How foreigners can open an LLC in the U.S.
Introduction
The United States remains one of the most attractive destinations for global entrepreneurs. From e-commerce sellers to digital freelancers, more and more foreigners are forming U.S. LLCs to access the American market, payment systems, and investor credibility.
The good news? You don’t need to be a U.S. citizen or even live in the United States to open an LLC. This guide explains the process, requirements, costs, and common mistakes to avoid when setting up your company as a non-resident.
Can a Foreigner Open an LLC in the U.S.?
Yes. U.S. law does not restrict foreigners from owning or open and managing an LLC. You don’t need a Social Security Number (SSN) or U.S. residency.
What you do need:
- A registered agent with a U.S. address.
- Articles of Organization filed in the state of your choice.
- An EIN (Employer Identification Number) from the IRS.
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IRS – LLC Basics
Why Foreign Entrepreneurs Choose an LLC
- Simplicity: LLCs require less paperwork than corporations.
- Flexibility: Can be single-member or multi-member.
- Tax transparency: Profits pass through to owners; no corporate tax at federal level unless you elect otherwise.
- Credibility: A U.S. business entity builds trust with clients and partners worldwide.
- Access to payment systems: Stripe, PayPal, and U.S. banks require a registered U.S. business.
“LLC vs Corporation: Which Is Better for Entrepreneurs?”
Best States for Foreigners to Form an LLC
Wyoming
- Low annual fees ($60).
- Strong privacy protection.
- No state income tax.
Delaware
- Preferred by startups and investors.
- Court of Chancery (business-friendly legal system).
Florida
- Popular for e-commerce businesses.
- Large international community and banking ecosystem.
Step-by-Step: How to Open a U.S. LLC as a Foreigner
Step 1: Choose Your State
Select based on business needs:
- Wyoming = privacy + low cost.
- Delaware = investor credibility.
- Florida = local presence for e-commerce.
Step 2: Hire a Registered Agent
U.S. law requires every LLC to have a registered agent with a physical address in the state. This agent receives legal documents on your behalf.
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Step 3: File Articles of Organization
Submit your LLC formation documents to the Secretary of State. Filing fees vary ($100–$150 on average).
Wyoming Secretary of State – Business Filing.
Step 4: Obtain an EIN (Employer Identification Number)
Required for:
- Opening a U.S. bank account.
- Hiring employees.
- Paying federal taxes.
Foreigners without SSNs can still apply by mailing Form SS-4 or calling the IRS.
Step 5: Open a U.S. Bank Account
This can be tricky for foreigners, but there are options:
- Traditional banks (may require in-person visit).
- Online fintech banks like Mercury or Relay (accept foreign founders).
Step 6: Stay Compliant
Even as a non-resident, you must:
- File annual reports with your state.
- Pay state filing fees.
- File federal tax returns if required.
Common Mistakes Foreigners Make
- Choosing the wrong state (e.g., California with high fees).
- Not drafting an Operating Agreement (weakens liability protection).
- Mixing business and personal funds.
- Ignoring tax obligations in both the U.S. and home country.
Why Every LLC Needs an Operating Agreement.
Costs of Forming an LLC as a Foreigner
| Item | Estimated Cost |
| State filing fee | $100–$150 |
| Registered agent | $50–$100/year |
| EIN (IRS) | Free |
| Bank account setup | Varies |
FAQ
Q: Do I need to travel to the U.S. to open an LLC? No, most states allow foreigners to form an LLC online. Some banks, however, require a physical visit.
Q: Can a foreigner be the sole owner of a U.S. LLC?
Yes. You can be 100% owner.
Q: Do I need a U.S. mailing address?
No, only a registered agent’s address in the state is required.
Conclusion
For global entrepreneurs, forming a U.S. LLC is one of the smartest moves to access the American market, payment systems, and international credibility. The process is straightforward, but success depends on choosing the right state, staying compliant, and keeping business finances separate.
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