You Don’t Have to Live in the US to Own a US Business
A lot of international entrepreneurs assume that forming a US company requires a green card, a visa, or at least a mailing address in Manhattan. None of that is true. Non-US residents can legally form a Limited Liability Company (LLC) in the United States, and thousands of foreign nationals do it every year — from freelancers in Brazil to e-commerce sellers in Germany to consultants based in Southeast Asia.
The process takes some paperwork and a bit of planning, but it’s far more accessible than most people think. Here’s what you actually need to know.
Why Foreign Entrepreneurs Choose the LLC Structure
The LLC is one of the most flexible business structures the US offers. It protects personal assets from business liabilities, has relatively simple tax reporting requirements, and — crucially — doesn’t require its members to be US citizens or residents.
For a non-resident, an LLC can open doors that would otherwise stay shut: US bank accounts, access to platforms like Stripe and PayPal that prefer US-registered businesses, and a level of credibility with American clients that a foreign entity often can’t match.
Choosing the Right State
You don’t form an LLC in “the US” — you form it in a specific state. And the state you choose matters more than many people realize.
Three states stand out as favorites for non-residents:
- Wyoming — Low fees, strong privacy protections, no state income tax, and no requirement to list member names publicly.
- Delaware — The gold standard for investor-ready businesses. If you ever plan to raise venture capital, Delaware is the usual choice.
- New Mexico — The most affordable option, with no annual report requirement and strong anonymity features.
If your business will have a physical presence somewhere — say, a warehouse in Texas or a team in Florida — you may need to register in that state regardless of where you incorporate.
The Formation Process, Step by Step
1. Pick a Name and Check Availability
Your LLC name must be unique within the state you’re registering in. Most states have a free name search tool on their Secretary of State website. The name must include “LLC” or “Limited Liability Company” somewhere in it.
2. Appoint a Registered Agent
Every LLC needs a registered agent — a person or company with a physical address in the state who can receive legal documents on your behalf. Since you’re not based in the US, you’ll almost certainly need to hire a registered agent service. These typically cost between $50 and $150 per year.
3. File the Articles of Organization
This is the official document that creates your LLC. You file it with the state’s Secretary of State office, along with a filing fee that varies by state — Wyoming charges around $100, while Delaware charges $90 for the base filing.
4. Get an EIN
An Employer Identification Number (EIN) is basically a tax ID for your business. You’ll need it to open a bank account and file US taxes. Non-residents can apply for an EIN by mailing or faxing Form SS-4 to the IRS — there’s no online option without a US Social Security Number, but the process usually takes two to four weeks.
5. Open a US Business Bank Account
This is often the trickiest part. Traditional banks like Chase or Bank of America typically require you to appear in person. Many non-residents turn to fintech alternatives like Mercury, Relay, or Wise Business, which offer online account opening for foreign-owned LLCs and are fully functional for receiving payments and paying vendors.
Tax Responsibilities You Can’t Ignore
A single-member LLC owned by a non-resident is treated as a “disregarded entity” by the IRS — meaning the LLC itself doesn’t pay federal income tax. Instead, you’re taxed on the income you earn. If your LLC is engaged in a US trade or business, that income is subject to US tax. If it’s not — for example, you’re providing services entirely outside the US to non-US clients — you may owe nothing to the IRS.
The rules here can get nuanced quickly. Working with a US-based CPA who has experience with foreign-owned LLCs is a smart investment, not an optional one.
A Real-World Example
Take a freelance web developer based in Portugal. She forms a Wyoming LLC, hires a registered agent, gets her EIN, and opens a Mercury account. Now she can invoice US clients through a US entity, accept payments via ACH transfer, and avoid the friction that often comes with sending international invoices. Her LLC also lets her sign up for tools and platforms that previously rejected her non-US business details.
The setup cost her under $300 total and a few hours of her time. For the business access it unlocked, that’s a pretty solid return.
Getting Started
Forming a US LLC as a non-resident is genuinely achievable — it just requires knowing the right steps and making a few key decisions upfront, like which state fits your goals and whether you need legal or tax help along the way. The paperwork is manageable, the costs are reasonable, and the benefits for international entrepreneurs doing business with US clients or platforms can be significant.
Start with your state choice, line up a registered agent, and take it from there. The process is more straightforward than the myths around it suggest.
