanding the annual IRS filing requirements
• Treating a US LLC as a way to avoid taxes in your home country, which typically does not work as intended
• Opening a US LLC to access payment processors, then not filing any IRS forms because there is ‘no US income’
• Using the LLC’s bank account for personal expenses without proper documentation