Forming a U.S. LLC as a Non-Resident: A Practical Guide for Business Owners
Forming a limited liability company (LLC) is one of the most accessible ways for foreign nationals to establish an incorporation in the U.S. A limited liability company combines liability protection with flexible taxation, making it a popular business structure for both US residents and non-residents. Plus, it’s one of the prerequisites for non-resident aliens to obtain an EIN and business bank account, both of which are critical elements of conducting business with U.S-based clients.
If you are a non-resident alien, you do not need to be a US citizen, hold a visa, or have a social security number to open an LLC. However, forming and maintaining a US business entity comes with specific compliance, tax, and documentation requirements. This guide walks through each step, from filing your articles of organization to handling ongoing US tax obligations.
Access to US financial infrastructure is no longer limited to businesses with a US-registered LLC. With the Slash Global USD Account, you can access the US dollar without forming a US entity or opening a traditional US bank account.³ The account allows you to hold, send, and receive USD transfers using modern digital payment infrastructure; you can open an account today and utilize USD at a lower monthly cost than forming and maintaining an LLC. Continue reading to learn more.
This guide is informational and does not constitute legal or tax advice. Laws and regulations change. Consult qualified professionals for advice specific to your situation.
Can non-U.S. residents open an LLC in the United States?
Foreign nationals who are neither US citizens nor resident aliens can legally form and own LLCs in the United States. You do not need a visa, green card, or US residency to open an LLC. There are no citizenship or residency restrictions on LLC members, and ownership can be held by individuals or foreign entities.
Despite the relative flexibility, LLCs must still comply with state formation rules, obtain an Employer Identification Number (EIN) from the IRS, and meet federal tax and reporting requirements—regardless of who forms them.
Opening a U.S. LLC as a non-resident: Step-by-step guide
Forming a U.S. LLC as a non-resident involves a series of administrative and tax-related steps. While the process is manageable, each stage has specific requirements that can affect compliance, banking access, and taxation. Here’s how to get started:
Step 1: Choose the best state for your LLC
When forming an LLC, you must choose a state where your business entity will be registered. This state becomes your LLC’s legal home, even if you operate elsewhere. The two most common choices for non-residents are:
- Delaware: Delaware is the traditional choice for businesses that anticipate outside investment, venture capital, or eventual conversion to a corporation. There is no state income tax on income earned outside Delaware, no requirement to list member names in public filings, and a long history of established case law. Filing fees cost ~$90, and LLCs pay a flat franchise tax of $300/year.
- Wyoming: Wyoming has become the preferred state for non-residents who want simplicity and low costs. There is no state income tax or franchise tax, along with minimal public disclosure requirements. Filing fees are ~$100 with around ~$60/year in annual fees.
Step 2: Select and register your LLC name
Your LLC name must be distinguishable from other registered businesses in the state and must include either “LLC” or “Limited Liability Company.” You can check name availability through the Secretary of State’s website in your chosen state before filing.
Step 3: Hire a registered agent
Every US LLC is legally required to designate a registered agent in its formation state. A registered agent is an individual or registered agent service with a physical address in the state who is available during business hours to receive legal documents and official government correspondence. Registered agent services typically cost between $50 and $300 per year, depending on the provider.
Step 4: File your articles of organization
The articles of organization (called the "certificate of formation" in some states) is the founding legal document that creates your LLC. You file it with the state's Secretary of State office, pay the filing fees, and your LLC legally exists once approved. Some typical information required in articles of organization includes:
- LLC name (must include "LLC" or "Limited Liability Company")
- Registered agent name and address
- Organizer name and signature (can be you, from anywhere in the world)
- Member-managed vs. manager-managed designation (optional in some states)
- Effective date
Many states allow online filing with processing times ranging from same-day (with expedited fees) to several weeks. Wyoming and Delaware are both relatively fast, with approvals often processing within a few business days for standard filings.
Step 5: Create an operating agreement
An operating agreement is the internal governance document for your LLC. It is not always legally required to file with the state, but it is essential for any LLC with more than one member, and strongly recommended even for single-member LLCs. The operating agreement defines:
- Ownership percentages among LLC members
- How profits and losses are allocated
- Voting rights and decision-making procedures
- What happens if a member wants to leave or sell their interest
- Rules for admitting new members
- Dissolution procedures
US banks often require an operating agreement to open a business bank account. Operating agreements can also help establish clear separation between personal and business finances, which is important for maintaining limited liability protection.
Step 6: Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a taxpayer identification number issued by the IRS used to identify a business entity for federal tax purposes. You typically need an EIN to:
- Open a business bank account
- File tax returns
- Hire employees (if applicable)
- Pay certain vendors who require a W-9
Non-resident aliens without a social security number (SSN) or Individual Taxpayer Identification Number (ITIN) cannot use the IRS’s online EIN application portal. Instead, they must:
- Complete IRS Form SS-4
- Submit the form by fax or by mail
- Or call the IRS International line at +1-267-941-1099
Form SS-4 has a line specifically for foreign applicants. Write "Foreign" in the SSN field if you do not have one.
Step 7: Open a U.S. bank account
Keeping business finances separate from personal income helps preserve your limited liability company’s protections and supports accurate accounting records. Opening a business bank account can be one of the more challenging steps for non-residents, since many traditional banks require an in-person visit.
With Slash, you can apply online in about 20 minutes for an FDIC-insured business checking account, high-cashback charge cards, and an integrated treasury account, even if you are located outside of the United States.¹, ², ⁶ For details on eligibility and application requirements, visit our help center.
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Step 8: Handle ongoing state and federal tax and reporting obligations
Tax obligations for a non-resident-owned LLC depend on the nature of the business, where it operates, and whether the United States has a treaty with your home country. US tax rules vary based on structure and activity, but the following concepts shape most filing requirements:
- Default federal taxation: A single-member LLC is treated as a disregarded entity by default. The LLC does not pay federal tax itself, and income flows through to the owner’s tax return. A multi-member LLC is treated as a partnership unless it elects to be taxed as a corporation.
- Effectively connected income: If income is effectively connected to a US trade or business, it is generally subject to federal tax and reporting requirements. Income that is not effectively connected may be taxed differently or may not be subject to US federal tax, depending on the facts.
- Tax treaties: If your home country has a tax treaty with the United States, the treaty may reduce or eliminate certain US tax obligations. Eligibility depends on residency status and the type of income involved.
Because these rules affect how income is reported and how taxes are calculated, many non-resident LLC owners should consult professionals familiar with US tax laws and international compliance before filing.
Benefits of forming a U.S. LLC from outside of the United States
Forming a US LLC does not guarantee advantages in every situation, but it can provide structural and operational benefits for certain businesses. Below, we list some of the possible benefits of forming an LLC, as well as some important considerations to keep in mind before getting started:
Accessible Structure, With Costs That Vary by Situation
Forming an LLC is procedurally straightforward, since most states allow online filing of articles of organization and publish clear formation requirements. In states like Wyoming and Delaware, base filing fees are relatively modest compared to forming a corporation.
That said, total costs can add up. In addition to filing fees, LLC owners typically pay for a registered agent service, annual state fees or franchise tax, potential business licenses, and professional support for tax and compliance matters. For non-residents in particular, obtaining an EIN, opening a US business bank account, and meeting federal reporting requirements can make the process more time-consuming and, in some cases, more expensive than it initially appears.
Increased credibility and access to U.S. financial infrastructure
A US LLC can make it easier to work with US-based clients, vendors, and payment processors. Some platforms and service providers prefer or require a US business entity, EIN, and US business bank account. Operating through a US limited liability company can also signal stability and familiarity to American customers who are accustomed to contracting with domestic businesses.
Access to U.S. brokers and investment platforms
A US LLC may allow you to open accounts with US brokerage firms to trade US stocks, bonds, or derivatives. Some brokers require a US business entity and EIN before approving certain types of accounts. Access to US financial markets can be relevant for businesses that hold investments, manage treasury assets, or engage in financial trading activities.
Best practices for overseeing a U.S. LLC as a non-resident
After formation, ongoing oversight will determine whether your LLC remains in good standing. Additionally, non-resident owners can face additional cross-border tax and reporting obligations that may require heightened attention. Here are some things to keep in mind as you set up and maintain your US LLC:
Understand Whether Income Is Effectively Connected
Tax obligations depend in part on whether the LLC earns income that is effectively connected to a US trade or business. Effectively connected income is generally subject to US federal tax and reporting requirements, while other types of income may be taxed differently. Because classification affects how you pay taxes and file a tax return, many non-resident LLC owners seek guidance from professionals familiar with US tax laws and treaty rules.
Comply With Form 5472 Requirements
Foreign-owned single-member LLCs that are treated as disregarded entities are generally required to file Form 5472 with the IRS. This form reports certain transactions between the LLC and its foreign owner. Penalties for failing to file Form 5472 can be substantial, even if no federal tax is owed. Accurate and timely reporting supports ongoing compliance.
Choose the Right State for Your Goals
Wyoming is often the most cost-efficient option for non-residents due to low filing fees, no state income tax, and minimal annual costs. Delaware is commonly used by companies that anticipate outside investment or plan to convert into a corporation. The choice of state affects franchise tax, annual report requirements, and long-term business strategy.
Maintain Your Registered Agent and Annual State Filings
Every LLC must maintain a registered agent with a physical address in its formation state. Annual fees, franchise tax where applicable, and required annual reports must also be filed on time. If an LLC falls out of good standing or is administratively dissolved, restoring it can involve additional filing fees, penalties, and potential tax complications.
Keep Business and Personal Finances Separate
Limited liability protection depends on maintaining separation between personal and business finances. Using a dedicated business bank account and avoiding commingling funds supports the legal distinction between the LLC and its owners. Clear financial separation also simplifies accounting and tax reporting.
Consider Home Country Tax Obligations
Forming a US LLC does not eliminate tax responsibilities in your country of residence. Depending on local tax laws, you may still owe tax on worldwide income or have reporting obligations related to foreign ownership. In some cases, a tax treaty between the United States and your home country may affect how income is taxed. Evaluating both US tax and local tax laws helps clarify whether a US business structure aligns with your overall financial situation.
Skip the hassle of LLC formation with the Slash Global USD account
If setting up a US LLC seems overly complicated, expensive, or compliance-heavy, your concern is understandable. The Slash Global USD Account is designed as an alternative for foreign founders who want access to USD without forming a US entity.
The Global USD Account uses cryptocurrency infrastructure to provide an alternative to traditional US banking. Balances are backed by Slash’s USDSL stablecoin, which is matched one-to-one in value with the US dollar. Instead of managing crypto exchanges or private wallet keys yourself, Slash handles the technical components in the background. What you see is a familiar banking dashboard that allows you to hold, send, and receive US dollars for a low monthly fee.
If you later decide to form a US LLC and obtain an EIN, Slash also supports fully incorporated businesses. Once you have your employer identification number and formation documents, you can apply to access the full Slash business banking platform, which includes:
- Slash Visa Platinum Card: Earn up to 2% cash back on company spending (only in the U.S.), issue unlimited virtual cards, and set granular controls to restrict spending by category, merchant, or limit.
- Diverse payment methods: Send global ACH and wire transfers to more than 180 countries and move money domestically in real time through RTP and FedNow. Pro users pay no additional per-transaction fees.
- High-yield treasury: Earn 3.83% APY on idle cash through treasury accounts backed by Morgan Stanley and BlackRock money market funds.
- Native cryptocurrency support: Hold, send, and receive USD-pegged stablecoins such as USDC and USDT across eight supported blockchains for faster, lower-cost global payments.⁴
- Separate virtual accounts: Create multiple accounts to separate funds by project, department, or client, with real-time visibility across balances.
- Accounting integrations: Sync transactions directly with QuickBooks to keep records updated automatically.
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Frequently asked questions
Do I need to visit the U.S. to form an LLC?
No. Non-residents can form a limited liability company without traveling to the United States. You can file your articles of organization online, hire a registered agent with a physical address in the formation state, and apply for an EIN from the IRS remotely. However, some traditional banks may require an in-person visit to open a business bank account.
The Complete Guide to LLC Expenses and Tax Deductions
How long does it take to form an LLC as a non-resident?
State approval for the articles of organization can take anywhere from a few business days to several weeks, depending on the state and whether expedited processing is used. However, the full setup process often takes longer. Obtaining an EIN from the IRS, opening a US business bank account, and addressing compliance or documentation requirements can extend the timeline to several weeks or even a few months.
