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

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.
Completely false.
 
Hey Tom

Thanks for the value added to this thread. It will be helpful to many members. @splishsplash

Regarding the VPN and IP. I don't have any experience or proof to support my claims, but I'm just skeptical because I live in a 3rd world country.
I have had many problems before in other situations. That's why I decided to use a completely separate Laptop + Residential US IP and VPN.
I might be paranoiac, though.

I didn't even recommend other members to do so. :)
 
Hey Tom

Thanks for the value added to this thread. It will be helpful to many members. @splishsplash

Regarding the VPN and IP. I don't have any experience or proof to support my claims, but I'm just skeptical because I live in a 3rd world country.
I have had many problems before in other situations. That's why I decided to use a completely separate Laptop + Residential US IP and VPN.
I might be paranoiac, though.

I didn't even recommend other members to do so. :)

I'm always just up front with banks/payment processors. I find it's best in the long run. That's my advice anyway :)
 
Great thread mate! I would also recommend using 1stformations for a UK LTD. I had a great experience with them!
 
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 ;)
So in my case I got recommended to register a LLC with two owners as a partnership and as a pass-through entity. I'm in the understanding that being aliens this means, the LLC is not US based and as long as we don't have US employees this stays this way.

I'm also in the understanding that because of this, there is no tax to be paid in the USA and in my residence country I only have to pay the tax for personal income (salary, dividends) that the company pays out to me as an individual. So as long as there is no payout there would be no tax.

Is this correct?
 
I wish you all had a great weekend.

I have seen many people in BHW asking questions about LLCs in the USA. I have been one of them in the past too.

The thing is that nobody shares their own sources publicly. Back at the time, I asked a member here on BHW (can't recall his name now) and he suggested me a service.
Guess what?! That service was a fcuking reseller and I ended up paying $500 to set up an LLC in Wyoming.



I'm not gonna share the RESELLER company, no worries lol. I'll share the main source.

The company I have used is Wyoming LLC attorney (.) com. You can set up your LLC in the US for $199.
After 1-year I paid $159 for Renew Agent Service & We File Annual Report With Our Name (Anonymous).

After setting up the company obviously you want to open a US bank account. I created a simple website for my company and applied for a bank account with Mercurey but I didn't have success. A friend of mine was accepted. So I would suggest you try Mercury first and if that doesn't work you can continue with Relayfi (.) com. They accepted my application and now I have a US bank account. I also received a Debit Business Card which Relayfi mailed to my business address (in this case Wyoming LLC attorney).
Then I used the MAIL FORWARDING service from the Wyoming LLC attorney (costs $65) and received the CARD.

If you don't need the physical Debit Card you can use the Virtual one. You can also create Virtual Debit cards for your registered employees. :)


With this LLC I also created an account Stripe account which is working like a charm.


NOTE

- I still haven't used the Relayfi yet as i don't really need the bank account. So I can't tell you my experience with them. (fees, maintenance, etc)
- I also didn't do any transactions with the company so I can't tell you anything about taxes etc.


TL: DR

Set up an LLC in Wyoming US with Wyoming LLC attorney (.) com
Open a US bank account with Relayfi (.) com


That's all, $200 and you have your LLC set up in the US.


Have a nice week ahead

PS. I'm not affiliated with any of those companies. Just my own experience.
I am using Relayfi and wise for my LLC and both work fine. I did use mercury in the past and they are a pain to get started plus they have dreadful reviews on closing accounts for no reason plus holding on to your money!

May I ask how fast did you get your EIN? IRS was having insane delays for ITIN distribution cause of covid and weren't able to catch up on this for a while. waited 6 months for an ITIN
 
I wish you all had a great weekend.

I have seen many people in BHW asking questions about LLCs in the USA. I have been one of them in the past too.

The thing is that nobody shares their own sources publicly. Back at the time, I asked a member here on BHW (can't recall his name now) and he suggested me a service.
Guess what?! That service was a fcuking reseller and I ended up paying $500 to set up an LLC in Wyoming.



I'm not gonna share the RESELLER company, no worries lol. I'll share the main source.

The company I have used is Wyoming LLC attorney (.) com. You can set up your LLC in the US for $199.
After 1-year I paid $159 for Renew Agent Service & We File Annual Report With Our Name (Anonymous).

After setting up the company obviously you want to open a US bank account. I created a simple website for my company and applied for a bank account with Mercurey but I didn't have success. A friend of mine was accepted. So I would suggest you try Mercury first and if that doesn't work you can continue with Relayfi (.) com. They accepted my application and now I have a US bank account. I also received a Debit Business Card which Relayfi mailed to my business address (in this case Wyoming LLC attorney).
Then I used the MAIL FORWARDING service from the Wyoming LLC attorney (costs $65) and received the CARD.

If you don't need the physical Debit Card you can use the Virtual one. You can also create Virtual Debit cards for your registered employees. :)


With this LLC I also created an account Stripe account which is working like a charm.


NOTE

- I still haven't used the Relayfi yet as i don't really need the bank account. So I can't tell you my experience with them. (fees, maintenance, etc)
- I also didn't do any transactions with the company so I can't tell you anything about taxes etc.


TL: DR

Set up an LLC in Wyoming US with Wyoming LLC attorney (.) com
Open a US bank account with Relayfi (.) com


That's all, $200 and you have your LLC set up in the US.


Have a nice week ahead

PS. I'm not affiliated with any of those companies. Just my own experience.
to get mercury going best is to have an IT Media or online marketing Biz!
 
I wish you all had a great weekend.

I have seen many people in BHW asking questions about LLCs in the USA. I have been one of them in the past too.

The thing is that nobody shares their own sources publicly. Back at the time, I asked a member here on BHW (can't recall his name now) and he suggested me a service.
Guess what?! That service was a fcuking reseller and I ended up paying $500 to set up an LLC in Wyoming.



I'm not gonna share the RESELLER company, no worries lol. I'll share the main source.

The company I have used is Wyoming LLC attorney (.) com. You can set up your LLC in the US for $199.
After 1-year I paid $159 for Renew Agent Service & We File Annual Report With Our Name (Anonymous).

After setting up the company obviously you want to open a US bank account. I created a simple website for my company and applied for a bank account with Mercurey but I didn't have success. A friend of mine was accepted. So I would suggest you try Mercury first and if that doesn't work you can continue with Relayfi (.) com. They accepted my application and now I have a US bank account. I also received a Debit Business Card which Relayfi mailed to my business address (in this case Wyoming LLC attorney).
Then I used the MAIL FORWARDING service from the Wyoming LLC attorney (costs $65) and received the CARD.

If you don't need the physical Debit Card you can use the Virtual one. You can also create Virtual Debit cards for your registered employees. :)


With this LLC I also created an account Stripe account which is working like a charm.


NOTE

- I still haven't used the Relayfi yet as i don't really need the bank account. So I can't tell you my experience with them. (fees, maintenance, etc)
- I also didn't do any transactions with the company so I can't tell you anything about taxes etc.


TL: DR

Set up an LLC in Wyoming US with Wyoming LLC attorney (.) com
Open a US bank account with Relayfi (.) com


That's all, $200 and you have your LLC set up in the US.


Have a nice week ahead

PS. I'm not affiliated with any of those companies. Just my own experience.
for the taxes you can get the LLC set up a s a disregarded entity and no accounting no tax payments!
Same question. I heard stripe detects your location as non US and shuts you down. Some other guide I read recommended using a proxy while accessing your stripe account.
@aristocratic your input on this will be appreciated.
I have a stripe account for the LLC. Not using proxy not being shutdown. around 100k turnover per month and no headache
 
So in my case I got recommended to register a LLC with two owners as a partnership and as a pass-through entity. I'm in the understanding that being aliens this means, the LLC is not US based and as long as we don't have US employees this stays this way.

I'm also in the understanding that because of this, there is no tax to be paid in the USA and in my residence country I only have to pay the tax for personal income (salary, dividends) that the company pays out to me as an individual. So as long as there is no payout there would be no tax.

Is this correct?
yes absolutely correct. using my LLC since 3 years no and your explanation is correct
 
thanks for the info
I have a question tho, can I register the first debit card as virtual ?
because almost all US bank require you to verify the first physical debit card
 
With Mercury you can. I'm currently only using a virtual debit card and it's working good.
 
well thanks @sonderlings
I saw the website and they both require EIN, that mean I can't just use SSN ?
is mercury and relay.fi don't accept "small business " with sole proprietor that only have SSN ?
 
thanks for the share OP. bookmarked
 
Why have an LLC when you are selling a digital product? You could be anywhere in the world and sell to US customers.
 
So in my case I got recommended to register a LLC with two owners as a partnership and as a pass-through entity. I'm in the understanding that being aliens this means, the LLC is not US based and as long as we don't have US employees this stays this way.

I'm also in the understanding that because of this, there is no tax to be paid in the USA and in my residence country I only have to pay the tax for personal income (salary, dividends) that the company pays out to me as an individual. So as long as there is no payout there would be no tax.

Is this correct?

That would be too easy, because everyone would setup a US LLC and escape taxation in their home country by not distributing profits or paying out salary to themselves.

The LLC would have to most likely pay in your situation corporate income tax for the profits made, because it would have permanent establishment in your country.
 
That would be too easy, because everyone would setup a US LLC and escape taxation in their home country by not distributing profits or paying out salary to themselves.

The LLC would have to most likely pay in your situation corporate income tax for the profits made, because it would have permanent establishment in your country.
No because an LLC is not a corporation. So there is no corporate income tax either. And this is the biggest advantage I think on why to establish a LLC in a tax heaven like Delaware or Wyoming. The legal structure of a LLC is unique and doesn’t exist anywhere else in the world.

From wikipedia:
A limited liability company (LLC) is the US-specific form of a private limited company It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation under state law; it is a legal form of a company that provides limited liability to its owners in many jurisdictions.

Source: https://en.m.wikipedia.org/wiki/Limited_liability_company
 
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