ZOHAIR AND CO. GLOBAL ACCOUNTANTS

How a non-resident forms a US LLC the right way

How a Non-Resident Forms a US LLC the Right Way: EIN, Bank Account & Compliance
Foreign-Owned US Businesses · Getting Started

How a non-resident forms a US LLC the right way: EIN, bank account & compliance

You don't need a visa, a US address, or even to set foot in the country to own a US company. What you do need is to run the steps in the right order — because the mistakes non-residents make aren't in forming the LLC, they're in the EIN, the bank account, and the compliance that follows. Here's the clean path.

Citizenship needed
None
SSN needed for EIN
No
Visit the US?
Not required
Remember
$0 tax ≠ $0 filing

Every year, tens of thousands of founders outside the US form a Limited Liability Company to reach American customers, use US payment processors, and gain the credibility of a US entity — all without residency. The law is genuinely open: any foreign national can own 100% of a US LLC. The hard part isn't permission; it's doing each step correctly so you end up with a company that can actually bank and that stays compliant.

The order that saves you weeks Form the LLC → get the EIN → open the bank account → set up compliance. Skip ahead — say, applying for a bank account before the EIN lands — and you stall. Get the sequence right and the whole thing runs remotely in a few weeks.

Step 0: pick the right state

You can form in any state, but three dominate for non-residents because they combine low cost, privacy and no state income tax. Tell the tool what matters most to you.

Which state fits you? Educational guide only — not legal or tax advice. Fees are approximate and change.
What matters most to you?
 WyomingDelawareNew Mexico
Filing fee (approx.)~$100~$110~$50
Annual cost~$60/yr report$300/yr franchise taxNone (no annual report)
State income taxNoneNone on out-of-state incomeNone (for non-resident, no NM activity)
Owner privacyHigh (members not listed)ModerateHigh (members not listed)
Best forMost non-residentsRaising US VC / startupsCheapest, simplest
Fees are indicative for 2026 and set by each state; confirm current amounts before filing. All three require a registered agent in the state of formation.

The full roadmap, in order

1
Choose your structure and state
A single-member LLC is simplest. Pick your state (above), and decide single- vs multi-member — it changes how you're taxed and what you file.
2
Appoint a registered agent
Every state requires a registered agent with a physical address there to receive legal and state mail. Bundling this with formation is the cleanest route (roughly $50–$125/year).
3
File the Articles of Organization
This is the actual formation — filed with the state's Secretary of State, online or through a service. Approval is often days.
4
Put an operating agreement in place
Not always legally required, but banks and processors often ask for it, and it documents ownership. Do it before banking.
5
Get your EIN — no SSN needed
Apply on Form SS-4. Because you have no SSN or ITIN, you can't use the online tool — file by fax or the IRS international phone line, writing "Foreign" on the taxpayer-ID line. (More below.)
6
Open a US business bank account
With your EIN and formation documents, open an account remotely through a US fintech built for founders. (More below.)
7
Understand your tax position
Most non-residents with no US trade or business owe $0 US federal income tax — but that is not the same as no filing (see step 8).
8
Set up your compliance calendar
Form 5472 + pro forma 1120 (due April 15), the state annual report/franchise tax, registered-agent renewal, and your BOI position. This is the step non-residents forget — and the one with the $25,000 penalty.

Getting the EIN without an SSN or ITIN

The EIN is your company's federal tax ID — you need it for banking, payment processors and every filing. The persistent myth is that you must first get an ITIN. You don't. Here's the reality:

  • Use Form SS-4. On the responsible-party taxpayer-ID line, write "Foreign" rather than an SSN/ITIN — this is the correct, IRS-accepted entry.
  • Not online. The online EIN tool requires the responsible party to have a US taxpayer ID, so non-residents apply by fax or by the IRS international phone line instead. (Check IRS.gov for the current fax number and phone line, as they change.)
  • Timing. Fax typically returns the EIN in days to a few weeks; mail is slower. A third-party designee on the SS-4 can receive it for you.
  • ITIN comes later, if at all. You'd only need an ITIN (Form W-7) if you personally end up with a US filing obligation — for example, filing Form 1040-NR because your business has effectively connected income.
Don't pay for an "ITIN-then-EIN" package you don't need. Some services upsell an ITIN as a prerequisite for the EIN. For most non-resident LLC owners it's an unnecessary detour — the "Foreign" entry on the SS-4 is the right path.

Opening a US bank account — remotely

This is usually easier than founders fear. Traditional US banks often want you to appear in person, but several US fintechs are built for remote, non-resident-owned LLCs and can open an account online once your company exists.

To open one, have ready: your EIN confirmation, Articles of Organization, your operating agreement, and a passport. Expect a KYC ("know your customer") review, during which the provider collects beneficial-ownership information — a bank compliance step that is separate from the FinCEN and IRS rules discussed below. A few points of friction to plan around:

  • Providers exclude certain countries (sanctioned jurisdictions, and some higher-risk ones) — check eligibility before you form.
  • A clean, consistent set of documents (matching names and addresses across the LLC, EIN and ID) speeds approval.
  • Payment processors (for online sales) are a separate signup from your bank account — plan for both.

How your LLC is taxed — and one option you can't use

By default, a single-member LLC is a disregarded entity and a multi-member LLC is a partnership. An LLC can also elect to be taxed as a C corporation. But there's a common trap:

A non-resident cannot elect S-corporation status. The tax code bars nonresident aliens from being S-corp shareholders, so the "save on self-employment tax with an S-corp" advice you'll read in US forums simply doesn't apply to you. Your realistic choices are disregarded entity, partnership, or C corporation.

On the tax itself: a non-resident running an online business with no US trade or business and no US-source income generally owes $0 in US federal income tax. If instead you have effectively connected income (US staff, operations, or US real-estate rental), that profit is taxable and you'd file Form 1040-NR (individual) or 1120-F (corporation). Either way, the Form 5472 information return is separate and usually still required.

Your annual compliance calendar at a glance

Form 5472 + pro forma 1120 — by April 15 (extension to October 15 via Form 7004), for a foreign-owned single-member LLC with any reportable transaction. Missing it risks a $25,000 penalty even with $0 income.

State annual report / franchise tax — e.g. Wyoming's annual report, Delaware's $300 franchise tax; New Mexico has none.

Registered-agent renewal — keep it active or the LLC can fall out of good standing.

Form 1040-NR / 1120-F — only if you have US-taxable (effectively connected) income.

BEA surveys and FBAR — possible foreign-investment surveys (BE-13/BE-12) and an FBAR if the LLC holds foreign financial accounts above the threshold.

Sales tax — if you sell goods and create economic nexus in a state, registration and collection can follow.

Do you have to file a BOI report? (current status)

No. FinCEN issued a final rule on August 11, 2026 (effective August 14, 2026) that permanently exempts US-formed companies — including foreign-owned US LLCs — from beneficial-ownership (BOI) reporting under the Corporate Transparency Act. It adopts the exemptions first introduced in the March 26, 2025 interim final rule. Only entities formed under foreign law and registered to do business in a US state remain "reporting companies," and they report only their foreign beneficial owners. So a US LLC you form as a non-resident is on the exempt side.

One caution: this BOI regime is separate from the beneficial-ownership information your bank collects at account opening, which still applies. Rules can change, so confirm the current position at FinCEN.gov.

The mistakes that cost non-residents the most

  • Treating "no tax" as "no filing." The Form 5472 obligation is about ownership and transactions, not profit.
  • Buying an ITIN you don't need to get the EIN.
  • Forgetting the state and registered-agent renewals, and letting the LLC lapse.
  • Assuming an S-corp election is available — it isn't, for non-residents.
  • Choosing a state on price alone without weighing banking, privacy and your actual plans.
One sentence to remember Forming a US LLC as a non-resident is straightforward — pick the right state, get the EIN with "Foreign" on the SS-4, open a fintech bank account, and then run the compliance calendar, because the filings (not the formation) are where the real risk lives.
Sources (primary & official). IRS Form SS-4 and its instructions (Application for Employer Identification Number; foreign responsible party without SSN/ITIN enters "Foreign" and applies by fax or the IRS international phone line rather than online). IRC section 6038A and Form 5472 (annual information return for foreign-owned US disregarded entities; $25,000 penalty). IRC section 1361(b)(1)(C) (a nonresident alien may not be a shareholder of an S corporation). IRC sections 871, 882 and 1446 (taxation of non-resident and effectively connected income); IRS Forms 1040-NR and 1120-F. FinCEN final rule of August 11, 2026 (effective August 14, 2026; Federal Register 2026-16576), adopting the March 26, 2025 interim final rule, and FinCEN BOI information page (US-formed entities permanently exempt from beneficial-ownership reporting). State formation and annual-fee information is published by the Wyoming, Delaware and New Mexico Secretaries of State; amounts stated are approximate for 2026 and change over time.
Disclaimer. This article and the accompanying tool are provided by Zohair & Co. Global Accountants for general information and educational purposes only, and reflect our understanding of US federal and state requirements, IRS guidance and the FinCEN final rule as of the date of publication. They are not legal, tax or accounting advice, do not create a client relationship, and must not be relied upon for any specific formation, tax or banking decision. State fees, IRS contact methods, banking eligibility and BOI rules change over time and vary by facts. Please consult a qualified professional about your circumstances before acting, and refer to the official IRS, FinCEN and Secretary of State sources as authoritative.
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