How to Form an LLC in the US (Even If You Live Abroad)

Forming a US LLC as a non-resident is one of the most common questions we field at Bizvee, and it's also one of the most misunderstood. You do not need to be a US citizen, a green card holder, or even set foot in the country to own an LLC. What you do need is a clear plan for the pieces that actually matter: state selection, a registered agent, an EIN, a proper operating agreement, correct BOI reporting, a working bank account, and an honest read on your tax exposure. We've helped founders from over 40 countries set these up, and this guide walks through it the way we'd explain it to a friend starting from zero.

Why Non-Residents Form US LLCs

The appeal is straightforward: access to US payment processors (Stripe, PayPal, Mercury), credibility with US clients and marketplaces like Amazon, and — depending on your home country's tax treatment — potentially favorable pass-through taxation. An LLC owned by a non-resident with no US-based employees, no US office, and no "effectively connected income" can, in many cases, owe zero US federal income tax, though you'll still have annual filing obligations (Form 5472 + 1120 pro forma) even at zero tax due.

That last point trips people up constantly. "No tax owed" does not mean "no filing required." We'll cover this below.

Choosing a State

There is no single "best" state — it depends on what your business does.

• Wyoming: No state income tax, low annual fees (around $60 for the annual report), strong privacy (member names aren't published), and a mature registered agent industry used to serving non-residents. This is our default recommendation for e-commerce, SaaS, consulting, and dropshipping businesses with no physical US presence.
• Delaware: The gold standard if you plan to raise venture capital or eventually convert to a C-Corp. Investors and their lawyers know Delaware corporate law inside and out. Downsides: a Delaware LLC pays an annual $300 flat franchise tax regardless of income, and if you ever need to litigate, you're doing so under Delaware's (excellent but specific) case law.
• New Mexico: Very low cost and no annual report requirement at all, but this "no reporting" feature can actually work against you when opening bank accounts, since compliance teams sometimes view minimal-reporting states with more scrutiny.
• Your "home base" state: If you'll have a warehouse, employees, or a physical office in a specific state (say, Florida or Texas), you generally must register there regardless of where else you're incorporated, which triggers "foreign qualification" costs in two states instead of one.

Our rule of thumb: if you have no US physical footprint and don't need VC money, go Wyoming. If VC money is realistically on the table within 18 months, go Delaware from day one — converting later is possible but adds legal fees ($1,500–$3,000 typically) and complexity.

Registered Agent: The One Non-Negotiable

Every US state requires an LLC to maintain a registered agent — a person or company with a physical street address in the state of formation who can receive legal documents (service of process) and state correspondence during business hours. As a non-resident, you cannot be your own registered agent unless you have a physical US address in that state, which most founders don't.

Commercial registered agent services typically cost $50–$150/year. Bizvee includes the first year of registered agent service in our LLC formation packages, and renewal pricing is disclosed upfront — no surprise invoices six months in. Watch out for providers who quote a cheap formation fee but charge $300+ for agent renewal in year two.

Getting an EIN Without an SSN

Your Employer Identification Number (EIN) is required to open a US bank account, file taxes, and often to get approved on Stripe or PayPal. The IRS issues EINs to non-residents without an SSN or ITIN, but the process differs from what most US-based guides describe:

1. You cannot use the IRS's online EIN application (it requires an SSN/ITIN as the "responsible party").
2. Instead, you fill out Form SS-4 and either fax it to the IRS (yes, fax — still true in 2024) or call the IRS International line (+1-267-941-1099) to apply by phone.
3. Processing by fax typically takes 4–6 weeks. Phone applications can sometimes get you an EIN the same call if you're prepared to answer questions about the SS-4 in real time.

We handle this filing directly for clients because a single incorrect entry on the SS-4 (wrong "reason for applying" code, mismatched entity name) can cost you a full IRS processing cycle to fix.

Operating Agreements Aren't Optional (Even If the State Doesn't Ask)

Wyoming, Delaware, and most states don't require you to file an operating agreement with the state — but banks, payment processors, and (if you ever have a dispute with a co-founder) courts absolutely care whether one exists. A single-member LLC still needs one; it establishes that the LLC is a separate legal entity from you personally, which matters for liability protection and for convincing Mercury or Wise that your business is legitimate.

At minimum, your operating agreement should cover:

• Ownership percentages and capital contributions
• Management structure (member-managed vs. manager-managed)
• Profit/loss allocation
• What happens if a member wants to exit or the LLC dissolves
• Voting rights and decision-making thresholds

BOI / FinCEN Reporting: What Changed

The Corporate Transparency Act introduced Beneficial Ownership Information (BOI) reporting through FinCEN starting January 1, 2024. As of March 2025, following a FinCEN interim final rule, US-based reporting is largely exempt for domestic entities and most non-US-owned LLCs formed in the US are still required to report — but the rules here have shifted multiple times and are under active litigation, so treat this as a live compliance item, not a set-and-forget task.

Practically: if you're a non-resident forming a US LLC, assume you need to file a BOI report identifying beneficial owners (anyone owning 25%+ or exercising substantial control) within 30 days of formation for new entities, and monitor for updates — a rule change here doesn't retroactively excuse you if you never filed while the requirement was live. Penalties for willful non-filing are steep on paper ($591/day civil, adjusted annually) even though enforcement priorities keep changing. We track this rule for every active client and notify you the moment it moves.

Opening a Bank Account: Mercury, Wise, and the Traditional Route

You generally cannot open a US bank account remotely at a traditional bank like Chase or Bank of America without visiting a branch in person (some exceptions exist for higher-touch private banking relationships). For non-residents, the realistic options are:

• Mercury: A popular choice for LLCs with a US EIN. Approval isn't guaranteed for every industry (crypto, adult content, and some high-risk categories get declined), but for standard e-commerce/SaaS/consulting LLCs, approval rates are good. No monthly fees, real US routing/account numbers.
• Wise Business: Easier approval bar than Mercury for many non-residents, multi-currency accounts, and works well if most of your revenue and spend isn't purely USD.
• Relay, Novo, Brex: Alternatives worth comparing; Brex generally targets higher-revenue or funded startups.

Have your EIN confirmation letter (CP 575), formation documents, and operating agreement ready before you apply — incomplete documentation is the #1 reason non-resident applications get delayed.

Sales Tax Nexus: The Part Everyone Underestimates

US sales tax is not one system — it's 45 states plus DC, each with their own rates, rules, and thresholds. You establish "nexus" (an obligation to collect and remit sales tax) two ways:

• Physical nexus: warehouse, inventory (including Amazon FBA inventory sitting in a state's fulfillment center), employees, or an office in that state.
• Economic nexus: most states set the threshold at $100,000 in sales or 200 transactions annually into that state, following the South Dakota v. Wayfair precedent.

If you sell through Amazon FBA, you likely have physical nexus in multiple states already because Amazon distributes your inventory across its fulfillment network — this catches almost every new FBA seller off guard. Tools like TaxJar or Avalara can automate multi-state tracking once you cross a few states; below that, a spreadsheet and quarterly review is manageable.

Annual Reports and Franchise Tax

Nearly every state requires an annual (or biennial) report to keep your LLC in good standing, plus in some states, a separate franchise tax:

Missing these deadlines leads to "administrative dissolution" — your LLC gets shut down by the state, which can unravel your bank account and contracts. We calendar these dates for every client and send reminders 45 and 15 days out.

Total Cost Breakdown

Realistic Timeline

• Day 1: File LLC formation with the state (Wyoming/Delaware same-day to 3 business days processing; some states take 1–2 weeks).
• Day 3–10: Receive stamped Articles of Organization.
• Week 2–6: EIN issued (faster by phone, slower by fax — plan for 4 weeks as your baseline).
• Week 3–7: Bank account approved once EIN and documents are in hand.
• Week 1 (ongoing): Draft and sign operating agreement — do this immediately, don't wait on the EIN.
• Within 30 days of formation: File BOI report with FinCEN if currently required.

Altogether, budget 4–8 weeks from filing to having a fully operational LLC with a bank account, assuming no red flags in your application.

Common Mistakes We See

• Choosing Delaware for a lifestyle business that will never raise capital, and overpaying $300/year in franchise tax for no benefit.
• Skipping the operating agreement because "it's just me," then struggling to prove the LLC is a separate entity when a bank or the IRS asks.
• Assuming zero US tax means zero filing — Form 5472 penalties start at $25,000 for a late or missing filing, even with $0 owed.
• Not tracking Amazon FBA inventory locations, then getting a nasty state tax notice 18 months later with back taxes and penalties.
• Using a home country address as the "registered agent" address, which most states will simply reject.

FAQ

Can I form a US LLC without visiting the US? Yes. The entire process — formation, EIN, operating agreement, and most bank account applications (Mercury, Wise) — can be completed remotely.

Do I need a US visa or Social Security Number? No. Neither is required to own or manage a US LLC.

Will I owe US taxes if I have no US customers or employees? Often no federal income tax is owed if the LLC has no "effectively connected income" to a US trade or business, but you likely still owe annual filings (Form 5472 + pro forma 1120). Consult a US tax professional for your specific facts — this isn't blanket advice.

What's the fastest state to form in? Wyoming and Delaware both typically process in 1–3 business days with standard filing; expedited options exist for an extra fee.

Do I need a US phone number? Not legally, but most banking and Stripe/PayPal applications go smoother with a US number — a VoIP number (Google Voice, OpenPhone) is usually sufficient.

What happens if I miss my annual report deadline? Most states allow a grace period before administrative dissolution, but late fees apply immediately in many cases. Reinstatement is possible but costs more than simply filing on time.

Can I convert my LLC to a C-Corp later? Yes, through a process called an "F-reorganization" or statutory conversion, commonly done when raising venture capital. It requires legal and tax advice — budget $1,500–$3,000+ in professional fees.

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This article is for general informational purposes only and does not constitute legal, tax, or accounting advice. Consult a licensed professional about your specific situation.