LLC for non residents

Can a non-US resident own an LLC?

Yes. US law imposes no citizenship or residency requirement on LLC members. A founder in Germany, India, Brazil, or anywhere else can own 100% of a US LLC without a visa, SSN, or US address. You need a US registered agent with a physical in-state street address (included with ClearFormation) and an EIN obtained by faxing Form SS-4. Formation itself takes 1–10 business days depending on state.

Why non-residents form US LLCs

• Access Stripe, PayPal, and US payment rails. Many platforms only contract with US entities or require US bank accounts.
• Look US-based to US customers. A US LLC + US business address removes the friction of "we don't pay foreign vendors".
• Tax efficiency. Properly structured non-US-owner LLCs with no effectively-connected US income can owe no US income tax, with profits taxed in the owner's home country.
• Strong legal protection. US LLC liability separation is well-established and enforceable.

Best states for non-resident LLCs

Non-US founders usually shortlist three states. The right pick depends on whether you optimize for cost, privacy, or future fundraising — not marketing slogans.

• Wyoming — $100 to file, $60/year annual report, no state income tax, members not on public filings. Default for online businesses and holding companies. Wyoming LLC formation.
• New Mexico — $50 to file, no annual report, lowest long-term maintenance. Slightly thinner case-law history than Wyoming. New Mexico LLC formation.
• Delaware — $110 + $300/year franchise tax. Only worth it if you expect US venture capital or need Delaware's Court of Chancery. Overkill for a solo online business.

Compare in depth: Wyoming vs Delaware and Wyoming vs New Mexico.

Tax obligations for non-resident LLC owners

US tax for a foreign-owned LLC splits into two questions: (1) does the LLC owe US income tax on its profits, and (2) what forms must you file even when tax owed is zero?

On question one, if the LLC has no income effectively connected with a US trade or business (ECI) — typical for a founder abroad selling digital services globally with no US employees or inventory — federal income tax is often zero. On question two, foreign-owned single-member LLCs still file Form 5472 + pro-forma Form 1120 every year. That filing is mandatory regardless of revenue.

State tax follows nexus: a Wyoming LLC with no Wyoming activity beyond the registered agent usually owes no Wyoming income tax. Your home country may tax the profits as personal income — that is separate from US rules. A US CPA familiar with non-resident LLCs is not optional for year one.

Do you need a visa to own a US LLC?

No. Entity ownership and immigration status are separate. You can own 100% of a US LLC from any country without a visa, green card, or US travel. What a visa controls is whether you may work physically inside the United States — not whether you may own shares or membership interests in a US company.

Many non-US founders run US LLCs for Stripe, Amazon, or B2B contracts while living abroad on a local visa or citizenship. If you later hire US employees or open a US office, immigration and payroll rules change — talk to an immigration attorney before relocating operations.

Wyoming LLC for non-US residents

Wyoming is the most common pick for non-resident-owned LLCs because state taxation is minimal and members aren't listed in public filings. A typical Wyoming setup for a non-US founder running an online business owes the state $60/year (annual report) and federal informational returns only (1120 + 5472), with no US income tax if there's no US effectively-connected income.

That said, your home country still taxes you. The US LLC's profits flow through to you personally for your home-country tax purposes (or to your home-country company if you put one above the LLC). Always check the rules with a tax advisor where you live.

Form 5472 — the filing most non-residents underestimate

Every foreign-owned single-member US LLC must file Form 5472 attached to a pro-forma Form 1120 each year, regardless of revenue, profit, or whether any US tax is owed. The form discloses "reportable transactions" between the LLC and its foreign owner — capital contributions, distributions, loans, intercompany services, royalties.

The penalty for missing Form 5472, filing late, or filing incomplete is $25,000 per form per year, applied automatically. The IRS treats this as a hard compliance requirement, not a soft one. If you're a non-US founder running a US LLC and you've never heard of Form 5472, talk to a US CPA before April 15 of the year after you formed.

Effectively connected income (ECI) — when US tax actually applies

US income tax for a non-resident-owned LLC turns on whether the LLC has income that is "effectively connected with a US trade or business" (ECI). The framework is fact-specific, but two patterns recur:

• Usually not ECI: selling digital products or SaaS to US customers from abroad with no US employees, no US office, no inventory in the US, and no dependent agents in the US. The LLC is a payment-collection vehicle; the work happens outside the US.
• Usually ECI: holding inventory in US warehouses (Amazon FBA at scale), employing US-based staff, renting US office space, or having US-based dependent agents authorized to bind contracts. ECI triggers US federal income tax at graduated rates and possibly state tax.

The line between the two is the area where you involve a CPA familiar with non-resident LLC taxation. Don't rely on generic forum advice — the cost of misclassification is back taxes plus penalties.

State pick — beyond the marketing claims

The "best state" debate is over-discussed. For a non-US founder with no US physical presence, the practical ranking is short:

• Wyoming — $100 to form, $60/year, no state income tax, strong privacy, established case law. The default pick for an online business.
• New Mexico — $50 once, no annual report, no public member listing. Cheapest long-term, but a thinner privacy and case-law track record than Wyoming.
• Delaware — $110 to form, $300 annual franchise tax. Worth it only if you'll raise US venture capital or need its Chancery Court for shareholder disputes. Overkill for a one-person online business.
• Avoid forming in states where you have no nexus and high tax: California ($800/year minimum franchise tax per FTB), Massachusetts, New York (publication requirement plus high cost).

Opening a US bank account as a non-resident

US payment processors and many B2B customers expect a US business bank account in the LLC's name. You do not need to visit a branch — several neobanks onboard foreign owners fully online once you have your stamped formation documents and EIN confirmation letter (CP-575).

• Mercury — popular with SaaS and agency founders; accepts non-US owners with EIN + passport + Articles of Organization.
• Wise Business — multi-currency account; useful if you invoice globally and want local receiving details.
• Relay, Brex, and others — policies change; confirm non-resident eligibility before applying.

Typical KYC stack: EIN letter, LLC formation certificate, operating agreement, government ID, and proof of business activity (website or pitch deck). Use a real US street address where the bank allows — registered agent alone is sometimes rejected. Full comparison in our business bank account for LLC guide.

EIN without SSN — the realistic timeline

The IRS does not let non-US founders apply for an EIN online. You file Form SS-4 with "Foreign" written on line 7b, then submit it by fax — the IRS issues the EIN by return fax in about 4 business days per its own guidance (mail takes 4–8 weeks). The fax number depends on where you are sending from: +1 (304) 707-9471 if you are faxing from outside the US, or +1 (855) 215-1627 if you are faxing from within the US. Both go to the IRS International EIN Operation in Cincinnati.

If you're working with a formation service, they handle this step. If you DIY: expect ~4 business days for the fax return during normal periods, longer during year-end and tax-season backlogs (up to 2–4 weeks). Don't try to file taxes or open a bank account until the EIN confirmation letter (CP-575) arrives. Full walkthrough in our EIN without SSN guide.

Is an LLC the best option for you?

For most non-US founders selling services, SaaS, or digital products globally, yes — an LLC is the right default. It's simpler than a corporation, pass-through by default, and accepted by Stripe, PayPal, and US banks. Choose a Delaware C-Corp instead only if you're raising US venture capital that requires preferred stock. A sole proprietorship isn't available to non-residents without a US tax ID and offers no liability separation anyway.

Types of US business entities for non-residents

• LLC — default for agencies, e-commerce, consulting, holding companies. Pass-through tax; Form 5472 if foreign-owned single-member.
• C-Corporation — for VC-backed startups; 21% federal corporate tax; stock-based equity.
• S-Corporation — tax election requiring US-person shareholders; rarely available to non-resident founders.
• Limited partnership (LP) — occasionally used in fund structures; not a typical small-business pick.

Compare structures: LLC vs C-Corp.

When to consult an attorney or CPA

DIY formation is fine for a standard Wyoming LLC with one foreign owner and no US employees. Bring in a US CPA before your first tax deadline for Form 5472 and ECI analysis. Hire an attorney if you have US employees, regulated industry activity, complex holding structures across countries, or plan to relocate operations into the United States (immigration + payroll nexus).

Common mistakes non-US founders make

• Forming in Delaware by default

  Delaware costs $300/year in franchise tax and offers no advantage to a non-resident running an online business. Wyoming is cheaper and more private.

• Missing Form 5472

  The $25,000 penalty is per form, per year, applied automatically. This is the #1 mistake we see — get a CPA before tax season.

• Using the registered agent address as the LLC's principal place of business everywhere

  Some banks accept it; some don't. Have a backup address strategy — virtual office service or US mail-forwarding provider with a real street address.

• Opening Stripe before the EIN arrives

  Stripe requires the EIN confirmation letter for KYC. Filing without it triggers manual review and often holds funds for weeks.

• Following outdated BOI advice

  Older guides tell non-residents to file BOI within 30 days of forming a US LLC. That requirement was removed for all US-formed entities by FinCEN's March 2025 interim final rule. See our BOI report guide for the current scope.

Related guides

Next steps in the non-US founder cluster: EIN without an SSN (the IRS process for foreign founders), TIN vs EIN (which tax ID you need), business bank account for LLC, and the Wyoming vs Delaware / Wyoming vs New Mexico comparisons.