What Is an LLC in the United States and How Does It Work?

If you’re considering expanding your business or service structure into the United States, you’ve probably heard about LLCs. This business structure has become a top choice for many Latin American and Spanish-speaking business owners looking to operate legally and flexibly in the U.S. market.
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In this complete guide, we’ll explain what an LLC is in the United States, how it works, its benefits, and the steps to form one—even if you don’t live in the U.S.

What Does It Mean to Have an LLC in the U.S.?

An LLC (Limited Liability Company) is a hybrid business structure that combines the flexibility of a partnership with the legal protection of a corporation.

‍Key benefits of an LLC:

• Limited liability: protects members’ personal assets.
• Flexible taxation: avoids double taxation—profits pass through to personal returns.
• Fewer legal formalities than a C-Corp or S-Corp.
• Foreign ownership allowed: no need to be a U.S. resident or citizen.
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  For official information, refer to the IRS definition of an LLC and the SBA guide on business structures.
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‍What Are the Benefits of an LLC for International Business Owners?‍

Establishing an LLC from abroad offers strategic advantages:

• Access to the U.S. banking system (accounts, Stripe, PayPal Business)
• Strengthens international credibility of your brand or company
• 100% digital remote management
• Tax flexibility: potential for optimized tax liability
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How to Open an LLC in the United States: Step-by-Step

1. Choose the state of formation (Florida, Delaware, Wyoming, Texas)
2. Check name availability and register your business name
3. Appoint a registered agent (mandatory)
4. File the Articles of Organization
5. Apply for your EIN with the IRS
6. Draft an Operating Agreement
7. Open a U.S. business bank account
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What Are the Requirements If I’m Not a U.S. Resident?

You don’t need to live in the U.S. or have a visa. You only need:

• A valid passport
• A U.S. business address (can be a real virtual office)
• A registered agent
• EIN assistance (no ITIN or SSN required)
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Best U.S. States to Form Your LLC Based on Your Business

Key Tax Obligations

• Federal tax return (Form 1040NR + Schedule C)
• Annual Report in the chosen state
• BOI Report to FinCEN (based on activity type)

Prodezk offers tailored accounting plans to keep your LLC fully compliant.
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Is an LLC the Right Structure for Your Business?

An LLC is ideal if you:

• Want to operate from abroad but invoice in USD
• Need to separate personal and business assets
• Require a flexible and legal U.S. structure

If you plan to raise capital or issue stock, a C-Corp may be more suitable. Check our LLC vs. Corp vs. S-Corp comparison.
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Prodezk Supports You Through the Entire Process

At Prodezk, we work with business owners across Latin America to help them form LLCs in the U.S. Our service includes:

• Business formation
• EIN application
• Registered agent service
• Bank account setup assistance
• Accounting, tax, and licensing guidance

“Thanks to Prodezk, we established our LLC from Colombia without any hassle. The process was smooth and clear.” — Grupo Translatina SAS

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Frequently Asked Questions About LLCs in the U.S.

Can I open an LLC if I don’t live in the U.S.?
‍Yes. You can do it remotely with the right documentation.

What’s the average cost?
‍It varies depending on the state and services selected.

Do I need an ITIN or SSN?
‍No. We can help you get your EIN without them.

Which state is best for me?
‍It depends on your business model. Florida and Wyoming are top picks for international companies.
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Start Today!

Forming your LLC in the U.S. can unlock major opportunities for your business. Our team is ready to guide you every step of the way.

Schedule a free consultation with a Prodezk expert and begin your international expansion with legal and tax security.

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