Can a foreigner own a US LLC?
Yes. No US state requires LLC members to be US citizens or residents, and the IRS has rules written specifically for LLCs owned by people abroad. The Form 5472 instructions describe "a domestic DE that is wholly owned by a foreign person", and the Form SS-4 instructions tell an owner who has no SSN or ITIN to enter "foreign" on the EIN application. Banks such as Mercury state that you do not need to be a US citizen or resident to apply.
Owning a US LLC is a business matter, not an immigration one. It does not by itself give you a right to live or work in the United States; that question belongs with an immigration lawyer.
Step by step: from choosing a state to getting paid
The whole process can be done from abroad. Here is the order that avoids rework.
- Choose a state. Most founders abroad pick Wyoming, New Mexico or Delaware. Wyoming charges $100 to form and at least $60 a year, New Mexico $50 with no annual report, and Delaware $110 plus a $400 annual LLC tax. Our Wyoming vs Delaware vs New Mexico comparison works through the three-year cost. If you plan to raise venture capital, read LLC vs C corp first.
- Pick a name. The name must include "LLC" or a similar ending allowed by the state, and it must be available on the state's register.
- Appoint a registered agent. Every state requires one with a physical in-state address to accept legal papers and official mail. Living abroad, you will use a commercial agent. See our registered agent service.
- File the formation document. Articles of Organization in Wyoming and New Mexico, a Certificate of Formation in Delaware. None of the three asks for member names. A Wyoming LLC filed online is active as soon as the filing is completed.
- Sign an operating agreement. It sets out who owns the LLC and how it is run, and banks often ask for it. Our LLC operating agreement guide explains what goes in it.
- Get an EIN. The IRS online application needs an SSN or ITIN and a US principal place of business, so non-residents apply by phone, fax or mail. The international phone line is 267-941-1099 (not toll free), and the international fax numbers are 855-215-1627 from within the US or 304-707-9471 from outside it. The EIN is free from the IRS, and each responsible party can get only one per day. Our EIN application service prepares and submits the SS-4 for you.
- Apply for bank and payment accounts. With the formation document and EIN letter, you can apply to US banks and payment providers. Approval is always their decision; see the section below.
- Set up records and a deadline calendar. Keep every payment between you and the LLC documented from day one, because the first Form 5472 reports them. Our compliance deadline calendar lists your dates.
Bank and payment accounts
A US LLC opens the door to US banks and payment providers, but each provider sets its own rules and none can be guaranteed.
- Mercury requires a company formed and registered in the United States, an EIN document, and a passport for international applicants. It accepts a US or international principal business address, including a residential one, but not registered agent addresses, PO boxes or UPS Store addresses. Its prohibited countries list includes Pakistan, Nigeria and Bangladesh, though not India or the UAE.
- Wise Business asks for the EIN, a physical address proof (PO boxes and virtual addresses are not accepted) and a photo ID for each 25% owner instead of an SSN.
- Stripe requires a US account holder to be registered in the US with a physical business address, and non-US owners provide their local tax ID. A US LLC may make you eligible even if Stripe does not serve your home country, subject to Stripe's review.
We help with applications through our payment account setup service, and our US LLC bank account guide compares the options.
What it costs in official fees
The state fee is the only unavoidable government charge at formation, because the EIN is free.
| Item | Wyoming | New Mexico | Delaware |
|---|---|---|---|
| Formation fee | $100 ($102.40 with the online card fee) | $50 | $110 |
| Yearly state charge | Annual report, $60 minimum | None | $400 LLC tax |
| EIN (IRS) | $0 | $0 | $0 |
Registered agent, address and filing service fees are separate. Our prices are on the pricing page, and the LLC state fee comparison tool covers more states.
Ongoing compliance every year
A foreign-owned US LLC has three recurring duties: the federal Form 5472 filing, the state's annual requirement, and keeping a registered agent.
| Duty | What it involves | When |
|---|---|---|
| Form 5472 and pro forma Form 1120 | Reports transactions between the LLC and you, such as money you put in or take out. Filed by fax or mail. $25,000 penalty per missed form. | 15 April for a calendar year, or 15 October with Form 7004 |
| Wyoming annual report | License tax of $60 minimum | First day of the anniversary month |
| Delaware annual LLC tax | $400, no report | 1 June for the prior year |
| New Mexico | No annual report | None |
| Florida annual report | $138.75; $400 late fee | 1 January to 1 May |
| Texas franchise tax report | No tax due at or below the $2.65 million threshold, but a Public Information or Ownership Information Report is still required | 15 May |
| Registered agent | Renew every year so the state can reach the LLC | Your renewal date |
The owner page for the federal filing is our Form 5472 guide, and the state filings are covered in our LLC annual report service. For all federal dates in one place, see LLC tax filing deadlines. Our Form 5472 filing service and the US annual compliance plan handle the recurring work.
Taxes at a high level
A single-member LLC owned by a nonresident is a disregarded entity, so the LLC itself pays no federal income tax and its income is treated as yours. The IRS taxes nonresident aliens on two kinds of US income: effectively connected income (ECI) at graduated rates, and certain other US source income (FDAP) at a flat 30% or a lower treaty rate.
In general terms, if the LLC has no US trade or business and no US source FDAP income, you usually owe no US income tax and do not file a US personal return. If you do have a US trade or business, you file Form 1040-NR, even if you had no income from it. Either way, the LLC still files Form 5472 in years with reportable transactions.
No US tax does not mean no tax. Your home country will usually tax the LLC's profit as your income, and some countries treat a US LLC differently from others. Sales tax is separate again and depends on where your customers are; see sales tax registration.
Whether you have a US trade or business, how a treaty applies, and how your home country taxes the LLC are questions for a licensed tax adviser. This page explains the general rules and our filing service, not your personal tax position.
BOI reporting no longer applies to US LLCs
You do not file a beneficial ownership information (BOI) report for a US LLC, even if all its owners live abroad. FinCEN says US companies are exempt from BOI reporting under its final rule published on 14 August 2026. Only companies formed outside the US that register to do business in a US state still report. Details are in our BOI report guide.
Common mistakes non-resident owners make
- Skipping Form 5472 in a year with no income. Formation costs you paid, money you put in and money you took out are all reportable, so a first year with no sales usually still needs a filing.
- Trying the online EIN application without an SSN or ITIN. The online system is only for applicants who have one and a US principal place of business. Use phone, fax or mail.
- Using the registered agent address as the business address for banking. Mercury, for example, does not accept registered agent addresses.
- Letting the registered agent lapse. The state and anyone suing the LLC may then be unable to reach you, and some states charge more to reinstate.
- Forming in Delaware in December. Delaware's $400 tax is not prorated, so a company formed on 20 December owes a full year.
- Paying for a BOI filing. It is no longer required for US LLCs.
- Mixing personal and business money. It weakens your liability protection and makes the Form 5472 figures hard to prove.
- Assuming "no US tax" means no tax anywhere. Check your home country's rules before you start invoicing.
Ready to start? Our non-resident starter bundle covers the formation, EIN, first registered agent year, an operating agreement and your first Form 5472, with the state fee charged at cost.
Doing it yourself vs using a filing service
You can do every step yourself. The state filing is online, the EIN is free from the IRS, and Form 5472 can be faxed. What you pay for with a service is preparation and checking, submission, tracking, reminders and secure handling of your passport and company documents. Borderless Filings works with a specialist filing partner who prepares and submits the filings, and you deal with us throughout. We are not lawyers or accountants, and we do not give legal or tax advice. See how it works and how we protect documents on our security page.
Founder-specific guidance is on our country pages for Pakistan and India.
Sources
- IRS: Instructions for Form 5472
- IRS: Instructions for Form SS-4
- IRS: Get an employer identification number
- IRS: Taxation of nonresident aliens
- FinCEN: Beneficial ownership information reporting
- Wyoming Secretary of State: Business Division fee schedule
- New Mexico Statutes: NMSA 53-19-63, LLC Act fees
- Delaware Division of Corporations: Fee schedule (revised 1 August 2026)
- Delaware Division of Corporations: LLC annual tax instructions
- Florida Division of Corporations: Annual report
- Texas Comptroller: Franchise tax
- Mercury: Eligibility and requirements for opening an account
- Mercury: Prohibited countries
- Wise: Verify your US business
- Stripe: Requirements for having a US Stripe account
Fees, deadlines and rules on this page were last checked on 27 September 2026.