Business

Can You Form An LLC If You Do not Live In The US?

By Ryan Bradman | January 21, 2023

Table of Contents

A Limited Liability Company (LLC) is a blend of a partnership and a corporate organization. It offers the operational versatility of a partnership and the restricted liability of a business, protecting your private assets in case of litigation or bankruptcy. As a result of the structure’s ripple effect, you also get tax benefits. A US LLC may offer additional benefits to non-citizens.

Irrespective of where you reside, be it Paris or Nepal, you can form an LLC without ever being in the US or being a US citizen. Keep in mind that forming an LLC will not permit you to do business in the US if you are a non-citizen. It would be best to acquire the correct visa and a work permit to run the business under your LLC. So, here’s how to form an LLC if you’re a foreigner or a US citizen that doesn’t reside in the US.

Can You Form An LLC If You Don’t Live In The US?

1. Pick A State For Registration

The majority of people choose to establish their businesses in their home state, but if you reside abroad, this may not be an option. It is advisable to contact an LLC in the state where you would like to establish a corporeal location for your firm if you want to prevent the extra hassle. If not, you can pick any state.

Forming an LLC in Delaware is often advised for citizens of other countries, as it comes with lower taxes, minimal maintenance costs, and solid corporate laws. Another alternative is the Texas LLC formation process. Nevada comes highly recommended if you’re seeking a province with strict privacy regulations.

2. Select A Name For Your LLC

You must select a name for your LLC that is not already registered as the name of some other qualified LLC or another corporate body with the Secretary of State’s office. You should run an LLC name check on the webpage of your formation state to see if the name you’ve chosen for your LLC is accessible to guarantee its availability. Ensure you add an LLC designator at the end of your name, such as “limited liability company,” “limited company,” or an acronym of anyone.

It’s also a very smart move to secure your name if you need more preparation to submit your LLC formation document. It’s wise to perform a trademark scan on the name you desire to prevent trademark application rejection and intellectual property violations or brand ambiguity.

3. Get A Registered Agent

To receive formal correspondence on your company’s behalf, including government notifications, service of process, and other legal documents, you must appoint a registered agent with a physical address in your chosen state. Although LLC members are permitted to serve as registered agents, a registered agent facility handles this for non-residents.

Hiring a lawyer in US as your registered agent can be a substitute for using a registered agent firm.

4. Draw Up An LLC Operating Agreement

As the term suggests, it is an agreement describing how the LLC would be run between the person or group under the LLC. Creating an operating agreement is crucial, regardless of the number of members. It allows you to express your wishes in writing in specific situations—such as when you can no longer manage the company—and enables you to choose not to have certain standard clauses rule your LLC in the LLC statute.

5. Submit Your LLC Paperwork With The State

You must submit all necessary paperwork to the Secretary of State to formally establish your corporation. The Articles of Organization or Certificate of Organization are well-known versions of these documents. Your documents should define your company’s structure and give the state all the necessary fundamental information, such as the name of your corporation, your registered agent’s or US business address, and your corporation’s purpose. Before registering, getting in touch with your state is essential, as some demand other details.

6. Get An Employer Identification Number (EIN)

Most LLCs require an Employer Identification Number from the Internal Revenue Service (IRS), which is your company’s equivalent of a Social Security number. For citizen-owned LLCs, acquiring an EIN is rather simple and may be completed online in a few minutes.

Electronic registration is not available to foreigners lacking a taxpayer identification number. They must submit an IRS SS-4 Form by postal service or fax if they live outside the US.

In every state where the LLC will conduct business, you should also file with the labor division and request a sales tax identification number from the tax office.

7. Get A US Bank Account

While not required by law, opening a business bank account is strongly advised because you risk losing your limited liability protection if you mix personal and business finances. You should also get a US mailing address.

Conclusion

Yes, you can form an LLC if you stay outside the US or are a non-citizen who resides in the country. You can establish an LLC in the US once you’ve done all the necessary things in compliance with relevant state and federal laws.