You do not need a visa, a Social Security number, or a plane ticket to start a US business as a non-resident. Founders form US LLCs from Karachi, São Paulo, and Berlin every day, entirely online, because the US has never required its business owners to be citizens or residents.
What trips people up is not eligibility. It is sequence. Apply for the wrong tax ID, pick a bank that wants you in a branch, or skip a filing you did not know existed, and a two-week project becomes a three-month slog with a penalty attached.
This guide covers the whole process in order: entity, state, formation, EIN, ITIN, banking, payments, and taxes, plus the mistakes that cost real money. Everything here reflects the rules as they stand in 2026.
Why non-residents form US companies
A US company unlocks things that are hard to get any other way: full access to Stripe and PayPal, a US storefront on Amazon, clients who prefer paying a US entity in dollars, and a legal wall between business liabilities and your personal assets.
It also fixes a credibility problem. Enterprise clients, app stores, and ad networks treat a registered US LLC with an EIN very differently from an individual invoicing from abroad. None of it requires citizenship, residency, or ever setting foot in the country.
Step 1: Choose your entity
For most non-resident founders the answer is an LLC. It is inexpensive to maintain, flexible, and taxed as a pass-through by default, so the company itself typically owes no federal income tax. Profits flow through to you, and what you personally owe depends on how the income connects to the US.
A C-Corp makes sense if you are building a venture-track startup, since US investors typically expect a Delaware C-Corp. The cost is double taxation and heavier compliance. One option is closed entirely: S-Corps are only open to US citizens and residents.
The LLC vs C-Corp comparison covers the trade-offs in detail, and the two-minute entity quiz will point you to a sensible default.
Step 2: Pick your state
You can form your company in any state, regardless of where your customers live. If you have no physical presence in the US, no office, employees, or leased warehouse, you are free to choose on cost, privacy, and simplicity. For most non-residents the shortlist is two states.
| Factor | Wyoming | Delaware |
|---|---|---|
| State filing fee | $100 | $110 for LLCs |
| Ongoing cost | Annual report from $60 | $400 annual franchise tax |
| Known for | No state income tax, strong owner privacy | Chancery Court, investor familiarity |
| Best fit | E-commerce, freelancers, agencies | Startups raising US venture capital |
Wyoming wins for the typical bootstrapped business, and Delaware earns its higher annual cost mainly when venture capital is on the roadmap. The Wyoming vs Delaware breakdown goes deeper, and if your business will have real operations in a specific state, that state usually becomes the right answer instead.
Step 3: Form the LLC
Formation is the easy part, and most states approve an LLC in 3 to 7 business days. The sequence:
- Check that your name is available in your state, and grab the matching domain while you are at it.
- Appoint a registered agent, a person or company with a physical address in the formation state that receives legal and state mail. Non-residents cannot skip this.
- File the Articles of Organization with the state.
- Sign an operating agreement. Banks and payment processors often ask for it even when the state does not.
- Set up a US mailing address so IRS and state mail actually reaches you.
Brio handles the filing end to end for $1 plus the state fee, with registered agent and US mailing address available alongside it.
Step 4: Get your EIN, then an ITIN if you need one
The EIN is your company’s federal tax ID, and everything downstream depends on it: banking, Stripe, Amazon, and tax filings. You do not need an SSN to get one. Non-residents apply with Form SS-4 by fax or mail, which typically takes 2 to 4 weeks. Brio delivers EINs in about 10 days.
An ITIN is different: a personal tax ID for individuals who cannot get an SSN. You do not need one to form an LLC or get an EIN. It becomes relevant when you have a personal US filing, such as a 1040-NR, or for certain financial services. The standard route takes 7 to 14 weeks and usually means mailing your passport to the IRS. Because Brio is an IRS Certified Acceptance Agent, you can get an ITIN without sending your passport anywhere.
Step 5: Open a bank account and set up payments
Fintech-first banks changed the game for non-residents. Mercury and Wise both accept remote applications from non-resident-owned US LLCs, though Mercury excludes founders from certain countries. Traditional banks like Chase and Bank of America usually still require an in-person branch visit.
Apply with your formation documents and EIN confirmation letter, which is why the order of steps matters. Once the account is live, Stripe and PayPal onboarding is straightforward with a US entity, EIN, and US bank account behind it. The guide to opening a US business bank account from abroad covers documents, timelines, and country restrictions.
Step 6: Understand your US tax picture
A US LLC does not automatically mean US taxes, but it always means US filings. This is where non-residents get hurt most often.
A single-member LLC with a foreign owner files Form 5472 attached to a pro-forma Form 1120 every year, even with zero revenue. Missing it carries a $25,000 penalty. If your income is effectively connected to a US trade or business, you may also need to file a personal 1040-NR.
Multi-member LLCs file Form 1065 with a K-1 for each member, and typically must withhold on foreign partners’ shares of income using Forms 8804 and 8805.
On beneficial ownership reporting, FinCEN’s 2025 interim final rule exempted US-formed companies, while foreign companies registered to do business in the US must still file. These rules have shifted before, so confirm the current position before relying on an exemption.
Whether you owe actual US income tax depends on your operations and your country’s treaty. In most cases, a founder selling from abroad with no US presence owes little or no US federal income tax, but the informational filings remain mandatory. A free tax consultation before your first filing season costs you nothing and beats a $25,000 lesson.
Common mistakes that cost real money
- Assuming no revenue means no filings. The Form 5472 penalty starts at $25,000 and does not care that you had a quiet year.
- Running business money through personal accounts. Commingling funds is the fastest way to weaken your liability protection.
- Forming in the wrong state. If you later build real operations elsewhere, you may have to register there too and pay twice.
- Letting the registered agent lapse. States can administratively dissolve your LLC, and you may only find out when a bank or processor flags it.
- Starting the bank application before the EIN arrives. Applications stall without the confirmation letter, so respect the sequence.
Frequently asked questions
Can I start a US business as a non-resident without visiting the US?
Yes. Formation, the EIN, the ITIN, and banking with fintechs like Mercury or Wise can all be handled remotely. A visit is typically only needed if you want an account at a traditional branch bank.
How long does the whole process take?
The LLC typically takes 3 to 7 business days. The EIN is the long pole at 2 to 4 weeks through the standard process, or around 10 days through Brio. With banking on top, plan for roughly a month from filing to accepting payments.
Do I need an ITIN to own a US LLC?
No. The company needs an EIN, and many owners never need an ITIN at all. It only becomes necessary when you have a personal US filing obligation, such as a 1040-NR, and you can apply at that point through a Certified Acceptance Agent without mailing your passport.
How much does it cost to start?
Brio forms your LLC for $1 plus the state fee, which is $100 in Wyoming and $110 in Delaware. Budget separately for the state’s annual report or franchise tax and a registered agent, with transparent pricing on add-ons like EIN and ITIN support.
Will my LLC owe US taxes if all my customers are outside the US?
In most cases a foreign-owned LLC with no US presence and no effectively connected income owes little or no US federal income tax. The informational filings are still mandatory, and treaties vary by country, so get advice on your specific situation before your first filing year.
