- Entity type
- Single-member LLC (foreign-owned, disregarded entity)
- Corporate tax
- 0% federal on non-US-source income (pass-through)
- Setup cost from
- $300
- Setup time
- 1–5 business days
- Minimum capital
- None
- Local director
- Not required
- Remote formation
- Yes
- Residency visa
- No
- Banking
- Easy
Best for: Online businesses, SaaS, e-commerce and freelancers selling worldwide who want USD banking and Stripe.
Advantages
- Formed 100% online in a few days — no US visit required
- Easy fintech banking (Mercury, Relay, Wise) and Stripe/PayPal access
- No BOI report needed for US-formed LLCs since 2025/26
Watch out for
- Form 5472 + pro-forma 1120 is due every year — the penalty for missing it is $25,000
- Tax-free in the US does not mean tax-free at home — check your residence country's CFC and management rules
- US-sourced or effectively connected income (US staff, office, inventory) is taxable in the US
How to set up a company in United States (LLC)
- 01
Choose your state and company name
1 dayWyoming is the best all-round choice (low fees, strong privacy). New Mexico is cheapest with no annual report. Delaware is the choice if you plan to raise venture capital — though VC-backed startups usually need a C-Corp, not an LLC.
- 02
Appoint a registered agent
same dayEvery state requires an in-state registered agent with a physical address to receive legal mail. Expect roughly $25–300 per year depending on the provider.
- 03
File the Articles of Organization
1–5 daysFile online with the Secretary of State (approx. $50 in New Mexico, $100 in Wyoming, $110 in Delaware). Then sign an Operating Agreement — not filed with the state, but banks ask for it.
- 04
Get an EIN from the IRS
1 day – 6 weeksSubmit Form SS-4 by fax or mail (or call the IRS international line) and write "Foreign" in the SSN/ITIN field. You do not need an SSN or ITIN. The online EIN tool only works with an SSN/ITIN.
- 05
Open a US business bank account
1–7 daysMercury, Relay and Wise Business accept non-resident-owned LLCs fully online with your EIN letter, formation documents and passport. Eligibility depends on your nationality and residence.
- 06
Connect payments and set up your annual filings
ongoingAdd Stripe, PayPal or Amazon. Put the annual Form 5472 + pro-forma 1120 (due 15 April, extendable with Form 7004) and your state renewal into your calendar on day one.
Why a US LLC is the most popular company for expats
The Limited Liability Company (LLC) gives non-residents liability protection, a US bank account, access to Stripe and US marketplaces, and — for a single foreign owner with no US-connected income — no US federal income tax. The IRS treats it as a “disregarded entity”: profits flow through to the owner.
That’s why the US LLC is the number-one structure for digital nomads, freelancers and online businesses selling worldwide.
Wyoming vs Delaware vs New Mexico
| Wyoming | Delaware | New Mexico | |
|---|---|---|---|
| State filing fee | ~$100 | ~$110 | ~$50 |
| Annual fee | from $60 | $300 | $0 |
| Owner privacy | High | Medium | High |
| Best for | Most online businesses | Investor-facing | Lowest cost |
You do not have to form in the state where you have customers. If you have no physical presence in the US, pick the state on cost and convenience.
Taxes in plain English
- Federal: a foreign-owned single-member LLC with only non-US-source income usually pays no federal income tax. It must still file Form 5472 with a pro-forma Form 1120 every year.
- State: Wyoming and New Mexico have no state income tax on such LLCs. Delaware charges a flat $300 franchise tax.
- Sales tax: if you sell physical goods to US customers, you may have to collect sales tax once you pass state thresholds.
- Your home country: this is what decides your real tax bill. Many countries tax you on the LLC’s profits personally, or treat it as a controlled foreign company.
Banking
US fintechs make banking easy: Mercury, Relay and Wise Business onboard non-residents online. Traditional banks (Chase, Bank of America) usually want an in-person visit.
Is a US LLC right for you?
It’s ideal if you run a location-independent online business, want USD banking and customers trust a US company. It’s not a way to get US residency, and it won’t lower your taxes if your home country taxes worldwide income — combine it with proper residency planning.
Every year
- Form 5472 with pro-forma Form 1120 — every year, even with zero activity
- Wyoming: annual report from $60, due in your anniversary month
- Delaware: $300 annual LLC tax due 1 June
- New Mexico: no annual report or state fee
- Registered agent renewal
Questions about United States (LLC)
Do I need an SSN or ITIN to form a US LLC?+
No. You can form the LLC and get an EIN without either. Fax or mail Form SS-4 and write "Foreign" in the SSN field.
Do I still need to file a BOI report?+
No. FinCEN's final rule (August 2026) permanently exempts US-formed companies from beneficial ownership reporting. Only foreign companies registered to do business in the US still file.
Is a US LLC tax-free for non-residents?+
A single-member LLC owned by a non-resident with no US-connected income generally owes no federal income tax. But you are usually taxed in your country of residence, and some countries treat the LLC as a company (CFC rules). Get advice at home.
Which state is best — Wyoming, Delaware or New Mexico?+
New Mexico for the lowest running cost, Wyoming for the best balance of cost, privacy and reputation, Delaware if you need investor familiarity.
Can I get a US visa through my LLC?+
Not directly. An LLC alone gives no residency. E-2 (treaty investor) or L-1 visas require substantial investment or an existing foreign business.
General information, not legal or tax advice. Fees, rates and rules change. Check current figures with the official authority or a licensed adviser before acting. Disclaimer