LLC for Non-Residents: How Foreigners Start a US Company
Delaware or Wyoming? LLC or Corporation? I will help you choose the right structure for your investment goals, tax situation, and privacy requirements.
Foreign nationals can form a US LLC entirely remotely — no visa, SSN, or US address required. Delaware and Wyoming are the top choices: Delaware for investor credibility and business courts, Wyoming for privacy and low fees. The entire process (formation + EIN + bank account) takes 2-4 weeks. Use the Entity Comparison Tool on our hub page to find the right structure for your situation.
Choose Your Entity Structure
Each structure offers unique advantages for foreign investors. Your choice depends on your investment type, tax residency, and long-term goals.
🏛️
Delaware LLC
The gold standard for US business entities. Delaware's Court of Chancery provides predictable business law, and its LLC statute offers maximum flexibility for operating agreements.
Essential for raising venture capital or planning an IPO. Most VC-backed startups incorporate in Delaware as C-Corps because investors expect this structure.
Maximum privacy protection with no state income tax. Wyoming does not require public disclosure of members, making it ideal for investors seeking anonymity.
Quick comparison of key features that matter most to international investors.
Feature
Delaware LLC
Delaware C-Corp
Wyoming LLC
Formation Cost
$90 state fee
$89 state fee
$100 state fee
Annual Report/Franchise Tax
$300/year minimum
$225+ (varies by shares)
$60/year
State Income Tax
None (out-of-state income)
8.7% on DE income
None
Member/Owner Privacy
Moderate
Directors public
Excellent
VC/Investor Friendly
Convertible
Preferred
Limited
Pass-Through Taxation
Yes
No (C-Corp)
Yes
Asset Protection
Good
Standard
Strong
Case Law/Precedent
Extensive
Extensive
Growing
Which Entity Should You Choose?
Choose a Delaware LLC if:
You are holding real estate or operating a small business
You want pass-through taxation to avoid double taxation
You need flexibility in profit distribution among members
You may convert to a corporation later for fundraising
You want the credibility of Delaware without corporate formalities
Choose a Delaware C-Corporation if:
You plan to raise venture capital or angel investment
You want to offer stock options to employees
You are building a startup with plans to scale or exit
Investors or accelerators require a C-Corp structure
You plan an IPO or acquisition by a public company
Choose a Wyoming LLC if:
Privacy is your primary concern
You are holding passive investments or real estate
You want to minimize annual fees and compliance costs
You do not need the Delaware Court of Chancery
Asset protection is important to your investment strategy
Not sure which structure is right for you? I can review your specific situation and recommend the optimal entity structure based on your investment goals, tax residency, and long-term plans.
Practical Tips for Foreign LLC Formation
Start with the EIN: Get your EIN without an SSN via fax (4-5 business days) before trying to open bank accounts.
Use a registered agent from day one: Every US state requires a registered agent with a physical address in the formation state.
Don't skip the Operating Agreement: Even single-member LLCs need one. Banks require it for account opening, and it protects your liability shield.
Plan for FinCEN BOI applicability: a U.S.-formed LLC is exempt even if foreign-owned; certain foreign-formed entities registered to do business in the United States may still have BOI reporting obligations.
Consider tax elections carefully: Single-member LLCs are disregarded by default; multi-member LLCs are partnerships. A C-Corp election may be better if you are in a tax treaty country.
Interactive Tools
Use these free tools on our Invest USA Hub to make informed decisions: