Can Non‑Residents Form a US LLC?
Yes! You can definitely form an LLC as a non-resident in the US. The US does not require you to live in the country or have a visa to register an LLC. This is great news for international entrepreneurs who want to tap into the US market.
Here are some of the things you need to know:
- No citizenship or residency requirement. You don’t need to be a US citizen or a green card holder to start a company. Even if you live on the other side of the world, you’re allowed to form an LLC in any state.
- A physical US business address is not required. However, most states will require your company to have a registered agent with a physical address in the state where you form your LLC. This is not your home or business address, it’s someone (or a service) who can receive official mail on behalf of your LLC. Some states may also require a separate business address for your company. If that’s the case, you could use a virtual business address service to fulfill this requirement.
- You can own 100% of your business. As a non-resident, you’re allowed to fully own and control your US-based LLC. You don’t need a US-based partner or shareholder.
So if you’ve been asking, “Can I open an LLC as a non-resident?”—the answer is yes. Thousands of foreign founders register US LLCs every year, especially to sell online, access US banking, or do business with American clients.
Choosing the Best State for Your LLC
When forming a US LLC as a non-resident, your first big decision is which state to register in. There are 50 to choose from, but some are more non-resident-friendly than others.
The good news? You don’t have to live in a state to form an LLC there. That said, each state has its own rules, fees, and filing processes, so it’s worth doing your homework.
Popular States for Non-Residents
Here are three of the most popular states foreign business owners choose for their LLC application:
- Delaware: Known for being business-friendly. It has low annual fees, strong legal protection, and no sales tax. Many tech startups and large companies also choose Delaware for this reason.
- Wyoming: Great for privacy. It allows anonymity for LLC owners, has no state income tax, and offers low maintenance costs.
- Florida: This is a good pick if you plan to have US customers or partners based there. Florida is also known for its ease of doing business and reasonable filing fees.
Things to Consider
When choosing a state, ask yourself:
- Do you need to keep your costs low? Wyoming and Delaware have some of the lowest ongoing fees
- Will you need a US address or registered agent? Some states require more information than others
- Will you have a physical presence in the US? If yes, you’ll likely need to register in that specific state
- Are you selling online only? Then, states like Wyoming or Delaware may make the most sense since they don’t require in-state operations
Keep in mind, if you register in one state but operate or hire in another, you might need to file for foreign qualification, which means extra paperwork and fees. So, pick a state that aligns with how you plan to run your business.
Setting Up Your LLC
Once you’ve picked the right state, it’s time to officially start your LLC. The steps are pretty straightforward, and you don’t have to be in the US to do it. Here’s a simple breakdown of the LLC process for non-residents:
Pick a Business Name
Choose a unique name that meets your chosen state’s requirements. It should include “LLC” or “Limited Liability Company” at the end. You can search your state’s business registry to make sure your name isn’t already taken.
Appoint a Registered Agent
A registered agent is a person or service located in the state where you form your LLC. They receive legal and tax documents on your behalf.
File the Articles of Organization
This is the official document that creates your LLC. For example, if you decide to set up an LLC in Florida, file it with the state’s Secretary of State office and pay a one-time filing fee. Each state has its own form and fee structure, so be sure to research your chosen state.
Get an EIN from the IRS
An Employer Identification Number (EIN) is like a Social Security number for your business. You’ll need it to open a US bank account, hire employees, and file taxes. Non-residents can apply by filling out Form SS-4 and sending it to the IRS via fax or mail. Note: As a non-resident, you cannot apply for an EIN online.
Draft an Operating Agreement
This internal document outlines how your LLC will be managed, who owns what, and how profits are shared. It’s not always required by law, but it is good for legal clarity, especially if you have partners.
Apply for Business Licenses or Permits
Depending on your business type and where you operate, you may need local or state licenses. Check with the state government or use services that help with business license compliance.
Open a US Business Bank Account
To keep your business funds separate from your personal ones, you’ll need a US business account. Look for banks or fintech platforms that accept foreign owners, offer virtual cards, and have a fully remote sign up process.
Staying Compliant With Fees and Requirements
Forming your LLC is just the beginning. To keep your US business active and in good standing, you’ll need to stay on top of a few ongoing requirements. These rules vary depending on the state, but here are the most common ones to expect:
Annual Reports or Franchise Taxes
Most states require LLCs to file annual reports or pay a franchise tax yearly. This is simply a way to update your business information and contribute a small fee to the state.
For example:
Always check your state’s website to confirm what’s required.
Registered Agent Updates
Your LLC must always have a valid registered agent in the state. If your agent changes or your service expires, update the state right away. Not doing this could lead to penalties or even losing your LLC status.
Federal Tax Filings
Even if you don’t live in the US, you may still need to file federal taxes. Most non-resident LLC owners must submit Form 5472 and pro forma Form 1120 each year if the LLC has any reportable transactions. It’s best to consult a tax advisor familiar with foreign-owned LLCs.
State Taxes and Fees
In addition to federal taxes, some states have their own LLC-related fees. These include income taxes, sales taxes, or city-level business taxes, depending on where your LLC is registered and what you sell.
Keep Track of LLC Filing Deadlines
Mark your calendar with all important dates, like annual report due dates, tax deadlines, and renewal notices. Missing a filing could result in late fees or loss of your LLC’s good standing.
Final Thoughts
Forming an LLC as a non-resident might seem intimidating, but with the right guidance, it’s completely doable.
From choosing the right state and filing your documents to staying compliant each year, every step plays a role in building a successful US business. Just remember to stay organized, follow the legal requirements, and seek professional help when needed.
Starting your journey now? Let EINWaitTime.com guide you through the LLC process, so you can focus on growing your business.