How To Open An LLC In The U.S. For Foreigners

Choosing to conduct business in the U.S. provides you with access to one of the world’s largest and most dynamic business economies, with global market opportunities and a robust legal system.

Forming a Limited Liability Company (LLC) in the U.S. is a popular way to start your business for several reasons. It’s affordable, easy to set up, and offers strong personal asset protection.

While many people believe that you need to be physically present in the U.S. or be a U.S. resident to form your LLC, this is not the case. You can start an LLC from anywhere in the world, even if you never actually set foot in the U.S. However, non-U.S. citizens must meet several additional requirements before forming an LLC.

In this article, I will discuss the different requirements so you can legally form a compliant LLC in the U.S. without being a resident.

How To Start An LLC In The U.S. For Non-U.S. Residents

The domestic LLC formation process is approximately 90% similar to the process required to form an LLC as a non-U.S. resident. However, there are several key differences that you should be aware of. I’ve explained the main ones in the table below.

Each state has its own rules. However, the overall steps are generally the same:

1. Choosing An LLC Name.
2. Appointing A Registered Agent.
3. Filing Your Articles Of Organization.
4. Completing LLC Publication Requirements If Applicable.
5. Creating An Operating Agreement.
6. Getting An EIN.
7. Obtaining Applicable Business And Tax Licenses.

Once these tasks have been finished, you must complete the following operational procedures to avoid penalties and maintain your good standing with the state:

• File Your Annual Reports.
• Renew any required licenses.
• Pay your applicable taxes.

Choose your operating state from the map below to read about specific state formation requirements.

More often than not, these requirements can feel overwhelming, especially for first-time business owners. Hiring a reliable LLC partner ensures that your business is formed correctly and remains compliant when operating. Professional LLC services will assist with your required formation tasks and ongoing compliance procedures.

Read my dedicated article if you want to know more about my top recommendations: Best LLC Services.

If you need a quick option, I highly recommend ZenBusiness and Doola. Both offer an excellent range of high-quality services when forming a foreign LLC. You can find out why below.

Doola

4.7

$297/yr

+ State Fee

Doola is a strong LLC formation service for non-U.S. residents who want to start a business in the United States. It simplifies the process by helping with LLC formation, EIN application, and ongoing financial tools, while offering founder-friendly support across more than 120 countries. Trusted by thousands of entrepreneurs worldwide, Doola provides an all-in-one solution for building and running a U.S.-based business.

• Designed for non-U.S. entrepreneurs starting U.S. businesses
• Fast and hassle-free formation process
• Founder-friendly service available in 120+ countries
• All-in-one platform for formation and business operations

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ZenBusiness

4.7

$0

+ State Fee

ZenBusiness is a good option for non-U.S. residents looking for a budget-friendly way to start a U.S. LLC. Its $0 plus state fee plan, 100% accuracy guarantee, and responsive support make it a practical choice for foreign founders who want a simple and dependable formation service.

• 100% accuracy guarantee on formation filings
• Name availability search before submitting documents
• 60-day money-back guarantee
• Reliable customer support when you need help

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What You Need To Prepare Before Forming Your LLC

Before you form your LLC, I recommend making a few key decisions and preparing a few basic items in advance.

1. Best State To Form An LLC

You can choose your LLC formation state if you’re a non-U.S. resident. In most cases, the best formation state is your home state. This is usually the location where your business is physically located or is actively conducting business activities.

You may need to register your LLC as a foreign LLC in the other state if you form your business in one state but conduct business activities in the other. This may mean that you have additional filing fees, ongoing compliance requirements, and may need to appoint and maintain an official Registered Agent in more than one U.S. state.

A common exception is if you operate as a real estate LLC. If you own real estate, your LLC is typically formed in the state where your property is located.

When operating outside of the U.S., I recommend using Delaware or Wyoming as your formation state for the following reasons:

• Delaware: LLC owner’s name does NOT appear on the Certificate of Formation.
• Wyoming: Business owners can list a “nominee” as their LLC owner, other than their own name.

Ultimately, it’s up to you when choosing a suitable operating state. Read my article for more information: Best State For LLC Formation.

2. Get A U.S. Phone Number

If you want to operate efficiently in the U.S., this is one of the key differences as a non-U.S. resident. Having a U.S. phone number makes it easier to manage your business. Alongside this, it makes you appear as a “more established” LLC.

These are some of the main reasons why a U.S. phone number is helpful:

• Banking and payment setup: You may need to provide a U.S. phone number during the setup and verification procedures when working with banks, payment processors, and online platforms.
• Customer support: Your LLC appears more credible if a customer or vendor needs to contact you directly.
• Professionalism: Your business looks more professional if you use a U.S. phone number rather than an international number or no number at all.

You may also need a valid phone number in some U.S. states when creating accounts for online filing or tax systems.

3. Get A Physical U.S. Address

U.S. citizens usually have a footprint in the U.S., making it easier for them to provide a physical U.S. mailing address.

You don’t always need to have a U.S. mailing address to form your LLC. However, having one can be helpful and ensure efficient business operations.

A U.S. address can help with the following tasks:

• Opening a dedicated business bank account.
• Receiving business mail.
• Ordering business cards.
• Applying for business financing.
• Presenting a more credible business presence.

Another important consideration is the Registered Agent requirement. Every state requires you to appoint an official agent with a physical address in the state where your LLC is formed. You can NOT use a P.O. box for this address.

If you want to save money and appoint yourself as your own agent, you must have a physical state address.

Example: Under the Delaware Code, Title 6, Chapter 18, §18-104, a Delaware resident may serve as the Registered Agent. This means you MUST have a physical address in the state to be your own Registered Agent.

Getting An EIN As A Non U.S. Resident

Once the initial documents have been prepared, you’re ready to form your U.S. LLC. As I’ve said above, most steps are the same for both U.S. owners and non-U.S. owners. The main difference comes down to how you obtain your EIN once your LLC has been formed.

An EIN is a unique 9-digit federal identification number issued by the Internal Revenue Service (IRS). This is free to obtain and identifies your LLC for tax purposes. It functions very similarly to how a National ID identifies you to the government.

You must obtain an EIN if you’re a foreign-owned LLC. Without one, you can NOT complete the following operational tasks:

• Open a dedicated business bank account: An EIN is required by most banks when completing your registration process.
• Hire LLC employees: An EIN is required for employment tax reporting and payroll.
• Complete your federal tax obligations: An EIN is the primary tax identifier used for most tax filings.
• Obtaining your required business licenses: Some agencies need an EIN before issuing your license.
• Registering for state taxes: Some states require an EIN before allowing you to complete your tax registration process.

As you can tell, obtaining an EIN is essential for legal compliance and operational procedures in the U.S.

You must complete Form SS-4 and submit it to the IRS by mail or fax if you’re a non-U.S. resident. The online filing process requires a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Read my detailed guide on how to complete Form SS-4 and get an EIN if you’re a foreigner: How To Get An EIN By Form SS-4.

What To Do After Forming Your LLC?

Once formed, you must complete several important post-formation steps to keep your LLC active and operate efficiently. Doing so helps you avoid penalties and maintain compliance when operating.

1. Open A Dedicated Business Bank Account

While you’re NOT required by law to open a dedicated business bank account, I strongly recommend doing so for the following reasons:

• Your business and personal finances may become confusing to manage if you use one account.
• The separation between you and your LLC becomes weaker.
• You may lose your limited liability protection.

With each bank setting its own requirements, contact the bank directly to confirm the required documents. Most banks typically require the following:

• Your approved Articles of Organization.
• Your EIN.
• Proof of your LLC’s U.S. address.
• A U.S. phone number for verification.
• Your LLC internal Operating Agreement.

Once you’ve opened your U.S. business bank account, your LLC can use payment platforms such as Stripe or PayPal to accept customer payments.

2. File The Proper Tax Returns

You will need to pay U.S. taxes if your LLC is conducting business in the U.S. This is regardless of whether it’s a real estate holding company, drop-shipping business, or even a local coffee shop.

Generally speaking, LLCs are NOT taxed at the entity level for Federal Income Taxes. Instead, your income and expenses are reported on your LLC owner’s personal tax return. In other words, your LLC owner pays LLC taxes through their individual tax filing.

The IRS taxes your LLC based on the number of owners by default:

• Single-member LLC: Taxed as a disregarded entity.
• Multi-member LLC: Taxed as a partnership.

You can elect to be taxed as a corporation (C corporation or S corporation) by filing the appropriate forms with the IRS.

a. Foreign Single-Member LLC

Single-member LLCs are treated as disregarded entities for federal tax purposes by default. In this case, your LLC’s income and expenses are reported on your owner’s personal tax return.

• If the owner is a resident alien, you need to file Form 1040.
• If the owner is a non-resident alien, file Form 1040NR.

Non-resident aliens may also need to file two extra forms:

• Preparation of pro-forma (Form 1120).
• Preparation of foreign owner report (Form 5472).

These are your key filing dates to be aware of:

• April 15: The deadline to file Forms 1120 and 5472 or request a 6-month extension.
• April 15: Also, the deadline to file Form 1040 or 1040NR or request an extension.

b. Foreign Multi-Member LLC

The IRS will consider your LLC to be a partnership for tax classification purposes if your LLC is owned by you and has one or more additional members.

In this case, you must file Form 1065, including Schedule K-1. Together, these mandatory filings report the profits and losses of each partner.

Multi-member LLCs’ taxes as Partnerships with foreign members do NOT need to file Form 5472 or 1120. You may need to file Form 8804 and 8805 if your LLC has income connected to a U.S. trade or business.

Each LLC member must report their share of income on their personal tax return. The main forms to use are Form 1040 or 1040NR.

Key filing dates to be aware of:

• Form 1065 is generally due by March 15.
• Form 8804 is generally due by March 15 (Form 8805 should be filed with it).

Conclusion

You can launch and grow your U.S. LLC from anywhere in the world without needing U.S. citizenship. This is possible to do on your own, as long as you stay informed on the different filing requirements and rules.

As a foreigner, make sure you complete the additional mandatory steps. Once formed, you need to complete the ongoing operational requirements at the local, state, and federal levels to remain active and avoid costly filing mistakes.

Frequently Asked Questions