Best State to Form an LLC as a Non-US Resident
You do not need US citizenship, a green card, or even a US address to form an American LLC. Foreign founders form thousands of US LLCs every year, and the best states for non-US residents are Wyoming and Delaware, with Wyoming winning on cost and simplicity for most people.
But the state is only the first decision. Getting an EIN without a Social Security number, opening a US bank account from abroad, and handling US tax filings all come with their own quirks. This guide covers the full picture, from choosing the state to staying compliant afterward.
Can a Non-US Resident Legally Form an LLC?
Yes, completely legally. No state requires LLC owners to be US citizens or residents. You can own 100 percent of a US LLC while living anywhere in the world, and you do not need a visa or a US address to do it.
The one thing you do need is a registered agent with a physical address in the formation state, which is true for American founders too. A commercial registered agent service handles this for around $99 to $150 per year, and it also keeps your foreign address off US public records.
Why Wyoming Is the Top Pick for Most Foreigners
Wyoming is the most popular choice for non-resident founders, and the reasons are straightforward. Formation costs $100 online, the annual report is only $60, and the state does not require member or manager names in public filings, so your ownership stays private.
Wyoming also has no state income tax and a genuinely simple compliance calendar: one annual report, one fee, done. When you are managing a business from another continent, simplicity has real value.
For the full cost picture, see our Wyoming LLC cost breakdown.
When Delaware Makes More Sense
Delaware is the prestige choice. Formation costs $110 and the annual franchise tax is $300, due June 1. Like Wyoming, Delaware does not disclose member names publicly.
Delaware’s real advantages are the Court of Chancery, the most respected business court in the country, and its status as the default choice of international investors. If you plan to raise venture capital, take on American partners, or eventually convert to a C corporation, Delaware’s credibility pays for itself.
For most solo foreign founders running an online business, though, Delaware’s extra $240 a year buys advantages they will never use.
New Mexico: The Budget Dark Horse
New Mexico deserves a mention because it is the cheapest state to maintain an LLC long term. Formation is $50 and there is no annual report and no annual fee at all. For a foreign founder watching every dollar, that is compelling.
The catch is privacy: New Mexico requires more ownership disclosure than Wyoming or Delaware, and it lacks their business court pedigree. It is a fine choice for a simple holding structure, but Wyoming is usually worth the small premium.
Our cheapest states to form an LLC guide compares all the low-cost options side by side.
Getting an EIN Without a Social Security Number
An EIN, the federal tax ID for your LLC, is essential for opening bank accounts and filing taxes. As a non-resident without a Social Security number, you cannot use the IRS online application, but you can absolutely still get one.
The standard path is filing Form SS-4 by fax to the IRS, which typically takes about four business days, or by mail, which takes four to six weeks. The IRS has a dedicated fax line for international applicants. Some founders hire a service to handle this, but the form itself is free to file.
Our step-by-step guide on how to get an EIN for your LLC covers the process in detail, including the international applicant path.
Opening a US Bank Account From Abroad
This is the hardest practical step. Traditional US banks usually require an in-person visit with two forms of ID, which means a trip to the United States for most foreign founders.
Fintech alternatives have changed the game. Services like Mercury, Relay, and Wise Business let foreign-owned LLCs open US-dollar accounts remotely with an EIN and formation documents. They are not full banks in every case, so read the terms, but for receiving payments and paying expenses they work well.
Whichever route you take, open the account in the LLC’s name with its EIN. Mixing business money through a personal account undermines the liability protection you formed the LLC to get.
US Tax Obligations for Foreign-Owned LLCs
Here is the part that surprises many foreign founders. A single-member LLC owned by a non-resident is a disregarded entity for US tax purposes, which sounds like no filings, but it is not that simple.
Foreign-owned disregarded entities must file Form 5472 with a pro forma Form 1120 every year to report transactions between the LLC and its foreign owner. The penalty for missing this filing is $25,000, so it is not a form you want to learn about from a penalty notice. Consider hiring a US accountant familiar with foreign-owned entities for at least the first year.
Multi-member LLCs owned by foreigners are taxed as partnerships and file Form 1065. If your LLC has US-source income effectively connected with a US trade or business, additional filings apply. Tax treaties between the US and your home country may affect the outcome, so professional advice is worth the money here.
The IRS page for single-member LLCs at irs.gov is the authoritative starting point, and the IRS EIN application page at irs.gov explains the application options.
Beneficial Ownership Reporting: Check Current Rules
The Corporate Transparency Act’s beneficial ownership reporting rules changed significantly in 2025, with domestic entities largely exempted from filing while foreign entities face different treatment. Because this area is still evolving, check the Financial Crimes Enforcement Network’s current guidance before assuming anything about your obligations.
Do You Need an ITIN?
An ITIN, an Individual Taxpayer Identification Number, is the IRS identifier for people who need a US tax number but cannot get a Social Security number. Whether you need one depends on your tax situation.
If your LLC will file US tax returns that require identifying you personally, or if you need to appear on certain filings, an ITIN becomes necessary. You apply with Form W-7, and processing typically takes six to eleven weeks, so start early if your accountant says you need one.
Many foreign founders with simple single-member LLCs never need an ITIN, because the EIN covers the business filings. Do not apply for one speculatively. Get advice first, since the application requires mailing original identification documents or visiting an acceptance agent.
Putting It All Together
The standard playbook for a non-resident founder is: form a Wyoming LLC, appoint a commercial registered agent, get an EIN via Form SS-4 by fax, open a fintech business account, and hire a US accountant for the Form 5472 filing. Total first-year cost is typically under $500 plus the accountant.
If you run an online business, also read our guide to the best state for an online business LLC, since the logic overlaps heavily with the non-resident decision.
Frequently Asked Questions
Can a non-US resident form an LLC without visiting the US?
Yes. The entire formation can be done online through the state’s filing portal or a formation service. You only need a trip if you want a traditional bank account in person.
Do I need a Social Security number to get an EIN?
No. Foreign applicants file Form SS-4 by fax or mail and receive an EIN without an SSN. The online EIN application requires an SSN or ITIN, so it is not available to most non-residents.
Will forming a US LLC reduce my taxes at home?
Not necessarily. Your home country may tax the LLC’s income regardless of where it was formed, and the US may tax US-source income too. Get advice from an accountant who understands both countries before assuming any tax benefit.
Wyoming or Delaware for a non-resident freelancer?
Wyoming, in most cases. Lower fees, simpler compliance, and full privacy cover everything a freelancer needs. Delaware’s advantages matter mainly for fundraising and complex disputes.
Can a foreign-owned LLC open a Stripe account?
Yes. Stripe supports US LLCs owned by foreigners, and you will need the EIN and US bank account details. Many non-resident founders use Stripe Atlas or form independently and then apply to Stripe directly.
Do I need a US phone number or address?
No. Your registered agent provides the required US address for state purposes. For business operations, a virtual phone number and virtual mailbox are enough for most online businesses.
Forming a US LLC as a foreigner is one of the most accessible doors in international business. Pick Wyoming for simplicity, Delaware for prestige, handle the EIN and tax filings properly, and the structure will serve you well for years.
