FAQ
The questions that decide whether this works for you.
Answered as we would answer them on a call — including where the answer is "it depends", and on what.
Can a non-resident own a US LLC?
Yes. No US state requires an owner to be a US citizen or resident, and no visa is needed to hold membership interests. The company is formed remotely. What changes for a non-resident owner is not the right to own the entity, it is the tax and reporting treatment that follows.
Does a US LLC mean I stop paying tax where I live?
No. Your personal tax residence is set by the rules of the country you live in, not by where your company is registered. If you reside in and manage the business from your home country, your domestic income tax, social contributions and foreign-asset reporting continue to apply. Most jurisdictions also have anti-abuse provisions aimed at residents operating through a foreign entity.
Does a foreign-owned LLC pay US federal income tax?
It depends on whether the LLC is engaged in a US trade or business and has effectively connected income. A single-member LLC is disregarded for federal tax purposes, so income is attributed to the owner. Where there is no US trade or business, no dependent agent and no US-source effectively connected income, there is often no federal income tax due at that level, but the analysis is fact-specific and the filing obligations remain regardless.
What is Form 5472 and does it apply to me?
Form 5472, filed with a pro forma Form 1120, reports transactions between a foreign-owned single-member LLC and its owner or other related parties. It is triggered by reportable transactions, not by profit, so it can be due in a year with no revenue at all. The penalty for failing to file starts at $25,000 per year.
Can I obtain an EIN without an SSN or ITIN?
Yes, but not through the online application, which requires a US taxpayer identification number. Non-resident applicants file Form SS-4 with the IRS by phone. In practice this usually takes about a week.
Which state should I register in?
For a non-resident with no physical presence in the United States, Wyoming, Delaware and New Mexico are the states most often considered, and they differ on filing fees, annual report requirements and public disclosure of members. The right answer depends on your activity, your clients and whether you will ever have a US presence. We review it with you rather than defaulting to one state for everyone.
Can I open a US business account remotely?
Applications to US fintech providers such as Mercury, Wise and Relay are made remotely and generally require the formation documents, the EIN and identity verification. Approval is the provider's decision and depends on your country of residence and your activity, so no formation agent can guarantee an account. We prepare the file to give it the best chance and tell you in advance where a profile is likely to face friction.
How long does the whole process take?
State registration typically takes 3 to 5 business days. The EIN follows in about a week, and the full sequence usually runs 10 to 15 days. The EIN is usually obtained in about a week, by phone. Banking approval sits with the provider and is outside our control.
Do I need an ITIN?
Not to form an LLC and not to obtain an EIN. An ITIN becomes relevant in specific situations, such as certain personal filing obligations or particular treaty claims. Where it applies to you, it is handled as a separate engagement.