Opening LLC: Comprehensive guide for non-residents

2/5/20253 min read

Launch your US business from anywhere in the world. Even as a non-resident, you can easily open and operate a Limited Liability Company (LLC) in the US. We've helped hundreds of founders worldwide navigate the process, and have compiled this guide to answer your most common questions.

What We'll Cover:

Benefits of a US LLC
LLC Formation
Best State to Form an LLC
Registered Agent Service
US Address & Phone Number
US Banking
Getting an EIN
US Tax Filing Requirements
LLC Annual Reports

Ready to Start Your LLC?

If you're ready to launch your US company, here are the basic steps. Open-llc can assist you with each stage.

Formation: Open-llc can help you form your LLC quickly, often within a week with an SSN, or around four weeks without one. You can choose to file in Delaware, Wyoming, or any other state.
US Address & Phone Number: Use a virtual mailbox service or a service like Open-llc for a US mailing address. OpenLLC ca connect with virtual Phone services, essential for banking and establishing a US presence.
Obtain an EIN: Apply online if you have an SSN. If not, you'll need to mail or fax Form SS-4 to the IRS which can take +4 weeks. Open-LLC can assist in this process.
Set Up a US Business Bank Account: Opening a bank account having EIN & Phone number will be much easier. With our more full-service packages we will help you guide to banks friendly to international applicants alongside a check-list to ensure successful application.
File Taxes and Stay Compliant: Consult with a tax professional or use resources like those offered by Open-llc to understand your filing requirements.

Why Choose the US?

The US is known for its business-friendly environment, even for non-US citizens. It offers a competitive corporate tax system and a simple LLC structure. Startup costs are often lower than in other countries, and a US-based company carries international prestige.

Can a Non-US Resident Start a US LLC?

Absolutely! You don't need to be a US citizen, resident, or green card holder, and you don't even need a US Social Security Number (SSN). As a non-resident, you can form an LLC online and gain access to US banking, and more.

Benefits of a US LLC for Non-Residents:

Pass-through Taxation: Your business may not be subject to US taxes if it's 100% owned by non-US tax residents, has no US presence, and its income isn't "effectively connected" to a US business.
Liability Protection: Your personal assets are shielded from business debts and lawsuits.
Simplified Taxation: Pass-through taxation simplifies your tax obligations.
Flexibility: LLCs offer flexibility in management and ownership.
Credibility: A US LLC enhances your business's credibility.
Privacy: LLCs can provide owner privacy and asset protection.

What is an LLC?

An LLC is a legal business structure that separates your personal assets from your business liabilities. It functions as an independent entity, able to open bank accounts, receive payments, and enter contracts.

LLC vs. C Corp:

For most new businesses, an LLC is the better choice due to its liability protection, flexibility, and ease of setup. C Corporations are generally preferred if you plan to raise US venture capital or go public.

Best State to Form Your LLC:

Generally, you should form your LLC in your home state. However, as a non-resident, you can choose any state. Wyoming and Delaware are popular choices for non-residents.

Delaware: Offers owner anonymity.
Wyoming: Allows you to list a "nominee" owner.

Wyoming is often preferred for online businesses due to its lower annual fees and simpler management. Delaware is often chosen by businesses anticipating converting to a C-Corp later.

Key Tax Considerations for Non-Resident LLC Owners:

Single-Member LLCs: May not need to file US taxes if not "engaged in US trade or business." However, information reporting may be required.
Multi-Member LLCs: Must file Form 1065 (Partnership Return).

Annual Reports:

Wyoming requires an annual report and a $62 fee. Delaware requires a $300 annual franchise tax.

FAQs:

Is Registered Agent needed? Required for all LLCs.
Formation Time? Typically four weeks without an SSN, one week with an SSN.
Business Visa? Possible, depending on your situation.
Government Contracts? Possible, depending on the contract.
Can you hire US Employees? Yes.
Can I get Trademarks/Patents? Can be filed through a US attorney.
Becoming a US Resident/Citizen? Requires to immigrate as an investor or through other forms - complex set-up where additional immigration attorney services will be necessary.
Can Foreign Partners be part of LLC? Yes, foreigners can be LLC partners.

Need Help?

Open-llc can help you navigate the complexities of forming and maintaining your US LLC. We offer consultations and comprehensive support.

Book your consultation