Non-residents can form and own a US LLC. Doing so is one of the cleanest ways to access US payment rails, sell to US customers, and operate under a globally recognized legal structure — often with zero US federal income tax if structured correctly. This guide is the complete operational playbook.
Why a US LLC for non-residents
- Banking and payments: Stripe, PayPal, Mercury, Wise, and Relay all accept US LLCs owned by non-residents.
- Credibility: US enterprise customers often prefer or require a US counterparty for procurement.
- Tax neutrality: A single-member US LLC owned by a non-resident with no US-source effectively connected income generally owes no US federal income tax.
- Privacy: Wyoming and Delaware allow anonymous member listings.
Choose a state
For 99% of non-resident founders, the choice is between Wyoming and Delaware. Wyoming wins on cost ($62 vs $300 annual), privacy (members never on public record), and asset protection (charging-order exclusive remedy). Delaware wins only if you plan to raise venture capital — in which case investors usually want a C-Corp, not an LLC, anyway. See our side-by-side comparison.
Step-by-step formation
- Hire a registered agent. Northwest Registered Agent and ZenBusiness both serve non-residents. Budget $50-$125/year.
- File Articles of Organization. Wyoming and Delaware accept online filings. Approval typically in 1-3 business days.
- Draft an Operating Agreement. Even for a single-member LLC, this reinforces the corporate veil.
- Apply for an EIN. Without an SSN, you must fax or mail Form SS-4. Plan for 4-6 weeks.
- Open a US business bank account. Mercury, Relay, or Wise Business.
- File the FinCEN BOI report within 90 days.
- Set up Stripe (or another payment processor) using your EIN and bank account.
Getting an EIN without an SSN
The IRS online EIN application requires an SSN or ITIN. Non-residents must use Form SS-4, faxed to the international fax line. On line 7b, write "Foreign." Sign in capacity as "Member" or "Manager." The IRS will fax back the CP-575 letter with your EIN in 4 weeks; mail responses can take 8-12 weeks. Do not use third-party services that charge $300+ — the form is free and straightforward.
Opening a US bank account
Mercury and Relay are 100% online and accept most countries. You will need:
- EIN confirmation letter (CP-575)
- Filed Articles of Organization
- Operating Agreement
- Passport scan
- Sometimes: utility bill from your home country
Mercury verifies in 1-3 business days. Once approved, you can wire funds in, accept ACH and wire payments, and connect to Stripe.
Federal tax filings you cannot skip
A foreign-owned single-member LLC is treated as a "disregarded entity" for tax purposes but is subject to special reporting:
- Form 5472 + pro-forma Form 1120 annually. Required even if there is zero US income. The penalty for failing to file is $25,000.
- BOI report with FinCEN within 90 days of formation. $591/day penalty for noncompliance.
- Form 1040-NR only if you have US-source effectively connected income (ECI). Most SaaS sold globally from outside the US is not ECI.
What is "effectively connected income"?
ECI is income from a US trade or business. Selling SaaS to US customers from your home country is generally not ECI if you have no US office, no US employees, and no US dependent agents. Storing inventory in a US warehouse, hiring US contractors who substantially perform the work, or maintaining a US office can create ECI and trigger US tax. When in doubt, consult a US international tax CPA.
State income tax for non-residents
State tax follows nexus, not formation. A Wyoming LLC owned by a German resident, selling globally with no US presence, generally owes no state tax. Add US employees in California, however, and California will tax the LLC's California-sourced income.
The most expensive mistakes non-residents make
- Using third-party EIN services that charge $300+ for free forms
- Missing the Form 5472 filing in year one ($25k penalty)
- Missing the BOI report ($591/day)
- Choosing Delaware because it "sounds professional" and paying $238 more per year than Wyoming for no benefit
- Forming through a service that auto-bills $200+/year for a registered agent when Northwest charges $125
- Using personal funds to pay LLC expenses, weakening the corporate veil