How to Start a US LLC as a Non-Resident (Full 2026 Guide)
Setting up a US LLC as a non-resident is entirely doable without ever flying to the States, but the order you do things in matters. Here is the full process, step by step.
Why non-US founders choose a US LLC
A US LLC gives you access to US customers, US payment processors, and a US business identity, without requiring citizenship, a visa, or even a trip to the country. Stripe, most SaaS billing tools, US marketplaces, and many enterprise clients simply work better with a US entity behind them. The LLC structure also passes profits through to you personally for tax purposes (it does not pay federal corporate income tax itself in most single-member setups), which is one reason it is the default choice for solo founders and small teams testing the US market.
None of this means it is a tax haven or a shortcut around your home country obligations. You will still owe tax where you live and where you actually run the business. The LLC is a US operating and banking vehicle, not a way to disappear from your local tax authority.
Step 1: Choose your state
You do not need to live in, visit, or have customers in the state where you form your LLC. Most non-resident founders pick a state based on cost, privacy, and simplicity rather than where their business actually operates.
| State | Typical formation cost | Ongoing cost | Owner privacy | Best for |
|---|---|---|---|---|
| Wyoming | Low | Low annual report fee | High, members are not listed publicly | Most non-resident founders, e-commerce, SaaS, consulting |
| Delaware | Low to moderate | Annual franchise tax, generally higher than Wyoming | Moderate | Startups planning to raise venture capital |
| New Mexico | Low | No annual report requirement | High | Founders wanting minimal ongoing paperwork |
Wyoming is the common default for a reason: no state income tax, low fees, and members and managers do not appear in the public formation record. Delaware makes more sense if you are planning to bring on US investors later, since that is the jurisdiction most VC term sheets expect. If you are unsure, Wyoming is a reasonable starting point that you can always convert or re-domicile from later.
Step 2: Form the LLC
Formation itself is the fast part. You (or whoever files on your behalf) submit Articles of Organization to the state, name a registered agent with a physical address in that state, and pay the state filing fee. Most states process this within a few business days. You will need:
- A company name that is available in your chosen state
- A registered agent (a local company that receives legal and state mail on your behalf, required in every state)
- An operating agreement, which is not always filed with the state but is important for opening a bank account and defining ownership
At this stage you legally own a US LLC. You still cannot bank, invoice properly in the US, or file taxes correctly until you have an EIN.
Step 3: Get an EIN
An EIN (Employer Identification Number) is your LLC's federal tax ID, and you need one to open a US bank account, file required tax forms, and often to get approved by payment processors. Non-residents without a Social Security Number cannot get an EIN through the IRS's online instant tool. Instead, you file Form SS-4 by fax or mail, listing 'foreign' in the SSN/ITIN field and answering as a non-resident responsible party. Processing by fax typically takes a few weeks; mail is slower. There is no fee from the IRS itself.
Do you also need an ITIN?
An ITIN (Individual Taxpayer Identification Number) is a separate personal tax ID, and it is often confused with the EIN. Your LLC does not need one to get an EIN or open a bank account in most cases. You personally may need an ITIN later, mainly if you need to file a personal US tax return, claim tax treaty benefits, or a bank or platform specifically requests one. An ITIN requires no US visa and is specifically designed for people who are not eligible for a Social Security Number, applied for via Form W-7 along with proof of identity, usually a certified or notarized passport copy, or through an IRS-authorized Certifying Acceptance Agent.
Step 4: Open a US business bank account
With your formation documents and EIN confirmation letter in hand, you can open an account remotely with providers built for this, such as Mercury, Wise Business, or Relay. None require a US visit, an SSN, or a US address for the founder, though they will ask for photo ID, proof of the business, and sometimes a short interview or video call. Approval is not guaranteed by any provider and each does its own risk review, so having clean, matching documents (same business name, same address details, same ID) speeds things up considerably.
Step 5: Get a US business card
Once you have a bank account and some transaction history, US business credit or charge cards become realistic, useful for subscriptions, ad spend, and building a US business credit footprint separate from your personal credit abroad. Card issuers generally look at business banking activity and sometimes revenue rather than a US personal credit score, which is why sequencing (bank account first, card second) matters.
Step 6: Stay compliant
This is the step founders most often underestimate. A foreign-owned single-member LLC that is disregarded for tax purposes must still file Form 5472 together with a pro-forma Form 1120 every year, even if the LLC had zero income and zero activity. This is an information return: it reports transactions between the LLC and its foreign owner, and it does not itself calculate any tax owed. Missing the deadline carries a penalty of $25,000, which applies per form, per year, regardless of whether you actually owed any tax. This is not optional paperwork you can skip in a quiet year.
Beyond 5472, keep on top of:
- Your state's annual report and fee (varies by state and deadline)
- Registered agent renewal, usually annual
- Any state franchise tax if applicable (Delaware, for example)
- Your own home country tax reporting on foreign-owned entities, which is separate from US obligations
Where founders usually get stuck
Most delays come from mismatched details across documents (a slightly different business address on the formation paperwork versus the bank application), choosing a state without understanding the ongoing fees, or discovering the 5472 requirement only after the deadline has passed. None of these are hard problems, but they are exactly the kind of detail that is easy to miss when you are doing this once, from abroad, in a system that is not your own.
This is the gap Founders Credit is built to close. We handle formation, EIN, ITIN where needed, bank account setup, and the ongoing compliance calendar as one done-for-you service, so you are not piecing together advice from five different forums while trying to run your actual business.
Glossary
LLC: Limited Liability Company, a US business structure that separates personal and business liability and, for a single foreign owner, is typically taxed on a pass-through basis.
EIN: Employer Identification Number, the IRS tax ID for your business, required for banking and tax filing.
ITIN: Individual Taxpayer Identification Number, a personal US tax ID for people who are not eligible for a Social Security Number, requiring no visa.
Form 5472: An annual IRS information return required for foreign-owned single-member LLCs, filed alongside a pro-forma Form 1120, even with no activity.
Registered agent: A person or company with a physical address in your formation state, legally required to receive official mail on the LLC's behalf.
Disregarded entity: A single-member LLC that is not taxed separately from its owner for federal tax purposes, though it still has separate filing obligations like Form 5472.
Frequently asked questions
Do I need to visit the US to start an LLC as a non-resident?
No. Formation, getting an EIN, opening a bank account with providers like Mercury or Wise Business, and ongoing compliance can all be done remotely from Europe or elsewhere.
Which state should I choose if I am not sure yet?
Wyoming is the common default for non-resident founders because of low costs, no state income tax, and member privacy. Delaware becomes more relevant specifically if you plan to raise venture capital.
Do I need an ITIN before I can get an EIN?
No, these are separate and in most cases you do not need an ITIN to get an EIN for your LLC. You may need an ITIN later for a personal US tax filing or specific bank or platform requirements.
What happens if I skip the Form 5472 filing?
The penalty for not filing Form 5472 when required is $25,000, and it applies even if your LLC had no income or activity that year. It is a required information return, not optional paperwork.
How long does the whole process take from formation to a working bank account?
Formation can take a few days, EIN by fax typically a few weeks, and bank account opening can follow once you have your EIN confirmation. Total timelines vary by state and provider, and no step is guaranteed to be instant.
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