For international freelancers who want to work with U.S. clients or receive payments through U.S. platforms like Stripe, PayPal, or direct bank transfers, forming a Limited Liability Company (LLhttps://legalflow.blog/cheapest-way-to-form-an-llc-in-the-u-s-even-if-youre-outside-the-u-s/C) in the United States is a smart move. But choosing the best state to form your LLC can be confusing — especially if you’re not a U.S. resident.
In this article, we’ll explore:
- ✅ Why an LLC is ideal for freelancers
- ✅ The top 3 best states for non-residents
- ✅ Legal and tax considerations
- ✅ Step-by-step formation tips
- ✅ How to keep your LLC compliant
Let’s dive in.
🌍 Why Should International Freelancers Start an LLC in the U.S.?
Here’s why an LLC is a game-changer for freelancers abroad:
- Access to U.S. payment systems like PayPal, Stripe, Wise, and U.S. banks
- Better trust and credibility with U.S. clients
- Liability protection for your freelance activities
- Low-cost formation compared to local options
- Tax optimization when structured properly
🧠 Pro Tip: Even if you live outside the U.S., you don’t need to live in the state where you form your LLC. You can run it 100% remotely.
🏆 Best States for LLC for International Freelancers
Let’s compare the top 3 states often recommended for international freelancers:
| State | Annual Fees | Registered Agent Required | State Taxes | Popular For |
|---|---|---|---|---|
| Wyoming | $60 | ✅ Yes | ❌ No | Privacy, low cost |
| Delaware | $300 | ✅ Yes | ❌ No | Legal reputation |
| New Mexico | $0 | ✅ Yes | ❌ No | Ultra-low cost, anonymity |
Wyoming – The All-Round Winner
Wyoming LLCs are incredibly popular with non-residents. They offer:
- No state income tax
- Very low annual fees ($60)
- High level of privacy (you can keep your name off public records)
- Fast and simple filing process
2. Delaware – Best for Scaling and Legal Strength
Delaware has a global reputation as a business hub. Ideal if you:
- Plan to raise investment
- Work with tech clients or U.S. startups
- Want strong legal protections
But keep in mind:
- High franchise tax ($300/year)
- Requires a registered agent
3. New Mexico – Best for Privacy and $0 Annual Fees
If your budget is tight, New Mexico is perfect:
- No annual reporting requirements
- $0 annual fees
- High privacy (anonymous LLCs)
- Still provides all the benefits of a U.S. LLC
💼 What to Consider Before Choosing a State
Before you choose where to form your LLC, ask yourself:
- Will I need a U.S. bank account?
- Do I need privacy or am I okay with my name being public?
- Do I want to avoid yearly taxes and reports?
- Am I working alone, or will I scale and hire?
⚖️ Legal Note: Even as a non-resident, you don’t need a U.S. visa or address to form an LLC. You’ll need a registered agent and EIN (Employer Identification Number) instead.
🛠️ How to Form an LLC as a Non-Resident (Step-by-Step)
- Choose your state (e.g., Wyoming)
- Hire a registered agent ($39–$100/year)
- File Articles of Organization (online, takes 1–3 days)
- Apply for an EIN with the IRS — free
🔗 IRS EIN Application - Open a U.S. business bank account
💡 Consider services like Mercury or Relay
🧾 Optional: Get a U.S. mailing address via services like Anytime Mailbox
📌 Tax Tips for Freelancers with a U.S. LLC
- If you don’t have U.S. clients or operate in the U.S., you may not owe U.S. taxes.
- You’ll file Form 5472 + Pro Forma 1120 with the IRS yearly.
- You may still owe taxes in your country of residence, so consult a local accountant.
📚 Official IRS Info: Form 5472 Instructions
✅ Final Verdict: Which State Is Best?
- Choose Wyoming if you want low fees, privacy, and simplicity
- Choose Delaware if you plan to scale or raise investment
- Choose New Mexico if you want anonymity and no ongoing costs
For most international freelancers starting out — Wyoming is the ideal choice.