Can a Non-Resident Form an LLC?

Yes — non-US residents can form a US LLC. Learn which states are foreign-owner friendly, the ITIN/EIN steps, US bank account options, and tax obligations.

Yes. You do not need to be a US citizen, green-card holder, or resident to own a US LLC. Anyone can form one, and the process is nearly identical to a domestic owner's — with a few extra steps around tax IDs and banking. US LLCs are especially popular with founders who sell into the US market or want US payment processing.

Why Foreign Owners Form US LLCs

• Accept payments via US processors (Stripe US, PayPal US) that favor domestic entities
• Appear credible to US customers and B2B clients
• Open a US business bank account (with the right paperwork or a virtual bank)
• Keep liability separate from your home-country business

Which State Should a Non-Resident Choose?

Most foreign owners pick a low-cost, low-compliance state they don't need to visit:

• Wyoming — $100 filing, no annual report fee, privacy-friendly, no state income tax on LLCs.
• New Mexico — $50 filing, no annual fee, no public owner disclosure.
• Delaware — the classic for investors, $90 filing + $300 franchise tax.
• Nevada — no state income tax, no franchise tax.

Read the Wyoming LLC, New Mexico LLC, and Delaware LLC guides for detail. You don't need to live there; you just need a registered agent in the state.

ITIN and EIN: The Two Tax IDs

US tax law requires IDs for foreign owners:

1. ITIN (Individual Taxpayer Identification Number): issued by the IRS to non-residents who can't get a Social Security number. Apply with Form W-7 — allow 7–11 weeks.
2. EIN (Employer Identification Number): the LLC's own tax ID. Apply with Form SS-4 (or online once you have an ITIN/SSN). You need the EIN to open a bank account and file taxes.

If you have US royalties or seller income, the EIN is also how you claim treaty benefits instead of flat 30% withholding. Get the full steps in our EIN guide.

Opening a US Bank Account From Abroad

This is the trickiest step. Options:

• Virtual banks (Mercury, Wise Business, Relay) — designed for foreign LLC owners; Mercury opens accounts for LLCs with foreign directors, no US visit.
• Traditional banks (Chase, Bank of America) — generally need an in-person visit and US address.
• Correspondent setup — some states' banks accept foreign owners with ITIN + passport + EIN.

US Tax Obligations for Foreign-Owned LLCs

Two big rules to know:

• Default: treated as a corporation for US tax purposes unless you file a Form 8832 election to be taxed as a partnership/disregarded entity. As a corporation, you could face 30% withholding on US-source income.
• Pass-through election (8832 + W-8BEN): with the right elections, the LLC's income flows to you and you file a 1040-NR, claiming treaty benefits where available.

Work with a US CPA on the 8832 election — it's the difference between effective US tax treatment and painful withholding.

Frequently Asked Questions

Can a foreigner open an LLC in the USA?

Yes. The US allows anyone, regardless of citizenship or residency, to form and own an LLC. You'll need a registered agent in the formation state and US tax IDs.

Which state is best for a non-resident LLC?

Wyoming, New Mexico, and Nevada are popular: low or no annual fees, no state income tax, and privacy. You don't need to live in the state.

Do I need an ITIN to form an LLC as a non-resident?

Not to file the formation paperwork, but you need an ITIN (and then an EIN) to open a US bank account and handle US tax obligations.

How long does it take a non-resident to form an LLC?

Formation itself takes 1–2 weeks. Add 7–11 weeks for the ITIN application, and plan 3–4 months total from start to a fully banked US LLC.