Can Foreigners Start a Company in the USA? A Plain-English Guide

The short answer

Yes. US states let anyone form a Limited Liability Company (LLC), whatever their citizenship or country of residence. You do not need a visa, a green card, a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN) to form the company or to get its federal tax number.

One thing an LLC does not do: it does not give you the right to live or work in the United States. Owning and running a US company from abroad is fine. Working in person inside the US is an immigration question, and it needs the right visa.

Why founders abroad form a US LLC

• Selling to US customers with a US company, a US address and US payment processors.
• Opening a US business bank account to receive and hold dollars.
• Owning US property or investments through a company instead of in your own name.
• Separating business and personal assets, so the company's debts stay with the company.

What you need, step by step

1. Choose a state

The company is formed in one state. A common rule of thumb: form it in the state where the business really operates, for example where your property is. If you have no physical presence in the US, compare the yearly upkeep of the states you are considering, not only the formation cost.

Wyoming and Delaware are popular with founders abroad. Wyoming is known for low yearly costs and simple upkeep. Delaware is known for its business courts and is often expected by investors. Every state we serve has its own page, for example Wyoming and Delaware, with that state's fees and yearly requirements.

2. Pick a name

The name must be available in that state and usually end in "LLC". Each state's business registry lets you search names before you file.

3. Appoint a registered agent

Every LLC must have a registered agent: a person or company with a physical address in the state, who receives official mail and legal notices for the company. A professional registered agent also keeps your home address off the public record. More on registered agents.

4. File the Articles of Organization

This is the formation document filed with the state. It names the company, its registered agent and, in some states, its owners or managers. Once the state accepts it, the company exists.

5. Get an EIN from the IRS

The Employer Identification Number (EIN) is the company's federal tax number. Banks and payment processors ask for it. The IRS online application needs an SSN or ITIN, so owners without one apply with Form SS-4 by fax or mail instead. An ITIN is not required for this.

6. Sign an operating agreement

The operating agreement sets out who owns the company and how it is run. It is not filed with the state, but banks often ask for it, and it matters most when there is more than one owner.

7. Open a US business bank account

Some US banks and fintech platforms accept companies owned by non-residents and open accounts online. Each bank runs its own review, asks for the company documents and the owner's passport, and makes the final decision.

What happens every year

• State upkeep. Most states require an annual report or fee, and the company must keep a registered agent.
• Federal filing. A single-owner LLC owned by a non-US person must file Form 5472 with a pro forma Form 1120 with the IRS every year, even if it had no income. The penalty for not filing starts at $25,000.
• Taxes at home. The income may also be taxable in your own country. Check with a tax advisor where you live.

Our annual compliance service keeps the state side on schedule.

Common mistakes

• Choosing a state only for its formation price and forgetting the yearly costs.
• Using a home address abroad, or a friend's address, as the registered agent.
• Missing Form 5472 because the company had no income that year.
• Assuming the company gives you the right to work inside the US.
• Mixing personal and business money in one account.

Do I need an ITIN?

Not to form the company and not to get the EIN. Some owners need an ITIN later, for example to file a personal US tax return or for some banking and payment services. What an ITIN is for.

How ZIROUZ helps

We handle the administrative side from abroad: the state filing, the EIN, the operating agreement, a registered agent for the first year, and guidance through the US business bank account application. You see one final price for your state, including the state fee, before you pay. See prices by state.