Non-US residents have been asking this question: whether they can register a business in the US as a non-resident and non-citizen.
Can a foreigner even own a US company? Is one of the most searched questions among entrepreneurs outside the United States. The short answer is yes. You don't need to be a US citizen, a green card holder, or even set foot in the country. Thousands of founders in Nigeria, the UK, India, the UAE, and beyond run fully US-registered businesses today, entirely from abroad.
Table of Contents
-
- Why Non-Residents Set Up a US LLC or C-Corp
- The Real Incentives Behind a US Entity
- Step 1: Decide Between an LLC and a C-Corp
- Step 2: Choose the Right State
- Step 3: File Your Formation Paperwork
- Step 4: Get an EIN Without an SSN
- Step 5: Open a US Business Bank Account Remotely
- Step 6: Set Up Payment Processing
- Step 7: Understand Your Ongoing Compliance Obligations
- Step 8: Set Up a US Virtual Address or Mailbox
- Step 9: Funding Possibilities Once You're Set Up
- Frequently Asked Questions
- Final Thoughts
This guide walks you through the full process, step by step: choosing between an LLC and a C-Corp, picking the right state, filing your paperwork, getting an EIN without a Social Security Number, opening a US bank account remotely, and staying compliant afterward.
Why Non-Residents Set Up a US LLC or C-Corp
Founders outside the US usually aren't forming a US company just for the paperwork. They're solving real, specific problems:- Access to Stripe and PayPal without the restrictions many home-country accounts face
- A US bank account that lets you invoice international clients in US dollars
- More trust from US and global clients, who often prefer paying a US-registered entity
- Liability protection, separating your personal assets from business risk
- A path toward US investors, if you plan to raise venture funding later
If any of these match why you're searching "how to register a company in the US as a foreigner," this guide is for you.
The Real Incentives Behind a US Entity
Beyond the basics above, a US LLC or C-Corp unlocks a few specific advantages that non-resident founders often don't discover until later:- Global credibility with a US address and EIN. A US-registered business signals stability to clients, marketplaces, and payment processors that a foreign entity often can't match on its own.
- Multi-currency invoicing without losing money to conversion fees. A US bank account paired with a platform like Wise Business lets you bill in USD, GBP, or EUR and hold the balance instead of converting instantly at a poor rate.
- Access to US marketplaces and platforms that restrict or limit sellers without a US business entity — many e-commerce, SaaS, and freelance marketplaces default to friendlier terms for US-registered sellers.
- A cleaner path to US accelerators and investors, covered in detail below — this is often the single biggest reason ambitious non-resident founders choose a C-Corp over an LLC from day one.
- Simple pass-through taxation for an LLC, meaning many bootstrapped, non-resident-owned LLCs with no US trade or business owe little or no US federal income tax though annual IRS informational filings are still required regardless of profit (more on this in Step 7).
- A structure built for growth. Converting a sole proprietorship or foreign entity into a fundable US structure later is far more expensive and time-consuming than starting with the right entity now.
Step 1: Decide Between an LLC and a C-Corp
This is the first fork in the road, and it depends entirely on your goals.
Choose an LLC if:
- You're a solo founder, freelancer, consultant, or running an e-commerce or SaaS side business
- You want simple taxation (an LLC is a "pass-through" entity by default, so it typically doesn't pay federal income tax itself)
- You don't plan to raise venture capital in the near future
Choose a C-Corp if:
- You plan to raise money from US venture capital investors
- You want to issue shares/equity to co-founders or employees
- You're comfortable with more complex taxation and compliance requirements (a C-Corp does pay corporate tax, and dividends are taxed again at the shareholder level)
Most non-resident founders—freelancers, consultants, and online business owners go the LLC route first, then convert to a C-Corp later if they raise funding.
Step 2: Choose the Right State
You are not required to form your LLC in the state where you live or do business — as a non-resident, this choice is entirely open to you. Three states dominate for non-resident founders:- Wyoming: Low annual fees, strong privacy protections, and no state income tax. A popular default for non-residents who want the simplest, cheapest setup.
- Delaware: The standard choice for startups planning to raise venture capital, thanks to its well-established corporate law and investor familiarity. Higher annual franchise tax than Wyoming.
- New Mexico: The cheapest ongoing option, with no annual report requirement in most cases. Attractive for founders who want to minimize yearly maintenance.
If you're not planning to raise institutional funding, Wyoming or New Mexico is usually the more cost-effective pick over Delaware.
Step 3: File Your Formation Paperwork
This is the step most non-resident founders get stuck on — not because it's hard, but because doing it entirely DIY from abroad, without a US address or SSN, adds friction. This is where a formation service becomes worth the small fee.
ZenBusiness: A strong first choice for non-resident founders. It combines LLC/C-Corp formation with registered agent service and ongoing compliance reminders in one dashboard, so you don't miss a state filing deadline from thousands of miles away. Straightforward pricing, with a free starter filing option (state fees still apply).
LegalZoom: The better pick if you expect to need actual legal guidance beyond the paperwork—for example, if you're negotiating a co-founder agreement or need help with intellectual property. LegalZoom pairs formation with access to attorney consultations, which can matter more to non-resident founders navigating US law for the first time.
Both platforms can form your LLC or C-Corp without you needing to visit the US, and both offer registered agent service, which every state legally requires.
Step 4: Get an EIN Without an SSN
Your EIN (Employer Identification Number) is your company's federal tax ID. You need it to open a bank account, activate Stripe or PayPal, and file taxes. This is where most non-resident founders assume they're stuck — the IRS's fast online EIN tool requires an SSN or ITIN, which most foreign founders don't have.
You are not stuck. As a non-resident, you can still get an EIN through two other IRS channels:- By phone: Call the IRS International line and complete the application verbally using Form SS-4. This is often the fastest route, sometimes issuing an EIN the same day.
- By fax: Complete Form SS-4, write "Foreign" on the line asking for an SSN or ITIN, and fax it to the IRS's international EIN fax number. This typically takes about a week.
Many formation services, including the ones above, offer an EIN add-on service and will handle this filing on your behalf—a common time-saver for founders unfamiliar with the IRS process.
Step 5: Open a US Business Bank Account Remotely
Once you have your EIN and formation documents, you can open a US business bank account without traveling to the US. Two fintech platforms have built their entire onboarding process around exactly this need:
Mercury: A popular pick among non-resident e-commerce and SaaS founders. Fully online application, no monthly fees, and useful integrations for online businesses. Approval depends on your country of residence and business model, so it isn't guaranteed for every applicant.
Wise Business: Operates as a money services platform rather than a traditional bank and is widely used by non-resident founders who invoice international clients in multiple currencies.
Step 6: Set Up Payment Processing
With your EIN and US bank account in place, you can now apply for Stripe or PayPal using your US business details, instead of your home-country identity. This is often the exact reason non-resident founders form a US entity in the first place — many home-country Stripe accounts come with restrictions that a US LLC or C-Corp removes.
Step 7: Understand Your Ongoing Compliance Obligations
Forming the company is step one. Staying compliant is what protects it. As a non-resident owner, expect these recurring obligations:- Annual state report and franchise tax vary by state (Wyoming and Delaware both require this; New Mexico currently does not)
- Registered agent renewal required every year in every state
- Form 5472 and Form 1120 (pro forma) an IRS filing requirement for foreign-owned single-member LLCs, even if the business made no profit
- US federal income tax, if your LLC is treated as "engaged in a US trade or "business"—this depends on your specific facts, so get advice from a cross-border accountant rather than guessing
Missing these filings is one of the most common (and costly) mistakes non-resident founders make. Budget for a cross-border accountant once your first tax season approaches.
Step 8: Set Up a US Virtual Address or Mailbox (Optional but Common)
Many non-resident founders also want a US mailing address for business correspondence, banking verification, or simply to appear more established to US clients. A virtual mailbox service scans your mail and lets you view or forward it from anywhere in the world.
Step 9: Funding Possibilities Once You're Set Up
A US entity doesn't just open banking and payment doors — it also opens funding doors that are difficult or impossible to access from a foreign entity. Here's what's realistically available to non-resident founders:
Venture capital and accelerators. This is the single biggest funding reason non-resident founders choose a Delaware C-Corp over an LLC. Most US VCs, and accelerators like Y Combinator and Techstars, will only invest in a Delaware C-Corp — not an LLC, and not a foreign entity. If venture funding is anywhere on your roadmap, forming as a C-Corp from the start avoids a costly conversion later.
Startup accelerators. Programs like Y Combinator, Techstars, and 500 Global actively accept international founders and typically require a US C-Corp (or help you convert to one) before funding closes. Investment terms vary — YC's standard deal is a mix of SAFE notes, while others take a fixed equity percentage in exchange for a set investment and mentorship.
Angel investors and SAFE notes. Outside of formal accelerators, non-resident founders with a US C-Corp can raise from individual angel investors using a SAFE (Simple Agreement for Future Equity) — a fast, standard, and founder-friendly document that avoids valuing the company on day one.
Equity crowdfunding. Platforms that run US Regulation Crowdfunding offerings let you raise smaller amounts directly from a large pool of backers in exchange for equity. It's more accessible for early-stage, consumer-facing businesses, though it comes with added administrative work and platform fees.
Non-dilutive funding (grants). Some grants and non-dilutive funding programs are open to founders regardless of citizenship, though many US government grants (like SBIR) are restricted to US citizens or permanent residents. Always check eligibility carefully before applying, since this varies program by program.
Frequently Asked Questions
Can a foreigner own 100% of a US LLC? Yes. The US places no citizenship or residency requirement on LLC or C-Corp ownership. A non-resident can own 100% of a US company.
Do I need to visit the US to form an LLC? No. The entire process—formation, EIN application, banking, and payment processing — can typically be completed remotely.
Can I get a US business bank account without an SSN? Yes, through select fintech platforms built for non-resident founders, though approval isn't guaranteed and depends on your country and business type.
Which state is best for a non-resident forming an LLC? Wyoming and New Mexico are the most common picks for non-residents who want low fees and simple maintenance. Delaware is generally reserved for startups planning to raise venture capital.
Do I have to pay US taxes if I don't live in the US? It depends on whether your business is considered "engaged in a US trade or business" and where your income is sourced. Non-resident owners still typically have IRS filing obligations (like Form 5472) even when no US tax is owed. Speak to a cross-border tax professional to confirm your situation.
Can a non-resident founder raise venture capital or join an accelerator like Y Combinator? Yes. Non-resident founders are regularly accepted into accelerators like Y Combinator and Techstars and do raise from US VCs and angel investors — but almost always through a Delaware C-Corp, since most investors won't fund an LLC or a foreign entity directly.
Final Thoughts
Forming a US LLC or C-Corp as a non-resident is more accessible than most founders realize—but skipping steps like the EIN application or annual compliance filings can create expensive problems later. Follow the order in this guide, use a formation service built to handle non-resident founders, and set a reminder for your annual filings before your first year is up.
Looking for ready-made templates and checklists to keep building your business the right way? Visit the TROVLEGAL SHOP.
Want to connect with other founders going through the same process? Join the Telegram community.
RESOURCES FOR BUSINESS OWNERS
This article is for general informational purposes only and is not legal or tax advice. Rules on taxation, banking, and reporting change often — confirm your specific situation with a licensed attorney or accountant before you file.
 ){kind=link}