Can a Non-U.S. Resident Open an LLC in the USA?

Non-U.S. residents are allowed to form and own a U.S. Limited Liability Company (LLC) even if they do not have U.S. citizenship, residency, a visa, a green card, or a Social Security Number. To set up an LLC, you usually need to file state documents, choose a registered agent, and get an Employer Identification Number (EIN). International applicants can get an EIN using approved Internal Revenue Service (IRS) methods. Licensed professionals who start a Professional Limited Liability Company (PLLC), make sure to check your state’s licensing requirements.

Yes, You Can: What a US LLC Actually Gives Non-Residents

A U.S. LLC gives non-resident founders a recognized way to do business in the American market. With an LLC, you can use financial services, invoice in U.S. dollars, accept payments, and work with American clients. An LLC also usually keeps business debts separate from your personal finances, as required by state law.

Key benefits include:

  • Financial Access: Apply with Mercury, Relay, Wise, Stripe, PayPal, and other eligible providers.
  • USD Invoicing: Invoice customers in U.S. dollars.
  • E-Commerce Access: Sell through Amazon, Shopify, and eligible U.S. platforms.
  • Liability Separation: Separate business obligations from members’ personal obligations.
  • US Client Access: Work with clients preferring or requiring U.S.-registered vendors.

These benefits help international founders run their businesses in the U.S.

Which States Are Best for Non-Resident LLC Formation?

Formation costs and annual requirements differ by state:

StateFormation FeeMain Annual State FeeWhy Popular
Wyoming$100$60 minimumRelatively low fees
DelawareState filing fee applies$400Established business law
New MexicoCheck current state feeCheck current requirementsLower filing requirements may apply

When choosing a state, consider your business activities, costs, investors, and future plans.

Step-by-Step: How to Form a US LLC as a Non-Resident

Forming an LLC as a non-resident usually takes six main steps:

  1. Choose Your State: Compare costs, requirements, and business needs.
  2. Check Your LLC Name: Confirm availability and follow state naming rules.
  3. Appoint a Registered Agent: Choose an eligible agent with a physical in-state address.
  4. File Formation Documents: Submit Articles of Organization or the state equivalent.
  5. Get an EIN: Use an IRS method available to eligible international applicants.
  6. Create an Operating Agreement: Define ownership, management, and governance.

Following these steps sets up your LLC’s legal and operating structure.

How to Get an EIN Without a Social Security Number

If you do not have a legal residence, main business location, or office in the U.S. or its territories, you cannot use the IRS online EIN application. Instead, you will need to use another IRS method.

Two methods include:

  • Fax: Applicants outside the U.S. can fax Form SS-4 to 304-707-9471. Processing generally takes about four business days when a return fax number is provided.
  • Phone: Eligible international applicants can call 267-941-1099, Monday through Friday, 6 a.m. to 11 p.m. ET.

Be sure to keep your EIN information with your business records.

How to Open a US Business Bank Account Remotely

Some financial providers let eligible non-resident founders apply remotely. You should have your identification, EIN details, formation documents, ownership information, and any other required records ready.

Bank / ServiceApplicationFee Information
MercuryEligible remote applicantsCheck current plan
RelayOnlineCheck current plan
Wise BusinessSupported markets$31 account-details setup; transaction fees may apply
Chase BusinessOnline or branch options$15 monthly service fee; waiver options apply
Bank of America BusinessDepends on requirementsCheck current fee

At MyCorporation, we recommend checking each provider’s current eligibility rules, required documents, and fees before you apply.

Tax Obligations for Non-Resident LLC Owners

How your U.S. LLC is taxed depends on where your income comes from, how your LLC is classified, what activities you do, and the type of income you earn. For personal services, the IRS usually looks at where the work is actually done, not where your client is located.

If you perform services outside the U.S., your income is usually considered foreign-source. Tax treaties can affect your federal taxes, and state tax rules and filing requirements are different in each state. An international tax advisor can help you understand which rules apply to you.

Form 5472: The Annual Filing Non-Residents Cannot Miss

A foreign-owned U.S. disregarded entity with reportable transactions generally files Form 5472 with a pro forma Form 1120. Reportable transactions can include certain contributions, distributions, formation transactions, acquisitions, and dispositions involving related parties.

You must file by the Form 1120 deadline, including any extensions. If you file Form 5472 late, incomplete, or with errors, you could face a $25,000 penalty.

When a Non-Resident Might Need a PLLC Instead of an LLC

Regulated professional services such as medicine, law, accounting, architecture, and engineering can have additional entity and licensing requirements, depending on the state and profession.

If you are a foreign founder planning to start a PLLC, check your state’s professional entity laws and licensing board requirements. At MyCorporation, we suggest confirming these rules before you choose between an LLC or a professional entity.

Costs of Forming and Maintaining a US LLC as a Non-Resident

LLC costs depend on the state and services selected. Registered agent, formation service, and CPA charges vary by provider. Applying directly to the IRS for an EIN is free.

Cost ItemWyomingDelawareNew Mexico
Formation Fee$100State fee appliesCheck current fee
Annual State Fee$60 minimum$400/yearCheck current requirements
Registered AgentVariesVariesVaries
EIN ApplicationFreeFreeFree
Form 5472 FilingVariesVariesVaries
Formation ServiceVariesVariesVaries

Comparing fees from the government and service providers can help you estimate your startup and ongoing costs.

Common Mistakes Non-Resident LLC Owners Make

Non-resident LLC owners should watch out for these common compliance mistakes:

  • Missing Form 5472: Required filing failures can trigger a $25,000 penalty.
  • Choosing Delaware Unnecessarily: Its legal framework may not suit every business.
  • Misjudging US Taxes: Income source and activities affect tax obligations.
  • Skipping an Operating Agreement: It defines ownership, management, and operating rules.

By avoiding these mistakes, you can make LLC compliance easier.

Conclusion

A non-U.S. resident can form a U.S. LLC by choosing the right state, appointing a registered agent, filing the necessary documents, and getting an EIN. It’s important to keep accurate records and understand your tax and reporting duties. Banking, taxes, and licensing will depend on your situation. Checking official state and IRS rules can help you pick the right business structure, stay compliant, and run your U.S. business smoothly.

FAQs

1. Do I need to be a US citizen to open an LLC in the USA?

Foreign nationals can own U.S. LLCs even if they live abroad, as long as they follow the state, tax, and reporting rules that apply.

2. Will I pay US taxes if I own a US LLC but live abroad?

How you are taxed depends on where your income comes from, what your business does, how your LLC is classified, your personal situation, and any tax treaties that apply.