A step by step guide for Non-Residents to form a US LLC

What is an LLC?

An LLC, which stands for Limited Liability Company, is a type of business structure in the U.S. When you create an LLC, you gain the ability to open a U.S. business bank account, accept payments through U.S. payment systems, and most importantly, shield your personal assets from any business-related debts.

In simpler terms, if your LLC faces financial trouble or legal issues, only the assets owned by the LLC itself can be used to pay off debts or settle lawsuits. Your personal belongings, like your home or car, are protected and cannot be taken to cover the business’s liabilities. This protection is one of the main reasons why people choose to form an LLC.

Can a Non-US Resident Start a US LLC?

Absolutely, a non-U.S. resident can establish an LLC in the U.S. There’s no need to be a citizen or resident to do so, which is why it’s a great option for international business owners. You can run your LLC from anywhere globally, while still benefiting from limited liability protection and access to the U.S. market.

What is an SSN?

A Social Security Number (SSN) is a unique nine-digit number assigned by the U.S. Social Security Administration (SSA) to U.S. citizens, permanent residents, and eligible nonimmigrant workers. The SSN is used primarily for tracking earnings, calculating benefits, and reporting income to the IRS. It also serves as a form of identification in various contexts, such as opening bank accounts and applying for credit.

Should I form an LLC, a C Corp, or an S-Corp?

Deciding whether to form an LLC, C Corp, or S Corp depends on what you need for your business. An LLC is a flexible and simple choice, offering tax benefits where profits are only taxed once at the owner’s personal tax rate and protecting your personal assets. A C Corp is ideal for bigger businesses seeking significant investment or planning to go public, but it comes with the drawback of double taxation on profits. An S Corp provides similar liability protection and tax benefits as an LLC, avoiding double taxation, but has limits on the number and type of shareholders. Consider factors like your business size, future growth, and tax requirements to select the most suitable option for your needs.

Steps to open an LLC from anywhere in the world

Step 1: Selecting the proper method for forming your LLC

Hire a Service:

Consider using a service like Bizfyle to take care of your company incorporation in the US. They will handle the entire process for you, providing all the necessary formation documents and even giving you a US business address.

Do-It-Yourself with a Registered Agent:

Alternatively, you can hire a registered agent and manage the LLC formation yourself by filing directly with the state online. This option allows you to be more involved in the process while still ensuring that all legal requirements are met.

If you choose Option 1:

We’ll handle everything for you. Once you provide us with the necessary information, you won’t have to worry about any of the steps involved.

If you choose Option 2:

You’ll need to manage certain parts of the process yourself, which might be challenging. If you decide on this option, here’s what you’ll need to do:

Choose a registered agent –
You can find one through a quick Google search. Every state requires an LLC to have a registered agent. They charge yearly fees depending on the state.
Choose an LLC name –
Check your state’s registry to see if your desired LLC name is available. If the search results show ‘No Records Found,’ it means the name is not taken, and you can go ahead and register your LLC with that name.

Check if the name you want for your US Company is available by using the direct link below for Wyoming:

Business Entity Search – Wyoming Secretary of State

Your LLC name must end with “LLC” or “L.L.C”. LLC is usually the most popular.

2. Get a US business address:

Buy a US business address from your registered agent or another service provider, as it’s necessary for registering your US Company. We provide more details on this in Step 2.

Make sure you have a virtual mailbox and mail scanning service at your business address. This way, you can receive important government and business mail, and the service provider will scan and send you copies of the mail.

File your LLC online –

You can also complete this process directly through the state (search online to find the link!). Each state has its own filing fees and registration timeline. Fees usually range from $50 to $500, and it typically takes about a week to register your company.

Obtain your company formation documents –

The state will then send you your Articles of Incorporation, which serve as proof that your company is officially registered in the US.

Create your operating agreement –

You are now responsible for creating your operating agreement with the appropriate legal language and including the necessary clauses. Your agreement should be tailored to whether you are forming a Single-Member LLC or a Multi-Member LLC.

Your operating agreement should at least have the following clauses:

Company formation
Capital Contributions
Profits, Losses, and Distributions
Management
Compensation
Bookkeeping
Transfers
Dissolution

3. Other documents:

Next, you need to draft and prepare additional legal documents for your US business, including bank resolutions, documents detailing each member’s capital contributions, and stock certificates for all members.

Step 2: Get a US business/mailing address

Why do you need a US address?

Every company needs a registered address in the state where it is incorporated. If you choose Option 1 and use our service, we will provide you with a US address for your company registration.

This address will be a virtual business address, which means it is shared with other companies using the same registered agent’s service. It is not unique to your company and cannot be used as your official business address on Google.

If our registered agent does not provide an address, you can find other service providers offering virtual business addresses through a simple Google search. You can also purchase an address from another provider for your company registration.

Using the address provided by your registered agent is recommended. This way, the Registered Agent’s address will be used for your LLC, and they can handle all official notices, government correspondence, and compliance documents on your behalf.

This address will also be useful when applying for an online US business bank account and has several benefits.

If you need an additional virtual or physical address for other business purposes, you can buy another address. Businesses can have multiple addresses across the US.

Step 3: Get an EIN (Employer Identification Number)

What is an EIN and why do you need one?

An EIN, or Employer Identification Number, is a unique 9-digit tax number given by the IRS to identify your LLC in the US. It’s required by many US banks and institutions for business operations. Once you have your EIN, you can open US business bank accounts and set up US payment gateways. The IRS uses the EIN to track how companies report their taxes.

Uses of the EIN:

Open business bank accounts
Easily file tax returns for your business.
Separate your personal and business affairs by keeping your SSN private (if you have one) and exclusively using the EIN for business activities
Acquire certain business permits, if required for your business.
There are two methods to apply for an EIN – online and through mail/fax.

When can I apply for an EIN online?

To apply for an EIN online, you need either an SSN (Social Security Number) or an ITIN (Individual Taxpayer Identification Number). If you don’t have an SSN or ITIN—something international founders might not have—you’ll need to apply for your EIN by mailing or faxing the application.

What is the overall process to apply for an EIN?

If you have an SSN or ITIN, you can apply for your EIN online through the IRS website. Once you complete the application and if all your information is correct, you’ll receive your EIN within minutes.

If you do not have an SSN or ITIN, you must fill out Form SS-4 and mail/fax it to the IRS. Once you submit Form SS-4, it can take anywhere between 8-11 weeks from the day of submission to receive your EIN. This timeline could increase or decrease depending on the IRS processing timelines when applying for an EIN.

Can I digitally sign form SS-4 (application for an EIN)?

The IRS has eased some “wet signature” requirements, so digital signatures usually work well for many clients. You can use a digital signature to submit your SS-4 forms to the IRS and obtain your EIN.

The IRS doesn’t provide updates on the status of your EIN application. If you’re worried about delays in receiving your EIN to start your business in the US, you can check the status of your application.

If you’ve applied for your EIN online using a US SSN or ITIN, you’ll get your EIN and confirmation letter immediately. However, if you don’t have a US SSN or ITIN and have sent your EIN application by mail or fax, you’ll need to follow additional steps.

Here’s an easy-to-follow version of how to check on your EIN application:

Call the IRS at 1-800-829-4933.
Choose your language and follow the prompts to select the “Employer Identification Number” option. Then, pick the option for those who already have an EIN but need a reminder.
When you reach an agent, let them know you need an EIN Verification Letter (also called a 147C Letter) for your LLC.
Heads-up! You can’t save your application midway. The session expires after 15 minutes of inactivity, and you’ll have to start over if that happens.
Be ready to answer a few security questions. Keep your company documents and SS-4 application close by.
Wait for your letter. The IRS can mail or fax it to you. If mailed, expect it to take 4-6 weeks (or more).

Fun fact:
You can actually obtain an EIN before registering your U.S. company.
Would we suggest doing that? Definitely not!

Step 4: Get a US Number

To apply for certain online U.S. banks or set up your business Stripe or PayPal accounts, you’ll need a U.S. phone number. Here’s why having one is so important.

Business Verification
Customer Support
Professionalism

There are tons of phone number providers online, and a quick Google search will give you plenty of options.
Most U.S. phone number services are VoIP, which means they use the internet for calls instead of traditional landlines. If you have a good internet connection, you can call anyone without needing a local phone service or SIM card. Plus, you can make calls from your computer or any mobile device, so you’re not tied to one spot.

Some VoIP providers let you receive SMS, OTPs, and two-factor authentication codes, but not all of them do. So, be sure to confirm with the provider before you sign up if you need those features.

Step 5: Open an online US business bank account

As a non-resident, opening a U.S. bank account is possible, but it involves a few extra steps. Here’s a general guide:

Choose the Right Bank: Some U.S. banks are more flexible with non-residents. Research banks that offer accounts to foreign business owners. Online banks and fintech services may also be viable options.
Get an EIN (Employer Identification Number): If you’re opening a business account, you’ll need an EIN, which you can apply for through the IRS.
Prepare Required Documents:
- Passport or foreign ID
- Proof of your residential address (even if it’s outside the U.S.)
- Business formation documents if opening a business account
- Sometimes, a U.S. mailing address (can be a registered agent’s address) is required

Always check with the specific bank for their policies regarding non-residents, as requirements can vary.

Step 6: File taxes & compliances with the State & IRS

In the U.S., the financial year aligns with the calendar year, running from January 1st to December 31st.

Navigating taxes and IRS filing requirements can get pretty confusing, so we’ve outlined the essential filings and key deadlines to help you stay on top of your LLC’s tax responsibilities.

Here’s a summary of the mandatory compliance tasks for your U.S. Company.

IRS tax filings and compliances
State filings and compliances
FBAR compliance ( if applicable )

Conclusion:

In conclusion, starting a U.S. LLC as a non-resident might feel overwhelming at first, but with the right guidance and resources, it can be a straightforward and successful journey. We hope this blog from Bizfyle has provided you with valuable insights and practical steps to help you navigate your path to entrepreneurship in the U.S.

Building a business is a continuous learning experience, and challenges are bound to arise. However, we trust that the information in this blog has given you a solid foundation for starting and running your U.S. business. At Bizfyle, our goal is to ensure you have the knowledge and support needed to thrive.

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