How Do I Start an LLC in the United States as a Foreigner?

 Starting a business in the United States is a dream for many international entrepreneurs. The U.S. has a robust legal structure, access to one of the world’s largest consumer markets, and a wide range of funding opportunities. One of the most common and flexible ways to set up a business in the U.S. as a foreigner is by forming a Limited Liability Company (LLC).

The good news is: you do not need to be a U.S. citizen or resident to start an LLC in the United States. Foreign individuals and companies can legally own and operate an LLC in any U.S. state. This guide walks you step-by-step through the process.

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Why Start an LLC in the U.S. as a Foreigner?

Before diving into the process, let’s briefly understand why an LLC is an attractive option for foreign entrepreneurs:

• Limited liability protection – Your personal assets are shielded from business liabilities.

• Simple structure – Fewer compliance obligations than a corporation.

• No citizenship requirement – Anyone can own an LLC.

• Access to the U.S. market – Gain trust, credibility, and the ability to work with American clients.

• Banking and payments – Open a U.S. bank account and use U.S. payment processors like Stripe, PayPal, and Square.

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Step-by-Step Process for Foreigners to Start an LLC in the U.S.

Here’s how you can legally and successfully form an LLC in the United States as a non-resident:

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1. Choose a U.S. State to Form Your LLC

There is no federal LLC—LLCs are formed at the state level. You’ll need to decide which state to register your LLC in. Most foreign entrepreneurs choose:

• Delaware – Most business-friendly laws and minimal paperwork.

• Wyoming – Low fees, strong privacy laws, and no state income tax.

• Florida, Texas, or Nevada – Popular for e-commerce, tech, or international trade.

If you do not have a physical presence in the U.S. (such as an office or employees), Delaware or Wyoming are ideal.

Tip: Don’t automatically choose a state like California or New York just because they are large markets—they often have higher fees and complex tax laws.

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2. Choose a Name for Your LLC

Your LLC’s name must be:

• Unique within the state

• Include “LLC” or “Limited Liability Company”

• Not contain restricted words like “bank” or “insurance” unless authorized

Check name availability using the Secretary of State website of the state where you’re forming your LLC.

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3. Designate a Registered Agent

Every LLC must have a registered agent in the state of formation. A registered agent is a person or company responsible for receiving legal documents on behalf of your business.

Requirements:

• Must be located in the state where your LLC is formed

• Must have a physical address (not a P.O. box)

• Must be available during business hours

Since most foreigners do not live in the U.S., you will need to hire a registered agent service, which usually costs $50–$150 per year.

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4. File Articles of Organization

Also called a Certificate of Formation or Certificate of Organization, this is the official document that legally creates your LLC.

You file this document with the Secretary of State of your chosen state. It typically includes:

• LLC name

• Registered agent’s name and address

• Business address (can often be the agent’s address)

• Names of LLC members or managers (depends on the state)

Filing fees vary by state but typically range from $50 to $500.

Most states offer online filing, and approval takes between a few hours to a few weeks.

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5. Create an Operating Agreement

An Operating Agreement outlines the ownership and management structure of your LLC. It is especially important for foreign-owned LLCs because:

• It helps define your rights as the owner

• Some banks or partners may request it

• It can help prevent disputes

While not required in every state, it is highly recommended and considered a legal safeguard.

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6. Apply for an Employer Identification Number (EIN)

An EIN is a Federal Tax ID number issued by the Internal Revenue Service (IRS). You will need it to:

• Open a U.S. bank account

• Hire employees (if applicable)

• Pay taxes

• Register for U.S. payment processors

Foreigners without a Social Security Number (SSN) can still get an EIN by:

Option A: Apply by Fax

• Fill out Form SS-4

• Leave the SSN field blank or write “Foreign”

• Fax it to the IRS at +1 855-641-6935 (or +1 304-707-9471 if outside U.S.)

• Include your international phone number and address

• You should receive your EIN within 4–5 business days

Option B: Apply by Phone (for International Applicants Only)

• Call the IRS at +1-267-941-1099

• Hours: 6 AM to 11 PM (U.S. Eastern Time), Monday–Friday

• You’ll receive your EIN during the call

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7. Open a U.S. Business Bank Account

This step is critical for managing your business finances, accepting payments, and paying U.S. taxes.

To open a U.S. bank account as a non-resident, you usually need:

• Your LLC formation documents

• EIN from the IRS

• LLC Operating Agreement

• Passport

• U.S. address (can often use registered agent address)

• In some cases, a visit to the U.S. in person (for traditional banks)

Alternative: Many foreigners use online banks or fintech services like:

• Mercury (mercury.com)

• Wise Business

• Payoneer

• Relay

These services are often easier for non-U.S. residents to use without a physical visit.

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8. Meet Ongoing Compliance Requirements

Just forming an LLC is not enough—you must stay compliant with state and federal rules.

Common compliance requirements:

• Annual Report – Some states require an annual filing and fee (e.g., Delaware and Wyoming)

• Franchise Tax – Even if you don't do business in the U.S., some states charge a flat annual tax (Delaware: $300)

• Registered Agent Renewal – Renew your agent each year

• Federal Taxes – Depending on your business structure, file IRS Form 5472, 1120, or others

It’s strongly recommended to work with a U.S.-based accountant or CPA who understands tax laws for foreign-owned LLCs.

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Tax Responsibilities for Foreign-Owned LLCs

Many foreign owners assume that if they don’t live in the U.S., they don’t have to pay taxes. That’s a dangerous myth.

Depending on your structure and income sources, you may have to file:

• Form 5472 – For foreign-owned single-member LLCs

• Form 1120 – U.S. corporate income tax return

• Form 1040NR – For non-resident individuals earning U.S. income

Also:

• The U.S. may withhold taxes on payments to foreign owners (depending on tax treaties)

• If you sell to U.S. customers, collect sales tax (via platforms or sales tax services)

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Can I Get a U.S. Visa by Starting an LLC?

No. Forming an LLC does not grant you a visa, work permit, or legal residency in the U.S.

If you want to live and work in the U.S. while running your business, you’ll need a visa such as:

• E-2 Visa (for investors from treaty countries)

• L-1 Visa (intra-company transfer)

• O-1 Visa (for individuals with extraordinary abilities)

An immigration attorney can help you explore these options.

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Advantages and Disadvantages of a U.S. LLC for Foreigners

Advantages:

• No U.S. citizenship or residency required

• Low start-up cost and easy setup

• Limited liability protection

• Access to global and U.S. markets

• Easier to partner with U.S. companies and accept payments

Disadvantages:

• U.S. tax compliance can be complex

• Need to manage foreign tax obligations as well

• Bank account setup may require a U.S. visit

• No immigration benefits (visa/residency)

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Estimated Costs to Start an LLC as a Foreigner

Expense	Estimated Cost
State Filing Fee	$50–$500
Registered Agent Service	$50–$150/year
EIN Application (DIY)	Free
U.S. Address or Mail Forwarding	$10–$30/month
Annual Report or Franchise Tax	$50–$300/year
Optional Legal or CPA Help	$200–$1,000

Final Thoughts

Forming an LLC in the United States as a foreigner is 100% legal and relatively straightforward. With the right guidance, you can open a legitimate business presence in one of the most lucrative markets in the world—without living in the U.S.

By following the steps above—choosing the right state, hiring a registered agent, filing the Articles of Organization, obtaining an EIN, and maintaining compliance—you can set up your business for success.

Whether you're an e-commerce seller, consultant, startup founder, or investor, a U.S.-based LLC gives you the structure and credibility to grow globally.

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Please consult with a licensed attorney or accountant for professional assistance tailored to your situation.