Can a Foreigner Own an LLC in the US? The Complete Guide for Non-Residents in 2026

If you’re a non-US citizen wondering whether you can form an American LLC, here’s the short answer: yes, absolutely. The United States has no citizenship or residency requirement to own a limited liability company. In 2026, thousands of international entrepreneurs, digital nomads, and foreign investors form US LLCs every year — and for good reason.

But while the legal barrier is zero, the practical process involves a few important steps most foreign nationals aren’t aware of: choosing the right state, getting an EIN without a Social Security Number, opening a US bank account, and navigating the IRS’s special reporting rules for foreign-owned LLCs. Services like Northwest Registered Agent have helped thousands of non-residents form US LLCs properly, including handling the registered agent requirement that every state imposes.

This guide walks through every step you need to know in 2026 — from formation to banking to taxes.

Why Foreign Nationals Form US LLCs

Before diving into the how, it’s worth understanding the why. A US LLC gives a foreign national several significant advantages that a company formed in their home country simply can’t match:

Access to US payment processors. Stripe, PayPal, and Square — the payment infrastructure that powers global e-commerce — all require a US business entity for full access. A foreign-owned LLC unlocks those accounts.

Credibility with US customers and partners. A .com website backed by an “Inc.” or “LLC” registered in Delaware or Wyoming signals legitimacy in a way that a foreign registration doesn’t.

Asset protection. Just like for US citizens, the LLC structure separates personal assets from business liabilities. If your US business faces a lawsuit, your personal assets in your home country are generally protected.

Access to US business banking. With a properly formed LLC and an Employer Identification Number (EIN), many US banks — and virtually all modern fintech banks like Mercury and Relay — will open an account for you even without a US address.

No US income tax on foreign-sourced income. If your LLC only earns income from non-US sources and you have no US-based operations, you may owe no US taxes at all. (More on this in the tax section below.)

Can a Foreigner Own an LLC? The Legal Answer

Under US law, there is no federal statute prohibiting non-US citizens from owning or managing a limited liability company. The rules that govern LLCs are state laws, and no US state restricts LLC membership based on citizenship or residency.

This applies whether you are:

A foreign national living abroad (no US presence at all)
A non-resident alien temporarily in the US on a visa
A permanent resident (green card holder)
A dual citizen

The LLC is one of the most foreigner-friendly business structures in the world. Contrast this with an S-Corporation, which is restricted to US citizens and permanent residents — a critical distinction I’ve seen trip up foreign clients who didn’t understand the difference.

Best States for a Foreign-Owned LLC in 2026

While you can form an LLC in any of the 50 states, most international entrepreneurs choose one of four states: Delaware, Wyoming, New Mexico, or Florida. Here’s how they compare:

Wyoming

Wyoming is arguably the best state for non-residents forming a US LLC in 2026. It offers:

No state income tax on LLC members
No franchise tax (unlike Delaware’s $300+ minimum)
Strong privacy laws — Wyoming does not publicly list LLC members or managers in state records
Low annual fee of just $62 for the annual report
Single-member LLCs recognized with full liability protection

Wyoming’s privacy protections are particularly attractive to foreign owners who don’t want their name published in a public state database. A Wyoming LLC can be managed by a foreign person, and the state has no residency requirement for managers.

Delaware

Delaware is the gold standard for venture-backed startups and companies seeking outside investment, largely because US investors are familiar with Delaware corporate law. However, for a typical international entrepreneur running an online business, Delaware’s $300 annual franchise tax and the requirement to file an annual report often make it less practical than Wyoming.

Delaware LLCs do offer strong charging order protections and a well-established legal framework. If you plan to raise US venture capital, Delaware C-Corp (not LLC) is usually the right choice anyway.

New Mexico

New Mexico is the only state that does not require LLCs to file an annual report or pay an annual fee after formation — ever. The initial filing fee is just $50. This makes it attractive for dormant LLCs or holding companies where minimizing ongoing costs matters. The downside: New Mexico’s privacy protections are weaker than Wyoming’s in some respects, and it lacks Wyoming’s robust LLC statute.

Florida

Florida is worth considering if you have US-based operations in the Southeast, or if you plan to open a physical presence. Florida has no state income tax, reasonable fees ($138.75 annual report), and is straightforward to form in. Unlike Wyoming, Florida does publicly disclose registered agent and principal office information.

Our recommendation for most foreign nationals: Wyoming or New Mexico for online businesses, Delaware if you’re planning to raise US investment.

Step-by-Step: How to Form a US LLC as a Foreign National

Step 1: Choose Your State

As discussed above, Wyoming and New Mexico are the top choices for most international entrepreneurs. Your LLC can be formed in any state regardless of where you live — you don’t need to visit the US.

Step 2: Hire a Registered Agent

Every US LLC is required to designate a registered agent — a person or company with a physical US address in the formation state who receives legal and tax documents on the LLC’s behalf. As a non-resident, you cannot serve as your own registered agent (you need a US address), so you’ll need a third-party service.

The major registered agent services for foreign-owned LLCs include:

Northwest Registered Agent — $125/year, includes scanned mail forwarding and exceptional privacy protections. They also offer formation services specifically designed for non-residents ($39 state fee + their service fee). Unlike LegalZoom which charges $249+/year for registered agent service, Northwest is significantly more affordable for long-term use.
ZenBusiness — $0 registered agent in the first year (included with formation plans starting at $0 + state fees). A great low-cost option if you’re just getting started.
Bizee — Free registered agent service for the first year, $119/year thereafter.

Step 3: File the Articles of Organization

You (or your formation service) will file the Articles of Organization with the state. The document typically requires:

LLC name (must include “LLC,” “L.L.C.,” or “Limited Liability Company”)
Registered agent name and address
Management structure (member-managed or manager-managed)

You do not need to provide your foreign address or passport number on most state forms. Wyoming, in particular, allows the registered agent to be listed as the sole contact.

Step 4: Obtain an EIN (Employer Identification Number)

An EIN is the business equivalent of a Social Security Number. You’ll need it to open a US bank account, hire employees, file taxes, and operate as a legitimate US entity.

For US citizens, getting an EIN is trivial — a 5-minute phone call or online application. For non-residents without a Social Security Number, the process is more involved:

Option A: Apply by fax or mail (Form SS-4). Complete IRS Form SS-4, write “foreign” in line 7b (where it asks for a Social Security Number or ITIN), and fax it to the IRS. Processing typically takes 4-6 weeks by mail, or 4-5 business days by fax.

Option B: Call the IRS International line. Non-residents can call the IRS International Taxpayer Services line at 1-267-941-1099 (Monday–Friday, 6am–11pm ET) and complete the EIN application over the phone. You’ll receive your EIN immediately on the call. This is the fastest option.

Option C: Use a formation service. Some registered agent services, including Northwest Registered Agent, offer EIN obtainment as an add-on service for international clients who aren’t comfortable calling the IRS.

You do not need an ITIN (Individual Taxpayer Identification Number) to get an EIN — the two are separate identifiers.

Step 5: Open a US Business Bank Account

This is historically the most frustrating step for foreign LLC owners, but it has become substantially easier in 2026 thanks to fintech banks that operate entirely online.

Traditional banks (Chase, Bank of America, Wells Fargo) typically require you to visit a branch in person with ID to open a business account. This is impractical for non-residents.

Fintech banks designed for remote account opening include:

Mercury — Popular with startups and international founders. Requires only EIN, LLC formation documents, and a passport. No SSN required. No monthly fees, no minimum balance. Mercury is specifically designed for non-resident founders and is the most widely recommended option in 2026.
Relay — Similar to Mercury, focused on small businesses. Good for multi-user access and expense tracking.
Wise Business — Not a traditional bank, but a multi-currency business account that integrates well with international operations and supports ACH payments.

I’ve worked with dozens of international clients in 2026, and Mercury is consistently the smoothest experience for non-residents who need a fully functional US business checking account without ever setting foot in the US.

Step 6: Get an ITIN (If Needed for Tax Filing)

If your LLC earns US-source income or you need to file a US tax return, you’ll need an ITIN (Individual Taxpayer Identification Number). An ITIN is issued by the IRS specifically for individuals who need a US taxpayer ID but don’t qualify for a Social Security Number.

You apply for an ITIN using IRS Form W-7. The process requires certified copies of your passport and takes approximately 7-11 weeks. If you’re working with a CPA experienced in international tax, they can often help expedite this process through an IRS Acceptance Agent.

Tax Rules for Foreign-Owned US LLCs

Tax is where things get genuinely complex, and where consulting a qualified international tax professional is not optional — it’s essential. Here’s an overview of the key rules in 2026:

Single-Member LLCs: The “Disregarded Entity” and Form 5472

A single-member LLC owned by a foreign national is treated as a “disregarded entity” for US federal tax purposes — meaning the IRS looks through the LLC and taxes the owner directly. This sounds simple, but it comes with a critical compliance requirement: IRS Form 5472.

Form 5472 is an informational return specifically for foreign-owned, single-member LLCs. It discloses transactions between the LLC and its foreign owner (capital contributions, distributions, loans, etc.). The form is filed together with a pro-forma Form 1120 (corporate return), even though the LLC doesn’t owe corporate tax.

The penalty for failing to file Form 5472 is $25,000 per violation — one of the steeper penalties in the IRS playbook. The IRS has significantly increased enforcement of this requirement in recent years. If you have a foreign-owned single-member LLC, you must file Form 5472 every year, even if the LLC had no income.

Multi-Member LLCs: Partnership Tax Rules

If your LLC has two or more members, it’s taxed as a partnership. Foreign partners are subject to withholding tax on their share of US-source income under IRC Section 1446. The LLC itself is responsible for withholding and remitting that tax.

When Do You Owe US Tax?

The key question is whether your LLC has Effectively Connected Income (ECI) — income connected to a US trade or business. This is a complex determination that depends on where the income is earned, where services are performed, and where customers are located.

General rules of thumb (not legal advice — consult a professional):

If you’re a foreign national operating entirely outside the US, selling to non-US customers, with no US employees or office, your LLC likely generates no ECI and owes no US income tax.
If you have US customers, US employees, or a US physical presence, you likely have ECI and owe US tax on that income.

The IRS’s publication IRS Publication 519 covers the US tax guide for aliens in detail and is worth reviewing alongside professional advice.

FIRPTA and Real Property

If your LLC owns US real property (land, buildings, rental properties), the Foreign Investment in Real Property Tax Act (FIRPTA) applies. FIRPTA requires buyers to withhold 15% of the purchase price when foreign persons sell US real property interests. This is a significant consideration for foreign nationals using LLCs to hold US real estate — our guide to LLCs owning property covers this in more detail.

BOI Reporting: Required for Most Foreign-Owned LLCs

As of 2024, the Corporate Transparency Act requires most US LLCs to file a Beneficial Ownership Information (BOI) report with FinCEN (the Financial Crimes Enforcement Network). In 2026, this requirement is fully in force.

For a foreign-owned LLC, the beneficial owners are the foreign nationals who directly or indirectly own 25% or more, or who exercise substantial control. The report requires:

Full legal name
Date of birth
Residential address
A copy of a passport or national ID card

Foreign nationals without a US address report their foreign residential address. There’s no exception for non-residents — if you own a US LLC, you almost certainly must file a BOI report.

Our comprehensive BOI guide walks through the filing process in detail.

The Cost of Forming a Foreign-Owned LLC

Here’s a realistic cost breakdown for forming a Wyoming LLC as a non-resident in 2026:

Item	Cost
Wyoming Articles of Organization (state fee)	$102
Registered Agent (first year)	$0–$125
EIN obtainment (if using a service)	$0–$75
Formation service fee	$0–$199
Total first year	$102–$501
Annual registered agent (ongoing)	$49–$125/year
Wyoming annual report (ongoing)	$62/year

ZenBusiness’s free plan covers state filing fees and includes the first year of registered agent service, making it one of the more affordable options for initial formation. However, their base plan doesn’t include an EIN service — you’d need to add that or obtain it yourself.

Northwest Registered Agent’s formation package ($39 + state fees) is particularly well-regarded for non-residents because their customer service team is experienced with the specific questions international clients have, like registered address requirements and EIN timing.

See our full breakdown of LLC formation costs for a deeper comparison.

Common Mistakes Foreign Nationals Make

1. Assuming the “best state” depends on where customers are. Your LLC can be formed in Wyoming even if all your customers are in California. You don’t need to register in every state your customers are in, unless you have a physical presence there.

2. Skipping Form 5472. This is the most dangerous mistake. Many foreign LLC owners don’t know this form exists. The $25,000 penalty is real and has been imposed on unsuspecting international entrepreneurs.

3. Using a personal address as the registered agent address. You cannot serve as your own registered agent as a non-resident. Using a mail forwarding address doesn’t satisfy the requirement either — the registered agent must have a physical street address in the state.

4. Thinking an ITIN is required before forming the LLC. You can form the LLC first and get the ITIN later (or not at all, if you don’t need to file US taxes).

5. Not understanding the banking challenges upfront. Plan your bank account strategy before you need it — don’t assume a traditional US bank will open an account without an in-person visit.

Frequently Asked Questions

Can a non-US citizen be the sole owner of a US LLC?

Yes. A non-US citizen can be the sole member of a US LLC with no restriction. There’s no citizenship or residency requirement.

Do I need to visit the US to form an LLC?

No. The entire formation process — filing, registered agent, EIN, and bank account (with fintech banks like Mercury) — can be completed entirely online without visiting the US.

Does a foreign-owned LLC need to pay US taxes?

It depends on the source of income. If your LLC has no US-source income (no US customers, employees, or operations), it generally owes no US income tax. However, you will still need to file IRS Form 5472 each year for a single-member LLC.

Can a foreign-owned LLC have a US bank account?

Yes. While traditional banks require an in-person visit, online fintech banks like Mercury and Relay open accounts for non-resident LLC owners with just an EIN and formation documents — no SSN required.

What is Form 5472 and does it apply to me?

Form 5472 is an IRS informational return required for single-member LLCs owned by foreign nationals. It must be filed even if the LLC had no activity. The penalty for not filing is $25,000. If you own a foreign-owned single-member LLC, this requirement almost certainly applies to you.

Which state is best for a foreign-owned LLC?

Wyoming is the most popular choice in 2026 due to its strong privacy protections, no state income tax, low ongoing fees, and no franchise tax. New Mexico is a close second for those who want zero ongoing annual fees.

Do I need an ITIN to form an LLC in the US?

No. An ITIN is separate from an EIN. You can form an LLC and obtain an EIN without an ITIN. You only need an ITIN if you’re required to file a US individual tax return.

What’s the difference between a foreign-owned LLC and a foreign LLC?

A “foreign-owned LLC” refers to a US LLC whose members are non-US citizens. A “foreign LLC” is a US term for an LLC formed in one state that registers to do business in another state. These are two completely different concepts.

The Bottom Line

Can a foreigner own an LLC in the US? Absolutely — and in 2026, it’s easier than ever to do it properly. The US imposes no citizenship or residency barrier on LLC ownership, and services like Northwest Registered Agent and ZenBusiness have made remote formation straightforward even for clients in other countries.

The key points to remember: choose Wyoming or New Mexico for most online businesses, hire a registered agent, get your EIN by calling the IRS international line, open a Mercury account for US banking, file Form 5472 every year without fail, and work with an international tax CPA from day one.

For a comparison of the best formation services for non-residents, see our complete guide to LLC formation services.

The author name used in this article may be a pen name or pseudonym and is used for illustrative and editorial purposes only. This article is for informational purposes only and does not constitute investment, tax, or legal advice. The rules governing foreign-owned LLCs involve complex IRS regulations, state-specific requirements, and international tax treaties that vary by situation and country of residence. Consult qualified tax, legal, and financial professionals before making any decisions about forming a US LLC as a non-resident.