How to Register a U.S. Business as a Non-Resident: A Practical Guide for Foreign Founders
Whether you're running a business from abroad with no intention of moving, actively planning to relocate to the United States, or somewhere in between, starting a new business in the United States requires careful planning. Your business structure affects how you pay taxes, whether you can open a business bank account, how you obtain an EIN, and your personal liability exposure.
This guide explains how non-residents can form a U.S. business entity, obtain an employer identification number, comply with IRS requirements, and choose the right legal structure for their goals. If you’re reading this guide, then your goals are probably twofold: operate in U.S. dollars and work with American customers. Traditionally, that required forming a U.S. business entity, filing articles of organization or incorporation, obtaining an EIN, appointing a registered agent, and opening a business bank account. That process can be time-consuming and expensive.
Today, there are alternative paths. The Slash Global USD Account allows non-residents to hold, send, and receive U.S. dollars without forming a U.S.-registered LLC or opening a traditional bank account.³ Depending on your type of business and long-term plans, this can provide access to U.S. financial infrastructure without the full setup and maintenance obligations of incorporation. 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.
Step-by-step: Registering a U.S. business as a non-resident
If you are a foreign entrepreneur, setting up a U.S. business can feel unfamiliar at first. Approaching the process step by step helps bring structure to what might otherwise seem complicated, since each decision builds on the last. Here’s how to get started:
Step 1: Choose the right business structure
Your business structure determines liability protection, tax treatment, reporting requirements, and eligibility for investors. Here are four common business structures used in the US:
Sole proprietorship
A sole proprietorship is the simplest US business structure. There is no separate legal entity, you operate under your own name or a DBA, and all profits and losses flow directly to you.
For non-residents, however, this structure is rarely ideal. There is zero liability protection, and business income is tied directly to your personal tax situation. It can also be difficult to open a traditional business bank account without a Social Security number—Slash is one of the few financial providers that offers USD access for sole proprietors without an SSN. Regardless, many foreign entrepreneurs tend to choose a different structure.
Limited Liability Company (LLC)
A limited liability company is typically the most common choice for foreign founders. There is no citizenship, residency, visa, or green card requirement to form an LLC. Non-residents with an LLC can obtain an EIN, open a business bank account, and operate entirely from abroad.
An LLC is a separate legal entity that protects your personal assets from business debts and lawsuits. By default, a single-member LLC is treated as a pass-through entity for tax purposes, meaning profits and losses flow directly to the owner(s).
To form an LLC, you will need to file articles of organization with the state, appoint a registered agent, and typically create an operating agreement. Setup costs vary by state, and approval is not guaranteed. Processing times can range from days to weeks, and sometimes longer depending on the state and banking setup.
How to Form an LLC in the U.S. as a Non-Resident in 2026
C-Corporation
A C-Corporation is a separate legal entity that pays its own corporate income taxes. Shareholders then pay personal income tax on dividends, which is referred to as "double taxation". C-Corps are the required structure for companies seeking venture capital, issuing stock options, or preparing to eventually go public.
However, C-Corps have more ongoing formalities and legal document requirements than LLCs: board meetings must be documented, major decisions require board approval, and the separation between the company and its shareholders must be maintained carefully or personal liability can be pierced.
S-Corporation
An S-Corporation is actually a tax election, not a separate business structure. In short, S-Corps avoid double taxation; income passes through to shareholders' personal returns, while potentially offering tax savings for self-employed individuals.
But S-Corp status is not available to non-resident aliens. Period. IRS rules restrict S-Corp shareholders to US citizens and resident aliens (green card holders or those meeting the substantial presence test).
Step 2: Select a state and register your business
You must choose a US state for incorporation or LLC formation. The most common options include:
- Delaware: Delaware is popular for corporations seeking investors due to its well-developed corporate law system. It charges a franchise tax, typically at least $300 per year for corporations.
- Wyoming: Wyoming has no state income tax and no franchise tax. Annual fees are relatively low, often starting around $60 per year. It is a common choice for small business owners who do not need investor-friendly corporate law.
- Nevada: Nevada offers strong liability protection and no state income tax, though fees are generally higher than Wyoming.
Generally, to register a business in one of these states, you will need to choose a business name, appoint a registered agent with a physical address in the state. file articles of organization for an LLC or articles of incorporation for a corporation, and pay state filing fees.
Step 3: Obtain an EIN and set up a U.S. bank account
Once your business entity is registered, the next step is to obtain an employer identification number (EIN) from the IRS and open a U.S. business bank account. An EIN is required to open a business bank account, process payments, hire employees, and complete most financial paperwork for your company.
If you plan to operate entirely from abroad, your process will typically look like this:
- Form a limited liability company (LLC)
- Obtain an EIN by submitting Form SS-4 to the IRS
- Open a U.S. business bank account (without in-person account opening requirements)
- Ensure you can meet ongoing federal filing requirements
Opening a traditional business bank account can be challenging without a U.S. physical address or in-person verification, as many banks require in-person verification or an SSN for account opening. You can apply for a Slash business bank account entirely online using your EIN and basic incorporation details.¹ If your business is already registered in the U.S., the application process can take as little as 20 minutes.
The standard in finance
Slash goes above with better controls, better rewards, and better support for your business.
Step 4: Understand your tax obligations and compliance requirements
Your tax obligations depend on your business structure and whether you are classified by the IRS as a non-resident or resident alien.
Non-residents are generally taxed only on income effectively connected to a U.S. trade or business, but foreign-owned LLCs still typically must file legal documents like Form 5472 and a pro-forma Form 1120 each year, even if no tax is owed. If you become a resident alien by obtaining a green card or meeting the substantial presence test, you are taxed on worldwide income and may face additional reporting requirements for foreign accounts and assets.
You will probably need a CPA or tax attorney familiar with international taxation, not a general-purpose accountant. The intersection of U.S. entity taxation and your home country’s tax laws is where expensive mistakes happen, particularly when determining how to report income, pay taxes, and comply with IRS filing requirements.
Immigration and visa considerations
Your tax obligations, banking access, and compliance requirements change significantly depending on whether you remain in your home country or move to the United States. These differences can substantially affect your effective tax rate and determine which structures are legally available to you. Here’s what you need to know:
How tax status changes depending on where you live
The IRS classifies individuals into three categories, and your classification determines how you pay taxes and what you must report:
- Non-resident alien: An individual who is not a U.S. citizen and does not meet the green card test or the substantial presence test. This is the default status for most non-residents living abroad. If you are living in the United States on a visa but have not yet met the substantial presence test, you may still be treated as a non-resident for tax purposes.
- Resident alien: A non-citizen who either holds a green card or meets the substantial presence test, generally meaning 183 days in the United States using a weighted formula. Resident aliens are taxed the same as U.S. citizens on worldwide income.
- US citizen: Taxed on worldwide income regardless of where they live, with foreign tax credits and treaty provisions available to reduce double taxation.
What to know if you’re operating from outside the U.S.
As a non-resident alien, you are generally taxed only on income that is effectively connected to a U.S. trade or business, as well as certain U.S.-source passive income such as dividends, interest, or rents. If your foreign business simply uses a U.S. LLC as a holding company and has no U.S. employees, no U.S. warehouse, and no services performed in the United States, it may not be subject to U.S. income tax under current law. However, this area is nuanced and requires professional guidance.
Even if no tax is owed, foreign-owned LLCs typically must file Form 5472 along with a pro-forma Form 1120 each year. The penalty for failure to file can start at $25,000 per year.
Opening a U.S. business bank account from abroad can also be difficult, as many traditional banks require in-person identity verification and a U.S. physical address. Slash requires neither for its full business banking platform, requiring just your EIN, incorporation details, and an online application to start. Or, if you don’t have a registered US incorporation, the Slash Global USD account can give foreign founders USD access without the need for a US corporate structure or bank account.³
The standard in finance
Slash goes above with better controls, better rewards, and better support for your business.
Immigrating to the U.S.: What changes
From the first day you become a resident alien, whether by receiving a green card or meeting the substantial presence test, the IRS taxes you on worldwide income, not just U.S.-source income. This applies even if you originally entered the country on a visa and later met the residency threshold. At that point, you are generally taxed under the same rules as U.S. residents and U.S. citizens.
Worldwide taxation includes foreign bank accounts, foreign business income, foreign rental income, and foreign investments. You may also have additional reporting obligations, including:
- If your foreign bank accounts exceed $10,000 in aggregate at any point during the year, you must file FinCEN Form 114, also known as the Report of Foreign Bank and Financial Accounts (FBAR).
- If your foreign financial assets exceed certain thresholds, you may need to file Form 8938. For single filers living in the U.S., the threshold typically begins at $50,000, with higher limits for those living abroad.
Penalties for non-compliance can be significant, including fines of up to $10,000 per non-willful violation and substantially higher amounts for willful violations.
An LLC owned by a resident alien is taxed the same way as one owned by a U.S. citizen. Pass-through taxation applies, profits and losses flow to your personal Form 1040, and you are subject to income tax and potentially self-employment tax. Once you are no longer classified as a foreign owner, the Form 5472 filing requirement generally no longer applies.
How to decide if you need a U.S. business entity
Not every foreign business serving U.S. customers needs to form a U.S. business entity. Incorporation comes with setup costs, ongoing compliance requirements, registered agent fees, and annual state filings such as franchise tax reports. For some entrepreneurs, that structure is more than they actually need.
In certain cases, solutions like the Slash Global USD account can provide access to U.S. dollar banking infrastructure without forming a U.S.-registered LLC or corporation. However, if the considerations below apply to your business model, growth plans, or customer base, forming a U.S. legal entity may make sense for you:
Access to U.S. financial infrastructure
Forming a U.S. business entity makes it significantly easier to open a business bank account, process payments in U.S. dollars, and work with U.S.-based payment processors. If you serve American clients, having a registered company with an EIN can simplify contracts, invoicing, and receiving income.
Credibility with U.S. clients and partners
Many U.S. companies prefer to work with a registered LLC or corporation rather than a foreign sole proprietorship. A formal legal entity signals stability, provides clear legal documentation, and can make it easier to negotiate with vendors, customers, and service providers.
Raising capital and working with investors
If you plan to seek venture capital or bring on shareholders, a U.S. corporation, often a Delaware C-Corp, is typically the expected structure. Investors are familiar with U.S. incorporation standards, and having a recognized business structure can make fundraising more straightforward.
Potential tax efficiency
Depending on how your business is structured and where you live, operating through a U.S. limited liability company may offer clearer or more predictable tax treatment than operating informally. In some cases, it can also simplify how profits and losses are allocated and reported.
Simpler formation compared to other regions
In many cases, forming an LLC or corporation in states like Delaware or Wyoming is more straightforward than establishing a legal entity in parts of the EU or other large economic regions. Filing articles of organization or articles of incorporation can often be completed online with relatively low upfront costs and defined annual requirements.
Launch your business from abroad with Slash
Starting a business in the United States as a foreign founder can range from straightforward to complex, depending on your goals. Forming a corporation gives you access to the U.S.'s business and legal structures, but it also comes with ongoing compliance, reporting, and maintenance requirements. For some businesses, that structure is necessary. For others, the priority may just be the ability to operate in U.S. dollars and work with U.S. clients.
If you’re in the second group, the Slash Global USD Account provides a way for non-residents to hold, send, and receive USD without forming a U.S.-registered business entity or opening a traditional U.S. business bank account. The account runs on digital financial infrastructure, with balances backed one-to-one by Slash’s USDSL stablecoin. Slash manages the underlying technology so you do not need to handle crypto exchanges or private wallet keys yourself.
If you later decide to complete incorporation, obtain an EIN, and register your business formally, Slash also supports fully incorporated companies. Once you have your employer identification number and formation documents, you can apply for access to the broader Slash business banking platform, including corporate cards, global payment options, treasury features, and more:
- 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.⁶
- 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 a U.S. address to register a business as a non-resident?
You need a registered agent with a physical address in the state where your business is registered, but you do not need your own U.S. residential address. The registered agent’s address is used to receive legal documents and official government correspondence on behalf of your business entity.
How to Get a Business Credit Card with EIN Only: Modern Finance Solutions
How long does it take to set up a US company as a non-resident?
State approval for incorporation or LLC formation can take anywhere from a few days to several weeks, depending on the state and whether you pay for expedited processing. Obtaining an EIN and successfully opening a business bank account can extend the timeline, so in practice the full setup process may take several weeks or longer.
How do I close or dissolve my US company?
To dissolve a U.S. business entity, you must file formal dissolution paperwork with the state where the company was registered. You will also need to pay any outstanding franchise tax or state fees, file final tax returns with the IRS, cancel relevant licenses, and properly wind down the company’s financial accounts and legal obligations.
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