LLC for Non-Residents: How to Form a US Company in 2026

Why choose an LLC for non-residents?

A US company can make it easier to sell to American customers, use US payment processors and marketplaces, sign contracts with US firms and present a familiar structure to partners and investors.

Why it matters: an LLC keeps your personal assets separate from business debts, and it is cheaper and simpler to run than a corporation. For many online businesses, software founders and consultants, it is the default way to do business in the US from abroad.

Yes, but: a US LLC does not remove your tax obligations at home. Many countries tax their residents on worldwide income, and some treat a foreign LLC differently from the US. Check your home country's rules before you form one.

Step 1: Choose the right state for your LLC

You can form an LLC in any of the 50 states, regardless of where you live. If you have a physical office, employees or significant operations in a particular state, you generally need to register there anyway, so forming somewhere else can mean paying fees twice.

State	Why founders choose it	Things to consider
Wyoming	Low filing and annual fees, no state income tax, simple administration	Less familiar to some investors and banks
Delaware	Well-known business courts and law; familiar to investors	Higher annual taxes and fees for LLCs
New Mexico	Low cost and no annual report requirement	Fewer services and less name recognition
Your operating state	Avoids registering in two states	Fees and taxes vary widely

State fees change, so check the current filing fee and annual report or franchise tax on the official Secretary of State website before you file.

Step 2: Appoint a registered agent

Every LLC must have a registered agent with a physical address in its state of formation. The agent receives official legal and tax documents on your behalf. As a non-resident, you will use a commercial registered agent service, which typically costs a modest annual fee. Choose a reputable provider that scans and emails your mail promptly, because missing a legal notice can be costly.

Step 3: File your Articles of Organization

The Articles of Organization (called a Certificate of Formation in some states) create your LLC. You will usually provide:

• The LLC's name, which must be unique in that state and include "LLC" or "Limited Liability Company".
• Your registered agent's name and address.
• The names of the organizer and, in some states, the members or managers.
• A mailing address, which can usually be abroad or your agent's address.

Most states accept online filing, and approval can take anywhere from a day to a few weeks. Formation services can file for you, but check exactly what is included in their price.

Step 4: Write an operating agreement

An operating agreement sets out who owns the LLC, how decisions are made and what happens if a member leaves. Even single-member LLCs should have one. Banks often ask to see it, and it helps prove that the company is separate from you personally, which supports your liability protection.

Step 5: Get an EIN without a Social Security number

An Employer Identification Number (EIN) is your LLC's federal tax ID. You need it to open a bank account, file taxes and work with payment platforms.

The IRS online EIN application requires a US taxpayer ID for the responsible party, so most non-residents apply using Form SS-4 by fax or mail. The IRS instructions allow you to write "Foreign" or "N/A" in the SSN/ITIN field (line 7b) if the responsible party does not have, and is not eligible for, an SSN or ITIN. Fax applications are generally faster than mail, but processing times vary, so plan for several weeks.

What to watch: make sure the name and address on your SS-4 match your Articles of Organization exactly. Mismatches are a common cause of delays.

Step 6: Open a US business bank account

Banking is often the hardest step for non-residents. Many traditional US banks require you to visit a branch in person. Several online banks and fintech platforms accept non-resident founders remotely, but each has its own eligibility rules, and they change frequently.

Have these documents ready: your Articles of Organization, EIN confirmation letter, operating agreement, passport and proof of address. Keep business and personal money completely separate from the first day; mixing them can weaken your liability protection. Getting paid by overseas clients? Our guide to invoicing international clients covers currencies and fees.

Step 7: Stay compliant every year

Forming the LLC is the easy part. Staying in good standing requires a few recurring tasks.

Form 5472 and pro forma Form 1120

A single-member LLC owned by a foreign person is generally a "disregarded entity" for US income tax. Even so, it must usually file Form 5472, attached to a pro forma Form 1120, to report transactions between the LLC and its foreign owner, such as money you put in or take out. This applies even if the LLC had no revenue. The penalty for failing to file starts at $25,000. The deadline generally follows the Form 1120 due date, which for calendar-year filers is April 15.

A multi-member LLC is usually taxed as a partnership and files Form 1065 instead, with different rules for foreign partners. Effectively connected US income can also trigger US income tax returns. A US tax professional who works with foreign owners is worth the fee.

State annual reports and fees

Most states require an annual report or franchise tax payment. Missing it can lead to penalties and, eventually, the state dissolving your LLC.

Beneficial ownership reporting

Under an interim final rule issued by the US Treasury's Financial Crimes Enforcement Network (FinCEN) in March 2025, companies formed in the United States are exempt from federal beneficial ownership information (BOI) reporting. Companies formed abroad and registered to do business in the US may still need to report. Some states have their own ownership disclosure laws, such as New York's LLC Transparency Act, so check the rules for your state.

How much does a US LLC cost for a non-resident?

Expect these typical costs, which vary by state and provider:

• State filing fee: often between about $50 and a few hundred dollars.
• Registered agent: usually around $50 to $300 a year.
• Annual report or franchise tax: from zero in some states to several hundred dollars in others.
• Tax preparation: Form 5472 and pro forma 1120 preparation commonly costs a few hundred dollars a year.
• Optional formation service: fees vary widely; compare what is included.

Common mistakes non-resident founders make

• Skipping Form 5472: the most expensive mistake, because the penalty applies even when no tax is owed.
• Choosing a state for hype: if you operate mainly in California or New York, a Wyoming LLC may still need to register there.
• Mixing personal and business money: keep separate accounts and records.
• Ignoring home-country tax: your residence country may tax the LLC's profits.
• No system for customers and records: a simple small business CRM and good bookkeeping from day one save stress at tax time.

Weighing a different jurisdiction? Our guide to how to register a company in Singapore compares another popular option for international founders.

The bottom line: An LLC for non-residents is accessible and affordable, and you can set one up without visiting the US. The formation steps take days; the real commitment is keeping up with Form 5472, state reports and your home-country taxes every year.

Frequently asked questions

Can a non-resident own a US LLC?

Yes. There are no citizenship or residency requirements to form or own an LLC in any US state. You will need a registered agent with an address in the state of formation.

Do I need an SSN or ITIN to get an EIN?

No. Non-residents without an SSN or ITIN can apply for an EIN using Form SS-4 by fax or mail, following the IRS instructions for responsible parties without a US tax number.

Does a foreign-owned LLC pay US tax?

It depends on the business. A single-member LLC with no US trade or business may owe no US income tax but still has filing duties such as Form 5472. Income connected to US activities can be taxable. Get advice from a US tax professional.

Which state is best for a non-resident LLC?

There is no single best state. Wyoming and New Mexico are popular for low costs, Delaware for its legal system and investor familiarity. If you have operations in a specific state, forming there is often simplest.