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LLC for Non-Residents: Benefits, Taxes, and Key Steps
Companies

LLC for Non-Residents: Benefits, Taxes, and Key Steps

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If you’re a business owner in Latin America or Spain wondering whether you can establish an LLC for non-residents in the United States, the answer is clear: yes, you can. Increasingly, non-resident entrepreneurs are leveraging this legal structure to operate internationally, protect their assets, and gain access to platforms such as Stripe, Amazon, or U.S. banks.

In this article, we answer all key questions about how an LLC for non-residents works, its tax implications, and the steps needed to properly create one.

Can I Form an LLC Without Being a U.S. Resident or Having a Visa?

Documents and tools needed to create a company in the U.S. from Latin America

Yes. U.S. law does not require you to be a citizen or resident to form an LLC. You can create it from your home country, operate globally, and keep your tax residency abroad. That’s what makes a non-resident LLC so attractive.

Basic requirements for non-residents:

Key Advantages of a Non-Resident LLC

  • No visa or presence in the U.S. required
  • Asset protection against lawsuits
  • Open remote business bank accounts (see bank account service)
  • Use of payment gateways like Stripe, PayPal, Amazon
  • Operate in USD with a globally recognized legal structure
  • Simplified tax compliance with proper advice (tax plans for non-residents)

Non-Resident LLC: Key Taxes and Regulations

This is where many get confused. An LLC is flexible, but as a non-resident, you must understand the specific tax implications.

Concept Details
Federal Taxes (IRS) If you generate ECI (Effectively Connected Income), you are taxed accordingly
Form 5472 + 1120 Mandatory for single-member foreign-owned LLCs (see IRS.gov)
State where LLC is formed Some states charge no state income tax (e.g., Wyoming)

Prodezk Tip: Continuous tax advisory is key. We help determine if your income is ECI and file correctly.

LLC or C-Corp if You Don’t Live in the U.S.?

Criteria Non-Resident LLC C-Corp
Administrative ease High Medium to low
Tax flexibility High (pass-through/disregarded) Low (possible double taxation)
Seeking investment Limited Recommended
Legal compliance Lower cost and requirements More formalities

For most international entrepreneurs selling products or services digitally, a non-resident LLC is the ideal structure.

Best States for a Non-Resident LLC

State Key Advantages
Delaware Strong reputation, affordable setup
Florida Popular with Latinos, simple legal system
Wyoming Privacy, no state taxes, ideal for foreigners


Can I Get an EIN Without an ITIN or SSN?

Yes. The EIN (Employer Identification Number) is your company’s federal tax ID and can be obtained without an ITIN or SSN. You apply via Form SS-4, and a third party like Prodezk can manage the process as an Acceptance Agent (see how we help).

Can I Open a Business Bank Account Without Being in the U.S.?

Yes. Thanks to digital banks like Mercury or Relay, you can open a 100% online U.S. business bank account.

You’ll need:

  • Registered LLC
  • Approved EIN
  • Company formation documents

How Do U.S. Taxes Affect My Country of Residence?

Forming a non-resident LLC in the U.S. does not eliminate your local tax obligations. In most cases, you must:

  • Declare international income
  • Pay taxes on repatriated profits
  • Report foreign assets (depending on your country)

Prodezk Tip: Work with a local accountant and one in the U.S. to ensure full compliance (see international tax advisory).

Do I Need a U.S. Accountant If I’m Not a Resident?

Highly recommended. While you can file basic forms, a mistake can result in penalties or EIN suspension. Prodezk provides accounting and tax services tailored to non-residents.

Frequently Asked Questions About Non-Resident LLCs

Can I own an LLC if I live outside the U.S.?
Yes, no visa or residency required.

Will I pay taxes in the U.S.?
Only if your income is connected to the U.S. That’s part of the
llc for non-residents taxes analysis we do for every case.

Is it legal to open a U.S. bank account from another country?
Yes. Many banks accept LLCs owned by foreigners.

Is an LLC better than a Corp?
In most cases, LLCs are more flexible and tax-efficient.

Is the process fully remote?
Yes. With Prodezk, you can complete everything without traveling.

Prodezk Helps You Form Your LLC from Abroad!

With over 3,500 businesses created for clients across LATAM and Europe, Prodezk is your partner to:

Schedule a consultation with an expert and discover how to build your international structure legally, remotely, and profitably.

Andres Hurtado
CEO
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