How to Start Your LLC as a Non-U.S. Founder

Thinking of launching a business in the U.S. from another country? The Limited Liability Company (LLC) is your ticket in. The entire process, from picking a state to getting your tax ID, can be done remotely from your home country. It's a surprisingly straightforward way to tap into the American market.

This guide is your complete roadmap, built from my experience helping countless international founders do exactly this.

Your Roadmap to a U.S. LLC From Abroad#

Forming a U.S. company isn't just about paperwork. It’s about unlocking the world's largest consumer market, boosting your business's credibility, and gaining access to top-tier payment processors like Stripe and U.S. banking.

For international founders, the LLC structure is a game-changer. It gives you personal liability protection, meaning your personal assets like your home or savings are separate from business debts, plus a ton of tax flexibility.

You're not alone in seeing the appeal. New business creation in the U.S. has exploded, hitting a record 5.5 million new businesses in 2023. That's a massive 56.7% jump since 2019, and the LLC is the engine driving that growth. You can dig into the business formation statistics yourself to see just how popular this path has become.

Key Steps for International Founders#

Launching your U.S. company is a series of connected steps, not just a single filing. Getting them in the right order is crucial to avoid headaches and delays down the road. I've broken down the entire journey into clear, manageable stages specifically for non-residents.

Here's what you'll need to tackle:

• Pick Your State Strategically: Where you form your LLC impacts everything from annual fees to privacy.
• Handle the Legal Basics: This means choosing a unique name and appointing a Registered Agent.
• Make it Official: Filing the Articles of Organization is the moment your LLC legally comes to life.
• Get Your Federal and Banking Ducks in a Row: You'll need an EIN to open a U.S. bank account.
• Stay Compliant: Keeping up with annual reports and BOI filings is non-negotiable.

Look, I get it. Navigating the U.S. system from abroad can feel intimidating. But this is a well-traveled path. The key is to follow a proven process, making sure every legal and financial box is ticked correctly.

To help you visualize the journey, I've put together a simple checklist. Think of this as your high-level map for turning a business idea into a fully operational U.S. company.

LLC Formation Checklist for International Founders#

This table breaks down the entire roadmap into clear, actionable steps. Each one is a critical milestone in establishing your U.S. business.

With this checklist in hand, you've got a clear view of what's ahead. Now, let's dive into each of these steps in more detail.

Laying the Foundation of Your U.S. Company#

Once you've decided to launch in the U.S., the real work begins. This is the point where your idea starts to become a legal entity, moving from a concept to a company on paper. The decisions you make right now will dictate your taxes, liability protection, and annual compliance duties for years to come.

First up is the big one: picking a state for your LLC. This choice has lasting consequences and is way more than just picking a spot on a map. For non-U.S. founders, three states consistently come out on top for very specific, practical reasons.

Choosing the Right State for Your LLC#

Each state offers a different mix of benefits, and the "best" one really depends on your business model and where you see it going. Don't just follow the herd; you need to understand the trade-offs.

• Wyoming: This state is a powerhouse for privacy and keeping costs low. It offers solid anonymity for LLC owners and has no state income or franchise taxes, which makes it an affordable choice with minimal upkeep.
• Delaware: Known for its business-friendly legal system, Delaware is the gold standard if you plan to seek venture capital. Its specialized Court of Chancery provides predictable legal outcomes that investors love.
• Nevada: Another popular option, Nevada also boasts no state income tax and offers a good degree of privacy. It’s often considered for its strong asset protection features.

Choosing between these states can be tough. It’s a balance between your immediate needs, like low costs, and your long-term goals, like attracting investors. Think of it as a foundational business decision, not just a logistical step.

For a deeper dive into the two most popular options for international founders, check out our guide on Wyoming vs. Delaware LLC formation to help you make the right call.

Selecting a Unique Business Name#

After you’ve locked in a state, your next job is picking a name for your LLC. It has to be unique in that state's business registry. You can't just register "Global Tech LLC" if someone else in that state already has it.

Most states have a free online business name search tool on their Secretary of State website. Use it. Check if your name is available before you file a single piece of paper. Your legal name must also end with an LLC designator, like "Limited Liability Company," "LLC," or "L.L.C."

Appointing a Registered Agent#

Every single U.S. LLC is required by law to have a Registered Agent. This is simply a person or company with a physical street address in your formation state. Their only job is to be available during normal business hours to accept official mail and legal documents on your company’s behalf.

Since you don't have a physical U.S. address, hiring a commercial Registered Agent service isn't optional, it's a must. This service is the critical link between your company and the U.S. legal system, so choosing a reliable one is key to staying compliant.

The LLC formation market has exploded, thanks to online services making it incredibly accessible. Valued at around $1.5 billion in 2025, the market is projected to grow at a 12% compound annual rate through 2033. This boom is fueled by a new wave of entrepreneurs and digital processes making it easier than ever for global founders to tap into the U.S. economy. You can find more insights on this trend over at Data Insights Market.

Filing Your Articles of Organization#

The final step to making your business official is filing the Articles of Organization. This document, sometimes called a Certificate of Formation, gets submitted to the Secretary of State. It’s what formally establishes your LLC as a legal entity.

The Articles of Organization are usually pretty straightforward, asking for:
1. Your LLC's name and address.
2. The name and address of your Registered Agent.
3. The purpose of your business (this can often be general).
4. The names of the LLC members or managers.

While you can file this yourself, many non-U.S. founders use a formation service to sidestep common mistakes that can get your application rejected or delayed. One simple error can set you back weeks.

This flowchart breaks down the whole process into three core stages.

As you can see, the journey starts with a strategic state choice, moves to the legal filing, and ends with setting up your financial foundation.

Alright, your Articles of Organization are filed. That means your LLC is officially a legal entity in the U.S., a huge milestone. But don't pop the champagne just yet. Now you have to turn that legal shell into a real, functioning business that can actually get paid, manage its money, and stay on the right side of the law.

For international founders, this part involves navigating a few critical U.S. administrative hurdles. These steps aren't optional; they're your keys to the entire American financial system.

Nail Down Your Employer Identification Number (EIN)#

First up is the Employer Identification Number (EIN). It’s a nine-digit number the IRS assigns to your business, and it's basically a Social Security Number for your company. You’ll need this for almost everything, including opening a bank account and filing taxes.

A lot of non-resident founders get tripped up here, thinking they need a U.S. Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to get one. That’s a total myth. You can absolutely get an EIN without either.

The trick is using IRS Form SS-4 and submitting it by fax or mail. The online application is faster, sure, but it’s only for people who already have an SSN or ITIN. For everyone else, fax is the most reliable route.

Be ready to wait. The IRS can take anywhere from four to eight weeks to process a faxed EIN application. You just have to be patient. You can’t move on to opening a bank account until that number is in your hands.

Draft a Rock-Solid Operating Agreement#

Even if your state doesn’t legally require an Operating Agreement, do not skip this step. This is the internal playbook for your LLC. It lays out the ownership structure, how big decisions get made, how profits and losses are split, and what to do if a member wants out.

If you’re a single-member LLC, it might feel like overkill, but it’s what proves your business is a separate entity from you personally. That separation is the entire point of an LLC since it’s what protects your personal assets.

Make sure your Operating Agreement covers these basics:
* Membership Details: Who the owners (members) are and their ownership percentages.
* Management Structure: Is the LLC member-managed (run by the owners) or manager-managed (run by an appointee)?
* Profit and Loss Distribution: The rules for how money is allocated among the members.
* Dissolution Procedures: A clear plan for how to wind the business down if it comes to that.

You don’t file this with the state. Just keep it with your company records.

Figure Out the ITIN Requirement#

An Individual Taxpayer Identification Number (ITIN) is a personal tax ID issued by the IRS. It’s for foreign nationals who have to file U.S. taxes but can’t get an SSN.

You don't need an ITIN to form your LLC or even to get your EIN. But you will almost certainly need one down the road if you have a U.S. tax filing obligation. For instance, if your LLC is actively doing business in the U.S. and making money, you, as the foreign owner, will need an ITIN to file your personal U.S. tax return. Taxsym helps non-residents get an ITIN completely online, cutting through a lot of the usual red tape.

Open a U.S. Business Bank Account From Anywhere#

This is often the biggest headache for international founders. Most old-school U.S. banks demand you show up in person to open an account, which is a non-starter for most. Luckily, fintech has changed the game.

There are now several online banking platforms built for remote-first and international businesses. Companies like Mercury, Relay Financial, and Wise Business let you open a U.S. business bank account right from your home country. You can explore various U.S. banking options to see what fits your needs.

To get it done, you’ll need your documents ready to go.

Here's what they'll typically ask for:
Your LLC’s approved Articles of Organization
Your official EIN confirmation letter (this is Form CP 575)
A valid passport for ID verification
Your LLC's Operating Agreement

This is more important than ever. The entrepreneurial world is booming, with an estimated 665 million entrepreneurs globally. In the U.S., new business applications have shot up to over 400,000 per month since late 2020, which is double what it was before the pandemic. This massive shift is exactly why accessible, remote banking solutions are so critical.

For a deep dive into the remote banking process, check out our guide on how non-residents can open a U.S. bank account. We walk through specific platform recommendations and give you a step-by-step playbook.

Managing U.S. Tax and Reporting Obligations#

Alright, your LLC is officially formed and ready for business. The real work starts now: staying compliant. This isn’t just about good bookkeeping; it’s about keeping your company in good legal standing and avoiding some genuinely harsh penalties.

For international founders, this means getting comfortable with a few key U.S. reporting rules that you've likely never encountered before.

One of the newest and most critical is the Beneficial Ownership Information (BOI) Report. This is a mandatory filing, and ignoring it is not an option.

Understanding the BOI Report#

The BOI report is part of the Corporate Transparency Act, filed with the Treasury Department's Financial Crimes Enforcement Network (FinCEN). Its main goal is to pull back the curtain on who really owns and controls U.S. companies to fight money laundering and other illicit activities.

If you formed your LLC in 2024, you have 90 days from the official formation date to file your first report. This is a hard deadline.

The penalties for missing it are no joke. We’re talking fines of up to $500 per day and even potential criminal charges.

So, who is a "beneficial owner"? The definition is broad, covering anyone who either:
Exercises substantial control over your LLC.
Owns or controls at least 25% of the company.

For each owner, you’ll need to provide their full legal name, date of birth, address, and a copy of a government ID like a passport.

This isn't a "one and done" filing. If an owner's address changes or you bring on a new partner, you must file an updated report within 30 days. Staying on top of this is a key part of your new compliance responsibilities.

Navigating Federal Tax Obligations#

As a foreign-owned U.S. LLC, your federal tax situation might seem complicated, but it usually boils down to a few core principles. Your specific filing needs will depend on your LLC's structure and what kind of business it does.

Let's take the most common scenario: a single-member LLC owned by a non-resident. The IRS treats this as a "disregarded entity," meaning the LLC itself doesn't pay income tax. Simple enough, right?

But there’s a catch. You still have a major reporting duty. You must file Form 5472 along with a pro-forma Form 1120. This is an informational return that discloses transactions between your U.S. LLC and you (the foreign owner).

Fail to file this form, and the penalty is a staggering $25,000. Per form, per year.

For a deeper dive into this topic, check out our guide on tax returns for non-resident aliens, which breaks down the requirements in more detail.

State-Level Compliance Duties#

On top of your federal duties, every state has its own rules for keeping an LLC in good standing. These are just as important as your IRS filings. If you fall behind, the state can administratively dissolve your company, effectively shutting you down.

Here are the two most common state-level tasks you'll encounter.

The deadlines and fees for these filings vary wildly from state to state. For example, Wyoming's annual report is due on the first day of the month your LLC was formed. Delaware's franchise tax is due by June 1st every year.

Missing these dates means late fees and, eventually, could put your LLC's legal status at risk. The best advice? Mark these deadlines on your calendar the day you form your company.

What to Expect for Timelines and Costs#

So, you’re ready to start your U.S. LLC. Let’s talk about two of the most critical resources you have: time and money. Getting a clear picture of what this journey actually looks like prevents nasty surprises down the road.

The process isn't instant, and the costs add up. Knowing the real numbers helps you plan your launch, manage your budget, and sidestep the common traps that snag so many international founders.

Mapping Out Your Formation Timeline#

For non-resident founders, patience isn't just a virtue; it's a necessity. While some steps are quick, others involve government agencies that move at their own pace. Rushing things often leads to mistakes that cause even longer delays.

Here’s a realistic timeline for the major milestones:

• State Filing: This is when your LLC officially exists. Standard processing takes anywhere from one to four weeks, depending on the state. Most states offer an expedited service for an extra fee, shrinking this to just one to three business days.
• EIN Application: For non-residents filing by fax, this is the big one. You should budget four to eight weeks for the IRS to process your Form SS-4 and issue your Employer Identification Number. There’s no way to speed this up, so get it filed the moment your LLC is approved.
• Bank Account Opening: Once you have your EIN, this part is pretty quick. With the right fintech platform, you can often get approved and have an active account within one to two weeks.

Breaking Down the Costs#

Forming an LLC is affordable, but it's certainly not free. The costs are a mix of one-time government fees and recurring annual expenses you'll need to pay to keep your company compliant.

So many founders fixate on the initial filing fee and completely forget about the recurring annual costs. Budgeting for your Registered Agent and state reports from day one is crucial to keeping your LLC in good standing and avoiding penalties.

To give you a clearer picture, here's a breakdown of the typical costs and timelines you'll face when getting started.

Estimated Costs and Timelines for LLC Formation#

Just remember, professional service fees for help with formation or tax filings are additional costs to factor into your budget.

Avoiding Common Financial and Timing Pitfalls#

Beyond the standard items, a few common mistakes can end up costing you dearly in both time and money. Learning from the missteps of others is one of the smartest things a founder can do.

Watch out for these frequent errors:

• Choosing a State Based on Hype: Selecting Delaware just because you heard it's "the best" can be a costly mistake. If its high franchise tax doesn't fit your business model, you’ve made a poor choice. Always pick a state based on your specific needs.
• Forgetting Annual Compliance: Missing the deadline for an annual report or franchise tax payment can trigger hefty late fees and even get your LLC shut down by the state. Set calendar reminders.
• Misunderstanding Tax Obligations: Assuming a U.S. LLC means no U.S. taxes is a dangerous oversight. Failing to file required forms like the 5472 can lead to a $25,000 penalty, even if you don't owe any tax.

By anticipating these timelines, budgeting for all the costs, and learning from these common pitfalls, you put your new U.S. business in a great position for a smooth and successful launch.

Frequently Asked Questions#

When you're starting a U.S. business from another country, a lot of questions pop up. It's completely normal. Here are some straight-up answers to the most common things we hear from international founders figuring out how to set up their LLC. The goal here is to clear up the confusion so you can move forward.

Do I Need to Visit the U.S. to Start an LLC?#

Absolutely not. This is probably one of the biggest myths out there. One of the best things about the U.S. system is that you can do everything remotely.

The entire process, from filing your formation documents with the state to getting your EIN from the IRS, can be handled right from your home country. You'll just need a commercial Registered Agent service to give you that required physical address in your chosen state, but that's a standard, affordable part of the process.

Which State Is Best for a Non-U.S. Founder to Form an LLC?#

There’s no single "best" state that fits everyone. The right answer really hinges on your specific business goals and what you see for your company down the road. That said, most international founders end up choosing one of three states, each for very different reasons.

• Delaware: This is the gold standard for startups that plan on raising venture capital. Its corporate legal system is highly respected and familiar to investors.
• Wyoming: A huge favorite for its strong privacy protections. It also boasts no state income tax and incredibly low annual fees, making it a lean option for bootstrapped businesses.
• Nevada: Another solid choice, also known for having no state income tax and offering some pretty robust asset protection.

You’ll want to weigh the pros and cons of each against your own business model before you pull the trigger.

Can I Open a U.S. Business Bank Account as a Non-Resident?#

Yes, you definitely can, but you have to think modern. While most old-school, brick-and-mortar U.S. banks will make you show up in person, the fintech world has completely changed the game.

Several online financial platforms were built from the ground up for international and remote-first founders. These services let you open an account from anywhere in the world.

To get your account opened without a hitch, you’ll need to have all your business documents ready. This usually means your approved LLC formation certificate, the official EIN confirmation letter from the IRS, and a valid passport to verify your identity.

What Is the Difference Between an EIN and an ITIN?#

Getting this right is crucial for staying compliant. These two numbers serve completely different purposes, and you can't use one in place of the other.

An EIN (Employer Identification Number) is basically a Social Security Number for your company. It’s the federal tax ID for your business, and you’ll need it for just about everything, such as opening a bank account, hiring employees, and filing business taxes.

An ITIN (Individual Taxpayer Identification Number), on the other hand, is a personal tax ID number for foreign individuals who need to file a U.S. personal tax return but aren't eligible for a Social Security Number.

So, your business needs an EIN from day one. You, the owner, might need an ITIN later, but that depends entirely on your personal tax situation.