Kickstart Your American Dream: How To Form a US LLC For Non-US Residents in 2023

So you want to open an LLC in the U.S. You’ve got the resources, time, and ambition to make that happen. There’s just one problem: You don’t live in America.

So how do you do it? Do you need a green card? What about a U.S. bank account? Is it even possible as a non-US resident? Cast your worries aside.

Not only is it possible, but there are plenty of services to help you.

Read on for some straightforward steps to get you on your way.

Non-US Residents: How To Form An LLC

1. Make Sure You Have the Right Visa

To start an LLC in the United States, you need to have the right permission to work. There are two options you can choose: You can get a green card by marrying a U.S. citizen or being sponsored by a U.S. family member or employer.

Alternatively, you can apply for an E-2 investor visa, which is a popular choice for non-resident LLC owners. You’ll need to show that your LLC will have enough starting money and will create jobs for U.S. citizens.

Regardless of which path you choose, it’s important to get advice from a legal professional to make sure you understand all the requirements.

2. Choose the Ideal State for Your LLC

You should select the same state where you plan to run your business. While any state is possible, some are better for non-residents than others. For example, Delaware allows you to avoid paying income tax on any business conducted outside of the state.

Each state has its advantages and disadvantages though, so working with an LLC formation service can help you decide the best option for your business.

3. Choose and Reserve Your LLC Name

Choose a business name that represents your brand and appeals to your target audience. Most importantly, your business name must be unique in the state where you register.

All state websites have name search tools, but you can also simplify the process by using an LLC service to check and secure your name for you.

4. Apply for an ITIN & EIN

An ITIN (Individual Taxpayer Identification Number) is a tax number for non-US residents. You will need it to pay taxes. It is also legally required to do business in the U.S. You can only apply for it through the IRS – either by phone or on their website.

Once it’s done you can use your ITIN to get an EIN (employer identification number), which is a tax number for your business.

Your EIN is necessary if you plan to hire employees, apply for a business loan, or file taxes as a business. You can apply for one with the IRS on your own, or you can save time by enlisting professional help.

5. Choose a Registered Agent

A registered agent is an individual or company that handles official government documentation on your behalf. They are legally required, must be available during business hours, and must have a physical address within the state of formation.

You can act as your own registered agent, but we recommend you use a separate service. Many of them allow you to obtain a U.S. business address through their virtual mailboxes and offices. You can then use these addresses to open a U.S. business bank account.

LLC formation services often include registered agent support in their subscription plans, although virtual addresses may incur an extra cost.

6. Create an LLC Operating Agreement

An Operating Agreement is a legal contract. It explains the rules of your LLC. It’s particularly important in a business partnership because it confirms how much each member owns. Your Operating Agreement can also cover other essential matters, such as:

• Who is responsible for making decisions
• How profits and losses are divided between members
• Attending yearly meetings

Not every state requires an Operating Agreement. However, it’s a good idea to create one regardless. They can be complicated, but you can make it easier by using a professional service to make one for you.

7. Submit Articles of Organization

Your Articles of Organization are the legal documents you must complete and file with your state to form your company.

Each state has different requirements. Additional documents might also be necessary depending on your specific business. It is important to make sure everything is perfect here as errors can lead to long delays.

Getting help from an LLC professional can dramatically reduce the time you spend on this. They understand each state’s requirements and can file your papers quickly and accurately – some even within 24 hours.

Top 3 LLC Formation Services for Non-US Residents in 2024

There are a lot of LLC formation services out there. To come up with the top 3 for Non-US residents, we looked for the following features:

• Free (excluding state fees) plans that save you the most money.
• Feature-packed plans designed to offer new businesses the best value.
• Exclusive services to give you an advantage, such as creative services, financial tools, or specialty consultations.
• An easy and user-friendly experience to form your LLC stress-free.
• Excellent customer support that’s available whenever and however you need it.
• Customizable packages for your unique business needs.

1. Tailor Brands: Build Your Brand From the Beginning

Tailor Brands offers a wide range of visual design and marketing tools and add-on services. You get a lot more than basic LLC formation, including graphic design, brand growth materials, social media tools, and website development. (In fact, if you don’t need all that, you may want to look at the other two companies on this list.)

One nice feature of Tailor Brands is its free “plan” generator. Give it some info about you and your business, and Tailor Brands will build a checklist to guide you from your current stage to fully launched and online. Of course, you will be encouraged to buy its plans and services along the way. However, if you’re going from the idea phase to taking action in your business-building venture, it’s a good basic guideline to follow.

Features

• Exclusive branding services including a free logo creation tool and more.
• Expertly printed merchandise through a partnership with Zazzle.
• Traffic-generating social marketing tools to build brand awareness and secure profits.
• Personalized customer support whenever you need it

2. Legal Zoom: Create Your Own Plan To Suit Your Unique Needs

LegalZoom has been offering legal services to both individual and business clients for over 20 years. This makes it one of the most experienced business service providers on our list. If your business needs to closely manage legal issues like contracts or compliance, LegalZoom might be the LLC formation service for you.

Many service providers offer pre-designed plans with features you don’t need, but LegalZoom lets you create your own plan. It offers pre-made plans, too, but the real benefit of LegalZoom’s service is that you can customize it. You can get exactly what you want and avoid paying for features you won’t use.

A valuable add-on available from LegalZoom is its Business Advisory Plan. For a yearly fee, you can receive year-round legal assistance. In the long run, it’s much cheaper than LegalZoom’s one-off legal services, especially for businesses that rely on contracts, agreements, copyrights, and other heavily legal business documentation.

Lastly, you can pay for LegalZoom’s plans in installments. This can make the services you need more affordable.

Features

• Option to pay in installments so you don’t need a lot of money to start.
• Year-round legal assistance to make sure you always stay compliant.
• Pre-made plans and custom options to suit your unique needs.

3. Incfile: Ideal For Smaller Budgets

Sometimes, affordable services only provide the most basic features. However, Incfile is a bit different. It provides the basics and a lot more while still keeping its prices reasonable. With Incfile, you pay one-time fees, with no hidden costs, and you get excellent value for your money.

Incfile offers 3 plans, and the entry-level Silver plan is free, minus your state filing fees. All plans, including the free Silver, include next-day filing of your paperwork. The Silver plan also includes free Registered Agent services for a year. This is a great way to form your LLC cheaply.

The Gold and Platinum plans offer more features and cost more, but they’re still reasonably priced. With both of these plans, you receive an Operating Agreement, your EIN, lifetime compliance alerts for reporting, and a free 30-minute consultation with a tax expert.

The Platinum plan offers a package to get your business online, a library of free business contract templates, and free super-fast filing with your state. Again, a lot of good stuff for a very cheap price.

If you’re low on money, you can apply for one of Incfile’s grants: There is a grant for students in US high schools, trade schools, and universities, and another for adults who are no longer in school. The adult grant program even includes a free Platinum plan for a year. You can start your dream business and Incfile will pay for it!

Features

• Wide range of services that suit all budgets.
• Next-day filing on all plans so you can start quickly.
• Grant programs to help you launch your startup with minimal cost.

Take Your Business to the Next Level

Forming a U.S. LLC opens doors to the lucrative American market, unlocks new business opportunities, and gives you the freedom to work remotely. The process may be complex, but the rewards are worth it. The business you’ve always wanted is just a few steps away.

Starting an LLC can be a dream come true – but only after you finish all the paperwork. Our three recommended LLC formation services eliminate all the difficulties and challenges of building your business.

No matter how big or small your LLC might be, Tailor Brands has a plan that will work for you. Each plan packs a lot of value, including a range of visual design and marketing add-ons. Unlike its competitors, it provides some free features like expedited filing time with every plan. Other service providers would charge you for this.

If you need more customization, consider Legal Zoom. While it has pre-made plans available, the real advantage is the option to create your own package. For businesses with lots of legal requirements, we suggest checking out their legal assistance services.

Or, if you’re a new business owner and want a lot of guidance, Incfile is a good choice. It offers something for every budget and comes with a grant program to help launch your startup.

Here are our top 3 picks at a glance for forming an LLC as a Non-US Resident: