How to Open an LLC in the USA — Step-by-Step Guide

LLC (Limited Liability Company) is the most popular form of business in the USA — it combines limited liability of a corporation with the tax flexibility of a sole proprietorship. It can be established by a foreigner without residing in the USA.

Can a Foreigner Have an LLC?

Yes. The USA does not require citizenship or a Green Card to establish an LLC. You can be a resident of Poland and run an American LLC online — you just need a mailing address (registered agent) and an EIN.

Most Popular States to Form an LLC

Delaware

• The most popular state for startups and investors
• No income tax for LLCs not operating in the state
• Annual franchise tax: 300 USD
• Filing fee: 110 USD

Wyoming

• The cheapest to maintain — 60 USD per year
• No state income tax
• Full anonymity for owners
• Filing fee: 100 USD

Florida, Texas, Nevada

No state income tax — good for individuals physically operating from these states.

Your State of Residence

If you live in a specific state and will conduct business there, it is simpler and cheaper to establish an LLC where you reside — avoiding double registration (foreign LLC).

Step-by-Step Procedure

1. Choose a name — it must be unique in the state. Check on the Secretary of State's website.
2. Designate a registered agent — a person or company with a physical address in the state to receive official correspondence. Cost: 50–300 USD/year.
3. File Articles of Organization with the Secretary of State — online or by mail, with the appropriate fee.
4. Draft an Operating Agreement — an internal agreement for the LLC (not filed with the state, but required by most banks).
5. Apply for an EIN with the IRS — free online (or using Form SS-4 if you do not have an SSN/ITIN).
6. Open a business account — Mercury, Wise Business, Relay, or a traditional bank.
7. Register in the state collecting sales tax if you sell products.

First Year Costs

• Articles of Organization: 50–500 USD (depends on the state)
• Registered agent: 50–300 USD
• EIN: 0 USD (self) or 50–200 USD (through a service provider)
• Bank account: 0 USD with Mercury/Wise; traditional banks may require a minimum deposit
• Operating Agreement: 0 USD (template) or 200–500 USD (lawyer)

How to Get an EIN Without an SSN

As a foreigner without an SSN/ITIN, you cannot apply for an EIN online. You must:

1. Download Form SS-4 from the IRS website
2. Complete it — in box 7b write “Foreign” as Type of Entity and provide your country of residence
3. Fax the form to +1 855-641-6935 (faxes from abroad) or call +1 267-941-1099 (paid)
4. EIN will be assigned during the phone call or within 4 business days after faxing

Taxation of LLC for Non-Residents

A single-member LLC is treated as a “disregarded entity” — income flows to the owner. A foreigner files Form 1040-NR for income from effectively connected business in the USA (ECI). Forms 5472 and 1120 are also required for foreign-owned single-member LLCs — failure to file can result in a penalty of 25,000 USD.

Consultation with a CPA is highly recommended.

Common Mistakes

• Choosing Delaware despite actually operating in another state (requires registration as a foreign LLC)
• Skipping Form 5472 (25,000 USD annual penalty)
• Mixing personal and business funds (piercing the corporate veil)
• Not hiring an accountant familiar with foreign-owned LLCs
• Lack of an operating agreement — issues during conflicts or sales