How a non-resident can open an LLC in the USA
In short. A non-resident can open a US LLC remotely, with any passport and without an SSN. But for someone who works in their own company personally and lives outside the US, an LLC is not the best option: the tax does not disappear, there is reporting every year, and a zero US tax has to be proven. A C-Corp paying the owner a salary is simpler.
Why an LLC is not the best option
- No tax? There is — the owner pays it. A single-member LLC is transparent for the US tax authority: its profit is the owner's personal income. Income connected with the US — US personal tax at 10–37%. Not connected — zero in the US, but all the tax is paid at home.
- No reporting? There is, every year. A pro forma 1120 with Form 5472 — even with zero tax. Form 5472 not filed — a $25,000 penalty.
- Can you stay silent? You can, but it is expensive. Without a return the statute of limitations does not run, and after 16 months the tax can be calculated on revenue, without expenses. The zero has to be declared on a protective return, and you have to be ready to prove it.
- Nothing is withheld? The tax is calculated at the end of the year, not when money is withdrawn.
- Is zero a saving? No. A zero in the US changes the country where the tax is paid, not the amount.
The alternative — a C-Corp
- The company pays 21% on its profit.
- The owner receives a salary for work done outside the US — it is not taxed in the US and reduces the company's profit.
- The owner has no personal tax return in the US; the question "is the income connected with the US" does not arise.
Comparison: profit of $150,000, the owner takes $149,500
| LLC | C-Corp | |
| Tax in the US | zero — has to be declared and defended | 21% of $500 = $105 |
| Tax at home | on the full amount | on the salary |
| Reporting in the US | 1120 + 5472 + personal 1040-NR | 1120 + 5472 |
| If a person or a warehouse appears in the US | the tax and the return change | nothing changes |
| What you will have to prove | that the business has no connection with the US | that you did not do the work in the US |
| If a partner joins | the LLC becomes a partnership: Form 1065 with a K-1 for each member, and with income connected with the US, 37% withheld from each foreigner's share | nothing changes |
When an LLC is still more convenient
- the owner is a US resident;
- the profit is much larger than a reasonable salary (a C-Corp has a ceiling of ~$150,000 a year), the home tax rate is below 21%, and the business is not connected with the US.
Conclusions
- You can open an LLC, but for a non-resident it is more often not the best choice.
- The tax in both options is about the same and is paid at home.
- The difference is in effort and risk: an LLC proves its zero every year, a C-Corp simply files its return.
Price. A company with an EIN — $899; with an account in a US bank — $1,499. Time with the account — about 6–8 weeks.
About EasyFirm
EasyFirm — US company formation (LLC or C-Corp) for non-residents, with an account in a US bank. Remotely, without an SSN or a visit to the US, with any passport. In business since 2020, more than 1,200 clients. A company from $899, with an account from $1,499.
