How To Start an LLC In The US For Non-US Residents

Introduction.

If you’re a non-U.S. resident and thinking about starting a business in the U.S., you might be feeling a little overwhelmed.

The process can seem complicated, but it’s quite doable.

Setting up a Limited Liability Company (LLC) in the U.S. could be a smart way to protect your assets, enjoy tax benefits, and give your business a solid foundation.

This guide is for anyone outside the U.S. who wants to set up an LLC. I’ll walk you through each step, explain the key concepts, and offer helpful tips along the way.

Let’s get into it!

Why Set Up an LLC in the U.S.?

Before jumping into the how-to, you might be wondering: Why the U.S.? After all, there are plenty of places to start a business around the world.

Well, the U.S. is one of the world’s largest and most diverse economies, with a huge consumer market and a favourable legal system for businesses. Plus, the LLC structure comes with some great perks:

Limited Liability Protection: As the name suggests, an LLC protects your personal assets. If your business runs into trouble, your personal belongings—like your house or car—are generally safe.
Tax Flexibility: LLCs in the U.S. offer flexibility in terms of how you’re taxed. You can choose to be taxed as a sole proprietorship, partnership, S-corporation, or C-corporation, depending on your business needs.
Less Paperwork: Compared to corporations, LLCs require less paperwork and fewer formalities, making them an attractive option for many entrepreneurs.
Credibility and Trust: Having an LLC gives your business more credibility, which can help when dealing with customers, investors, and suppliers.

Now that we know why setting up an LLC in the U.S. is a good idea, let’s dive into the steps involved.

How Do I Start an LLC In The US as a Non-us Resident?

Step 1: Choose Your LLC Name

Your first step is picking a name for your LLC. The name has to be unique and not too similar to any existing businesses in the state where you’re filing. You can do a quick online search to check if your name is available.

Each state has its requirements, but generally, your LLC name should end with “LLC” or “Limited Liability Company” to make it clear that it’s an LLC.

Some general rules to keep in mind:

Your name can’t include words that might confuse your LLC with a government agency, like “FBI” or “Treasury.”
It can’t be the same as an existing LLC or business name in the state.

Step 2: Pick a State to Register Your LLC

When you start an LLC, you need to decide which state to register in. Many people assume they must form an LLC in the state they’re operating in, but that’s not always the case.

The most popular states for setting up an LLC, especially for non-U.S. residents, are Delaware, Wyoming, and Nevada.

Here’s why:

Delaware is known for its business-friendly laws and doesn’t require you to be a U.S. resident to form an LLC. Plus, it has low formation fees.
Nevada doesn’t have state income taxes, which is a big draw for many business owners.
Wyoming is known for its low fees and privacy protections for business owners.

However, if you plan to do business in a specific state, you may need to register your LLC there. In that case, it’s often cheaper and simpler to form an LLC in the state where your business will operate.

Step 3: Appoint a Registered Agent

Every LLC in the U.S. must have a registered agent. This is a person or business that will receive legal documents (like court papers) on behalf of your LLC. The registered agent must have a physical address in the state where your LLC is formed.

As a non-U.S. resident, you might not be physically located in the U.S., so you’ll need to hire a registered agent service.

These services typically cost anywhere from $100 to $300 per year. They’ll ensure that your LLC stays in good standing by handling legal notifications and documents.

Step 4: File the Articles of Organization

This is the official paperwork you need to file to create your LLC. It’s called the Articles of Organization (or sometimes Certificate of Formation or Certificate of Organization, depending on the state). This document includes basic information about your LLC, such as:

The name of the LLC
The address of the LLC
The name and address of the registered agent
The members (owners) of the LLC

Once you file the Articles of Organization with the state, you’ll usually have to pay a filing fee. The fee ranges from about $50 to $500 depending on the state. Filing online is usually the quickest and easiest way.

Step 5: Create an Operating Agreement

While this isn’t required in every state, it’s a good idea to create an Operating Agreement for your LLC. This document outlines how your LLC will be run, how profits and losses will be shared, and how decisions will be made.

Even if you’re the only owner of your LLC, an Operating Agreement helps establish the rules for your business and shows that you’re serious about your LLC.

Step 6: Get an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is like a Social Security number for your business. You’ll need an EIN to open a business bank account, hire employees, and file taxes.

The IRS (Internal Revenue Service) issues EINs, and the good news is that as a non-U.S. resident, you can apply for an EIN online through the IRS website, even if you don’t have a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).

Applying for an EIN is free, and it can usually be done in about 15 minutes.

Step 7: Open a U.S. Business Bank Account

Once you have your LLC and EIN, the next step is opening a U.S. business bank account. This can be a little tricky for non-U.S. residents, but it’s definitely possible. Some banks may require you to visit in person, while others may allow you to open an account online. Keep in mind that U.S. banks generally ask for documents such as:

Your LLC’s Articles of Organization
Your LLC’s Operating Agreement (if you have one)
Your EIN
Proof of identity (such as a passport)

It’s a good idea to check with the bank ahead of time to see what specific documents they require. Some banks, like Mercury or Wise, offer online accounts for non-U.S. residents, making the process easier.

Step 8: Comply with Ongoing Requirements

Once your LLC is up and running, there are a few ongoing obligations to keep in mind. For example:

Annual Report: Some states require you to file an annual report and pay an annual fee.
State Taxes: If you’re doing business in a particular state, you may need to file state taxes. Be sure to check the tax requirements in the state where your LLC is formed.
Federal Taxes: As a non-U.S. resident, you’ll still be required to file taxes with the IRS, even if you don’t live in the U.S. You may need to consult with a tax professional to make sure you comply with all U.S. tax laws.

FAQs

Can a non-U.S. resident own an LLC in the U.S.?

Yes, non-U.S. residents can own and operate an LLC in the U.S. You don’t need to be a U.S. citizen or resident to set up an LLC.

Do I need a U.S. address to form an LLC?

No, you don’t need a U.S. address to form an LLC. However, you’ll need a registered agent with a physical address in the state where you’re forming the LLC.

Can I open a U.S. bank account as a non-resident?

Yes, you can open a U.S. business bank account as a non-resident, though the process can vary by bank. Some banks may require you to be physically present, while others may allow online account opening.

Conclusion

Starting an LLC in the U.S. as a non-U.S. resident is completely doable, and it could be one of the best decisions you make for your business.

From choosing the right state to filing the right forms, the process is straightforward, and the benefits are plenty.

If you’ve made it this far, you probably have a pretty good understanding of the steps involved. But one big question remains: Is starting an LLC in the U.S. the right move for you?