US LLC for non-US residents: how to form one as a foreigner (2026)

A US LLC lets a founder anywhere in the world own a US company, get a US tax ID and open a US business bank account without moving to the US. It's cheap to form (a few hundred US dollars), but it comes with yearly filings that carry real penalties, and it doesn't switch off tax in the country you live in. This guide covers who actually needs one, which state and formation service to use, and what it costs to keep going after year one. All fees and rules were checked on official or company pages on 25 October 2026.

Who actually needs a US company

You need a US company if a specific customer, investor, payment provider or bank requires one, not because it sounds more serious. Plenty of founders form a US LLC and then find their home-country company would have done the job.

Good reasons to form one:

• Stripe doesn't fully serve your country. Stripe's global availability page lists the markets where businesses can sign up. Vietnam, the Philippines and Pakistan aren't on it, and Indonesia and India are marked "Preview". If you're in an unsupported country, a US company is a common route to a full Stripe account.
• US investors want to invest. US venture investors usually expect a Delaware C-corp, not an LLC (more on that below).
• US customers or partners want a US counterparty. Some enterprise buyers and marketplaces prefer contracting with a US entity and paying a US bank account.
• You want US banking and USD accounts for a business that sells mainly in US dollars.

Reasons you may not need one:

• Stripe already works in your country. Australia, the UK, Singapore, the EU countries and many others are on Stripe's list, so you can take card payments through a local company.
• You can sell through a merchant of record. A merchant of record such as Paddle acts as the "seller on record" and takes on collecting and paying VAT and sales tax. For a small software product, that can remove the reason to have a US company at all. Our guide on merchant of record vs Stripe compares the two.
• You only want to "save tax". A US LLC owned by a foreign resident rarely does that on its own. See the home-country tax section below.

LLC or C-corp

Pick a C-corp if you plan to raise from US venture investors, and an LLC if you want a simple company to hold revenue and pay yourself. Clerky's pricing page describes the Delaware C-corp as "the standard for high-growth startups", and Stripe Atlas describes the C-corp as "often used by startups" and the LLC as "often used by small businesses" on its Atlas page.

How the IRS treats each one by default, according to its LLC page:

• Single-member LLC: treated as a "disregarded entity", meaning the IRS ignores it for income tax and looks through to the owner.
• Multi-member LLC: treated as a partnership.
• Either type of LLC can elect to be taxed as a corporation by filing Form 8832.

A single-member LLC wholly owned by a foreign person is what the IRS calls a foreign-owned US disregarded entity. It doesn't file a normal income tax return, but it does have to file Form 5472 every year (see Ongoing obligations). A C-corp has more paperwork and usually costs more to keep, as the cost table below shows.

Which state: Delaware, Wyoming, New Mexico or elsewhere

For most non-US founders it comes down to Delaware or Wyoming. Delaware is the default for C-corps and for anyone raising money. Wyoming is cheaper to keep each year for a small LLC.

Figures come from Delaware's fee schedule, LLC tax instructions and annual report page, and Wyoming's fee schedule and business FAQs. Delaware's US$175 corporate minimum applies under the authorised shares method; the assumed par value capital method has a US$400 minimum. Wyoming's licence tax is US$60 or two-tenths of a mill on the company's Wyoming assets, whichever is greater.

A few notes on the other options:

• New Mexico is often promoted as a low-cost LLC state. We couldn't confirm its current LLC fees or reporting rules on the New Mexico Secretary of State's own pages today, so check them there before choosing it.
• Your "home state" is advice for US residents. As a non-US founder you don't have one.
• Delaware's C-corp franchise tax can come out far above the minimum depending on how many shares you authorise and which calculation method you use. Check the Delaware page before you set your share count.

Formation services compared

A formation service files the paperwork, acts as your registered agent and usually gets your EIN for you. Firstbase notes that "Registered agent services are required for incorporation", so budget for one every year whichever route you take.

What the table doesn't show:

• Stripe Atlas says the US$500 fee can be refunded if you fund a Stripe Treasury account with US$5,000 within 90 days of incorporating.
• Firstbase sells a separate tax filing package for non-US-owned single-member LLCs at US$899 a year, covering Form 5472 and the pro forma Form 1120. Its accounting and Firstbase One plans cost more.
• doola's Starter plan doesn't include tax filings. Its Tax and Compliance plan, at US$1,999 a year plus state fees, adds IRS and state tax filing and annual state report filing.
• Clerky is built for venture-backed C-corps. If you want an LLC, it's not the tool.

Getting an EIN without an SSN

You can get an EIN without a Social Security number, but not through the IRS website. The IRS EIN page says the online tool needs the responsible party's SSN or ITIN, and that if your principal place of business is outside the US you apply by phone, fax or mail. It also warns that you never have to pay a fee for an EIN.

From the Form SS-4 instructions:

• Phone: international applicants can call 267-941-1099 (not toll-free), 6 am to 11 pm US Eastern time, Monday to Friday. The caller must be authorised to receive the EIN and answer questions about the form.
• Fax: fax Form SS-4 to 304-707-9471 from outside the US. You'll generally get the EIN back by fax within 4 business days.
• Mail: send it to Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999. Expect about 4 weeks.
• Line 7b: if the responsible party has no SSN or ITIN and isn't eligible for one, write "foreign" or N/A. An entry is required, so don't leave it blank.

Most formation services handle this step for you.

Ongoing obligations

The yearly filings are where non-US founders get caught. Forming the company is the easy part.

Form 5472 and the pro forma Form 1120

A foreign-owned single-member LLC must file Form 5472 attached to a pro forma Form 1120 every year it has reportable transactions. The Form 5472 instructions set out the rules:

• Reportable transactions include amounts paid or received in connection with forming or dissolving the company, and contributions to and distributions from it. Putting money into the company or taking money out counts.
• On the Form 1120, you only fill in the company's name and address and items B and E on page 1, and write "Foreign-owned U.S. DE" across the top.
• No e-filing. You can't file it electronically. You fax it to 855-887-7737 or mail it to the IRS in Ogden, Utah, using the address in the instructions.
• Due date: the due date of Form 1120, including extensions. You can request an extension with Form 7004.
• Penalty: US$25,000 for failing to file when due, and another US$25,000 if the failure continues more than 90 days after the IRS notifies you.

State annual tax or report

Every state charges something each year: see the state table above for Delaware's and Wyoming's amounts and due dates.

Registered agent

Your registered agent has to be renewed every year, from US$100 a year with Stripe Atlas to US$299 a year with Firstbase. If it lapses, the state can't reach you, and Wyoming charges US$350 to reinstate a company dropped for having no registered agent, according to its fee schedule.

FinCEN BOI reporting

US-created companies don't have to file beneficial ownership information (BOI) reports any more. FinCEN's BOI page says that "U.S. companies are exempt from BOI reporting requirements". It published an interim final rule on 26 March 2025, and a final rule making those exemptions permanent took effect on 14 August 2026.

The reporting rules still apply to companies formed outside the US that register to do business in a US state. Those registered on or after 26 March 2025 have 30 calendar days to file an initial report. Ignore older blog posts that tell you every LLC must file.

Banking

Mercury, Relay and Wise Business all say they accept US companies owned by non-US residents, but each has conditions. Expect to need your formation documents, EIN letter and passport, plus a real business address.

More detail from each provider:

• Mercury asks for formation documents, your IRS EIN document and a government ID, such as a passport, for each founder or majority owner. It says it doesn't support founders or financial controllers living in certain countries and regions, and that list is linked from its page.
• Relay asks non-US resident owners for extra details: the source of income that started the business, whether it's new or established, annual personal income and the countries it operates in. Its document list also asks each beneficial owner for a physical US address, so check that with Relay before you apply if you have none.
• Wise asks non-US beneficial owners for a copy of a photo ID, and only accepts individuals (not companies) as beneficial owners.

Home-country tax

A US LLC doesn't stop your home country taxing you. If you're tax resident somewhere, that country generally taxes your worldwide income, and many countries have controlled foreign company (CFC) rules that reach into foreign companies their residents control.

Australia is a clear example. The ATO says an Australian resident's share of the specified income and gains of a controlled foreign company is included in their assessable income, "even if you did not receive a distribution". Other countries have their own versions.

Two more things to raise with an adviser:

• How your country sees the LLC. The US looks through a single-member LLC to you. Your home country may treat it as a company, a transparent entity or something in between, and that changes how and when you're taxed.
• Where the company is managed. If you run the company day to day from your home country, ask whether that country could treat the company itself as resident there.

Keep this general part of the plan short and get specific advice from a tax adviser in the country where you live before you form anything. If you're moving countries as well, our guide to digital nomad visas for founders covers the visa side.

Common mistakes

These are the mistakes that cost non-US founders the most money:

• Skipping Form 5472 because the LLC made no money. Forming and funding the company are reportable transactions, so a "quiet" first year can still need a filing, and the penalty is US$25,000.
• Paying for an EIN. The IRS says an EIN is always free. You're paying a service for convenience, not the IRS.
• Picking Delaware for a small LLC without counting the yearly cost. The Delaware LLC tax is US$400 a year against Wyoming's US$60 minimum.
• Setting up a Delaware C-corp share structure without checking franchise tax. The bill depends on authorised shares and the calculation method.
• Letting the registered agent lapse. In Wyoming, reinstating a company with no registered agent costs US$350.
• Using a registered agent address as your business address for banking. Mercury, Relay and Wise all want a genuine operating address.
• Filing a BOI report you no longer need, based on out-of-date advice. US-created companies are exempt.
• Assuming the LLC is "tax-free". The US may not tax you, but your home country probably will.
• Forming a US company you didn't need, when Stripe already works where you live or a merchant of record would cover you.

To compare notes on which banks and formation services are working with other founders, request an invite to Remote Builders.

What year one and year two cost

Year one for a basic LLC costs US$397 to US$500 in fees, and year two US$357 to US$500, before you pay anyone to prepare tax filings. The table uses only the prices and state fees listed above (checked 25 Oct 2026).

If you prepare Form 5472 yourself, it costs nothing to file. If you pay someone, add their fee to every year.

Step-by-step checklist

Follow these steps in order:

1. Check whether you need a US company at all: is Stripe available in your country, and would a merchant of record cover you?
2. Talk to a tax adviser in your home country about CFC rules and how they'll treat a US LLC, before you form anything.
3. Choose the entity: a Delaware C-corp if you'll raise from US investors, otherwise an LLC.
4. Choose the state: Delaware for a C-corp, Wyoming or Delaware for an LLC, after comparing yearly costs.
5. Choose a formation service and compare its registered agent price after year one, not just the headline price.
6. Form the company and get your EIN, through the service or by calling the IRS international line yourself.
7. Write an operating agreement for an LLC (doola includes one with annual billing) or issue founder shares for a C-corp.
8. Open a US bank account with a genuine business address ready.
9. Put the yearly dates in your calendar: Form 5472 with Form 1120, your state tax or report, and your registered agent renewal.
10. Keep records of every transfer between you and the company, because they go on Form 5472.
11. Recheck FinCEN's BOI page and your state's fee page once a year, since both have changed recently.

If you're hiring once the company is set up, our guide to hiring remote employees internationally covers employer of record and contractor options, and running a team across time zones covers the day-to-day.