How to start a US company from abroad: the complete guide for non-US founders

You don't need to live in the United States, hold a visa or have a Social Security number to own a US company. Founders all over the world form one for the same reasons: to sell to US customers, to accept card payments through Stripe, to sell on US marketplaces, or because US investors want them to.

Forming the company is the easy part. The parts that trip up founders abroad come before and after it: choosing the right entity, getting an EIN without an SSN, opening a bank account remotely, and one yearly filing whose penalty starts at $25,000. This guide takes them in order.

Do you actually need a US company?

Sometimes you don't, and it's worth checking before you take on a second country's paperwork.

• To get paid by US clients, you may not need one. A payments account such as Wise Business or a similar provider can give you US receiving details while you invoice from your home business.
• To sell software or digital products worldwide, a merchant of record such as Paddle or Lemon Squeezy handles payments and sales tax for you without a US entity.
• You probably do need one if US investors are involved, if you want a Stripe account in the US, if a marketplace or enterprise customer requires a US company, or if you plan to hire in the US.

LLC or C corporation

For a founder abroad, the choice comes down to whether you'll raise money.

Choose a Delaware C corporation if you'll raise from US investors. Venture investors expect it, and it makes stock options and later rounds simple. A C corporation pays US corporate tax of 21% on its profit, and dividends paid to foreign shareholders are generally subject to 30% US withholding, unless a tax treaty with your country reduces it.

Choose an LLC otherwise. It's cheaper to run and flexible. How a foreign-owned LLC and its owner are taxed in the US depends on whether the LLC has income connected with a US trade or business, which is a question for a US tax professional, not a rule of thumb. What's certain is the yearly filing covered below.

An S corporation isn't an option. S corporations can't have nonresident alien shareholders. Our comparison of LLCs, S corps and C corps explains the differences in full.

Which state

With no home state, you can choose freely, and three choices cover nearly every founder abroad.

• Delaware for a C corporation, and for an LLC whose partners or investors expect it. Formation costs $110 for an LLC under the fee schedule revised August 1, 2026, and LLCs pay a flat $400 annual tax due June 1.
• Wyoming for a lean LLC: $100 to form and a $60 minimum annual report license tax, and no requirement to list owners in the public filing.
• The state where you'll have staff, a warehouse or an office, since you'd have to register there anyway.

Our guide to the best state to form an LLC covers the trade-offs in more depth.

Forming the company

You need a registered agent in the state, since you have no address there. You can then file the formation documents yourself on the state's website, or use a service that bundles the filing with the EIN and agent. The common choices for founders abroad:

• Stripe Atlas forms a Delaware C corporation or LLC for $500, including state fees, the EIN, and the first year of registered agent service, which then renews at $100 a year. It also handles founder stock and the 83(b) filing for a C corporation. It pays no commission to sites like this one, and for a C corporation it's often the best value.
• doola's Starter plan costs $297 a year plus state fees and includes formation, the EIN, an operating agreement, a registered agent and a virtual business address. Its Tax and Compliance plan, at $1,999 a year, adds the yearly IRS filings and state reports.
• Firstbase forms a Delaware or Wyoming company for a one-time $99 plus the state fee, with EIN setup. Its registered agent costs $299 a year per state, and its tax filing package $1,799 a year.

Our comparison of doola, Firstbase and Stripe Atlas works out what each costs over two years.

Getting an EIN without an SSN

The IRS's online EIN application needs an SSN or ITIN, so founders abroad use another route.

• Fax Form SS-4. You'll generally get the EIN within about 4 business days. International applicants fax 855-215-1627 from within the US or 304-707-9471 from outside it.
• Call the IRS. Applicants with no legal residence, office or place of business in the US can call 267-941-1099, Monday to Friday, 6 a.m. to 11 p.m. Eastern time.
• Mail Form SS-4. It takes about 4 weeks.
• Let your formation service do it as a third-party designee on the form, which is included in Atlas and doola's plans.

You don't need an ITIN to get an EIN. Our guide to getting an EIN covers the form in detail.

A US address

You'll be asked for addresses at almost every step, and they're not interchangeable.

• The registered agent's address receives legal papers. It's in your state of formation.
• The principal business address is where the business is run. Some banks won't accept a registered agent's address here. Mercury, for example, accepts residential and international addresses but not registered agent addresses, PO boxes or UPS Store boxes.
• A mailing or virtual address receives ordinary mail and is often included in formation packages.

Opening a bank account

Traditional US banks usually want you in a branch. Fintech business banks open accounts remotely, and several accept founders abroad.

Mercury supports US companies with founders from around the world. Your company must be formed in the US, have existing or planned US operations, and give a principal business address that isn't a registered agent's address. Mercury publishes a list of countries whose residents it can't serve, so check it before applying. Expect to provide the formation documents, the EIN letter and a passport for each owner.

Most founders abroad also want an account that moves money between dollars and their home currency cheaply. Wise Business is a common choice for that alongside a US account. Our guide to opening a business bank account covers the options in more depth.

Accepting payments

With a US company, an EIN and a US bank account, you can open a Stripe account as a US business and accept cards from customers around the world, paid out to your US account. Stripe Atlas customers get Stripe credits for their first year. If you'd rather not handle sales tax and VAT yourself, a merchant of record remains an option even with a US company.

The yearly filings that catch founders out

This is the section to read twice.

Form 5472 with a pro forma Form 1120. A US LLC owned by one foreign person is a "foreign-owned disregarded entity." Every year, it must file Form 5472, reporting transactions with its foreign owner, attached to a pro forma Form 1120, even if it had no income. A C corporation that is 25% or more foreign-owned files Form 5472 with its own Form 1120.

The penalty is what makes it matter: $25,000 for each failure to file a complete and correct Form 5472. If the IRS sends a notice and the form still isn't filed within 90 days, an extra $25,000 can apply for each further 30 days, with no maximum. Many founders abroad find out about this form only when a notice arrives. Put the deadline, which follows the Form 1120 due date, on your calendar, and use a US tax professional who files these every year.

State filings. Delaware's $400 LLC tax by June 1, Wyoming's annual report in your formation anniversary month, or whatever your state requires. Our guide to LLC annual reports and fees covers the main states.

No BOI report. Companies formed in the US no longer file beneficial ownership reports with FinCEN, whoever owns them.

Your home country's rules

The US is only half of it. Many countries regulate residents who own companies abroad. India, for example, has rules on overseas direct investment by resident individuals, and many countries tax their residents on income from foreign companies they control. Your home country may also treat the US company's profit, or the money you bring home, differently from how the US does.

Talk to an accountant in your home country before you form the company, not after the first year. The cost of a short consultation is small next to the cost of unwinding the wrong structure.

What it costs in year one

Before home-country advice and US tax preparation, expect roughly:

• Do it yourself in Wyoming: $100 to form, about $125 a year for a registered agent, and the EIN free from the IRS.
• Stripe Atlas: $500, then $100 a year for the agent, plus Delaware's annual tax or franchise tax.
• doola Starter: $297 a year plus state fees.
• Firstbase: $99 plus state fees, then $299 a year for its agent.

Add a US tax professional for Form 5472 or the corporate return, which is the cost founders most often forget to budget.

The checklist

1. Confirm you need a US company at all.
2. Choose a Delaware C corporation if raising, otherwise an LLC.
3. Choose the state.
4. Appoint a registered agent and form the company.
5. Get the EIN by fax, phone or through your formation service.
6. Open a US business account and a currency account.
7. Set up payments.
8. Put Form 5472 and your state's annual filing on your calendar.
9. Get advice on your home country's rules.