How to Start an LLC as a Non-US Resident or Immigrant

Can Non-US Citizens Form an LLC in the United States?

Yes — absolutely. There is no citizenship or residency requirement to form an LLC in any U.S. state. You do not need a green card, a visa, or even to have visited the United States. Non-US residents form thousands of LLCs every year to access the American market, take advantage of the strong U.S. legal system, and benefit from the credibility that comes with a U.S.-registered business entity.

This guide covers everything you need to know about forming and operating a U.S. LLC as a non-citizen, whether you are a permanent resident (green card holder), a visa holder (H-1B, L-1, E-2, etc.), an undocumented immigrant, or a foreign national living outside the United States.

ITIN vs SSN: Which Do You Need?

You need a tax identification number to get an EIN (Employer Identification Number) for your LLC. There are two options:

**Social Security Number (SSN)**: If you are authorized to work in the United States (green card holders, H-1B visa holders, etc.), you have or can obtain an SSN. Use your SSN as the responsible party on your EIN application — it is the simplest path.

**Individual Taxpayer Identification Number (ITIN)**: If you do not have an SSN (because you are not authorized to work in the U.S., or you live outside the U.S.), you can apply for an ITIN from the IRS. An ITIN is a tax processing number, not a work permit — it does not grant you authorization to work in the U.S., but it does allow you to obtain an EIN and comply with U.S. tax obligations.

To apply for an ITIN, file Form W-7 with the IRS along with your federal tax return and proof of identity (passport). Processing takes 7-11 weeks. You can also apply through an IRS-authorized Certifying Acceptance Agent (CAA), which allows you to avoid mailing your original passport to the IRS.

**Third option**: Some states allow you to appoint a U.S.-based responsible party (such as a registered agent service or attorney) to serve as the responsible party on your EIN application. This person uses their SSN on the application, avoiding the need for you to have an SSN or ITIN. However, this person must be willing to take on the legal responsibility of being the designated responsible party.

Best States for Non-US Resident LLCs

Not all states are equally friendly to non-US resident LLC owners. Here are the top choices:

**Wyoming**: No state income tax, strong privacy protections (members' names are not on public record), low annual fees ($60), and the Secretary of State's office is accustomed to processing non-resident filings. Wyoming is the top choice for most non-US residents forming an LLC.

**Delaware**: Well-established business court system (Court of Chancery), flexible LLC laws, and no state income tax on revenue earned outside Delaware. Delaware is popular with larger businesses and tech startups.

**New Mexico**: Lowest filing fee ($50), no annual report requirement, strong privacy protections, and no state income tax on LLC profits earned outside the state. New Mexico is the most affordable option.

**Florida**: No state income tax, large international business community, and relatively straightforward LLC formation process. Good choice if you plan to eventually relocate to the U.S.

**Nevada**: No state income tax, strong privacy protections, and no franchise tax. However, Nevada has a $200 annual business license fee that makes it slightly more expensive than Wyoming or New Mexico.

Step-by-Step Formation Process for Non-US Residents

**Step 1 — Choose your state**: Wyoming, Delaware, or New Mexico are the best options for most non-US residents. If you plan to have a physical presence in a specific state, form there instead.

**Step 2 — Choose a registered agent**: Since you may not have a U.S. address, you need a registered agent service in your formation state. FormifyAI provides registered agent service in all 50 states, included with every plan.

**Step 3 — File your Articles of Organization**: This can be done entirely online in most states. You need to provide your LLC name, registered agent information, and the organizer's name and address (your foreign address is acceptable in most states).

**Step 4 — Get your ITIN (if needed)**: If you do not have an SSN, apply for an ITIN using Form W-7. This process takes 7-11 weeks, so plan accordingly. You can also use a Certifying Acceptance Agent to expedite the process.

**Step 5 — Apply for your EIN**: Once you have your SSN or ITIN, apply for an EIN. Non-US residents cannot use the IRS online application — you must apply by phone (1-267-941-1099, available Monday-Friday 6 a.m. to 11 p.m. Eastern) or by mailing/faxing Form SS-4. The phone application is the fastest method and yields your EIN immediately.

**Step 6 — Open a U.S. business bank account**: This is often the hardest part for non-US residents. Many banks require an in-person visit to open a business account. Banks that are more receptive to non-resident business accounts include Mercury (online-only, popular with international entrepreneurs), Relay (online-only, straightforward application), and several community banks that accept applications by mail.

You typically need your Articles of Organization, EIN confirmation letter, operating agreement, passport, and a secondary form of ID. Some banks also require proof of U.S. address (your registered agent's address may work) and a minimum opening deposit.

Tax Obligations for Non-US Resident LLC Owners

As a non-US resident with a U.S. LLC, your tax obligations depend on whether you are considered a U.S. tax resident and whether your LLC generates "Effectively Connected Income" (ECI) — income connected to a U.S. trade or business.

**If you live outside the U.S. and your LLC earns income from U.S. sources**: You are generally subject to a 30% withholding tax on certain types of U.S.-source income (like rental income or royalties), or the applicable rate under a tax treaty between the U.S. and your home country. You must file a U.S. tax return (Form 1040-NR for individuals).

**If you live outside the U.S. and your LLC earns income from non-U.S. sources**: You may not owe U.S. taxes if the income is not "effectively connected" to a U.S. trade or business. However, you should still file a U.S. tax return to document your position and avoid IRS penalties.

**If you live in the U.S. (any visa status)**: You are generally taxed on worldwide income as a U.S. tax resident. Your LLC income is reported on your personal tax return just like any U.S. citizen.

**FATCA and FBAR**: If you have foreign bank accounts, you may need to file FBAR (FinCEN Form 114) and comply with FATCA (Foreign Account Tax Compliance Act) requirements. These are separate from your income tax obligations and carry significant penalties for non-compliance.

Hire a tax professional experienced with international business structures. The intersection of U.S. tax law, treaty obligations, and your home country's tax laws is complex, and mistakes can be costly.

Visa Considerations

Forming an LLC does not grant you a visa or work authorization. However, some visa categories allow business ownership:

**E-2 Treaty Investor Visa**: Allows you to enter the U.S. to direct a business you have invested a substantial amount of capital in. Requires a treaty between the U.S. and your home country.

**L-1 Intracompany Transfer Visa**: If you own a business outside the U.S. and want to open a U.S. branch, the L-1 visa allows you to transfer to the U.S. operation.

**O-1 Visa**: For individuals with extraordinary ability or achievement. If you are a successful entrepreneur, you may qualify.

**H-1B holders**: You can own an LLC while on an H-1B visa, but you cannot actively work for your own LLC unless your LLC sponsors your H-1B (which creates a complex self-employment situation). You can be a passive investor and owner. Consult an immigration attorney.

What to Do Next

Forming a U.S. LLC as a non-resident is entirely legal and straightforward. Start by [choosing your state and plan](/pricing) — FormifyAI handles the filing, provides a registered agent, and guides you through the EIN application process. For complex tax situations, we recommend consulting with an international tax professional after your LLC is formed.