Forming an LLC in the USA — Step-by-Step Guide for Non-Residents

An LLC (Limited Liability Company) is the most popular business structure in the USA — and it's open to non-US citizens too. This guide walks through the entire process: from choosing a state to opening a bank account.

What is an LLC?

The LLC combines the best traits of two company types:

• Limited liability like a corporation (comparable to a GmbH)
• Tax transparency like a partnership (profits flow directly to the members)

The result: maximum flexibility with minimal formalities — ideal for founders, freelancers, investors, and international entrepreneurs.

Advantages of an LLC

Liability protection: Members are liable only up to their contribution, not with private assets.

Tax benefits: LLCs are pass-through entities by default — profits are taxed at member level, not twice as with corporations. Alternatively, you can elect corporate taxation.

No minimum capital requirement: You can start with as little capital as you like.

Privacy: Some states (e.g. Wyoming, Delaware) allow anonymous LLC formations — your name doesn't appear in the public register.

Open to non-residents: US citizenship or residency is not required.

Which US state is best?

Three states dominate for international founders:

| State | Advantages | Disadvantages | |---|---|---| | Delaware | Strongest corporate law, investor-friendly, no disclosure | $300 annual fee, franchise tax | | Wyoming | Lowest fees (~$52/year), maximum privacy | Less known among investors | | New Mexico | No annual report requirement, cheap | Less infrastructure |

Recommendation for most international founders: Wyoming for cost efficiency and privacy, Delaware if investors or US clients are critical.

Step by step: forming an LLC

1. Choose a state

Consider: annual fees, privacy laws, tax requirements, and whether you'll operate physically in the state.

2. Register the name

The LLC name must be unique in the chosen state and contain "Limited Liability Company", "LLC", or "L.L.C.". Check availability in advance via the state's business database.

3. Appoint a registered agent

Mandatory in all 50 states: Every LLC needs a registered agent — a person or company with a physical address in the formation state that accepts official service of process.

As a foreign founder you can't take this role yourself — you need a professional registered agent service.

4. File the Articles of Organization

The core document of the LLC formation contains:

• Name and address of the LLC
• Name of the registered agent
• Business purpose
• Member structure

Filed directly with the Secretary of State of the chosen state.

5. Create an Operating Agreement

The LLC's internal rulebook — not always legally required, but essential for:

• Profit distribution
• Decision-making processes
• Members joining or leaving

6. Apply for an EIN

The Employer Identification Number (EIN) is the LLC's tax ID — necessary for bank accounts, tax filings, and hiring employees.

As a non-resident: Apply directly with the IRS by fax (Form SS-4) or by phone.

7. Open a business bank account

Without being present in the US, opening an account is challenging. Options:

• Mercury, Relay, Bluevine: Digital US banks that open accounts remotely
• Wise Business: Not a regular bank account, but includes US bank details

Ongoing obligations

| Obligation | Frequency | Cost | |---|---|---| | Annual report / franchise tax | Yearly | $50–$300 depending on state | | Registered agent service | Yearly | ~$50–$150 | | Federal tax return (1065/1120) | Yearly | Tax advisor fees |

Bottom line

Forming a US LLC is easier for non-residents than you'd think — with the right service it's done in a few days. The crucial step: a reliable registered agent who receives and forwards all official mail.