Essential Tips for Non-Residents Setting Up a U.S. Company Remotely
Starting a U.S. Limited Liability Company (LLC) as a non-resident is a smart move for many global entrepreneurs. Whether you’re running an e-commerce brand, consulting agency, or digital service, forming an LLC can give you access to U.S. customers, banking, and legal protections. However, non-resident founders often make critical mistakes that lead to delays, tax issues, and compliance problems.
In this guide, we’ll cover the most common mistakes to avoid when starting an LLC from outside the United States, and what to do instead for a smooth and successful launch.
✅ Mistake 1: Choosing the Wrong State for Your LLC
Many foreign entrepreneurs register their LLCs in Delaware or Nevada without understanding their business implications. While these states are popular, they may not always be the best fit.
What to do instead:
If your LLC won’t have a physical presence in the U.S., Wyoming and New Mexico are often better options. These states offer low annual fees, no state income tax, and strong privacy protections.
✅ Mistake 2: Not Getting an EIN (Employer Identification Number)
An EIN is required for opening a U.S. bank account, paying taxes, and hiring employees. Some non-residents skip this step, thinking it only applies to U.S. citizens.
What to do instead:
Apply for an EIN from the IRS using Form SS-4. If you don’t have a Social Security Number (SSN), you can still apply by fax or mail.
✅ Mistake 3: Using Your Personal Name as the LLC Name
Using your full name or initials may seem quick, but it can limit your brand, hurt marketing potential, and make your business look unprofessional.
What to do instead:
Choose a business name that’s brandable, available as a domain name, and easy to remember. Check name availability with the Secretary of State before registering.
✅ Mistake 4: Not Hiring a Registered Agent
Every U.S. LLC must have a registered agent located in the state of formation to receive legal documents. Some founders try to use a friend or relative, which can cause issues.
What to do instead:
Hire a professional registered agent service. Many charge $50–$100 per year and offer compliance alerts and mail forwarding.
✅ Mistake 5: Failing to Understand U.S. Tax Obligations
Even if your LLC makes income outside the U.S., you may still need to file annual reports and tax returns. Many non-resident LLC owners ignore this, risking penalties.
What to do instead:
Learn about your federal tax obligations. A single-member LLC owned by a non-U.S. person is treated as a disregarded entity and may need to file Form 5472 + pro forma 1120.
✅ Mistake 6: Delaying Opening a U.S. Bank Account
Many founders wait until after the LLC is approved to open a bank account, only to find out their documents are missing required fields or signatures.
What to do instead:
Choose a U.S.-based online bank or fintech platform like Mercury or Relay that supports non-resident LLC owners. Apply as soon as your EIN is ready.
✅ Mistake 7: Not Creating an Operating Agreement
Even though not all states require an LLC operating agreement, it’s a critical internal document for your business—especially for single-member LLCs.
What to do instead:
Draft a clear operating agreement outlining how the business is managed, who owns it, and how profits are distributed. It may be requested by banks, partners, or investors.
✅ Mistake 8: Not Planning for Long-Term Compliance
Many international founders think forming an LLC is a one-time process. However, U.S. LLCs have ongoing compliance requirements such as:
- Annual reports
- Franchise tax filings
- Registered agent renewals
What to do instead:
Set reminders or use compliance services to stay up to date. Missing a deadline can lead to late fees or dissolution of your LLC.
✅ Mistake 9: Not Consulting a U.S. Accountant or Lawyer
Trying to save costs by skipping professional advice often leads to costly mistakes. Non-resident business owners face unique legal and tax challenges.
What to do instead:
Hire a U.S.-based accountant or attorney experienced in working with non-resident LLCs. Many offer affordable consultations or fixed packages.
🧾 Quick Checklist Before You Launch
- Choose the right state (Wyoming or New Mexico for most)
- Check business name availability
- Hire a registered agent
- Apply for your EIN
- Create your LLC operating agreement
- Open a U.S. business bank account
- Understand tax obligations (Forms 5472/1120)
- Stay compliant with annual filings
Final Thoughts
Starting a U.S. LLC from abroad is entirely possible—but only if done carefully. Avoiding these common mistakes will save you time, money, and legal trouble. Do your research, use trusted service providers, and consult professionals when needed.
Would you like help forming your LLC from abroad, opening a U.S. bank account, or choosing the best state? Just let me know—I’ll be happy to help you create a custom checklist for your business goals.