LLC in the United States: complete guide for non-residents in 2026

400 to 1. Everything you need to know before forming a US LLC as a foreigner. State comparison (NM vs WY vs DE), real costs, 0% federal tax structure, Mercury banking and fintech stack.

Pillar guide: for the full step-by-step flow, see our definitive guide to opening a US LLC in 2026.

If you are a freelancer, digital entrepreneur, or self-employed professional outside the United States, forming a US LLC may be one of the best decisions you make for your business. This guide covers everything you need to know today.

What is a US LLC?

A Limited Liability Company (LLC) is a legal business structure in the United States that combines the liability protection of a corporation with the tax simplicity of a partnership. For non-residents, it offers something particularly powerful: pass-through taxation with $0 federal tax on income earned outside the US.

Unlike a C-Corporation, which faces double taxation (corporate income tax + dividend tax), the LLC is treated as a "Disregarded Entity" by the IRS. All income passes through directly to the owner. No corporate-level tax. No double taxation. Just clean, efficient pass-through.

Why a US LLC instead of a local company?

When you operate as a self-employed professional in Spain, Mexico, Colombia, or any other country, you face several challenges:

High tax rates: self-employed rates in Spain can reach 47% between IRPF (19-47% progressive) and social security contributions (~€300+/month)
Restrictions on international payments: many platforms and clients prefer working with US companies
Limited access to banking tools: Mercury, Stripe, PayPal Business all work better with a US entity
Zero personal asset protection: as a sole proprietor, your personal assets are fully exposed to business liabilities
Fixed monthly costs: social security contributions regardless of whether you invoice or not

A US LLC solves all these problems simultaneously.

How does the LLC work for non-residents?

The key is the tax classification. The IRS classifies a single-member LLC owned by a non-resident as a "Disregarded Entity", meaning the LLC itself pays no federal income tax. Instead, the income flows through to the owner (you), who declares it in their country of residence.

If your income has no US source (you work online from another country), the LLC effectively pays $0 in US federal taxes.

The pass-through taxation mechanism

Your LLC invoices clients: in USD via Stripe, wire transfer, or ACH
Your LLC pays operational expenses: software, tools, services, subscriptions
Your LLC pays $0 US federal tax: zero, nothing, zilch
You receive net profits: via Owner's Draws to your personal account
You declare in your country of residence: only net profits, on a significantly reduced taxable base

Which state should you choose?

The three most popular states for non-residents are:

New Mexico: No publication requirement, low costs, no annual report fee, complete privacy for members. The best option for most of our clients.

Wyoming: Strong privacy laws, invented the LLC in 1977, low costs, strongest asset protection through charging order protections. Excellent if you need maximum asset protection.

Delaware: The standard for US investors and venture capital. Preferred by VCs and sophisticated investors. Only necessary if you plan to raise funding or convert to a C-Corp later.

What do you need to form an LLC?

Your personal identification (passport)
A US address (provided by your registered agent)
An EIN (Employer Identification Number), your tax ID from the IRS
An operating agreement (customized for non-resident ownership)

At Exentax, we handle all of this for you as part of our complete formation service.

The complete fintech stack for your LLC

Once your LLC is formed, you need the right financial infrastructure. Here is the recommended stack:

The annual obligations

Once your LLC is formed, you have annual obligations:

Form 5472 + Form 1120: filed with the IRS each year (we handle this). Penalty for non-filing: $25,000 per form per year (IRC §6038A)
BOI Report: beneficial ownership information filed with FinCEN. Penalty: $591/day for non-compliance, up to $10,000 + 2 years criminal. Relax: at Exentax this is what we do every week, we close it before the letter ever lands in your inbox.
Registered Agent renewal: maintaining your US address
State annual report: where applicable (varies by state)
FBAR (FinCEN Form 114): if your US financial accounts exceed $10,000 at any point during the year

Real numbers: the savings

Freelancer billing €72,000/year:

The difference grows as your revenue increases. And these savings are completely legal, transparent, and sustainable.

Is it legal?

Absolutely. Thousands of entrepreneurs and freelancers worldwide operate through US LLCs. The structure is completely legal and transparent. You declare your LLC income in your country of residence and comply with both US and local tax obligations. The IRS knows about your LLC through Form 5472. FinCEN knows through the BOI Report. Your local tax authority knows through your personal tax return.

This is tax optimization, not tax evasion. The difference matters.

Who should NOT form an LLC?

An LLC is not for everyone. It doesn't make sense if:

You bill less than €1,500-2,000/month (the savings don't cover the costs)
All your clients are domestic (no international advantage)
You need a local professional license (doctors, lawyers practicing locally)
You're looking to "disappear" from tax authorities (the LLC is about transparency, not hiding)

Book your strategic consultation

If you want to know whether a US LLC makes sense for your specific situation, book a strategic 30-minute consultation. We analyze your income, costs, and country of residence and give you real numbers, not generic promises.

Quick comparison: LLC vs. staying as you are

The numbers speak for themselves. For most digital entrepreneurs earning $3,000+/month with international clients, the LLC is the most impactful financial decision you can make.

The complete formation timeline

What makes Exentax different

We don't just file paperwork. We build your complete business infrastructure:

Formation: LLC created in your optimal state (NM, WY, or DE based on your needs)
EIN: Obtained directly from the IRS
Operating Agreement: Custom-drafted for non-resident single-member LLC
BOI Report: Filed with FinCEN within regulatory deadlines
Banking guidance: Mercury account application preparation and coordination
Financial stack: Stripe, Wise, Slash, Wallester setup guidance
Annual maintenance: Form 5472, Form 1120, FBAR, BOI updates, RA renewal
Ongoing support: WhatsApp and email throughout the year

Frequently asked questions

Can I form an LLC from outside the US?

Yes. The entire process is 100% online. You never need to visit the United States.

How much does it cost in total?

Formation costs vary by state (state filing fee plus our service fee). Annual maintenance is a fixed fee covering all filings and support. Book a consultation for exact pricing.

What if I already have an LLC from another service?

We can take over your annual maintenance, including Registered Agent transfer, if your existing LLC is properly structured. If it needs corrections, we can help restructure.

Can I close the LLC if it doesn't work out?

Yes. Dissolution is straightforward: file dissolution documents with the state and a final tax return with the IRS. We handle the entire process.

Do I need a lawyer?

Not for standard formation and operation. Exentax handles all the legal and tax documentation. You may want a local tax advisor for your country-specific situation.

Closing out, here's a related piece that sits naturally next to this article: LLC documents: which ones you need and how to keep them organized helps round off the context.

Tax compliance in your country: CFC, controlled-foreign rules and income attribution

A US LLC is a fully legal, internationally recognized vehicle. But compliance does not end at incorporation: as an owner who is tax-resident elsewhere, your local tax authority still has the right to tax what the LLC earns. The key is under which regime.

By jurisdiction

Spain (LIRPF/LIS). An operative single-member disregarded LLC (real services, no significant passive income) is generally treated under income attribution (art. 87 LIRPF): the LLC's net profits are attributed to the member in the year they arise and integrated into the general IRPF base. If instead the LLC elects corporation treatment (Form 8832) and is controlled by a Spanish resident with mostly passive income, the CFC regime (art. 91 LIRPF for individuals, art. 100 LIS for companies) can apply. The choice is not optional: it depends on economic substance, not on the label.
Information returns. US bank accounts with average or year-end balance >€50,000: Form 720 (Law 5/2022 after CJEU C-788/19, 27/01/2022, penalties now under the general LGT regime). Related-party transactions and dividend repatriation: Form 232. US-custodied crypto: Form 721. Breathe: at Exentax this is routine, we bring you up to date and the next review closes in one round, no drama.
Spain–US tax treaty. The treaty (BOE 22/12/1990, Protocol in force 27/11/2019) governs double taxation on dividends, interest and royalties. An LLC without a permanent establishment in Spain does not by itself create a PE for the member, but effective management can if all activity is run from Spanish territory.
Mexico, Colombia, Argentina and other LATAM jurisdictions. Each has its own CFC regime (Mexico: Refipres; Argentina: foreign passive income; Chile: art. 41 G LIR). Common principle: profits retained inside the LLC are deemed received by the member if the entity is treated as transparent or controlled.

Practical rule: an operative LLC with substance, properly declared in your country of residence, is legitimate tax planning. An LLC used to hide income, fake non-residence or shift passive income with no economic justification falls within art. 15 LGT (anti-abuse) or, worse, art. 16 LGT (simulation). The facts decide, not the paperwork.

How to read the US LLC as a stable structural choice rather than as a marketing pitch

The US LLC reads more usefully when it's treated as a stable structural choice between the recurring obligations of the vehicle (Form 5472, BOI, Registered Agent renewal) and the recurring benefits (legal separation, US payment infrastructure, simple structure for digital activities), than as a marketing pitch. Both sides of the choice are stable: they don't change with the result of the year, and a short dated note in the LLC folder with both sides keeps the trade-off reviewable in a few minutes whenever a tax adviser asks.

Before going further, put numbers on your case: the Exentax calculator compares, in under 2 minutes, your current tax bill with what you would carry running a US LLC properly declared in your country of residence.

> Start today, 100% online

At Exentax we structure the entity to fit the first scenario and document every step so your local return can be defended in case of review.

Legal and regulatory references

This article relies on rules currently in force. Main sources for verification:

United States. Treas. Reg. §301.7701-3 (entity classification / check-the-box); IRC §882 (tax on foreign income effectively connected with a US trade or business); IRC §871 (FDAP and withholding on non-residents); IRC §6038A and Treas. Reg. §1.6038A-2 (Form 5472 for 25% foreign-owned and foreign-owned disregarded entities); IRC §7701(b) (tax residency, substantial presence test); 31 U.S.C. §5336 (Corporate Transparency Act, BOI Report to FinCEN).
Spain. Law 35/2006 (LIRPF), arts. 8, 9 (residency), 87 (income attribution), 91 (CFC for individuals); Law 27/2014 (LIS), art. 100 (CFC for companies); Law 58/2003 (LGT), arts. 15 (anti-abuse) and 16 (simulation); Law 5/2022 (Form 720 penalty regime after CJEU C-788/19 of 27/01/2022); RD 1065/2007 (Forms 232 and 720); Order HFP/887/2023 (Form 721 crypto). Breathe: at Exentax this is routine, we bring you up to date and the next review closes in one round, no drama.
Spain–US treaty. BOE of 22/12/1990 (original DTT); Protocol in force since 27/11/2019 (passive income, limitation on benefits).
EU / OECD. Directive (EU) 2011/16, amended by DAC6 (cross-border arrangements), DAC7 (Directive (EU) 2021/514, digital platforms) and DAC8 (crypto-assets); Directive (EU) 2016/1164 (ATAD: CFC, exit tax, hybrid mismatches); OECD Common Reporting Standard (CRS).
International framework. OECD Model Convention, art. 5 (permanent establishment) and Commentaries; BEPS Action 5 (economic substance); FATF Recommendation 24 (beneficial ownership).

Applying any of these rules to your specific case depends on your tax residency, the LLC's activity and the documentation you keep. This content is informational and does not replace personalized professional advice.

Banking and tax facts worth clarifying

Fintech and CRS information evolves; here is the current state:

Notes by provider

Mercury operates with several federally chartered partner banks and FDIC coverage via sweep network: mainly Choice Financial Group and Evolve Bank & Trust, with Column N.A. still in some legacy accounts. Mercury is not itself a bank; it is a fintech platform backed by those partner banks. If Mercury closes an account, the balance is typically returned by paper check mailed to the account holder's registered address, which can be a serious operational problem for non-residents; keep a secondary account (Relay, Wise Business, etc.) as contingency.
Wise ships two clearly different products: Wise Personal and Wise Business. For an LLC you must open Wise Business, not the personal account. Important CRS nuance: a Wise Business held by a US LLC sits outside CRS because the account holder is a US entity and the US is not a CRS participant; the USD side operates via Wise US Inc. (FATCA perimeter, not CRS). In contrast, a Wise Personal opened by an individual tax-resident in Spain or another CRS jurisdiction does trigger CRS reporting via Wise Europe SA (Belgium) on that individual. Opening Wise for your LLC does not bring you into CRS through the LLC; a separate Wise Personal in your own name as a CRS-resident individual does report.
Wallester (Estonia) is a European financial entity with an EMI/issuing-bank licence. Its European IBAN accounts are within the Common Reporting Standard (CRS) and therefore trigger automatic reporting to the tax administration of the holder's country of residence.
Payoneer operates through European entities (Payoneer Europe Ltd, Ireland) that are also in scope for CRS for clients resident in participating jurisdictions.
Revolut Business: when paired with a US LLC, it operates under Revolut Technologies Inc. with Lead Bank as its US banking partner. The account delivered is a US account (routing + account number); no European IBAN is issued to a US LLC. The European IBANs (Lithuanian, Belgian) belong to Revolut Bank UAB and are issued to European clients of the group. If you are offered a European IBAN tied to your LLC, confirm exactly which legal entity holds that account and which regime it reports under.
Zero tax: no LLC structure delivers "zero tax" if you live in a country with CFC/tax transparency or income attribution rules. What you achieve is no double taxation and correct reporting at residence, not elimination.

Why a complete LLC guide reads better as a roadmap than as a single procedure

A complete guide to operating a US LLC reads better as a roadmap with named stages than as a single end-to-end procedure. The reason is practical: a roadmap allows the reader to enter at the stage that matches the current situation rather than starting from the beginning every time. Stage one covers formation choices that are mostly irreversible. Stage two covers the operational setup that runs every year. Stage three covers the maintenance that keeps the structure consistent over time.

Reading the guide as a roadmap also reduces the temptation to treat every section as urgent. Most readers only need a small portion of the content at any given moment, and the roadmap helps locate that portion without scanning the entire document each time.

Legal & procedural facts

FinCEN and IRS reporting requirements moved recently; the current state is:

BOI / Corporate Transparency Act: your LLC is NOT required to file (a competitive advantage). After FinCEN's March 2025 interim final rule, the BOI Report obligation was narrowed to "foreign reporting companies" (entities formed OUTSIDE the US and registered to do business in a state). A US-formed LLC owned by a non-resident does NOT file the BOI Report: one fewer filing on your calendar, less paperwork, and a cleaner structure than ever. If your LLC was formed before March 2025 and you already filed BOI, keep the acknowledgement. The regulatory status can change again: we monitor FinCEN.gov on every filing and, if the obligation comes back, we handle it at no extra cost. Current status verifiable at fincen.gov/boi.
Form 5472 + pro-forma 1120. For a Single-Member LLC owned by a non-resident, the final regulations of Treas. Reg. §1.6038A-1 (in force since 2017) treat the LLC as a corporation for 5472 purposes. Procedure: pro-forma Form 1120 (header only: name, address, EIN, tax year) with Form 5472 attached. It is filed by certified mail or fax to the IRS Service Center in Ogden, Utah, not e-filed via standard MeF. Due date: April 15; extension via Form 7004 to October 15. Penalty: $25,000 per form per year, plus $25,000 per additional 30 days of non-filing after IRS notice.
Substantive Form 1120. Only applies if the LLC has filed a check-the-box election to C-Corp (Form 8832): it then pays 21 % federal corporate tax and files a substantive 1120. A standard disregarded LLC does not file a substantive 1120 and does not pay federal corporate tax.
EIN and notice. Without an EIN you cannot file 5472 or BOI. The IRS does not warn before imposing penalties; you find out when an EIN is flagged or a later filing is rejected. And if a notice does land, at Exentax we keep the dossier ready so you reply in hours, not weeks.

Tax compliance in your country: CFC, TFI and income attribution

We treat this block as one of the load-bearing decisions of the LLC strategy: get it wrong and the rest of the structure leaks tax, banking access or compliance. The notes below distil what we actually do with clients facing this exact case, prioritising the variables that move the needle.

Legal and procedural facts

Read this section as a checklist with teeth: each point flags a real failure mode we have seen in cross-border LLC files. Skip none of them - most reassessments and account closures we clean up later trace back to one of these items.

Exentax today update: the LLC guide kept current

Three data points change how to read this guide today:

BOI Report (FinCEN). NOT required for US-formed LLCs owned by non-residents after FinCEN's March 2025 interim final rule, which narrowed the scope to foreign reporting companies (entities formed outside the US and registered in a state). If your entity falls there, it identifies the beneficial owner (holders with ≥ 25 % ownership or substantial control), is filed free of charge at FinCEN's official BOI E-Filing portal in 10-15 minutes and must be on time: 30 days from registration and 30 days for any change of address, document or beneficial owner. Civil penalty up to USD 591/day and criminal up to USD 10,000 and 2 years' imprisonment (31 U.S.C. §5336) only if in scope.
Form 5472 + pro forma 1120. Still mandatory for non-resident SMLLCs with any reportable transaction. Base penalty USD 25,000 per form per year (IRC §6038A). FY2025 → due April 15, today, extension via Form 7004 to October 15, today. At Exentax we have closed clients in exactly this spot at zero penalty. Speaking up early pays off — and saves you five figures.
State fees today. Wyoming keeps the Annual Report at USD 60, Delaware Franchise Tax at USD 300 (due June 1), New Mexico still has no Annual Report. Confirm any change with the Secretary of State before budgeting.

Frequently asked questions

Is the guide still valid if I live in Spain? Yes, but add Modelo 720/721 and IRPF income attribution. A disregarded LLC does not remove the residence-country reporting duty.

Does OECD Pillar Two affect my LLC? Only if your group bills ≥ EUR 750M. For a single non-resident LLC with normal turnover, GloBE does not apply.

What changed in banking currently? Mercury operates through Choice, Evolve and Column NA with FDIC sweep coverage up to USD 5M. Wise Business remains the reference multi-currency option.

How we apply the Exentax method to your LLC from day one

A complete guide is only useful if someone then executes without mistakes. At Exentax we form the LLC, open the banking, file BOI and 5472, and keep the tax calendar year after year - all under one single client file.

Formation and EIN in the right state, with a signed Operating Agreement and BOI filed before any bank account is touched.
Cascade banking stack (Mercury or Relay + Wise + alternative gateway) so no compliance closure leaves you without operations.
Closed tax calendar with 5472, pro-forma 1120, state annual report and your residency obligation coordinated on one single timeline.

To see the exact cost and the plan before deciding, run the Exentax calculator or book thirty minutes: we end the call with a proposal and a calendar.

Want to discuss it now? Message us on WhatsApp and we'll get back to you today.

If you want to see the full process in detail, check our services page with everything we cover.

Or call us directly at +34 614 916 910 if you'd rather talk.

Prefer a calendar slot? Book a free session and we'll review your real case in thirty minutes.

For state-specific details, see our Wyoming LLC service page with closed costs and timelines.

How to use the roadmap as a working reference rather than a one-time read

To use the roadmap as a working reference rather than a one-time read, it helps to keep a personal index that maps each section of the guide to the corresponding folder in the LLC documentation. This small index turns the roadmap into a navigation aid that returns useful in any later moment.

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