Quick answer — US LLC for non-residents at a glance. Non-residents can form a single-member LLC in Delaware, Wyoming or New Mexico within days and obtain an EIN without a Social Security number. With no US-connected income, the LLC usually pays no US federal income tax, but it must file Form 5472 with a pro forma Form 1120 every year; the penalty for missing it is $25,000. There is no minimum capital, and your home country may tax the profits directly.
For non-US founders, the US LLC solves a practical problem more than a tax one. It gives you a US company that clients recognise, US business banking through fintech providers, access to payment processors such as Stripe, and a simple legal structure with limited liability — all formed online, often in under a week, for a few hundred dollars.
The tax picture is more subtle. A foreign-owned single-member LLC is usually ignored for US income tax purposes. If its profits are not connected with a US trade or business, the US normally does not tax them. That does not mean they are tax-free: in most cases, your country of residence decides how and when they are taxed. Many founders discover this only when their home tax authority asks why their foreign company never filed a return.
The LLC is not a way to escape tax in a high-tax country of residence, and it is the wrong vehicle for US residents or US citizens abroad, whose rules are very different. It is also not designed for employees or settled expats.
Weighing a US LLC against offshore alternatives? See our hub on US LLC vs offshore company.
You only need to register in another state if you actually do business there, such as having staff or an office.
If you are a US citizen, consider the USVI EDC tax incentives instead. If you mainly need a neutral holding company, compare a BVI company vs US LLC.
A US LLC owned by a non-resident sits between two tax systems. The US decides whether any US tax is due; your country of residence decides how the rest is taxed. Both need to be handled correctly.
The US taxes a foreign-owned disregarded LLC only on income effectively connected with a US trade or business (ECI). In practice:
Since 2017, a foreign-owned single-member LLC is treated as a corporation for reporting purposes. Each year it must file Form 5472 attached to a pro forma Form 1120, reporting transactions with its owner, such as capital contributions, distributions and payments. The deadline is 15 April for calendar-year LLCs, extendable to 15 October. The penalty for failing to file is $25,000 per form, per year, even if no tax is due.
If your country treats the LLC as a company, it may also consider it managed from your home office, making it resident there or creating a permanent establishment. This matters most for founders who live in one high-tax country for most of the year.
Registered agents, banks and payment processors verify your identity, address and the nature of your business. As of 2025, FinCEN's interim rule exempts companies formed in the US from beneficial-ownership reporting; check for updates, as this has changed several times.
A US LLC is one of the cheapest companies in the world to form and run. Most of the real cost is the annual filings and your home-country tax advice.
Amounts are indicative; check current state fees on each state's official website.
Take a founder with $100,000 of profit from clients worldwide, working entirely outside the US:
The LLC's value lies in banking, payments and simplicity. Any tax saving depends entirely on where you live.
Plan for a few days to form the LLC, two to eight weeks for the EIN if you have no SSN, and one to three weeks for a fintech business account.
Traditional US banks usually require an in-person visit. Several US fintech business accounts, backed by partner banks, onboard LLCs owned by non-residents fully online, though eligibility depends on your country of residence and business type. Prepare your articles of organisation, EIN letter, operating agreement, passport, proof of address, a short description of your business and its main markets, and your website.
The US LLC Bank & Fintech Comparison Guide compares the main options for non-resident owners — eligibility by country, fees, USD and multi-currency features, and payment-processor integrations — get it when you start your US LLC with Heavnn.
Yes. There is no citizenship or residency requirement to form or own a US LLC. You need a registered agent in the state of formation, and an EIN to open a bank account and file taxes.
A single-member LLC owned by a non-resident is usually disregarded for US income tax. If its income is not effectively connected with a US trade or business, there is generally no US federal income tax. State fees, such as Delaware's $300 annual tax, still apply.
Form 5472 is an IRS information return. Every foreign-owned single-member LLC must file it each year with a pro forma Form 1120, reporting transactions with its owner. The penalty for not filing is $25,000 per form, per year.
Wyoming and New Mexico are popular for their low fees and simple compliance; New Mexico has no annual report. Delaware is better known to investors but costs $300 a year in state tax.
Yes. Non-residents apply for an EIN with Form SS-4 by fax or mail, or by phone through the IRS international line. Processing usually takes from a few days to several weeks.
A US LLC is simple to form and easy to get wrong at home. Heavnn checks how your country will classify it before you file.
Start your US LLC with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
