Starting a Business in the USA as a Foreigner — The Remote Guide

The USA is the world's largest market — and one of the easiest places to incorporate: you can set up a US company fully remotely and without US residency, often within days. This guide explains what you actually need (and which tax traps to avoid).

The short version

1. Choose a legal form: almost always LLC, or C-Corp if VC funding is planned
2. Choose a state: usually Wyoming or Delaware
3. Appoint a registered agent (mandatory in all 50 states)
4. File the formation documents
5. Apply for an EIN (tax ID)
6. Open a business bank account
7. Sort out tax and compliance obligations

Step 1: LLC or C-Corp?

LLC: Liability protection plus tax transparency — profits are taxed only at owner level. Minimal formalities. The right choice for most international founders. Details in our LLC guide.

C-Corp: The classic corporation with shares and a board. Required if you plan to raise US venture capital. Downside: double taxation. All US entities are compared in our entity types overview.

Step 2: The registered agent — your mandatory address

Every US company needs a registered agent in its formation state: a person or company with a physical address that receives official mail (lawsuits, government notices, tax documents) and forwards it to you.

As a founder without a US address, you can't take this role yourself. Clevver provides a registered agent service in all 50 states — with digital forwarding of every document to your dashboard.

Step 3: Apply for an EIN

The Employer Identification Number is your company's tax ID — without it there's no bank account, no tax filing, no employees.

As a foreigner without a US social security number, you apply for the EIN directly with the IRS using Form SS-4 (fax or phone). Timeframe: a few days to several weeks.

Step 4: Open a bank account

The biggest practical hurdle for remote founders. Digital US banks like Mercury or Relay open accounts for foreign founders remotely — you'll typically need formation documents, the EIN confirmation, and a passport copy.

The tax side: substance and double taxation

This is where international founders make the most expensive mistakes:

Economic substance: The foreign tax law of your home country (in Germany: AStG) requires the US company to have real economic activity. A pure letterbox company without substance gets attributed to you personally for tax purposes.

Where is tax paid? If revenue is actually generated in the USA, the company pays tax there. If you live and work from Europe, the double taxation agreement usually applies — and the permanent establishment can "migrate" to your home country.

Our clear recommendation: involve a tax advisor with international expertise before forming. Fixing the structure afterwards costs many times more.

Choosing a state

| State | Strength | Concerns | |---|---|---| | Wyoming | cheap (~$60/year), anonymous | less known among investors | | Delaware | the standard for investors & C-Corps | franchise tax, $300+/year | | New Mexico | no annual reports | little infrastructure |

Rule of thumb: Wyoming for the cost-conscious, Delaware for investor cases.

Don't underestimate ongoing obligations

• Annual report / franchise tax in the formation state
• Federal tax filing with the IRS (even at zero revenue! For foreign-owned single-member LLCs: Form 5472 + 1120 — missing it costs a $25,000 penalty)
• Registered agent renewal every year
• Possibly BOI reporting (beneficial ownership) under the Corporate Transparency Act

FAQ

Do I need a visa to own a US company? No. Owning and managing an LLC/corporation from abroad is legal without a visa. Only working inside the USA requires a work visa.

How fast am I operational? Formation: 1–5 business days depending on the state. With EIN and bank account: realistically 2–6 weeks.

What does the setup cost? State fee ($50–500) + registered agent (~$50–150/year) + optional formation service. Total starting budget: from roughly $300–800.

Still have questions about your US formation? Our team handles formation, registered agent, US business address, and compliance from one source — get in touch.