Author: freellc

  • 5 Things to Know Before Forming a US LLC as a Non-Resident

    Forming a US LLC from outside the United States is straightforward — but there are a few things worth understanding before you start. Here are five that come up in almost every conversation we have with founders.

    1. You don’t need to visit the US

    Everything can be done remotely. The Articles of Organization are filed electronically with the state. Your EIN application goes to the IRS by fax or phone. Bank accounts can be opened online with banks like Mercury or Relay. At no point do you need to set foot in the United States.

    2. The state you choose matters more than you think

    Wyoming, Delaware, New Mexico, Florida — each has different filing fees, annual costs, and privacy rules. Wyoming is popular for good reason (no state income tax, strong privacy, reasonable fees), but it’s not automatically the best for everyone. New Mexico has zero annual fees. Delaware makes sense mainly for VC-backed startups. Take five minutes with our state quiz before deciding.

    3. An EIN is not optional

    The EIN (Employer Identification Number) is your LLC’s tax ID. Without it, you can’t open a US bank account, register with Stripe, or file taxes. Non-residents can’t apply online — it has to be done by fax (4–6 weeks) or phone (3–5 days). Plan for this timeline.

    4. Your home country still taxes you

    A US LLC doesn’t change your tax residency. If you live in Germany, Austria, Spain, or anywhere else, your worldwide income is still taxable there. The LLC provides liability protection and access to US banking — it’s not a tax optimization tool. Talk to a tax advisor in your country before assuming anything about your obligations.

    5. Ongoing compliance is real

    Once your LLC exists, you have annual obligations: state filings (Annual Reports in most states), federal filings (Form 5472 for foreign-owned single-member LLCs), and possibly more depending on your situation. Missing Form 5472 starts at a $25,000 penalty. This is not something to forget about. Our Compliance Package handles it for $149/year, or you can use our free self-service wizard.


    Ready to start? Our wizard walks you through the entire process in about five minutes. Questions? Email us at support@freellc.us.

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