How to Form a US LLC as a Non-US Resident

You don’t need to live in the United States — or ever set foot there — to own a US LLC. There’s no citizenship requirement, no visa requirement, and no requirement to have a Social Security Number.

What you do need is to follow the right process, in the right order. Skip a step (or do them out of sequence), and you can end up waiting months for an EIN, locked out of US banking, or facing IRS penalties you didn’t know existed.

This guide covers the full process, start to finish.

Can a non-US resident really own a US LLC?

Yes. US LLCs can be owned entirely by non-US citizens and non-US residents. There is no requirement to:

• Hold a US visa or green card
• Have a Social Security Number (SSN) or ITIN
• Maintain a US residential address
• Travel to the US at any point

Millions of foreign-owned US companies operate this way. What non-resident owners do have are some specific filing obligations that US-resident owners don’t — more on that in Step 7.

Step 1: Choose your state

You can form an LLC in any of the 50 states, but for international founders the decision usually comes down to a small handful. The factors that matter:

• Formation and annual fees — states vary widely
• Privacy — some states list member names publicly, others don’t
• Legal infrastructure — how well-established the corporate law is
• Where your customers and investors expect you to be

Delaware is the most common choice for founders who plan to raise investment or sell to US businesses — its corporate law is the most developed in the country, and US investors and counterparties know it well. Wyoming and New Mexico are often considered for lower ongoing fees.

One thing that doesn’t matter as much as people think: state income tax. If you don’t live or operate in the state, most of the “no state tax” marketing is less relevant than it sounds. What actually determines your US tax exposure is covered in Step 7.

Step 2: Check that your company name is available

Every state requires your LLC name to be distinguishable from existing registered entities. Requirements typically include:

• The name must contain “LLC,” “L.L.C.,” or “Limited Liability Company”
• It can’t be deceptively similar to an existing entity in that state
• Certain words (like “bank” or “insurance”) are restricted

Check availability against the state’s live records before you file — a rejected filing costs you the filing fee and weeks of delay. Some formation services skip this check or run it against stale data; make sure whoever handles your filing verifies against the state’s current registry.

Step 3: Appoint a registered agent

Every US LLC is legally required to have a registered agent: a person or company with a physical address in the state of formation, available during business hours to receive legal documents and state notices on the company’s behalf.

As a non-resident, you can’t be your own registered agent — you don’t have an in-state address. You’ll use a commercial registered agent service, which typically costs $50–$300 per year. This is not optional; an LLC without a registered agent falls out of good standing and can be administratively dissolved.

Step 4: File the formation documents

The formation document is usually called a Certificate of Formation (Delaware) or Articles of Organization (most other states). It’s filed with the state’s corporate filings office and typically requires:

• Company name
• Registered agent name and address
• Organizer signature (this can be your formation service — it doesn’t need to be a member)

State filing fees range from roughly $50 to $500 depending on the state, and processing times range from same-day (with expedite fees) to several weeks.

Once the state approves the filing, your LLC legally exists.

Step 5: Get your EIN — without an SSN

The Employer Identification Number (EIN) is your company’s federal tax ID. You need it to open a bank account, use payment processors like Stripe, hire anyone, and file taxes.

Here’s where non-residents hit the most common roadblock: the IRS’s online EIN application requires an SSN or ITIN. If you don’t have one, you can’t apply online — but you can still get an EIN. The process:

1. Complete Form SS-4, writing “Foreign” on line 7b where the SSN would go
2. Submit by fax or mail to the IRS (fax is dramatically faster)
3. Wait — fax applications typically take a few weeks; mail can take 6–8+ weeks

There is no legal way to speed up the IRS on this, though filing the form correctly the first time avoids the rejection-and-resubmit cycle that pushes many founders past the two-month mark. (Full guide: How to Get a US EIN Without an SSN)

Step 6: Open a US business bank account

You generally don’t need to visit the US. Fintech banking platforms built for startups — Mercury, Relay, Wise Business, and others — onboard non-resident founders remotely. You’ll typically need:

• Your approved formation document
• Your EIN confirmation (CP 575 letter or the faxed-back SS-4)
• Passport of the owner(s)
• A description of your business and expected activity

Traditional banks (Chase, Bank of America) usually require an in-person visit and an SSN/ITIN, which is why most international founders start with fintech platforms.

Once banking is live, you can connect Stripe or other US payment processors and operate like any US company.

Step 7: Know your ongoing compliance obligations

This is the step that gets skipped — and the one with real penalties attached. A foreign-owned US LLC typically has obligations in two buckets:

• Federal (IRS). A foreign-owned single-member LLC must file Form 5472 attached to a pro forma Form 1120 every year — even if the company had zero revenue. The penalty for missing this filing starts at $25,000. This is the single most-missed requirement among international founders, largely because single-member LLCs owned by US residents usually don’t have an equivalent filing.
• State. Annual reports and/or franchise taxes, depending on the state. Delaware LLCs, for example, pay a flat annual franchise tax of $300, due June 1.

Federal beneficial ownership (BOI) reporting is not one of them: FinCEN exempted companies formed in the US in March 2025 and made the exemption permanent in August 2026. It now applies only to companies formed outside the US and registered to do business in a US state.

Whether you personally owe US income tax depends on your situation — factors like whether the LLC is “engaged in a US trade or business,” tax treaties between the US and your country, and how the LLC is classified for tax purposes. These are questions for a qualified tax professional, not a blog post.

Timeline: what to expect

The EIN is almost always the bottleneck. Anyone promising a fully operational US company for a non-resident in a few days is glossing over the IRS.

Common mistakes to avoid

1. Opening the bank account application before the EIN arrives — most platforms won’t complete onboarding without it
2. Missing Form 5472 — the $25,000 penalty is real and applies even to dormant companies
3. Ignoring the registered agent renewal — a lapsed agent means lost good standing
4. Choosing a state based only on “no taxes” marketing — your tax exposure is determined by federal rules and your home country, not the state slogan
5. Using a stale name check — filing a name that’s already taken wastes the fee and weeks

FAQ

Do I need a US address?

No residential address is required. Your registered agent provides the in-state legal address. Some banks and services want a US mailing address, which virtual mailbox services can provide.

Can I do all of this remotely?

Yes — formation, EIN, and banking can all be completed without traveling to the US.

How much does it cost?

State filing fees ($50–$500) + registered agent ($50–$300/yr) + any service fees. Ongoing: annual state fees/franchise tax + registered agent renewal.

LLC or C-Corp?

Depends on your goals — LLCs are simpler; C-Corps are the standard structure for raising US venture capital. See our factual comparison: LLC vs C-Corp: Key Differences for International Founders. Which structure fits your situation is a question for a qualified professional.

Cooperative is not a law firm and does not provide legal, tax, or financial advice. This article is for informational purposes only and outlines publicly available procedures and requirements as of the date of publication. Rules change; verify current requirements with the relevant state and federal agencies, and consult a licensed attorney or tax professional for advice on your specific situation.