US LLC for Non-US Residents: The Complete 2026 Guide

A US LLC is the most popular company structure for foreign founders selling online, and for good reason: it's cheap, it's fast, it gets you Stripe and a US bank account, and — structured correctly — the US doesn't tax it at all. Structured incorrectly, it's a $25,000 IRS penalty waiting to happen. Here's how to do it correctly.

Can a non-US resident own a US LLC?

Yes. No state requires LLC members to be US citizens or residents, and you don't need to visit the US. You need:

• A registered agent with a street address in your state of formation
• An EIN (US tax ID) — available without an SSN or ITIN
• A passport for bank and payment-processor verification

That's it. What you can't do with an LLC alone is live or work in the US — company ownership gives you no visa rights.

Which state is best for a non-resident LLC?

If you have no US office, staff or warehouse, you're not tied to any state, so pick on cost, privacy and banking acceptance:

Wyoming is my default recommendation: banks and Stripe know it, the annual report is simple, and there's no state income tax. New Mexico is cheaper but has a smaller pool of registered agents and occasionally raises eyebrows at banks. Full ranking: best state to form an LLC.

Do non-residents pay US tax on an LLC?

A single-member LLC owned by a foreign person is a disregarded entity — the IRS looks through it to you. You're taxed by the US only on:

1. Effectively connected income (ECI) — income from a trade or business conducted in the US: a US office, US employees, a dependent agent who signs contracts, US inventory you control. If your LLC is a remote software or services business run from abroad, you typically have no ECI and owe no US federal income tax.
2. Certain US-source passive income (FDAP) such as US dividends, subject to withholding.

If you live in a treaty country, the "permanent establishment" test in the treaty usually applies instead, with a similar result.

No US tax does not mean no tax. Your home country will usually tax the profits — either as your personal income (if it treats the LLC as transparent) or under controlled foreign company rules. A Spanish or German resident with a Wyoming LLC still pays Spanish or German tax. This is the single most common misunderstanding.

Multi-member LLCs are partnerships for US tax purposes: they file Form 1065, and if there's any ECI, the LLC must withhold tax for foreign partners.

What is Form 5472 and why does it matter?

Since 2017, foreign-owned single-member LLCs must file Form 5472 attached to a pro forma Form 1120 every year, reporting transactions between the LLC and its owner (capital contributions, distributions, loans, payments).

• Due: April 15 for calendar-year LLCs (6-month extension with Form 7004).
• Filed: by fax or mail — it can't be e-filed for a disregarded entity.
• Penalty: $25,000 per form, per year for failing to file or filing incomplete — even if you owe zero tax.
• Records: you must keep supporting records; failure to maintain them can trigger the same penalty.

Put this in your calendar the day you form the LLC. Most non-resident packages from formation services include it for $150–$500/yr; a CPA charges similar.

Also: if you ever have ECI, you'd file Form 1040-NR personally (and then you'd need an ITIN).

How do I get an EIN without an SSN or ITIN?

Fill in Form SS-4. On line 7b, write "Foreign" instead of an SSN/ITIN. Choose "Other" or "LLC" as entity type with 1 member, and give the registered agent's or a mailing address in the US for the business.

• Fax to 304-707-9471 (IRS number for applicants outside the US). Typical turnaround: 4 business days officially, often 1–4 weeks in practice.
• Phone 267-941-1099 (IRS international line) — the agent issues the EIN during the call.

You don't need an ITIN for any of this.

Which banks open accounts for non-resident LLCs?

Banks will ask for: Articles of Organization, EIN letter (CP 575 or 147C), operating agreement, passport, proof of personal address, and a description of the business with a working website. A non-PO-box US business address helps a lot; most registered agents offer one for $50–$300/yr.

Can a non-resident LLC use Stripe?

Yes — Stripe supports US LLCs owned by non-residents. You need the EIN, a US bank account, a US business address (not a PO box), and a website describing what you sell. Stripe will verify your identity with your passport. Paypal Business works similarly.

How much does a non-resident LLC cost per year?

Packages compared in Stripe Atlas alternatives, and state fees in how much does it cost to start an LLC.

Should I form an LLC or a C-corp?

• LLC: no US tax if no ECI, minimal compliance, ideal for a solo founder, agency, or bootstrapped SaaS.
• Delaware C-corp: pays 21% US federal tax on worldwide profit, but it's what US VCs and accelerators require.

If you might raise money, many founders start with a C-corp from day one (converting later costs money). If you're bootstrapping, the LLC is usually simpler.

When is a US LLC the wrong choice?

• Your home country taxes it harshly (some treat a US LLC as an opaque low-taxed company and apply CFC rules, or don't recognize the pass-through at all).
• You actually live in the US — then the LLC is fully taxable in the US.
• You need EU VAT simplicity or an EU entity for clients — consider Estonia instead.

If you're still choosing a country, read how to start a business abroad.

Not tax or legal advice; rules change — verify with a local adviser.