How to Set Up a LLC in USA for Non-Residents + US Bank Account (all sources shared)

what about documents?

they want any document for registration?
 
Taxation is the most difficult and probably most expensive part of setting up and maintaining a US LLC as a non-US resident. How, where and how much you'll be taxed depends on a lot of factors, such as:

- Are you ETBUS?
- Does your country have a tax treaty with the US to avoid double taxation?
- Will you own the company or will it be a daughter of another (home based) company?

You should really get professional tax help from a local and/or US accountant BEFORE setting up any kind of foreign business structure.

This is really simple stuff.

It's hard to be caught under LLC taxation unless you're just blatantly avoiding tax, usually, but even then it's still hard.

It just comes down to, if you're paying tax in your home country, then you probably have a treaty, and you're good as long as you don't have a home office in the US. If you do. Really simple solution. Get a c-corp.

If you aren't paying tax in the home country (which is strange for 99% of cases) then as long as you don't have a high level employee in the US, you're good.

If you are hiring in the US, then again, simple solution. Get a c-corp :)

All my LLCs are owned by a UK Ltd company. I prefer to pay tax in the UK, because it's 19% instead of 21% and the UK lets you reinvest £1mil per year that you pay no tax on. This means, that in digital marketing at least, it's very easy to have multiple LLCs owned by multiple Ltd companies and pay 0% tax as long as you reinvest.

My C corporation is owned directly by me, and i just pay the 21% corporation tax in the US, then take a dividend. Simple and clean.

People massively overcomplicate this stuff.

Just curious, why do non US residents need to incorporate a LLC in USA?

The biggest reason is USD.

Everything is earned in USD, everything is paid in USD. (almost, but close enough)

If I use my UK company, then I get paid and lose through currency conversation. Then, and especially for me reinvesting, I lose AGAIN converting back on the card when I pay.

If I use an LLC I can keep the money in the US account. I don't need to physically transfer it to the UK. The UK Ltd owns the LLC, so I can keep the dollars there until I spend them. (As long as it's within the tax year to get my £1mil reinvestment allowance per Ltd company)

Then there's the not having to pay VAT on all your purchases which is great. You can claim it back as a VAT registered entity, but it's still a pain.

But that's the main reason, just USD. You aren't really going to be limited having a company in most places. There's almost no situation where having an LLC is going to get you approved for something that not having one wouldn't.
 
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I use a different laptop only for Stirpe, PP, GMB, Wise and anything related to my business. that laptop has US residential IP and vpn.

Some other member here claim that its not a must but i just want to be sure.

I'm replying here instead of editing above so aristocratic actually sees this.

There's absolutely NO need for this. This goes against all business principles.

If only people within a country were allowed to operate a business from that country then you wouldn't have any global companies.

Your LLC is completely legitimate in the eyes of the US government. That is all that matters. Why would stripe add some company policy that they only accept LLCs from US residents :)

They don't give a monkeys. I use the same stripe for ALL my companies. They know I have a UK passport and I login from Portugal and I have both a c corporation, multiple LLCs, multiple Ltd companies and even an account for my self employed status in the UK.

I never hid it. It's never been a problem.

Wise don't care other. I got asked for some extra documents the other day and I showed my US stripe in my c corporation's name and explained that this wise, moves money from the US c corp, to my UK self employed account when I pay myself dividends. This is of course fine? Why? Because it's all legitimate.

You do not have to worry about any of that stuff. If all your setups are real, and you have the right corporate documents, then you are fine.

You don't have to hide anything from anyone. You can do whatever you want in business. Have as many companies, as many bank accounts as you want, as long as all the correct documents are filed and they're all legitimate and tax is paid in the relevant countries you will never have a problem.

Non resident means anyone who`s not a legal resident of the USA. Doesn`t matter if they`ve visited on a tourist visa at some point or have never set foot on US soil. Corporate taxes have to be paid to the IRS regardless of where you hold citizenship or residency. Your company would be a US company with an IRS issued EIN which means it has to pay US corporate taxes. Doesn`t matter if you are a resident of Austria or Zimbabwe if you form a US company, that US company has to pay US corporate taxes on it`s US revenue.


This is completely untrue.

An LLC doesn't pay "corporate taxes", even if it's owned by US citizens. It would have to opt to be taxed as a corporation for that to happen.

It's a limited liability pass-through entity. You would pay tax like a normal self employed person in the US if you lived there.

If you live in Spain, and you use an LLC directly, then it's the same as just earning money in Spain as a self employed person, and you need to pay taxes in Spain.

This is exactly why you NEVER own an LLC directly. It's a bad idea. LLC beneficial ownership is more transparent. Someone mentioned "privacy", which only holds if you have an LLC without a bank account, which is pretty useless.

As soon as you open a US account, your info is going to be shared with your home country.

I believe c corporation bank accounts are a bit different, but you have to pay your 21% tax in the US with one, so you aren't actually avoiding tax and you DO NOT own the account or the money with a c corp. The company does, and the company is a US entity, paying tax in the US, until such times as you take a dividend to your personal account.

But with an LLC this isn't the case, so the banks tend to share more information with your home country. Depends on the bank, but you never know. You can just assume that your home country will very likely discover you own a US bank account and will ask you about it. They won't know about the LLC, but they'll know you have an undeclared foreign bank account, which is enough to trigger an investigation.
 
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When you formed your business and the IRS opened your EIN, no matter if you are a non resident or not your company is a USA company with a USA EIN and thus subject to federal taxes. The only thing that differs is how those taxes need to be filed with the IRS and state if you are operating in a state that has state taxes or gross receipts taxes. With the reporting threshold dropping to $600 for marketplaces, platforms and processors in 2022 1099-K`s will be submitted to the IRS after the user/merchant surpasses $600 in sales. If you are receving payments on any platform or service using your EIN as your tax ID, those earnings will be reported to the IRS no matter if you are a foreign/non resident founder or director or a resident founder/director. The second you incorporated in the USA your company became a resident company. Visa, citizenship, residency status of the directors doesn`t change the residency status of the company and neither does management location. The federal tax rate is a flat 21% of net revenue.

If you are any of the following, you must file a return:

  1. A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year.
  2. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
If you are taking payments through Binance using a Binance Business account then that means you had to enter, confirm and verify your EIN which means any payments received through Binance are technically taxable by the IRS. USA resident companies are taxed on worldwide income. I run a PRO service so can give you the basics but you`ll have to talk to a full fledged accountant to get a bigger picture as there are other variable (withholding percentages, etc) that could play a role based on your entity structure.

Incorporating in Wyoming saves you the hassle of having to deal with corporate and personal income taxes but you formation status there along with your non resident status doesn`t exempt your resident USA company from federal taxes.

Also to expand on some other issues I`ve seen in this post. Mercury. Good service but its limited and very risk adverse. If you are attempting to open an account to attach to Ebay or other marketplaces its not the best solution, especially if you are trying to open and receive payments for multiple accounts. You`d be better off with Relay or Revolut USA Business who`s accounts are provided through Metropolitan Commercial Bank as opposed to Evolve Bank and Trust.

Also $200 is still far too high a price for formation services if all they are offering is state articles, EIN, and a year of registered agent service. They should be providing full legally prepared documentation as certian banks and processors are going to ask for resolutions and bylaws or organizational charts along with your EIN, articles, proof of address and identity documents. You should only be paying between a $49 - $70 service fee for service that only includes articles, EIN and registered agent service. So for a Wyoming company that would come too: $151 - $172 with state fees included.


This is also all nonsense information.

"USA EIN and thus subject to federal taxes"?

What..?

Businesses don't pay federal taxes. Federal taxes are paid by employees. People living and working in the US.

And it's certainly not "21%"


It has multiple brackets.

What you're confusing here is "corporation tax", which is 21% and it's something corporations pay. Not LLCs.

"The second you incorporated in the USA your company became a resident company"

Total and utter nonsense. Anyone reading this is going to learn some very bad information from you.

A c corporation is resident in the US. An LLC is only resident if you have a high level manager in the US and no tax-treaty with the country that owns the LLC, OR, you have a tax treaty, but a permanent office in the US.

It's quite hard to fall under that. You really need someone RUNNING the business from the US. Ie, you don't do shit except take payments.

Mercury is limited? lol. Do you have a mercury account?

Standard limits are: wires from an outside financial institution: $5 MILLION per day. Oh yeah, that's a terrible limit. You can't get paid that $10 million wire. Oh, but wait, you can. Just ask them to raise your limit.

ACH transfers; $250k per day. Again, ask them to raise and give them advance notice and extra info about the incoming transfer. Super simple.

As standard on a card you can spend $150k per month, but you can create multiple cards or raise that. But you wouldn't be spending that much on a card. For large payments you do wires.

I can't stand when people just write a load of crap and confuse the hell out of others.

This is why people should NOT get financial advice from a marketing forum.

Talk to a CPA. They are not expensive. A few hundred $ and you can get everything answered.

Don't have a few hundred $? Then you don't need an LLC.
 
This is also all nonsense information.

"USA EIN and thus subject to federal taxes"?

What..?

Businesses don't pay federal taxes. Federal taxes are paid by employees. People living and working in the US.

And it's certainly not "21%"


It has multiple brackets.

I just have to applaud you for these knowledge bombs. Well done and much appreciated!

You mentioned never to own an LLC directly, can you elaborate on that some more and which alternatives would make more sense? Also, is this something you can change later, for example after emigrating to a different country?
 
This is also all nonsense information.

"USA EIN and thus subject to federal taxes"?

What..?

Businesses don't pay federal taxes. Federal taxes are paid by employees. People living and working in the US.

And it's certainly not "21%"

https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
It has multiple brackets.

What you're confusing here is "corporation tax", which is 21% and it's something corporations pay. Not LLCs.

"The second you incorporated in the USA your company became a resident company"

Total and utter nonsense. Anyone reading this is going to learn some very bad information from you.

A c corporation is resident in the US. An LLC is only resident if you have a high level manager in the US and no tax-treaty with the country that owns the LLC, OR, you have a tax treaty, but a permanent office in the US.

It's quite hard to fall under that. You really need someone RUNNING the business from the US. Ie, you don't do shit except take payments.

Mercury is limited? lol. Do you have a mercury account?

Standard limits are: wires from an outside financial institution: $5 MILLION per day. Oh yeah, that's a terrible limit. You can't get paid that $10 million wire. Oh, but wait, you can. Just ask them to raise your limit.

ACH transfers; $250k per day. Again, ask them to raise and give them advance notice and extra info about the incoming transfer. Super simple.

As standard on a card you can spend $150k per month, but you can create multiple cards or raise that. But you wouldn't be spending that much on a card. For large payments you do wires.

I can't stand when people just write a load of crap and confuse the hell out of others.

This is why people should NOT get financial advice from a marketing forum.

Talk to a CPA. They are not expensive. A few hundred $ and you can get everything answered.

Don't have a few hundred $? Then you don't need an LLC.
I can confirm all this information shared by splishsplash and I actually suggest you do your own thread with all that information since otherwise it will get lost. I’m currently myself in the process of having a business in Delaware and this is all the same I have come across.

regarding taxes I’m in the understanding that as an alien (foreigner) with a LLC partnership you’re not paying any state taxes nor federal taxes. Meaning it’s tax free on all you do. You still have to do your accounting and file a tax report end of the year but no tax. As an alien you are responsible to pay YOUR tax on your individual income in your home country. Meaning as long as you don’t pay you a salary or dividend for being an owner you don’t have to pay taxes. For example you could just keep investing and until you pay out your profit you are taxable.

I’d love if you can speak about this splishsplash since I’m still a bit confused about this part. But I see you know your stuff.

Btw, I have LLC with EIN in Delaware, virtual phone number through OpenPhone, bank account with Mercury.
 
Really? I thought it take $700-$800 to create the US LLC.

Thanks for sharing this.
it comes down to the indvidual states that you file your LLC in,,, for example calif would be one of the highest.
 
Great post I appreciate your good works to fellow web workers. I 'll give a trial. Possibly everything will work out online without requiring personal visitation. Once again, thanks for sharing.
 
I need help open US bank, i already have company LLC
give me your contact
 
A
I'm replying here instead of editing above so aristocratic actually sees this.

There's absolutely NO need for this. This goes against all business principles.

If only people within a country were allowed to operate a business from that country then you wouldn't have any global companies.

Your LLC is completely legitimate in the eyes of the US government. That is all that matters. Why would stripe add some company policy that they only accept LLCs from US residents :)

They don't give a monkeys. I use the same stripe for ALL my companies. They know I have a UK passport and I login from Portugal and I have both a c corporation, multiple LLCs, multiple Ltd companies and even an account for my self employed status in the UK.

I never hid it. It's never been a problem.

Wise don't care other. I got asked for some extra documents the other day and I showed my US stripe in my c corporation's name and explained that this wise, moves money from the US c corp, to my UK self employed account when I pay myself dividends. This is of course fine? Why? Because it's all legitimate.

You do not have to worry about any of that stuff. If all your setups are real, and you have the right corporate documents, then you are fine.

You don't have to hide anything from anyone. You can do whatever you want in business. Have as many companies, as many bank accounts as you want, as long as all the correct documents are filed and they're all legitimate and tax is paid in the relevant countries you will never have a problem.




This is completely untrue.

An LLC doesn't pay "corporate taxes", even if it's owned by US citizens. It would have to opt to be taxed as a corporation for that to happen.

It's a limited liability pass-through entity. You would pay tax like a normal self employed person in the US if you lived there.

If you live in Spain, and you use an LLC directly, then it's the same as just earning money in Spain as a self employed person, and you need to pay taxes in Spain.

This is exactly why you NEVER own an LLC directly. It's a bad idea. LLC beneficial ownership is more transparent. Someone mentioned "privacy", which only holds if you have an LLC without a bank account, which is pretty useless.

As soon as you open a US account, your info is going to be shared with your home country.

I believe c corporation bank accounts are a bit different, but you have to pay your 21% tax in the US with one, so you aren't actually avoiding tax and you DO NOT own the account or the money with a c corp. The company does, and the company is a US entity, paying tax in the US, until such times as you take a dividend to your personal account.

But with an LLC this isn't the case, so the banks tend to share more information with your home country. Depends on the bank, but you never know. You can just assume that your home country will very likely discover you own a US bank account and will ask you about it. They won't know about the LLC, but they'll know you have an undeclared foreign bank account, which is enough to trigger an investigation.
An LLC no matter how it chooses to be taxed will be taxed plain and simple either the members will report taxes directly or the LLC can chose to be taxed as a corporation and thus subject to federal corporate tax rae like every other C or S corp. If you are using a USA payment processor or marketplace as a non resident without an ITIN your revenue will be reported on your 1099-K under your LLC EIN. That revenue needs to be reported on your return. Plain and simple you have a legally operating USA entity generating revenue. It will be taxed at the federal and/or state level period. Your US LLC can`t make $30,000 in revenue and think you are not going to be taxed because you are not a resident. Mercury is limited plain and simple. Every fintech that doesn`t hold its own bank charter will obviously be more limited in terms of risk then the actual bank providing the deposit and card services. There`s industries and activity that Evolve Bank and Trust can support that Mercury can not. If you are going to respond don`t leave context on the sofa.
 
A

An LLC no matter how it chooses to be taxed will be taxed plain and simple either the members will report taxes directly or the LLC can chose to be taxed as a corporation and thus subject to federal corporate tax rae like every other C or S corp. If you are using a USA payment processor or marketplace as a non resident without an ITIN your revenue will be reported on your 1099-K under your LLC EIN. That revenue needs to be reported on your return. Plain and simple you have a legally operating USA entity generating revenue. It will be taxed at the federal and/or state level period. Your US LLC can`t make $30,000 in revenue and think you are not going to be taxed because you are not a resident. Mercury is limited plain and simple. Every fintech that doesn`t hold its own bank charter will obviously be more limited in terms of risk then the actual bank providing the deposit and card services. There`s industries and activity that Evolve Bank and Trust can support that Mercury can not. If you are going to respond don`t leave context on the sofa.
To make this more simple. Is your US entity formed under US law? Is it engaged in US business? If both of those are true and you are a foreign owner then both forms 1120 and 5472 need to be filed. Its been that way for 5 years now...
 
A

An LLC no matter how it chooses to be taxed will be taxed plain and simple either the members will report taxes directly or the LLC can chose to be taxed as a corporation and thus subject to federal corporate tax rae like every other C or S corp. If you are using a USA payment processor or marketplace as a non resident without an ITIN your revenue will be reported on your 1099-K under your LLC EIN. That revenue needs to be reported on your return. Plain and simple you have a legally operating USA entity generating revenue. It will be taxed at the federal and/or state level period. Your US LLC can`t make $30,000 in revenue and think you are not going to be taxed because you are not a resident. Mercury is limited plain and simple. Every fintech that doesn`t hold its own bank charter will obviously be more limited in terms of risk then the actual bank providing the deposit and card services. There`s industries and activity that Evolve Bank and Trust can support that Mercury can not. If you are going to respond don`t leave context on the sofa.

My CPA disagrees with you. End of story.
 
My CPA disagrees with you. End of story.
Sorry my friend, but what is CPA?
I found your messages very informative.
I have small online gaming business with 3k revenue monthly with eu/asia customers. Working like self-employed in my 3rd world country but have problems with paypal and stripe. Thinking to work make company and work from company's name. Dont this bad idea with such income?
 
As an alien you are responsible to pay YOUR tax on your individual income in your home country. Meaning as long as you don’t pay you a salary or dividend for being an owner you don’t have to pay taxes. For example you could just keep investing and until you pay out your profit you are taxable.

Don't forget that the US LLC can be liable for corporate income tax in the country where you reside, since it will have a permanent establishment in that same country as well OR/AND its profits will be taxed as your personal income because it is a pass-through entity. This depends on how your country of residence treats a US LLC in its domestic tax laws and probably even on how what the possible tax treaty stipulates. Whether it is a corporation or a pass-through entity in their books. That's why I think it makes sense to own the US LLC through a domestic corporation, because you avoid the possibility of being taxed on your US LLC profits as your personal income.

This will depend on where you reside personally and the tax treaties in place. A situation where you won't have to pay any tax on any profits left in the LLC and not distributed to yourself is only possible in countries where you reside that have a 0% corporate income tax and 0% personal income tax on salary and nill tax on dividends.

Hardly anyone lives in a such country ;)
 
Sorry my friend, but what is CPA?
I found your messages very informative.
I have small online gaming business with 3k revenue monthly with eu/asia customers. Working like self-employed in my 3rd world country but have problems with paypal and stripe. Thinking to work make company and work from company's name. Dont this bad idea with such income?

Certified Public Accountant.

$3k/mo isn't really enough to justify using companies. I'd only look at a company for $10k/mo+. Less you're better off just being self employed in your country. You'll pay too much on costs + accounting fees. I pay like $5k per year for my c corporation setup. More if you factor in the other companies.
 
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