Yes, foreigners can open a US LLC. No state restricts LLC ownership by citizenship or residency, and no federal law does either. You do not need a green card, a visa, a Social Security Number, or a US address to be the sole owner or a co-owner of a limited liability company in any of the fifty states. The harder parts are practical: getting a tax ID, opening a bank account from abroad, and keeping up with a handful of IRS filings built specifically for foreign-owned entities.
Owning an LLC Is Not the Same as Working in the US
Before anything else, separate two questions that often get tangled. Owning a US company is a matter of commercial law and is open to anyone. Physically working inside the United States is a matter of immigration law and is not.
If you plan to run your LLC entirely from outside the country, hiring US employees or contractors to handle whatever needs to happen on the ground, you generally need no visa at all. Many foreign-owned LLCs operate exactly this way. If you want to come to the US to manage the business, meet clients regularly, or work from a US office, you need a valid work visa or lawful permanent resident status. A B-1 business visitor visa covers limited activities such as negotiating contracts or attending meetings, but it does not authorize running an established business or performing daily work.1U.S. Citizenship and Immigration Services. Options for Alien Entrepreneurs to Work in the United States E-2 treaty investor and L-1 intracompany transfer visas are common routes for owner-operators, subject to their own eligibility rules.
Picking a State
You can form your LLC in any state, regardless of where you live or where the business operates. Two things usually decide it: where your business actually has a presence, and which state’s rules fit your situation.
If your company will have offices, employees, or meaningful sales in a particular state, forming there avoids the cost of registering as a “foreign LLC” in that state on top of a home-state filing. If the business is entirely online with no fixed US location, you have more room to shop around.
Delaware is a common choice for companies expecting outside investment or complex governance, because of its developed body of business case law and a specialized business court. Wyoming attracts owners who want privacy and low ongoing costs, with no state corporate income tax and modest annual fees. New Mexico has no annual report requirement. Every state’s advantages come with trade-offs, and forming in a state where you have no physical presence can still leave you registering separately in states where you actually do business.
What You Need Before You File
A Name
Your LLC name must include “LLC” or “Limited Liability Company” (or an accepted abbreviation) and must be distinguishable from other entities already on file. Most states let you search their business name database online before you file.
A Registered Agent
Every LLC must have a registered agent with a physical street address in the state of formation to receive legal documents and government notices. Foreign owners almost always hire a commercial registered agent service, which generally runs $100 to $300 per year.
Articles of Organization
The Articles of Organization (called a Certificate of Formation in some states) is what actually creates the LLC. It typically asks for:
- The full LLC name, including the LLC designation.
- The registered agent’s name and physical address.
- A business purpose, usually stated broadly such as “any lawful business activity.”
- Whether the LLC is member-managed (owners run it) or manager-managed (designated managers run it).
- Member or manager names and addresses, in states that require them on the public filing.
An Operating Agreement
An operating agreement is an internal document setting out ownership percentages, profit distribution, voting rights, and what happens if a member leaves. Most states do not require one to form the LLC, but without it, your company defaults to the state’s standard rules. Banks routinely ask for one when you open an account, and it is the primary proof of who owns and controls the company. Single-member LLCs benefit from having one too, because it reinforces the separation between owner and company.
Filing and Fees
You submit the Articles of Organization to the Secretary of State (or equivalent office) in your chosen state. Most states offer online filing that accepts electronic signatures and credit card payment, so you can file from anywhere in the world. Paper filing by mail is also available.
Formation fees range from about $35 to $500 depending on the state. Standard processing takes anywhere from a few business days to several weeks; most states offer expedited processing for an added fee. Once the state approves the filing, you receive a stamped copy of the Articles or a formal certificate. Keep it. You will need it for the EIN, the bank, and anything else that asks for proof your company exists.
Getting an EIN Without an SSN
An Employer Identification Number is the nine-digit federal tax ID for your LLC. You need one before you can open a US bank account, hire employees, or file returns. You apply on Form SS-4.2Internal Revenue Service. About Form SS-4, Application for Employer Identification Number (EIN)
Foreign applicants without an SSN or ITIN cannot use the IRS online application. You submit Form SS-4 by fax or mail instead. The fax number for international applicants is 304-707-9471, and under the IRS Fax-TIN program you can generally receive your EIN within four business days. If you mail the form to the IRS EIN International Operation office in Cincinnati, Ohio, allow four to five weeks.3Internal Revenue Service. Instructions for Form SS-4
The “responsible party” on Form SS-4 is the person who ultimately owns or controls the LLC. That person is normally asked for an SSN, ITIN, or EIN, but if you are a foreign national with none of those, you may enter “foreign” or “N/A” in that field.3Internal Revenue Service. Instructions for Form SS-4 Any change in the responsible party must be reported to the IRS within 60 days using Form 8822-B.
Opening a US Bank Account
A US business account is how you actually collect payments and keep company money separate from your own. Opening one as a foreign owner is possible but harder than for a US resident.
Each bank sets its own policies. Common requirements include the EIN confirmation letter, a copy of the Articles of Organization, the operating agreement, government-issued photo ID for every beneficial owner, and proof of a US business address.4International Trade Administration. A Checklist for Foreign Companies Opening a Bank Account in the United States Banks must identify any individual owning 25 percent or more of the LLC as part of their customer due diligence.
Some banks require an in-person visit, which is a real obstacle if you live abroad. Others handle foreign applicants remotely, especially for online businesses, and a few digital banking platforms have built processes aimed at non-resident owners. Once your documents are in order, expect the account-opening process to take around three weeks.4International Trade Administration. A Checklist for Foreign Companies Opening a Bank Account in the United States
Federal Taxes in Broad Strokes
How the IRS taxes your LLC depends on its structure and the type of income it earns. A single-member LLC owned by a foreign individual is a “disregarded entity” by default: the IRS looks through the LLC and taxes the income directly to you. A multi-member LLC is treated as a partnership, with each member reporting their share on their own return. Either can elect corporate taxation, but most foreign-owned LLCs stay with the default.
If the LLC runs an active US business, its profits are effectively connected income, taxed at the same graduated rates that apply to US citizens and residents, and reported on Form 1040-NR.5Internal Revenue Service. Effectively Connected Income (ECI) The Form 1040-NR deadline is April 15 if you had wages subject to US withholding, or June 15 if you did not.6Internal Revenue Service. Instructions for Form 1040-NR For multi-member LLCs taxed as partnerships, the LLC itself must withhold on each foreign partner’s share of effectively connected income at the highest individual rate, currently 37 percent for non-corporate partners; that withholding is credited against actual tax when you file.7Office of the Law Revision Counsel. 26 U.S. Code 1446 – Withholding of Tax on Foreign Partners Share of Effectively Connected Income
Passive US-source income that is not tied to an active business (interest, dividends, most rents, royalties) is fixed, determinable, annual, or periodical income and is taxed at a flat 30 percent on the gross amount, with no deductions.8Internal Revenue Service. Fixed, Determinable, Annual, or Periodical (FDAP) Income A tax treaty between the US and your home country may reduce that rate, sometimes sharply.
The Form 5472 Trap
If your LLC is a single-member entity treated as a disregarded entity, it has a specific federal filing that catches many foreign owners off guard. You must file a pro forma Form 1120 with Form 5472 attached each year to report transactions between the LLC and its foreign owner.9Internal Revenue Service. Instructions for Form 5472 Reportable transactions include capital contributions, loans, payments for services, rent, and any money or property that moves between you and the LLC.
This filing is required even if the LLC earns no taxable income. The penalty for failing to file, or for filing a substantially incomplete Form 5472, is $25,000 per form. If the failure continues more than 90 days after IRS notification, an additional $25,000 penalty applies for each 30-day period the violation continues.9Internal Revenue Service. Instructions for Form 5472
Beneficial Ownership Reporting After the 2025 Rule Change
The Corporate Transparency Act originally required most US-formed LLCs to report their beneficial owners to the Financial Crimes Enforcement Network. A March 2025 interim final rule changed that. Entities created in the United States, including LLCs formed by filing with a state Secretary of State, are now exempt from beneficial ownership reporting. US persons who are beneficial owners of any reporting company are also exempt from having their information reported.10Financial Crimes Enforcement Network. Beneficial Ownership Information Reporting
So if you form a new US LLC as a foreign owner (which is what most foreign entrepreneurs do), you do not need to file a BOI report with FinCEN. The reporting requirement still applies to foreign reporting companies, meaning entities formed under the law of a foreign country that register to do business in a US state. If you register an existing foreign company instead of forming a new US LLC, you must file within 30 days of registration, identifying each non-US-person beneficial owner’s name, date of birth, residential address, and an identification document number.11Federal Register. Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension Willful violations carry civil penalties adjusted annually for inflation and criminal penalties of up to two years imprisonment and a $10,000 fine.12Financial Crimes Enforcement Network. Frequently Asked Questions Because the domestic exemption comes from an interim rule, FinCEN may issue a revised final rule later, so keep an eye on updates.
Staying in Good Standing
Forming the LLC is not the end. Most states require annual or biennial reports and a filing fee to keep the LLC active. Fees range from nothing in a few states to several hundred dollars in others. Missing these filings can lead to administrative dissolution, which strips the LLC of its legal status.
You must keep a registered agent at all times. If the agent resigns or changes address, update the state promptly. Many commercial registered agent services handle the annual report filing as part of their package.
State taxes are separate from federal. Some states impose franchise taxes or minimum annual taxes on LLCs regardless of income. If your LLC sells taxable goods or services, you may need to collect and remit sales tax in states where you have a physical presence or cross an economic nexus threshold, typically around $100,000 in annual sales though the exact figure varies. A handful of states have no sales tax at all. Because federal, state, and home-country rules interact in ways that depend on the specific facts, working with a tax professional familiar with both US and international tax law is worth the money before you start operating.