Open a US LLC as a non-resident: when it works — and when it does not.
A US LLC can be an exceptionally efficient vehicle for the right international founder. Incorporation alone does not create a zero-tax result. The outcome depends on federal classification, where you work, where income is sourced, whether there is a US trade or business, and how your home country treats the entity.
A US LLC is not “offshore”. It is a US entity governed by US rules.
An LLC is formed under state law. For federal income tax, a domestic single-member LLC is generally a disregarded entity unless it elects corporate treatment; two or more members generally default to partnership treatment. Tax transparency does not mean no tax and no compliance: source, US trade or business, ECI, FDAP, sales tax and reporting still matter.
“Foreign owner means the LLC is always 0%.”
“A US bank or Stripe account makes the income US-source.”
“A disregarded LLC files nothing with the IRS.”
“Wyoming, Delaware and New Mexico produce the same result.”
Federal tax depends on the nature/source of income and US business activity.
Services physically performed inside and outside the US can produce very different outcomes.
A foreign-owned US disregarded entity can have Form 5472 + pro forma 1120 even where no federal income tax is due.
State choice affects maintenance, reports and fees; it does not replace federal tax analysis.
Disregarded entity
The LLC is ignored separately for federal income tax unless corporate treatment is elected; the owner's tax position drives the analysis.
Partnership by default
Federal partnership treatment generally applies by default, bringing a different compliance architecture.
Corporation
An eligible LLC can elect corporate classification through Form 8832. That is a substantive tax decision, not a branding choice.
The real test: is there a US trade or business or US-connected income?
The IRS states that a foreign person engaged in a US trade or business may have Effectively Connected Income (ECI), taxable in the United States. Personal services physically performed in the US are a classic example. Separate rules apply to FDAP, inventory, real estate and other income.
No income tax does not mean no filing.
| Obligation | What it means | What we review |
|---|---|---|
| State formation | Articles/Certificate of Organization, registered agent and corporate documents. | State choice and real activity. |
| EIN | Federal identifier. Where appropriate, a foreign responsible party without an SSN/ITIN can enter “foreign” or N/A on Form SS-4. | International application and correct responsible-party data. |
| BE-13 | BEA requires new foreign direct investment reporting where a foreign person establishes a US entity with ≥10% voting interest; general deadline is 45 days. Depending on size, a full form or Claim for Exemption may apply. | Applicability and correct filing. |
| Form 5472 + pro forma 1120 | A foreign-owned US disregarded entity must file when it has reportable related-party transactions. | Contributions, distributions, expenses and owner–LLC transactions. |
| BOI / FinCEN | Since March 2025, entities created in the United States are exempt from BOI under FinCEN's current rule. | Do not pay for an obsolete domestic-LLC filing. |
| State compliance | State fees and filings continue separately. | Annual report/licence tax, registered agent and good standing. |
| Sales tax / nexus | Can arise through presence, thresholds, marketplaces, inventory and other contacts. | E-commerce, Amazon FBA, SaaS and customer footprint. |
| Banking / KYC | LLC + EIN does not guarantee an account. | Owner residence, business model, website, invoices and source of funds. |
Form 5472 risk: the IRS base penalty for failing to file a complete and correct Form 5472 is $25,000, with additional continuation penalties possible.
Choose the state for a reason — not a TikTok ranking.
| State | Where it can fit | Current point to watch |
|---|---|---|
| New Mexico | Often considered for lean state-level maintenance; do not choose it solely for online privacy claims. | Confirm current SOS filing calendar, registered agent and actual activity. |
| Wyoming | Widely used internationally; annual report/licence tax applies. | Current official minimum is $60 or 0.0002 of Wyoming assets, whichever is greater. |
| Delaware | Deep corporate-law ecosystem and often preferred by investors/sophisticated structures. | LLCs pay a $300 annual state tax; no LLC annual report. |
If you live outside the US, your home country gets a vote too.
US disregarded treatment does not bind another country's tax authority. Entity classification, effective management, CFC rules, permanent establishment, VAT/GST and distributions need to be tested under the owner's residence-country law. For Spain specifically, treaty and domestic rules contain provisions for fiscally transparent entities, while Spanish tax doctrine also recognises the separate legal personality of US LLCs.
See Spain tax-residency planningInternational services genuinely performed outside the US after source/USTB analysis.
Global e-commerce that genuinely needs US infrastructure and has US tax/nexus mapped.
Non-US founder needing a contractual US vehicle, EIN and banking/payment rails.
International structure where the LLC performs a real, documented function.
Founder expecting an LLC to erase tax in the country where they live and work.
Person physically performing services in the US while relying on “foreign owner = 0%”.
Amazon FBA / US inventory without ECI, sales-tax and nexus analysis.
Cheap incorporation with no annual 5472/1120, BEA and state compliance calendar.
From diagnosis to an operating LLC.
N30 Global coordinates formation only after the structure makes sense in the client’s full tax picture.
Explore International Tax TailoringState selection and coordinated incorporation.
EIN and Operating Agreement / corporate documentation.
Registered Agent and address according to contracted scope.
BE-13 analysis and filing/exemption where applicable.
Federal/state compliance map.
Banking/payment and KYC support.
Integration with personal tax residence and international structure.
Existing-LLC review and remediation where required.
US LLC questions worth answering before incorporation.
Can a non-US resident own a US LLC?
Yes. Foreign ownership is permitted in the commonly used states. The important question is how the LLC and owner are taxed and what reporting applies.
Is a foreign-owned US LLC automatically tax-free?
No. Some foreign-owned single-member LLC structures may produce no US federal income tax in specific fact patterns, but source, US trade or business, ECI, FDAP and other rules control the result.
What is a disregarded entity?
A federal tax classification under which a single-member LLC is generally ignored separately from its owner for income tax unless it elects corporate treatment. It remains a legal entity and can still have filing duties.
Does a US-created LLC still need FinCEN BOI reporting?
Not under the current rule. Since March 2025, entities created in the United States are exempt from BOI reporting. Different rules can apply to certain foreign entities registered to do business in the US.
What about Form 5472?
A 100% foreign-owned US disregarded entity can be required to file Form 5472 with a pro forma Form 1120 where reportable transactions exist. The base failure-to-file penalty is $25,000.
What is BE-13?
BEA's Survey of New Foreign Direct Investment. A foreign person establishing a US business with at least a 10% interest generally triggers filing within 45 days; smaller transactions may file a Claim for Exemption.
New Mexico, Wyoming or Delaware?
There is no universal best state. Wyoming has an annual report/licence tax; Delaware charges LLCs $300 annually; New Mexico is often considered for a lighter state-maintenance profile. Activity, investors and cost matter.
Can I use a US LLC while living in Spain?
Yes, but it does not automatically reduce Spanish tax. Spanish classification, management, owner taxation, treaty rules and reporting need to be analysed.
Can N30 Global fix an LLC that has missed filings?
Yes. We review open years, EIN, Form 5472/pro forma 1120, BE-13, state compliance, banking and residence-country treatment before planning remediation.
Primary sources, current rules.
Technical review: 6 September 2026.
A US LLC can be an excellent vehicle. First, it has to survive the right questions.
We analyse residence, activity, customers, income source, US nexus, banking and reporting before incorporation — or before repairing an LLC that is already open.
Own Your Money.
General information only. Not individual US, international or residence-country tax/legal advice.