US LLC for Non-Residents: Formation, EIN and Banking Explained

For founders outside the United States, a US limited liability company (LLC) can open doors: access to US customers and marketplaces, US payment processors, and a structure that American partners recognise instantly.

An LLC is also relatively simple to form and maintain. But “simple” is not the same as “no rules”. Non-resident owners face a few extra steps — particularly around the EIN, banking and annual IRS filings — and getting these wrong can be expensive.

This guide explains the process in plain English. It is general information, not legal or US tax advice. Requirements and fees change, so always check the official state and IRS websites for the current position.

What is an LLC?

A limited liability company is a US business structure that combines limited liability (your personal assets are generally protected from business debts) with flexible tax treatment.

For tax purposes, the IRS treats an LLC by default as:

• A disregarded entity if it has one owner (a single-member LLC), or
• A partnership if it has two or more owners.

An LLC can also elect to be taxed as a corporation. The right choice depends on your circumstances and should be discussed with a US tax professional.

Step 1: Choose your state

You can form an LLC in any of the 50 states, and you do not need to live there. The most common choices for non-residents are:

State	Often chosen because
Wyoming	Relatively low ongoing fees and straightforward administration
Delaware	Well-known business law and courts; often preferred by venture investors
New Mexico	Low ongoing requirements in some cases

There are trade-offs. If you will have an office, staff or significant operations in a particular state, you may need to register there too, regardless of where you formed the LLC. Annual fees, franchise taxes and reporting rules also vary. Compare the current fees on each state’s official website before deciding.

Step 2: Appoint a registered agent

Every LLC must have a registered agent in its formation state — a person or company with a physical address who accepts legal and official documents on the LLC’s behalf during business hours.

Non-residents cannot act as their own registered agent without a physical address in that state, so most use a commercial registered agent service.

At The Standard Solutions, registered-agent service is provided via our partner. We coordinate the arrangement for you, but we are not a registered agent ourselves.

Step 3: File your formation documents

The LLC is created by filing a document with the state — usually called Articles of Organization (in Delaware, a Certificate of Formation). It typically includes:

• The LLC name, which must be distinguishable from other businesses in the state and include “LLC” or “Limited Liability Company”.
• The registered agent’s name and address.
• The organiser’s details.
• Whether the LLC is member-managed or manager-managed, in some states.

The state charges a filing fee, which varies by state. Once approved, you receive the filed formation document, which is your proof that the LLC exists.

Step 4: Prepare an operating agreement

An operating agreement sets out how the LLC is owned and run: who the members are, how profits are shared, how decisions are made and what happens if a member leaves.

Not every state requires one, but banks and payment platforms frequently ask for it, and it is good practice even for single-member LLCs. Founders with partners or investors should have a solicitor or US attorney review it.

Step 5: Get an EIN

The Employer Identification Number (EIN) is the LLC’s federal tax ID. You need it to open a US bank account, work with most payment processors, file with the IRS and, if relevant, hire employees.

The non-resident challenge

The IRS online EIN application requires the “responsible party” to have a valid SSN or ITIN. Most non-residents do not have either, so they apply using Form SS-4 instead. The main options are:

• Fax — usually the quickest paper route.
• Mail — slower; allow several weeks.
• Telephone — the IRS runs a line for international applicants.

The form must be completed carefully. Common mistakes include entering the wrong entity type, inconsistent names and addresses, or an incorrect reason for applying. Errors lead to delays or rejected applications.

Step 6: Open a US bank account

A US bank account is essential for receiving payments, paying expenses and keeping business money separate from personal money.

Traditional US banks have often required owners to visit a branch in person. Several US financial platforms and business account providers accept non-resident owners and allow remote applications, though their criteria change and approval is at their discretion.

Typically you will need:

• Formation documents and the operating agreement.
• The EIN confirmation letter (CP 575) or equivalent.
• Passport for each significant owner.
• Proof of residential address.
• A description of the business, expected customers and transaction volumes, plus a website where possible.

Some providers also ask for a US business address. A registered agent address is not always accepted for this, so check each provider’s requirements.

Step 7: Understand your annual obligations

Forming the LLC is the easy part. Keeping it in good standing requires attention every year.

State requirements

Most states require an annual report and/or annual fee or franchise tax. Missing these can lead to penalties and, eventually, the LLC being dissolved by the state. You will also need to keep your registered agent service active.

Federal requirements

For a single-member LLC owned by a non-US person, the IRS generally requires an annual information filing: Form 5472 attached to a pro forma Form 1120. This applies even if the LLC owes no US income tax. The penalties for failing to file are significant.

Whether the LLC actually owes US income tax depends on whether it has income “effectively connected” with a US trade or business, and on any tax treaty with your home country. This is a specialist area — speak to a US tax professional.

Beneficial ownership reporting

The rules on beneficial ownership information (BOI) reporting to FinCEN changed significantly in 2025. Check FinCEN’s official website for the current requirements that apply to your LLC.

Your home country

Owning a US LLC may also have tax and reporting consequences where you live. For example, the income may be taxable in your home country, and foreign assets may need to be declared. Take local advice.

Step 8: Keep clean books from day one

Good bookkeeping makes every annual filing easier. It also helps with bank and payment-platform reviews, which sometimes ask for evidence of where money is coming from.

At a minimum, record every transaction, reconcile your bank and payment-processor accounts monthly, and keep invoices and receipts. Our bookkeeping and accounting service handles this in QuickBooks Online, Xero or Zoho Books.

Common mistakes to avoid

• Choosing a state based only on the cheapest fee without considering where you will actually operate.
• Letting the registered agent lapse, which can lead to missed legal notices.
• Mixing personal and business money, which weakens liability protection and complicates your books.
• Ignoring Form 5472 because “the LLC didn’t make money in the US”.
• Inconsistent details across the formation documents, EIN application and bank application.

How The Standard Solutions can help

We help non-resident founders set up US LLCs with fewer surprises:

• State comparison based on your plans.
• Formation filing, with registered-agent service via our partner.
• Operating agreement template.
• Form SS-4 preparation and EIN application support.
• Banking guidance and a calendar of state and federal deadlines.
• Ongoing bookkeeping and financial models as you grow.

Learn more about our US LLC formation service.