Complete Guide to US LLC Formation

A Limited Liability Company (LLC) is a business structure that combines the liability protection of a corporation with the tax flexibility of a partnership. For non-US residents, forming a US LLC provides access to the world's largest economy, credibility with US clients and vendors, ability to accept payments through US payment processors (Stripe, PayPal), and protection of personal assets from business liabilities.

Yes, absolutely. Non-US residents can legally form and own a US LLC without needing a US visa, green card, or social security number. You don't need to visit the US to form or operate your LLC. States like Wyoming and Delaware are particularly friendly to international business owners.

No. The entire LLC formation process can be completed remotely. You can form, manage, and operate your US LLC from anywhere in the world. All documents are filed electronically, and you can conduct banking and business operations online.

Wyoming LLC formation typically takes 1-3 business days with standard processing. Delaware takes 3-5 business days. Expedited options are available for same-day or next-day processing at additional state fees. After formation, obtaining an EIN takes an additional 2-4 weeks for non-US residents.

For non-US residents, you need: a valid passport or government-issued ID, your current residential address, a chosen business name, and a US registered agent address (we provide this). No visa, SSN, or ITIN is required for formation.

There is no minimum capital requirement to form a US LLC. You can start with $0 in initial capital. The only costs are the formation fees (state filing fee + service fee), registered agent fee, and optionally a virtual business address. Total startup costs typically range from $300-$600 depending on state and services chosen.

For most non-US entrepreneurs, Wyoming is the better choice. Wyoming has: no state income tax, no franchise tax, lower annual fees ($60 vs $300+), strong privacy protections, and the same legal protections as Delaware. Delaware is preferred mainly by companies planning to raise VC funding or go public due to its established corporate case law.

Delaware is popular with VC-backed startups because: (1) VCs are familiar with Delaware law, (2) it has a specialized Court of Chancery for business disputes, (3) extensive legal precedents make outcomes more predictable, and (4) most tech giants are incorporated there. However, for single-member LLCs or small businesses, these benefits rarely matter.

Wyoming offers: zero state income tax, zero franchise tax, lowest annual report fee ($60), strongest asset protection laws, no requirement to disclose members publicly, lifetime proxy allowing nominee services, and no requirement for annual meetings. It's the most cost-effective and privacy-friendly state.

Delaware LLCs pay an annual franchise tax of $300 minimum. Corporations pay based on authorized shares or assumed par value, which can be much higher. This recurring cost makes Delaware less attractive for small businesses or those not seeking VC funding.

Yes, through a process called "domestication" or "conversion." You can move your LLC from one state to another, though it involves additional paperwork and fees. It's better to choose the right state initially. Most businesses that start in Wyoming stay there.

If you have no physical presence in the US, you can form your LLC in any state. Wyoming and Delaware are popular because of their favorable laws. If you later establish a physical presence in another state, you may need to register as a "foreign LLC" there.

1) Choose your state (Wyoming recommended), 2) Select a unique business name, 3) File Articles of Organization with the state, 4) Appoint a registered agent, 5) Create an Operating Agreement, 6) Obtain an EIN from the IRS, 7) Open a US business bank account. USBizGuru handles steps 1-6 for you.

An Operating Agreement is an internal document that outlines how your LLC will be run, including ownership percentages, profit distribution, voting rights, and management structure. While not always legally required, it's essential for: establishing your LLC's legitimacy, opening bank accounts, protecting your limited liability status, and preventing future disputes.

A registered agent is a person or company designated to receive legal documents, tax notices, and official government correspondence on behalf of your LLC. Every US LLC must have a registered agent with a physical address in the state of formation. As a non-US resident, you cannot serve as your own registered agent, so you need a service like ours.

An EIN (Employer Identification Number) is like a Social Security Number for your business. It's required for: opening a business bank account, filing taxes, hiring employees, and working with US clients. Non-US residents must apply by mail/fax (not online), which takes 2-4 weeks. We handle this process for you.

Yes, LLCs can have multiple members (owners). Multi-member LLCs have different tax implications than single-member LLCs. For non-US residents, single-member LLCs that don't conduct US trade or business often have zero US tax liability, while multi-member LLCs may have additional requirements.

After state approval, you'll receive: Certificate of Formation (proof your LLC exists), Articles of Organization (filed documents), Operating Agreement template, and instructions for next steps. We then apply for your EIN and help you open a bank account.

It depends on where your income is sourced and whether you conduct "trade or business" within the US. A single-member LLC owned by a non-US person, earning income from outside the US, typically owes zero US federal income tax. However, you may still have filing requirements. Consult a tax professional for your specific situation.

A single-member LLC is typically treated as a "disregarded entity" for US tax purposes, meaning the LLC itself doesn't file a separate tax return. Instead, income and expenses "pass through" to the owner. For non-US owners, this often means no US tax return is required if no US-source income is earned.

FATCA (Foreign Account Tax Compliance Act) requires foreign financial institutions to report accounts held by US persons. As a non-US person owning a US LLC, FATCA primarily affects your US bank accounts, which will be reported. This is normal and doesn't create additional tax liability if you're compliant with your home country's tax laws.

Yes, if your LLC is owned by a foreign person and has "reportable transactions" with foreign related parties (including payments to yourself). Form 5472 is an informational return due by April 15 (or extension deadline). Failure to file results in a $25,000 penalty per form. We can help you understand and meet this requirement.

Typical requirements include: Annual report filing with the state (Wyoming: $60/year, Delaware: $300/year), Maintaining a registered agent, Keeping Operating Agreement updated, Filing Form 5472 if applicable, Renewing any business licenses, Maintaining proper business records.

The Corporate Transparency Act requires most LLCs to report their beneficial owners to FinCEN. This includes: names, dates of birth, addresses, and ID numbers of individuals who own 25%+ or exercise substantial control. New LLCs must file within 90 days of formation. This is a one-time filing unless information changes.

Most countries tax their residents on worldwide income, meaning you may owe taxes in your home country on your LLC profits, regardless of US tax treatment. Some countries have tax treaties with the US to prevent double taxation. Consult a tax professional familiar with international taxation.

Yes, but options are limited. Traditional banks like Chase or Bank of America typically require in-person visits. However, several banks and fintech companies offer remote account opening: Mercury, Relay, Wise Business, and Payoneer. Requirements vary by provider.

Typically required: EIN confirmation letter (CP575), Articles of Organization/Certificate of Formation, Operating Agreement, Valid passport, Proof of address in your home country, Completed bank application. Some banks may require additional documentation.

Popular options for remote opening: Mercury (tech-focused, excellent UI, free), Relay (small business focused, free), Wise Business (great for international transfers), Brex (for funded startups). Traditional banks like Chase may work if you can visit a US branch.

Yes, one of the main benefits of a US LLC is access to US payment processors. Stripe, PayPal, and other US processors will accept your US LLC and EIN. This gives you lower fees, more features, and better reliability than processors available in many other countries.

Options include: Wire transfer (expensive, $25-50 per transfer), Wise Business (best rates, 0.5-1% fees), Payoneer (good for freelancers), Mercury + Wise integration (seamless transfers). Always keep records of transfers for tax documentation.

Not required, but useful. Building US business credit can help with: better payment processor terms, business loans, credit lines for cash flow. Options for non-US residents: Brex (no personal guarantee, for funded companies), Mercury's credit card, secured business credit cards.

Most US VCs strongly prefer or require investing in US entities, typically Delaware C-Corps. If you're planning to raise significant VC funding, you may need to convert your LLC to a C-Corp or form a new Delaware C-Corp. However, for early stages or bootstrapped businesses, an LLC works well.

Start with an LLC if: you're bootstrapping, want tax efficiency, not raising VC soon, running a service business or small e-commerce. Start with a C-Corp if: you're definitely raising VC funding in the next 12 months, planning for stock options, or targeting acquisition by a public company.

Yes, LLCs can be converted to C-Corps through various methods: statutory conversion (simplest, if state allows), merger into a new C-Corp, or "check-the-box" election for tax purposes. Each method has different tax implications. Plan with a lawyer and CPA before converting.

VCs prefer Delaware C-Corps because: (1) standardized legal documents they're familiar with, (2) ability to issue different classes of stock (preferred shares), (3) established case law reducing legal uncertainty, (4) no state income tax on out-of-state revenue, and (5) efficient Court of Chancery for disputes.

LLCs don't issue "stock" but can issue "membership interest units" or "profit interests." These work similarly but are less standardized than C-Corp stock options, which can complicate hiring and VC funding. If equity compensation is important to your plans, consider a C-Corp.

A SAFE (Simple Agreement for Future Equity) is an investment instrument that converts to equity later. SAFEs are designed for C-Corps and convert to preferred stock. LLCs typically use convertible notes or SAFE-like instruments that convert to membership interests, but these are less standardized.

A virtual business address provides you with a real US street address (not a PO Box) that you can use for: your LLC's principal address, receiving business mail, listing on your website and business cards, and bank account applications. Mail is received, scanned, and forwarded to you digitally.

No, they serve different purposes. A registered agent address is specifically for receiving legal and government documents, and must accept service of process. A virtual business address is for general business mail and can be used as your company's public address. You need both, but they can be at the same location.

For your registered agent address: No, a physical street address is required. For your principal business address: Some states allow it, but most banks won't accept PO Boxes for account opening. A virtual business address is more versatile and professional.

Not legally required, but highly recommended for: bank account applications, payment processor verification, US client credibility, and two-factor authentication. Services like Google Voice, Skype, or dedicated VoIP providers offer affordable US phone numbers.

Typical mail includes: IRS correspondence (EIN confirmation, notices), state annual report reminders, bank statements and cards, vendor communications, potential legal notices. Your registered agent handles official legal documents, while your virtual address handles general business mail.

You cannot use a foreign address as your registered agent address - that must be in the state of formation. For your principal address listed in the Operating Agreement, you could use your home address, but most people prefer a US virtual address for privacy and professionalism.

Main risks include: compliance failures (missing filings, Form 5472), banking difficulties (account closures, limited options), tax complications in your home country, currency exchange losses, and business disputes governed by US law. These risks are manageable with proper planning and professional guidance.

Yes, like any business entity. The advantage of an LLC is that it provides limited liability protection, meaning your personal assets are generally protected from business debts and lawsuits. Maintain proper separation between personal and business finances to preserve this protection.

Consequences vary by filing: missed annual reports can lead to administrative dissolution of your LLC (reinstatement possible with fees), missed Form 5472 results in $25,000 penalty, missed BOI filing leads to fines and potential criminal penalties. Set reminders and use compliance services to avoid these issues.

Forming a US LLC is completely legal, and tax efficiency is a valid business consideration. However, creating structures solely to evade taxes (versus legal tax planning) is illegal. The US LLC provides legitimate benefits beyond taxes: credibility, payment processing, legal protection. Always comply with your home country's tax laws.

US banks can close accounts with limited notice. Protect yourself by: maintaining multiple bank accounts, keeping funds distributed, having backup payment processors ready, keeping impeccable records, and avoiding any activities that could trigger fraud alerts. If closed, you can usually open with another provider.

Only through proper legal process, typically: unpaid taxes with IRS liens, court judgments, or involvement in illegal activities. For legitimate businesses operating legally, this is not a concern. Maintain proper records, pay any applicable taxes, and comply with all regulations.

Some countries have specific rules about foreign entities. Your country may: tax you on worldwide income including LLC profits, require local registration of foreign companies, or have specific reporting requirements. Research your home country's rules or consult a local tax professional.

Our standard package includes: state filing fee, Articles of Organization filing, Operating Agreement template, EIN application and processing, first year registered agent service, digital document delivery, and ongoing support. Virtual address and additional services are available as add-ons.

No. We clearly display all costs upfront. You'll see the state filing fee, our service fee, and any optional add-ons before checkout. The price you see is the price you pay. Annual costs (registered agent renewal, state annual report) are also clearly disclosed.

Typical annual costs: Wyoming annual report ($60) or Delaware franchise tax ($300), Registered agent service ($99-199/year), Virtual address if used ($99-299/year), Accounting/tax preparation (varies). Total ongoing cost for a Wyoming LLC can be as low as $159/year.

Yes. 100% refund before we file with the state - no questions asked. After state filing, fees are non-refundable as the work has been completed and state fees cannot be recovered. See our full refund policy.

We accept all major credit/debit cards and process payments through Stripe, a leading secure payment processor. Your payment information is encrypted and never stored on our servers. We also support payments from India via UPI and net banking.

Yes, we offer annual compliance packages including: annual report filing, registered agent renewal, BOI filing updates, and Form 5472 preparation assistance. We'll send reminders before deadlines and can handle filings on your behalf to ensure you stay compliant.