Setting up a Limited Liability Company (LLC) in the United States offers numerous benefits for both American and foreign entrepreneurs. Contrary to popular belief, you don’t need to reside in the US to open a US LLC. However, understanding the nuances of the process and the newly implemented requirements is crucial for non-residents.
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What is an LLC?
A US LLC (Limited Liability Company) is the easiest and most common business entity for non-US entrepreneurs to set up in America.
An LLC separates personal assets from business liabilities, meaning owners (called “members”) are generally not personally responsible for company debts. It also offers tax flexibility, as profits can be “passed through” to members without being taxed at the company level.
For foreign founders, forming an LLC in the United States is one of the most popular ways to access the US market, open business bank accounts, and work with US-based clients.
However, if your primary goal is to seek funding from venture capitalists or angel investors, forming a C Corporation will usually be a better option. (If you’re not sure if an LLC or C Corp is better for you, we can help you determine the best approach).
Not sure which company type is best for you?
Benefits of a US LLC for non-residents
For foreign entrepreneurs, a US-based LLC can serve as a gateway to the American market, providing credibility and access to a vast consumer base.
The key benefits of a US LLC include:
- Limited liability protection – Your personal assets (like your home or savings) are separate from the company, so you’re generally not personally responsible if the business runs into debt or legal trouble.
- Access to the US market – An LLC gives your business a professional presence and credibility in the United States, making it easier to work with US clients, partners, and platforms.
- Simple taxes – By default, an LLC is a “pass-through” entity, meaning the business itself doesn’t pay federal income tax. Instead, profits flow directly to the owners, helping avoid double taxation.
- Easier banking and payments – With an LLC, you can usually open a US business bank account and access payment processors that prefer or require a US entity.
- Flexibility and low maintenance – Compared to corporations, LLCs require less paperwork and fewer ongoing formalities.
Where to register your US LLC as a non-resident
You can choose any state in the US for registering your LLC. However, if you have strong ties to a specific state, such as an office, warehouse, or other business operations, the advantages of incorporating in a different state may diminish. In such cases, it is usually better to register the LLC in the state where you have significant business activities.
Compare state options: Wyoming, Delaware, Nevada
We typically recommend Wyoming for non-resident LLCs, as our CEO Vincenzo Villamena discussed in this Forbes article Why Non-US Residents Choose Wyoming For LLC Formation(opens in new tab). The main reasons are its low taxes, minimal maintenance fees, and strong corporate laws.
Delaware is well-known and great for startups seeking funding. But it’s not the best choice for many LLCs. Delaware has higher maintenance cost and lower privacy protections than Wyoming.
Nevada is another popular choice for those prioritizing privacy. And New Mexico is appealing to some as a low cost option, but again, without the benefits of Wyoming.
Our guide to US states for foreign-owned LLCs dives deeper into the pros and cons of popular states.
Key requirements for opening a US LLC
The specific requirements for forming an LLC vary by state, but the general requirements include:
1. Articles of Organization
The Articles of Organization must be filed with the relevant state entity to officially form your LLC. This document typically includes the business name, a US business address, a broad description of the business purpose, and the names and addresses of the LLC members (required in some states).
2. Operating Agreement
Although not mandatory in all states, we highly recommend having an LLC operating agreement. This legal document outlines the rights and responsibilities of LLC members and details the organization’s operational procedures. Therefore, it can prevent internal disputes by clearly defining roles and expectations.
Banks often require an operating agreement to open a business bank account.
3. Employer Identification Number (EIN)
You must have an EIN, or Tax ID, to open your US LLC. To obtain an EIN, you’ll need a unique business name, a US business address, and a brief description of your principal business activity.
The EIN application also requires the name, address of the responsible party (the owner). You don’t need SSN to apply for an EIN. But if you have an SSN, the application process is faster.
4. Registered Agent
A registered agent is a third party that is responsible for receiving legal documents on behalf of the company. The agent is located in the same state where the LLC is registered.
If you’re incorporating in a state where you do not reside, you must appoint a registered agent. Some entrepreneurs choose to hire professional registered agent services to fulfill this requirement.
5. Licenses, permits, and other requirements
Depending on your business activities and the state of incorporation, you may need specific licenses and permits.
For example, New York requires LLCs to publish a notice of formation in local newspapers. Additionally, maintaining your LLC in good standing often involves filing an annual report and renewing the registered agent service.
6. US business address
As of 2024, a US business address is now a mandatory requirement for all LLCs, including those owned by non-residents.
This address can be a physical office, a virtual office, or the address of your registered agent. It is essential for receiving official correspondence and maintaining compliance with state laws.
How to open a US LLC: Step-by-step process
Here are the key steps to set up a US business:
- Choose your business structure: LLC vs C Corporation
- Select a state to incorporate in
- Pick your company name
- Get a registered agent in the state you are incorporating in
- File your formation documents with the state
- Receive your new company’s legal; documents
- File for an EIN
- Open a business bank account
- Stay compliant with state and US tax laws and regulations
You can do all this yourself—although many foreign founders hit a roadblock when trying to get their EIN and open a bank account.
Many service providers focus on just part of this process, and leave you alone with the rest (or have pricey add-ons for that). An experienced full-service firm like Entity Inc. can do the heavy lifting for you, at one transparent price.
Open a US bank account
Opening a US bank account is not a legal requirement for a US company. But we highly recommend doing that for managing your LLC’s finances separately from your personal funds. This separation helps preserve the limited liability protection offered by the LLC structure.
However, opening a US bank account as a non-resident can be challenging. Some banks require you to visit the US in person, and approval is at the discretion of the bank. Additionally, certain nationalities may face restrictions due to US banking regulations.
Our team of incorporation specialists can help with remote bank account opening – it’s included in our incorporation packages. But keep in mind that the final decision is with the bank, so we cannot give a guarantee.
Tax & compliance – What to expect
Opening an LLC is just the start. Tax and other compliance requirements must be met to keep the company open. (Our experts can help with that.)
You must renew your LLC registration every year. That typically involves filing an annual report with the state. You must also renew your registered agent.
For tax compliance, the LLC must file a tax return with the US IRS. For a single-member LLC, this is the IRS Form 5472, together with a pro-forma 1120.
The due date is April 15, and it can be extended until October 15 by filing for an extension.
Now, filing a tax return does not mean having to pay US taxes. Our in-depth guide to the taxation of US LLCs explains all the details. Our team, unlike many other providers, has true tax experts. We have over a decade experience in filing US returns for thousands of global entrepreneurs.
What about BOI filings? There was a lot of confusion about this new, on-again, off-again filing requirement. As of 2025, foreign-owned LLCs don’t have to file this report.
Everything non-US founders ask about starting a US LLCS
Can a non-US resident open a US LLC?
Yes. You don’t need to be a US citizen or live in the US to form an LLC. Many international founders set one up to access the American market.
Do I need a US address or social security number (SSN) to start an LLC?
No SSN is required. You’ll need a registered agent with a US address, which many service providers offer.
Which state is best for a non-resident to form an LLC?
Delaware, Wyoming, and New Mexico are popular choices. Wyoming is often best for foreign-owned LLCs because of low fees, privacy, and business-friendly laws.
What documents do I need to form a US LLC as a foreign entrepreneur?
Typically, you’ll need your passport and company formation paperwork (Articles of Organization, Operating Agreement). After your LLC is formed, you obtain an EIN from the IRS.
Can I open a US business bank account as a foreign founder?
Yes, but it can be tricky. Traditional US banks like Bank of America, require you to visit the US in person. But fintech platforms and international banking services allow account opening remotely.
How are US LLCs taxed for non-residents?
If you don’t have US-sourced income, you likely don’t owe US federal income tax. Most online service providers that perform their services from outside the US, won’t have to pay US taxes. Selling physical products in the US is trickier. Our in-depth guide to LLC taxation for non-residents explains what is and what isn’t US-source income. But even when you don’t owe taxes in the US, you must file certain tax form, e.g. form 5472
Do I need a visa or work permit to own a US LLC?
No. You can own an LLC without living in the US or having a visa. But forming an LLC does not grant you the right to work or live in the US.
How our LLC formation service helps
A full-service provider, like Entity Inc, can make sure that an LLC is really best for your business. (Tip: for some e-commerce businesses, a C Corporation might be more appropriate).
We help select the best state to avoid surprise state franchise taxes, and then take care of the rest: document preparation, registered agent, state filing, EIN.
We advise on your banking options and guide you through the account opening process.
When it comes to annual tax compliance, our experienced team prepares and files all required tax forms, e.g. IRS Form 5472, 1120.
And of course, we can provide the annual renewal filing and registered agent services for LLCs that were incorporated with us.
As you can see, we’re here to help you every step of the way. Our all-in-one services includes everything you need: business formation, registered agent, EIN, bank support, compliance – without hidden fees.
Launch your US company from home. No paperwork headaches.
We’ll handle it all for you.
