Form 5472 is an IRS information return required for any US LLC or corporation that is at least 25% foreign-owned. It reports transactions between the entity and its foreign owner. The penalty for failure to file is $25,000 per form per year. Single-member LLCs owned by foreigners must file Form 5472 attached to a pro forma Form 1120.

How to Invest in USA as a Foreigner: Complete 2026 Legal Guide

Q: Can foreigners buy property in USA?

Yes. There are no citizenship, visa, or residency requirements to purchase US real estate. Foreigners can buy residential, commercial, and agricultural property in every state. However, you must comply with FIRPTA withholding (15% of gross sale price) when selling, and proper structuring through an LLC is strongly recommended for liability protection and estate planning.

Q: What is FIRPTA withholding?

FIRPTA requires 15% of the gross sale price to be withheld and sent to the IRS when a foreign person sells US real property. If the buyer will use the property as a personal residence and the sale price is under $300,000, withholding is exempt. If under $1,000,000, the rate drops to 10%. You can apply for reduced withholding using Form 8288-B.

Q: How to get an EIN without SSN?

Foreign individuals without an SSN or ITIN can get an EIN by faxing Form SS-4 to the IRS at (855) 641-6935. Processing takes 4-6 weeks. Write 'Foreign' in the SSN field. An EIN is required to open a US bank account, file taxes, and operate your business.

Q: EB-5 investment requirement in 2026?

The standard EB-5 investment amount is $1,050,000, reduced to $800,000 for investments in Targeted Employment Areas (TEAs) or rural areas. The investment must create at least 10 full-time jobs for US workers. Regional center investments are the most common route.

Q: Can I open a US brokerage account from abroad?

Yes. Interactive Brokers is the most widely used platform for foreign nationals, accepting clients from 200+ countries. You need to complete a W-8BEN form for tax treaty benefits on dividends. Capital gains on US stocks are generally not taxed for non-resident aliens.

Q: Delaware LLC vs Wyoming LLC for foreigners?

Delaware is best if you plan to raise investors, want maximum legal predictability (Court of Chancery), or are forming a C-Corp. Wyoming is best for privacy, asset protection, and lower costs. For real estate, consider forming the LLC in the state where the property is located.

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Frequently Asked Questions

Can foreigners buy property in USA?▼

Yes. There are no citizenship, visa, or residency requirements to purchase US real estate. Foreigners can buy residential, commercial, and agricultural property in every state. However, you must comply with FIRPTA withholding (15% of gross sale price) when selling, and proper structuring through an LLC is strongly recommended for liability protection and estate planning. Foreign buyers typically need 25–50% down payments for mortgages.

How do I form an LLC as a non-resident?▼

You can form a US LLC entirely online without entering the country. Steps: (1) Choose a state — Delaware or Wyoming are most popular for foreigners. (2) Appoint a registered agent in that state. (3) File Articles of Organization online ($90–$300). (4) Get an EIN from the IRS by fax (Form SS-4). (5) Open a US business bank account. (6) File annual Form 5472 with a pro forma 1120.

What is FIRPTA withholding?▼

FIRPTA (Foreign Investment in Real Property Tax Act) requires 15% of the gross sale price to be withheld and sent to the IRS when a foreign person sells US real property. Exemptions: If the buyer will use the property as a personal residence and the sale price is under $300,000, withholding is exempt. If under $1,000,000, the rate drops to 10%. You can apply for reduced withholding using Form 8288-B before closing. Use our FIRPTA Calculator above to estimate your withholding.

How to get an EIN without SSN?▼

Foreign individuals without an SSN or ITIN can get an EIN (Employer Identification Number) by faxing Form SS-4 to the IRS at (855) 641-6935. Processing takes 4–6 weeks. You cannot use the online application without an SSN/ITIN. On Form SS-4, write "Foreign" in the SSN field. Some registered agent services can expedite this to 2–3 weeks. An EIN is required to open a US bank account, file taxes, and operate your business. Read the full guide →

What's the minimum investment for an E-2 visa?▼

There is no fixed statutory minimum, but practical minimum investments start at $100,000+ to be considered "substantial." The investment must be proportional to the total cost of the business — investing $50K into a $5M franchise would not qualify. Franchise businesses are popular for E-2 because they have proven business plans. The E-2 visa is renewable indefinitely and the spouse gets work authorization. You must be a citizen of an E-2 treaty country (80+ countries qualify).

EB-5 investment requirement in 2026?▼

The standard EB-5 investment amount is $1,050,000, reduced to $800,000 for investments in Targeted Employment Areas (TEAs) or rural areas. The EB-5 Reform and Integrity Act of 2022 created a separate visa set-aside for rural projects (20% of visas), high-unemployment areas (10%), and infrastructure (2%). Regional center investments are the most common route. The investment must create at least 10 full-time jobs for US workers. Read the full EB-5 guide →

Can I open a US brokerage account from abroad?▼

Yes. Interactive Brokers is the most widely used platform for foreign nationals — they accept clients from 200+ countries. Other options include Charles Schwab International and Firstrade. You'll need to complete a W-8BEN form to claim tax treaty benefits on dividends (reducing withholding from 30% to typically 15% or less). Capital gains on US stocks are generally not taxed for non-resident aliens (unless the gains are ECI). Compare brokers →

Delaware LLC vs Wyoming LLC for foreigners?▼

Delaware is best if you plan to raise investors, want maximum legal predictability (Court of Chancery), or are forming a C-Corp. Formation fee: $90, annual franchise tax: $300. Wyoming is best for privacy (no public ownership disclosure), asset protection, and lower costs. Formation fee: $100, annual report: $60. For real estate, consider forming the LLC in the state where the property is located. For e-commerce with no physical presence, either works. Full comparison →

What is Form 5472?▼

Form 5472 is an IRS information return required for any US LLC or corporation that is at least 25% foreign-owned. It reports "reportable transactions" between the entity and its foreign owner — including capital contributions, loans, rent, and service payments. The penalty for failure to file is $25,000 per form per year. Single-member LLCs owned by foreigners must file Form 5472 attached to a pro forma Form 1120. Filing is due by April 15 (with extensions available). Read the full Form 5472 guide →

Do foreigners pay US capital gains tax on stocks?▼

Generally no. Non-resident aliens are not subject to US capital gains tax on stock sales, as long as (1) they are not present in the US for 183+ days during the tax year, and (2) the gains are not "effectively connected income" (ECI). However, dividends are taxed at 30% (reduced to 15% or less via tax treaties using Form W-8BEN). Real estate gains (FIRPTA) are always taxed. Interest income from US banks is generally exempt. Full capital gains guide →

How to Invest in USA as a Foreigner

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Frequently Asked Questions

Need Legal Help With Your US Investment?

How to Invest in USA as a Foreigner

Investment Categories

Interactive Investment Tools

FIRPTA Withholding Calculator

Investment Visa Qualifier

Entity Comparison Tool

Pre-Flight Investment Checklist

Frequently Asked Questions

Need Legal Help With Your US Investment?

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