Starting a business in the United States as a non-resident may seem complicated, but forming a Limited Liability Company (LLC) is actually one of the most straightforward and beneficial options. The U.S. offers a welcoming legal and business infrastructure that allows foreigners to register and operate a company without being a citizen or green card holder. Whether you're an entrepreneur looking to enter the U.S. market, an eCommerce seller, or a digital nomad looking for global structure, an LLC can provide a tax-efficient and flexible solution.
In this comprehensive guide, we will walk you through the step-by-step process of forming an LLC in the United States as a foreigner. We'll cover everything from choosing a state, legal requirements, and hiring a registered agent, to obtaining an EIN and opening a U.S. bank account. We will also address the tax implications and compliance matters that foreign owners must keep in mind.
Let’s begin your journey toward establishing your U.S.-based business the right way.
Choose the Best State for Your LLC
Not all U.S. states are the same when it comes to forming an LLC. Some are more business-friendly, while others may have higher fees or more regulations. For foreigners, popular states include:
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Delaware: Known for its business-friendly laws and low franchise taxes.
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Wyoming: Offers low annual fees, privacy protection, and no state income tax.
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New Mexico: Offers anonymity and low filing fees.
If you don’t plan to physically operate in a specific state, one of these three is often ideal.
Decide on a Unique LLC Name
Your LLC must have a unique name that complies with the rules of the state where you’re forming the company. It typically must include the words "Limited Liability Company" or an abbreviation like "LLC."
You can search your chosen state’s database to confirm your preferred name is available. You may also consider registering a trademark or domain name.
Hire a Registered Agent in the United States
Every LLC in the U.S. must have a registered agent with a physical address in the state of formation. The agent receives legal documents on behalf of your company. For foreigners, this is almost always a third-party service.
Prices vary, but most registered agent services charge between $50 to $300 annually. Ensure they are reliable and professional.
File Articles of Organization
The Articles of Organization (also called Certificate of Formation or Certificate of Organization depending on the state) is the primary document that officially creates your LLC.
Information generally required includes:
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LLC name and address
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Registered agent information
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Names of members or managers (varies by state)
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Business purpose (sometimes optional)
You’ll file this document with the Secretary of State in the state of your LLC. Filing fees range from $50 to $500 depending on the state.
Obtain an EIN (Employer Identification Number)
An EIN is like a Social Security Number for your business. You’ll need it to:
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Open a U.S. bank account
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File taxes
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Hire employees (if applicable)
Even if you don’t have a U.S. Social Security Number, you can still get an EIN by filing IRS Form SS-4. In many cases, it can be done online, but foreign individuals often need to submit the form via fax or mail.
Draft an LLC Operating Agreement
While not always required by law, an Operating Agreement is strongly recommended. This document outlines how your LLC will be managed, member responsibilities, profit distribution, and dispute resolution.
For single-member LLCs, it helps maintain liability protection by demonstrating the separation between personal and business finances.
Open a U.S. Business Bank Account
To operate legally and keep your business finances separate, you’ll need a U.S. bank account. Many banks require:
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LLC formation documents
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EIN confirmation letter
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Passport and other identification
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U.S. address (which can be your registered agent or mail forwarding service)
Some banks allow remote account opening for foreigners, while others require in-person visits. Fintech alternatives like Mercury or Wise may offer easier onboarding for international entrepreneurs.
Understand U.S. Tax Responsibilities
Even if you are not a U.S. resident, you may still owe taxes. The IRS classifies LLCs differently based on their structure:
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Single-Member LLCs are considered “disregarded entities” and taxed as sole proprietorships.
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Multi-Member LLCs are usually taxed as partnerships.
Foreigners must also consider withholding taxes, treaties between their country and the U.S., and potential state-level taxes. Hiring a U.S. tax professional is highly recommended.
Get a U.S. Business Address and Phone Number
To build trust and ensure credibility, especially for eCommerce or service-based businesses, a U.S. business address and phone number are helpful. Services like virtual mailboxes, VoIP numbers (e.g., Google Voice, Grasshopper), or co-working spaces offer these solutions affordably.
Maintain Compliance Annually
After forming your LLC, ongoing compliance is essential:
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File annual reports (requirements vary by state)
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Renew registered agent service
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Pay franchise taxes (if applicable)
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Keep proper records for tax filing
Failure to meet these obligations can result in penalties or dissolution of your LLC.
Protect Your Business with Trademarks and IP
Consider registering your business trademarks with the U.S. Patent and Trademark Office (USPTO). This protects your brand from infringement and adds value to your business.
You may also want to register copyrights or patents, depending on your product or service.
Use a U.S.-based Accountant or CPA
Navigating U.S. taxes as a non-resident is complex. It’s crucial to have a qualified U.S.-based CPA who understands international taxation. They can help with:
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Tax planning
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Reporting foreign ownership (Form 5472 for single-member LLCs)
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Withholding compliance
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State vs. federal tax strategies
Consider Using a Business Formation Service
If you prefer not to handle everything yourself, you can use a business formation company like:
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LegalZoom
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Northwest Registered Agent
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IncFile
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Firstbase.io (popular with non-residents)
These services bundle LLC formation, EIN application, registered agent service, and compliance tools into one package.
Check Visa and Work Authorization Requirements
Forming an LLC does not give you the right to live or work in the U.S. If you plan to operate physically in the United States, you’ll need to look into visa options such as:
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E-2 Investor Visa
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L-1 Intra-company Transfer Visa
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B-1 Business Visitor Visa
Work with an immigration attorney to determine the best path if this is your goal.
Understand Banking & Payment Processing Limitations
As a foreigner, getting access to U.S. payment processing tools like Stripe, PayPal, or Square may require additional documentation. Be prepared to submit identity verification, business structure, and possibly proof of U.S. address.
Many entrepreneurs use Stripe Atlas or similar services to streamline the process.
Set Up a Bookkeeping System
Accurate accounting helps you track income, expenses, and stay compliant. Use accounting software such as:
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QuickBooks
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Xero
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Wave (free)
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FreshBooks
You may also outsource this to a U.S. bookkeeper.
Consider Sales Tax Obligations
If you're selling products in the U.S., you may be subject to sales tax. Sales tax is handled at the state level, and rules vary widely. Some states have economic nexus laws that apply even to foreign LLCs selling online.
Use a tool like TaxJar or Avalara to manage collection, filing, and remittance.
Understand What You Can’t Do
Foreign LLC owners cannot:
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Get an SSN (unless you have immigration status)
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Apply for S-Corp tax treatment without a U.S. person
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Receive U.S. government funding or grants (generally)
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Operate certain restricted businesses (e.g., defense-related)
Always check legal limitations depending on your sector.
Be Transparent with Clients and Partners
Some U.S. companies may be wary of working with a foreign-owned entity. Be upfront and maintain clear contracts and communication. Build credibility with a U.S. presence, testimonials, and professionalism.
Plan for Future Growth and Scaling
Once your U.S. LLC is established, you can:
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Hire contractors or employees
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Work with U.S. clients
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Raise funds from investors
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Set up subsidiary companies
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Launch physical operations
Treat your LLC as a foundation for long-term success.
Frequently Asked Questions
Can I form an LLC in the U.S. if I don’t live there?
Yes, non-residents can form an LLC in the United States. You do not need a physical address or citizenship.
Do I need a visa to open an LLC in the U.S.?
No, forming an LLC does not require a visa. However, working in the U.S. does.
What state should I choose to register my LLC?
Delaware, Wyoming, and New Mexico are popular for their business-friendly laws.
How long does it take to form an LLC in the U.S.?
It can take anywhere from 1 to 4 weeks, depending on the state and services used.
Can I open a U.S. bank account remotely?
Some fintech banks allow this, but traditional banks may require an in-person visit.
Do I need a U.S. address?
Yes, for your registered agent and for many banking or tax purposes, you need a U.S. address.
Will I owe taxes in the U.S. if I don’t live there?
It depends on your LLC structure and income source. Consult a CPA.
Do I need to file taxes every year?
Yes, even foreign-owned LLCs must file annual returns and informational forms.
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