How to Start an LLC as a Non-U.S. Resident (Step-by-Step Guide)

Non-US citizens and non-residents can legally form an LLC in the United States. There are no citizenship or residency requirements for LLC ownership in any state. Thousands of international entrepreneurs form US LLCs every year to access the US market, accept payments in US dollars, use US payment processors, and take advantage of the LLC’s flexible structure.

This guide explains exactly how to start a US LLC as a non-citizen, step by step. It covers choosing a state, hiring a registered agent, getting an EIN without a Social Security Number, opening a US bank account, and understanding your tax obligations.

Can Non-US Citizens Form an LLC?

Yes. US law does not require LLC members (owners) to be US citizens or residents. Any individual, regardless of nationality or country of residence, can form an LLC in any US state. This includes people who have never visited the United States. You do not need a visa, a green card, or a Social Security Number to form an LLC.

An LLC formed by a non-US citizen works the same way as any other LLC. It is a separate legal entity that provides liability protection, can open US bank accounts, enter into contracts, and conduct business in the United States. The main differences for non-residents are in how you obtain an EIN (since you cannot use the online application without an SSN), how you open a bank account (since you may not be able to visit a branch in person), and how you are taxed (since the US has different tax rules for non-resident aliens).

The most popular states for non-resident LLCs are Wyoming, Delaware, and New Mexico. Each has specific advantages that make them attractive to international business owners.

Best States for Non-Resident LLCs

While you can form an LLC in any state, three states are particularly popular with non-US citizens because of their low costs, strong privacy protections, and business-friendly laws.

Our recommendation: Wyoming is the best state for most non-resident LLCs. It offers strong privacy, no state income tax, low formation and annual fees ($100 filing + $60/year), and a business-friendly legal environment. New Mexico is the cheapest option ($50 filing fee, no annual report), making it ideal if you want to minimize costs. Delaware is best for larger businesses or those that plan to seek US investors, thanks to its specialized business courts and well-established legal precedents.

How to Start an LLC as a Non-US Citizen (8 Steps)

Step 1: Choose a State

Select the state where you want to form your LLC. If you will not be physically doing business in the United States (for example, if you run an online business from another country), you can form your LLC in any state. Wyoming, Delaware, and New Mexico are the most popular choices for non-residents. See the comparison table above to choose the best state for your situation.

If you will have a physical presence in a specific US state (an office, employees, or inventory), you should form your LLC in that state. Forming in a different state and then registering as a foreign LLC in your operating state adds unnecessary costs and complexity.

Step 2: Choose a Registered Agent

Every LLC must have a registered agent with a physical address in the state where the LLC is formed. A registered agent receives legal documents, tax notices, and government correspondence on behalf of your LLC. As a non-resident, you will need to hire a professional registered agent service since you likely do not have a physical address in the state.

Our top recommendation is Northwest Registered Agent ($39 + state fee). Northwest handles LLC formation for non-residents in all 50 states, provides a full year of registered agent service, and uses their address on your public formation documents for privacy. They are experienced with international clients and can guide you through the process.

Step 3: File Formation Documents

Your registered agent or formation service will prepare and file your Articles of Organization (or Certificate of Formation, depending on the state) with the state. This is the document that officially creates your LLC. You will need to provide:

• Your LLC’s name
• Registered agent name and address
• LLC management structure (member-managed or manager-managed)
• Purpose of the LLC (usually “any lawful purpose”)

Processing times vary by state, typically 1 to 10 business days. Your formation service will notify you when your LLC is approved and provide you with the filed documents.

Step 4: Get an EIN

An EIN (Employer Identification Number) is a tax identification number issued by the IRS. You need an EIN to open a US bank account, file taxes, and conduct business. The EIN is free.

Important: Non-US citizens without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) cannot use the IRS online EIN application. Instead, you must apply by fax or phone:

Option 1: Apply by fax (recommended)

1. Download IRS Form SS-4
2. Complete the form. In the SSN/ITIN field, write “Foreign” and include your passport number and country of citizenship
3. Fax the completed form to (855) 215-1627
4. The IRS will fax your EIN back within 4 business days

Option 2: Apply by phone

1. Call the IRS at (267) 941-1099 (not toll-free), Monday through Friday, 6:00 a.m. to 11:00 p.m. Eastern Time
2. The agent will ask you the same questions from Form SS-4
3. You will receive your EIN at the end of the call

For detailed instructions, see our complete EIN guide.

Step 5: Get an ITIN (If Needed)

An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the IRS to individuals who need a US tax identification number but are not eligible for a Social Security Number. You may need an ITIN if you earn income that is subject to US tax withholding or if you need to file a US tax return.

Not every non-resident LLC owner needs an ITIN. You need one if:

• You earn US-source income that requires filing a US tax return
• You want to claim benefits under a US tax treaty
• You need to provide a US tax identification number to clients or payment processors

To apply for an ITIN, you must submit IRS Form W-7 along with a federal tax return and identity documents. The process takes 6 to 10 weeks. For detailed instructions, see our ITIN application guide.

Step 6: Open a US Bank Account

A US bank account allows you to receive payments in US dollars, pay US vendors and suppliers, and manage your LLC’s finances. Opening a US bank account as a non-resident used to be very difficult, but several banks and fintech companies now offer online applications for non-US citizens.

To open a business bank account, you will typically need:

• Your LLC’s EIN
• Articles of Organization (filed and approved)
• Operating agreement
• Your passport (or other government-issued ID)

For a detailed breakdown of banks that accept non-US citizens, see our guide to opening a US bank account as a non-citizen.

Step 7: Create an Operating Agreement

An operating agreement is an internal document that establishes the rules for your LLC, including ownership percentages, profit distribution, management structure, and procedures for adding or removing members. While not required in every state, every LLC should have one. Banks often require an operating agreement to open a business account, and it is especially important for non-resident LLCs to have clear documentation of ownership and management.

You can create an operating agreement yourself using a free template, hire a lawyer to draft one ($200-$500), or use the template provided by your LLC formation service.

Step 8: Understand Your Tax Obligations

Tax obligations for non-resident LLC owners are different from those of US citizens. Understanding your obligations is important to avoid penalties and take advantage of any applicable tax treaty benefits.

Key tax concepts for non-resident LLC owners:

FDAP Income (Fixed, Determinable, Annual, Periodical): Passive income like interest, dividends, rents, and royalties from US sources is generally subject to a flat 30% withholding tax (unless reduced by a tax treaty between the US and your country of residence).

ECI (Effectively Connected Income): If your LLC earns income that is “effectively connected” with a US trade or business (meaning the income is generated by activities conducted in the US), it is taxed at regular graduated income tax rates. You would need to file a US tax return (Form 1040-NR) to report this income.

Form 5472: Single-member LLCs owned by a foreign person must file Form 5472 (Information Return of a 25% Foreign-Owned US Corporation) along with a pro forma Form 1120 each year. This is an informational filing — it does not necessarily mean you owe tax, but the penalty for failing to file is $25,000.

Tax treaties: The US has income tax treaties with many countries that may reduce or eliminate US tax on certain types of income. Check whether your country of residence has a tax treaty with the US and consult a tax professional to understand how it applies to your situation.

Important: US tax law for non-residents is complex. We strongly recommend working with a US tax professional who has experience with international clients to ensure you comply with all filing requirements and take advantage of any applicable deductions or treaty benefits.

LLC Formation Services for Non-Residents

Forming a US LLC from abroad is much easier when you use an LLC formation service that has experience working with international clients. Here are the services we recommend for non-residents:

For most non-residents, Northwest Registered Agent is the best choice because they handle formations in all 50 states, include a full year of registered agent service, and have extensive experience with international clients. If you specifically want to form a Delaware LLC, Harvard Business Services is a solid choice as a Delaware specialist.

Frequently Asked Questions

Do I need a Social Security Number to form an LLC?

No. You do not need a Social Security Number (SSN) to form an LLC. LLC formation is handled at the state level, and no state requires an SSN to file formation documents. You will need an EIN (Employer Identification Number) from the IRS for tax purposes, and you can apply for that by fax or phone without an SSN.

Can I form an LLC without visiting the United States?

Yes. The entire LLC formation process can be completed remotely. You can hire a registered agent and formation service online, file your formation documents through them, and apply for an EIN by fax or phone. Many banks also now allow non-residents to open accounts online without visiting a branch.

Can I open a US bank account as a non-citizen?

Yes. Several US banks and fintech companies accept non-US citizens. Some allow you to open an account entirely online (such as Mercury and Relay), while others require an in-person visit to a branch (such as Chase and Bank of America). You will need your LLC’s EIN, formation documents, and a valid passport. See our guide to opening a US bank account for detailed options.

What are the tax obligations for a non-resident LLC owner?

Tax obligations depend on whether your LLC earns US-source income and the type of income it earns. If your LLC does not conduct business in the US and earns no US-source income, you may have minimal or no US tax liability (though you must still file Form 5472). If your LLC earns US-source income, you may owe US taxes. Tax treaties between the US and your country may reduce or eliminate certain taxes. Consult a US tax professional for advice specific to your situation.

What is Form 5472?

Form 5472 is an annual informational return that must be filed by single-member LLCs owned by a foreign person. The form reports transactions between the LLC and its foreign owner. It is filed with a pro forma Form 1120. The penalty for failing to file Form 5472 is $25,000, so this filing should not be overlooked. The form is due by April 15 of each year (or the 15th day of the 4th month after the LLC’s tax year ends), with a 6-month extension available.

Which state is best for a non-resident LLC?

Wyoming is our top recommendation for most non-resident LLCs because it offers strong privacy, no state income tax, low fees ($100 formation + $60/year), and a business-friendly legal environment. New Mexico is the cheapest option ($50 formation, no annual fees). Delaware is best for larger businesses or those seeking US investors.

Do I need to pay US taxes if my LLC does not operate in the US?

If your LLC does not have any US-source income and does not conduct a trade or business within the US, you generally will not owe US federal income tax. However, you are still required to file Form 5472 annually if you are the foreign owner of a single-member LLC. Failure to file can result in a $25,000 penalty. State-level requirements vary, so check with your formation state as well.

Can my non-resident LLC accept payments through Stripe, PayPal, or other US payment processors?

Yes. Once your LLC is formed, has an EIN, and has a US bank account, you can sign up for US-based payment processors like Stripe, PayPal, Square, and others. These processors require a US business entity and US bank account, which is one of the main reasons non-residents form US LLCs.