LLC outside the US - US-Corporation.org (2024)

FAQs

Can I operate with my LLC outside the US? ›

In theory, the LLC is capable of acting outside the US. It must, however, fulfill the same conditions as the corporation in terms of an official U.S. location and an official U.S. contact person.

1. Can a foreign person or foreign corporation own a U.S. LLC? Yes. Generally, there are no restrictions on foreign ownership of any company formed in the United States, except for S-Corporations.

An LLC owned by a foreign corporation is taxed as a C-Corporation. The business is taxed as a separate entity and subject to double taxation.

It is legal to manage an LLC or corporation from outside the United States, but you will not be allowed to enter the country without a valid work visa. Contact the US Embassy in your home country or the US commercial service if you have any queries or need more information about applying for a visa.

Generally, there are no restrictions on foreign ownership of a company formed in the United States. The procedure for a foreign citizen to form a company in the US is the same as for a US resident. It is not necessary to be a US citizen or to have a green card to own a corporation or LLC.

What is the best state to start an LLC as a non-US resident? If you are located outside of the US and want to form a legal entity like an LLC, we recommend Delaware or Wyoming to form your LLC. The state you choose depends on your business type and how you plan to scale your business or company.

Which state is best for non-resident LLCs? Wyoming, New Mexico, and Delaware are the best states for non-citizens to register LLCs in the US in terms of popularity. The factors driving their popularity with foreign founders are privacy, low costs, and funding-friendly local regulations.

Single-Member LLC

For tax purposes, the IRS treats an LLC as a sole proprietorship (since both have a single owner). If the LLC generates non-US sourced income, the LLC owner pays no income tax, LLC members pay no income tax.

Paying Taxes as an American Expat with a Business Abroad

Often, ex- ex-pats living abroad and operating foreign businesses pay taxes in the country where their businesses operate. They also must pay federal taxes to the United States government because they are still U.S. citizens.

What is a foreign LLC equivalent? ›

An LLC is a domestic company in one state — its state of organization. It is considered a foreign company in every other jurisdiction. If an LLC wants to transact business in a state other than its state of organization, it will have to register as a foreign LLC with that other state's business entity filing office.

In the U.S., business incorporation occurs at the state level for all business owners, regardless of whether you are a citizen or a foreign national.

Foreign corporations that are engaged in a trade or business in the United States are subject to net-basis income tax under §882 on any of their income that is “effectively connected” with that business.

Every foreign corporation that is engaged in trade or business in the United States at any time during the tax year or that has income from United States sources must file a return on Form 1120-F, U.S. Income Tax Return of a Foreign Corporation.

Domestic corporations, and foreign corporations that conduct business in the United States or that dispose of certain US-real-estate-related property during a taxable year, are required to file an annual corporate income tax return.

What is the best state to start an LLC as a non-US resident? If you are located outside of the US and want to form a legal entity like an LLC, we recommend Delaware or Wyoming to form your LLC. The state you choose depends on your business type and how you plan to scale your business or company.

As a non-U.S. resident, your Delaware LLC will only be taxed in the U.S. on income from U.S. sources, meaning that income from other countries will not be taxed by the US. If you choose to form an LLC, any profits U.S.-sourced income will be taxed by 30%.