How to form an LLC in the US as a non-resident: complete step-by-step guide

How to open a US bank account for your LLC

1. Collect your formation and ID documents

Prepare your stamped Articles of Organization, EIN letter, BOI receipt, and passports for all beneficial owners. Save everything as PDFs to meet KYC requirements and speed up verification.

2. Choose a bank or fintech with remote onboarding

Platforms like Mercury, Relay, and Wise support fully online setup for non-residents, while big banks may require in-person visits or US addresses. If you need physical banking tools, look for providers that accept Remote Online Notarization (RON) in 2025.

3. Complete KYC and fund the account

Upload your documents, pass video verification, and declare all LLC members during onboarding. To activate the account, wire a small test deposit (usually $50$100) and save your first statement for tax proof.

Why forming a US LLC is a smart move for foreigners

Setting up a US LLC as a non-resident gives you built-in limited liability protection – your personal assets stay safe even if your business runs into legal trouble. This makes it easier for any business owner abroad to operate confidently within the American market.

As a non-resident LLC owner, you can sell directly to US customers – no middlemen, no barriers. This streamlined access helps you build stronger relationships and scale faster.

Unlike a corporation, an LLC benefits from pass-through taxation, which means profits go directly to the member’s personal tax return – no corporate-level taxes. This simplifies tax reporting for any non-US resident who’s managing their business remotely.

Finally, forming a US LLC for non-resident entrepreneurs enhances your credibility with vendors, partners, and investors. Even just registering your business can signal long-term commitment and make it easier for a foreigner to open an LLC in the US with confidence.

Step-by-step guide: form an LLC in USA as a non-resident alien

Whether you're an e-commerce seller or global consultant, forming a US LLC for non-residents can unlock market access, banking, and legal protections without requiring citizenship or a green card.

Step 1 – choose your state

Delaware, Wyoming, and Nevada remain the top picks in 2025. Wyoming leads for low fees and privacy, while Delaware offers strong legal backing for startups and investors.

Step 2 – pick a unique name

Each state requires a unique LLC name with LLC or Limited Liability Company at the end. Before you register, confirm the name is available via the Secretary of State's website.

Step 3 – appoint a registered agent

You must designate a registered agent with a physical address in your LLC’s state. Services cost as little as $49/year and are essential for receiving official legal documents.

Step 4 – file Articles of Organization

This is the legal formation document filed with the state. Filing fees in 2025 range from $50 (NM) to over $300 (CA), and processing takes from 1 to 15 days.

Step 5 – draft an Operating Agreement

Not legally required in most states, but vital if your non-resident LLC has more than one member. It outlines internal rules and reduces future disputes between owners.

Step 6 – apply for an Employer Identification Number (EIN)

All non-US resident LLCs need an EIN to pay taxes and open bank accounts. You can apply directly through the IRS using Form SS-4, even without a Social Security number.

Step 7 – open a US business bank account

Traditional banks require in-person verification, but fintechs like Wise and Mercury offer remote setups for foreigners opening an LLC in the US. You'll need your EIN and formation docs.

Taxes and compliance for non-resident LLC owners

Federal tax responsibilities

A non-resident alien with a US LLC typically reports income on Form 1040-NR, due 15 April 2025 (or 16 June if no wages). Single-member LLCs must also file Form 5472 with a pro-forma 1120, or face a $25,000 fine that repeats every 30 days.

Electing corporate treatment means paying a 21% flat rate and possibly double taxation. These forms require accurate EIN info and transaction records sent by mail or fax.

Good news for remote filers: the IRS will continue accepting digital signatures on Form 8453, 8878 & 8879 series returns through 31 Oct 2025, so non-US residents can finalize LLC filings without wet-ink hassles.

State taxes

Some states like Wyoming have no personal or corporate income tax, making them ideal for a member seeking low costs. Others, like California, charge an $800 franchise tax, due four months after formation, even for inactive LLCs.

If your LLC earns income in a different state (e.g., New York, Texas) than where it’s registered, that state may still tax it. Choosing where a non-US citizen an LLC registers can greatly affect ongoing tax and compliance burdens.

Required filings

NOTE! The inflation-adjusted minimum failure-to-file penalty rises to $525 for returns over 60 days late in 2025 – up from $510 in 2024.

Importance of bookkeeping and professional advice

• Accurate, real-time books help a business owner defend the effectively connected position and avoid double taxation.
• Clean ledgers make the annual BOI update, Form 5472 schedule, and any state audits almost plug-and-play.
• Engaging an expat-focused CPA or EA ensures every member gets treaty benefits, timely extensions, and penalty relief where available.

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Is an LLC the best option for you?

When deciding on the right business structure, non-US residents often compare the LLC model with other common options. Each structure comes with different responsibilities, liabilities, and tax treatments – and it’s essential to understand what fits your goals best. Below, we’ll break down the key alternatives and how they stack up against forming an LLC.

1. Corporation (C-Corp)
   A C-Corp is a separate legal entity that pays taxes at the corporate level. Profits are then taxed again when distributed to shareholders – this is known as double taxation.
   In contrast, an LLC offers pass-through taxation, meaning the owner of a US LLC can avoid being taxed twice on the same income.
2. Sole proprietorship
   This is the simplest and most informal business structure – it's just you and your business, with no legal separation. However, if the business is sued or incurs debt, your personal assets are on the line.
   An LLC creates a legal wall between your business and personal finances, which is especially important for a non-US resident operating in unfamiliar regulatory terrain.
3. Limited Liability Partnership (LLP)
   LLPs offer flexibility and shared ownership but are typically limited to professional services like law or accounting. While LLPs also offer liability protection, they often come with more ownership restrictions and state-specific limitations.
   An LLC, on the other hand, is more accessible and offers broader applicability across industries and states – making it a more adaptable fit for non-US residents.

Need guidance? Talk to a US tax advisor today

Setting up your business structure from abroad can be daunting, especially with evolving rules like BOIR filings and Form 5472 penalties. Whether you're launching an LLC or still exploring your options, having the right guidance ensures you stay compliant and avoid costly errors. 

Our specialists can always help you so that you can meet the requirements of tax compliance – schedule a consultation and move forward with clarity and confidence.