US LLC for non-residents: how to form one in 2026
A US LLC is one of the most useful tools for a location-independent founder. It gives you a credible US company, access to Stripe and PayPal, and US banking, and you can own and run it from anywhere without a visa. Here is how it works in 2026: the steps, the best state, and the tax rules that actually apply to you. Not sure an LLC is the right structure at all? Compare it against Estonia, the UAE, and a UK Ltd.
Can a non-resident own a US LLC?
Yes. You do not need to be a US citizen or resident, hold a visa, or live in the US. Foreign founders open US LLCs every day, mainly to take card payments through Stripe, to bill US clients, and to hold a US business bank account. The company is formed under US state law, so it counts as a domestic US company.
The steps
- 1Choose your state. Most non-residents pick Wyoming or New Mexico for low cost and privacy, or Delaware if they will raise from US investors.
- 2Appoint a registered agent in that state. This is a required US address to receive legal mail, and every formation service includes one.
- 3File the formation documents and pay the state filing fee.
- 4Get your EIN (tax ID) on IRS Form SS-4, writing "Foreign" where it asks for an SSN. Fax is fastest.
- 5Open a US business bank account or a fintech account such as Mercury or Wise, then connect Stripe or PayPal.
Which state should you pick?
| State | Upkeep | Why pick it |
|---|---|---|
| Wyoming | ~$60 / year report | No state income tax, strong privacy and asset protection. The all-round favorite for lean online businesses. |
| New Mexico | No annual report | No annual report fee and no franchise tax, with anonymous ownership. The lowest ongoing cost if you just need US banking and payments. |
| Delaware | $300 / year franchise tax | The standard if you plan to raise from US venture capital, thanks to its specialized business courts. Pricier to maintain. |
Source: state filing and annual-fee requirements.
The tax reality (read this part)
The most important thing to understand is the difference between filing and paying. A foreign-owned single-member US LLC must file Form 5472 with a pro-forma Form 1120 every year, even if it earned nothing, as long as there was a reportable transaction such as funding the company. The penalty for missing it is $25,000, so this is the deadline you cannot skip.
Filing is not the same as owing tax. If you run the business remotely from outside the US, with no US office, no US inventory, and no US staff, your income is generally not effectively connected to a US trade or business, so you usually owe 0% US federal income tax on it. Holding inventory in a US warehouse, such as Amazon FBA, or having US-based staff can flip that and make your US profits taxable. Certain passive US-source income, like some royalties, can also face a flat 30% withholding. This is genuinely nuanced, so confirm your own setup with an international tax professional.
One 2026 update worth knowing: after FinCEN's 2025 rule change, US-formed companies, including foreign-owned ones, are now exempt from the Beneficial Ownership Information (BOI) report. A lot of older guides still tell you to file it. Confirm the current rule before you rely on it.
The fastest way to set this up
Most non-residents use a formation service that handles the filing, your EIN, a registered agent, and bank introductions in one go. We compare the two most popular in detail.
Not sure which? doola vs Firstbase and doola vs Stripe Atlas break down the differences.
Get the free Global Founder Setup Kit
A one-page PDF: the exact US LLC plus territorial-residency setup non-resident founders use to run an online business and pay near-zero tax, with the checklist and the honest caveats. Drop your email and it is yours, plus new setups as we add them.
US LLC for non-residents FAQ
Can a non-resident own a US LLC?
Yes. You do not need to be a US citizen or resident, and you do not need a US address or a visa to own a US LLC. You can form and run it entirely from abroad.
How do I get an EIN without an SSN?
You apply on IRS Form SS-4 and write "Foreign" where it asks for an SSN or ITIN, then submit it by fax or mail (the online tool is closed to applicants without an SSN). Faxing is the fastest route. Formation services like doola and Firstbase do this for you.
Will I owe US federal income tax?
Often not. If you run the business remotely from outside the US with no US office, inventory, or staff, that income is generally not effectively connected to a US trade or business, so no US federal income tax is due on it. Holding inventory in a US warehouse or having US staff can change that. Passive US-source income like certain royalties can face a flat 30% withholding. Confirm your situation with a tax professional.
What is Form 5472 and why does it matter?
A foreign-owned single-member US LLC must file Form 5472 with a pro-forma Form 1120 every year, even with no income, if there was any reportable transaction such as funding the company. The penalty for failing to file is $25,000, so this is the one deadline you cannot skip.
Do foreign-owned US LLCs file the FinCEN BOI report?
As of 2026, US-formed companies, including foreign-owned ones, are exempt from FinCEN Beneficial Ownership Information reporting after the 2025 interim rule. Only companies formed abroad and then registered in a US state still file. Confirm the current rule before relying on it.
Tax and compliance rules for non-resident US LLC owners are nuanced and change over time. This is general information, not legal or tax advice. Confirm the current rules and your own situation with a qualified international tax professional before you act.