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

The Ops apparent target are people living outside USA , but having some business limitations on the basis of their location.


Hiring an accountant to get an LLC done is like using a sledge hammer to kill an ant.
Point out the line where I said you need to hire an accountant to get an LLC done. You need an accountant to be compliant with the IRS. Opening the LLC is not a challenge, there are plethora of options online. Pretty sure none of you know, you don't even need a penny to open one if you know someone in the US who is ready to act as a registered agent for you. Similarly, you get EIN for free when you DIY. Everything can be done online/mail/fax for free.

I researched about this and it seems only corporations need to file form 5472?

"Who has to file? A U.S. corporation with 25% or more foreign ownership, or foreign corporations that do business or trade in the U.S. are required to file IRS Form 5472. You must report the existence of all related parties in Form 5472 as well, and fill out a separate form for each foreign owner."
Don't go by the exact terms and language on IRS' website. You need to file forms 5472 and 1120 for all foreign owned single member LLCs. You'll get plenty of results online. The info is free.
 
Maybe somewhat out of topic, but are you selling services to clients with wise?
Different high ticket services.

If they send you the payment from any bank without having a wise, will you receive it on wise normally?
Yes

Must you link your bank to wise to receive payments like this?
Thanks

Yes, I have connected the WISE account with the bank account in my country, not the Relayfi bank mentioned in the post.
 
It's not as simple as just filing an annual report. You have to file form 5472 in which you need to report all transactions between your LLC and foreign related parties. Failing to do that invites a fine of $25000.
All the dropshipping craze made people open LLCs like madmen without knowing the intricacies of taxation and other paperwork.
Remember your details remain on file with the state and the country. You can't just get away without doing proper paperwork. And this is not pointed at the OP, it's for everyone who are probably thinking it's as easy as a walk in the park.
Get an accountant, don't try to save money on everything.
Point out the line where I said you need to hire an accountant to get an LLC done. You need an accountant to be compliant with the IRS. Opening the LLC is not a challenge, there are plethora of options online. Pretty sure none of you know, you don't even need a penny to open one if you know someone in the US who is ready to act as a registered agent for you. Similarly, you get EIN for free when you DIY. Everything can be done online/mail/fax for free.


Don't go by the exact terms and language on IRS' website. You need to file forms 5472 and 1120 for all foreign owned single member LLCs. You'll get plenty of results online. The info is free.

These are sensible replies and everything stated here is true. Except, it's not completely free even if you do it on your own. You need to pay the state fee which is $102 for the first year for Wyoming and $60 from your second year.
Other than that, yes, you do have to file form 5472 and 1120 and the annual report. This is a good article for those who want to read up more about it : https://gwcarter.com/us-tax-guide-for-nonresident-aliens-with-single-member-llc/

Registering a company is easy, thanks to all these online resources, but maintaining it takes time, effort and money. Also keep in mind, the payment processors and online banks are all very stringent, you'll get shut down with the slightest shady thing you do.
Btw, you can't open a paypal account with a US LLC if you don't have the ITIN. It's either SSN or ITIN. Can't open a paypal account with EIN. And that is why I recommend UK LLP for anyone who wants to open a paypal account along with an offshore company. UK LTD is also an option but compliance is trickier than it is for LLP.
 
These are sensible replies and everything stated here is true. Except, it's not completely free even if you do it on your own. You need to pay the state fee which is $102 for the first year for Wyoming and $60 from your second year.
Other than that, yes, you do have to file form 5472 and 1120 and the annual report. This is a good article for those who want to read up more about it : https://gwcarter.com/us-tax-guide-for-nonresident-aliens-with-single-member-llc/
Those cheap options are often tricky, many peoples avoid paying extra fees for accounting & tax fulfillment but it's gonna hurt the business in the long run.
 
Those cheap options are often tricky, many peoples avoid paying extra fees for accounting but it's gonna hurt the business in the long run.
Not only people avoid paying an accountant, when their stripe gets banned, they just abandon the LLC. You can't do that, you have to pay and get the company closed.
Also, a lot of people think they're just gonna avoid paying tax, let me tell them countries share all your information with your home country about your finances. The US signed double tax avoidance treaty with a ton of countries. You'll have to pay tax, either in the US if you choose to treat your LLC as a corp or where ever you're a tax resident.

Compliance is very very very important, don't try to save money or you'll end up paying a lot in fines. And if you don't pay the fine either, you've burnt the bridge with the US. Because if you ever step on their land, they'll have all the info about the amount you owe.
 
Would a UK LLP be the easier option when it comes to compliance and tax fillings?
 
You totally forgot about filings , you need a CPA for taxes etc... you only talk about the first phase which is how to open ;)
there's more to it. but isn't hard if you konw the right people..
 
You totally forgot about filings , you need a CPA for taxes etc... you only talk about the first phase which is how to open ;)
there's more to it. but isn't hard if you konw the right people..

I didn't forget anything. I just shared what I have done till now.

No one is stopping you to share more so we can complete the GUIDE ;)
 
I also have a Wyoming LLC, But can someone show some light on taxes?
Actually I was thinking Wyoming do not have income tax and only 4% sales tax which applied if we sell something within wyoming.
so only fill the report at the end of the year and thats it.

but now what is form 5472????
after doing business for 1 year in the end I come to know that I have to pay taxes more than my earnings
I am scared now
please can someone explain form 5472 and all the taxes I will be responsible to pay at the end of the year?
 
How did you know you had to pay taxes? I assume in your home country?
I pay taxes in my home country
but I am talking about my Wyoming LLC.
what tax liability do I have and what is form 5472?
 
Except, it's not completely free even if you do it on your own. You need to pay the state fee which is $102 for the first year for Wyoming and $60 from your second year.
Of course, when I said free I meant you don't have to spend any money on intermediaries. State fee is always going to there. It's different for every state.
 
I havent opened an LLC and I too am a foreign and non resident, I dont think we are required to pay any taxes to the US. I hope other members can explain this.
That is what I was thinking before reading about form 5472.
what is form 5472?
how much tax and do I really need to hire expensive accountant to prepare it?
Please someone can explain this?
 
Thanks for sharing your experience. Now I'm asking if anyone knows. I lived in the USA for a few years and had an SSN, paid my taxes, etc. I don't live in the USA anymore but I pay the taxes, and I use the SSN, shouldn't I have problems and wouldn't it be necessary to have an LLC? TRUE?
 
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