How to Start a US LLC as a Non-Resident

If you work with international clients, invoice in dollars or regularly pay US suppliers, a US company may make the business side of your work easier to organise. For a solo founder, a limited liability company (usually called an LLC) is one structure to consider.

You can generally form a US LLC while living abroad. The main steps are to choose a state, appoint a registered agent, file the formation documents, obtain an EIN and arrange a business account. You’ll also have to keep track of your annual obligations.

This guide covers the setup process for an independent professional or solo entrepreneur, with two formation services to consider and a brief look at ongoing costs.

When does a US LLC make sense?

A US LLC can give your activity a company name to use on contracts and invoices, and a structure through which to apply for US business banking and payment services. With a suitable business account, you can receive payments and pay expenses in USD.

Start with a real need: how your clients pay you, the services your business needs, and the costs of your current setup. Paying in dollars alone does not require a US company, so weigh the benefit against the annual administration fee. Depending on the state, ongoing costs can be very low, making a US LLC one of the lowest-cost structures you can find in the world.

Your tax position also depends on where you live and work, how the business operates and its tax classification. The IRS generally treats a single-owner LLC as separate from its owner for some purposes but disregarded for federal income tax unless it elects otherwise. IRS guidance on single-member LLCs. If, after reading this article, you still don’t know what situation applies to you, feel free to contact us at [email protected]. We read all your messages!

What should you prepare?

Before starting, have the following ready:

• A proposed company name and a short description of your activity.
• Your contact details and actual residential address outside the US.
• Your passport or other identification for the provider's and bank's checks.
• The ownership details: this guide assumes you will be the sole owner.
• A budget covering formation, any additional services and the first year's ongoing obligations.

Keep these details consistent across your formation, tax and banking applications. Identification requirements vary between providers and banks.

1. Choose the state where you will form the LLC

Wyoming and Delaware are two options you will encounter frequently. Compare the initial filing fee, ongoing state charges and the requirements that apply to your activity before choosing.

Usually, people choose Wyoming for privacy, as there’s no UBO report to file and owners are not publicly disclosed in any register. Delaware is more “general-purpose” and will give stronger credentials, especially if you want to interact with US clients (state fees are more expensive in Delaware: $110 at filing, plus a minimum annual LLC tax of $400, whereas Wyoming charges $100 at filing plus a minimum annual report fee of $60).

If you will have an office, employees or other operations in a particular US state, investigate that state's registration requirements first. Forming elsewhere may add another registration and another set of costs.

For this first step, the goal is simply to select the state and understand its recurring obligations.

2. Choose a registered agent and a formation service

A registered agent receives legal notices for your company in the state where it is registered. When you live abroad, a professional registered agent can fulfil that role. Formation services can also prepare and submit the documents that create your LLC.

Check what the package includes: filing assistance, the first year of registered agent service, the operating agreement and the EIN application. These items are not bundled in the same way by every provider.

Northwest Registered Agent

Explore Northwest's formation service →

I use Northwest for my own LLC. It is an option if you want a low initial formation fee and prefer to choose additional services separately.

Formation costs $39 plus state fees, including the first year of registered agent service and an operating agreement. Registered agent service then renews at $125 per year. If you ask Northwest to obtain an EIN for someone without an SSN, that service is currently $200 extra (you can do this much more cheaply; more on this in another article).

Doola

Explore Doola's formation service →

Doola's Starter plan bundles formation, the EIN application, an operating agreement, registered agent service and a virtual mailing/business address. If you want an “all-in-one” service and you are less cost-sensitive, it’s a good option.

Starter is listed at $297 per year plus state fees. Annual state report filing and business IRS tax filings are outside the Starter package; compare the relevant additional service or plan if you want that work handled for you.

Prices in USD, checked on the publication date. State fees and optional services are additional. Check the selected package and renewal terms before ordering.

3. File the formation documents

Your provider submits the state's formation document, commonly called the Articles of Organization. Review the company name, ownership or management information requested, addresses and registered agent details before submission. Most providers will ask you some questions during onboarding and then submit directly. If you encounter any difficulties, you can ask your favorite LLM or send us an email.

Once approved, save the state's formation documents and your operating agreement, which records how the LLC is owned and managed. Keep these together: you may need them for banking and other business applications.

4. Obtain the company's EIN

An Employer Identification Number (EIN) is the company's federal tax identification number. You will generally need it for business banking and relevant tax filings. Even if your LLC doesn’t owe any taxes in the US and you don’t need a bank account, you still need this number in order to file mandatory forms every year, so make sure you get one!

The IRS issues EINs free of charge, but it requires mailing or faxing documents to the IRS (one form), so some providers will offer to do it for you for a fee. You can find cheaper providers than your registered agent; we’ll go over this in another article. IRS EIN application guidance

Clarification: An EIN and a personal ITIN serve different purposes. An ITIN is not a universal prerequisite for obtaining an EIN, and you also don’t need an SSN: the IRS provides instructions for responsible parties who have neither an SSN nor an ITIN and are ineligible to obtain one. Form SS-4 instructions

5. Arrange a business account and payment setup

Check the bank's eligibility requirements before paying for formation if access to that account is central to your plan. It can be easier if you already have personal accounts in the US, but it’s not mandatory.

Expect to provide the company documents, EIN confirmation, information about the owner and addresses, and an explanation of your activity. The bank may also ask for contracts, invoices or a business website.

Once the account is open, use it for the company's income and expenses and keep records from the beginning.

If you also want a personal US account, our guide to US banking for non-residents covers that separate process.

What will you need to pay or do each year?

Allow for registered agent renewal, state fees or reports, and any accounting or tax preparation you need. Depending on your setup, there may also be charges for an address or other subscriptions.

For example, with an LLC in Wyoming and less than $300,000 in assets in Wyoming, you’ll pay $60 each year plus your registered agent fee ($125 for Northwest).

Federal reporting is a separate question from state renewal. Certain foreign-owned single-member LLCs must file Form 5472 with a pro forma Form 1120 when they have reportable transactions. You’ll likely need to file this, so make sure you do it! We’ll publish an article about it. IRS Form 5472 instructions

Before placing the order, make sure you know what your formation package covers, what renews and who will handle your filings.