Starting a dropshipping business in 2025? Forming a Limited Liability Company (LLC) in the United States can help you unlock payment processors like Stripe, build trust with suppliers, and legally protect your brand. Even if you live outside the U.S., forming an LLC is more accessible than ever—affordable, fast, and 100% online.
In this guide, you’ll learn exactly how to form an LLC in the U.S. for your dropshipping business, including legal requirements, state comparisons, banking options, and more.
Why Form an LLC for Dropshipping?
Running your store under an LLC—rather than as a sole proprietorship or under your personal name—offers several advantages:
- Limited liability protection: Separates your personal assets from your business.
- Legitimacy: Builds trust with U.S. suppliers and payment processors like Stripe, PayPal, or Shopify Payments.
- Tax optimization: Allows flexibility in how you report and pay taxes.
- Scalability: Easier to bring on partners, employees, or investors.
- International access: You don’t need to be a U.S. citizen or resident to start an LLC.
Step-by-Step: How to Form a U.S. LLC for Dropshipping
1. Choose the Best State
Some states are more favorable for non-residents and online entrepreneurs. Here are top options:
- Wyoming: Low fees, strong privacy, no state income tax
- Delaware: Legal-friendly for companies with investors
- New Mexico: Offers privacy and low maintenance
Want the full state comparison? See LLC formation costs by state here
2. Pick a Name for Your LLC
Choose a unique, brandable name that includes “LLC” and check its availability on your chosen state’s Secretary of State website.
3. Hire a Registered Agent
This is a U.S.-based person or company that receives legal documents for your LLC. For non-residents, it’s mandatory. Services like Northwest Registered Agent or ZenBusiness can help.
4. File the Articles of Organization
This is your official LLC formation document, which you’ll submit online. The filing fee depends on the state—ranging from $40 to $300.
5. Get an EIN (Employer Identification Number)
Required for taxes and opening a business bank account. You can apply for an EIN for free on the IRS website. If you’re not a U.S. citizen and don’t have a Social Security Number, you’ll need to apply via fax or mail.
6. Draft an Operating Agreement
While not required in all states, this document defines how your LLC is managed and how profits are distributed. Essential if you have partners or plan to scale.
7. Open a U.S. Business Bank Account
You’ll need this to accept payments and pay suppliers. Recommended online banks for non-residents:
8. Set Up a Payment Processor
To accept customer payments, link your LLC and U.S. bank account to Stripe, PayPal, or Shopify Payments. These platforms often require:
- A U.S. LLC
- A U.S. business bank account
- EIN
- Business address (can be virtual)
9. Register for Sales Tax (if needed)
If you’re shipping from U.S. warehouses or 3PL providers, you may have a tax nexus and need to register for sales tax in those states. Check TaxJar or Avalara for automation.
Can You Form an LLC from Outside the U.S.?
Yes! Many international dropshippers form U.S. LLCs without ever visiting the country. You’ll need:
- A passport
- A registered agent and U.S. address (via service provider)
- A U.S. phone number (optional but helpful)
- An EIN from the IRS
- A U.S. business bank account (online options available)
✅ Want a step-by-step checklist for forming your U.S. LLC as a non-resident? Just let me know—I’ll send you one tailored to your goals.
Best LLC Services for Dropshipping in 2025
Here are trusted platforms that make the process easier:
- ZenBusiness – Affordable, beginner-friendly
- Northwest Registered Agent – Best for privacy
- Firstbase – Specifically for international founders
- Doola – Ideal for non-U.S. residents launching e-commerce stores
LLC Taxes for Dropshipping
Most LLCs are “pass-through” entities, meaning profits go to your personal tax return. If you’re a non-resident, you may only be taxed on U.S. effectively connected income. However, international tax laws are complex, so consult a tax advisor.
S-Corp election (for residents) may help save on self-employment tax once you earn over $50K in net profit.
Final Thoughts
Forming an LLC in the U.S. is one of the best moves for serious dropshippers in 2025. Whether you’re launching a brand or scaling an existing store, an LLC adds protection, professionalism, and access to the U.S. financial ecosystem.
And the best part? You don’t need to live in the U.S. or be a citizen to take advantage.
📩 Need help choosing the cheapest state, best bank, or filing your LLC from abroad? Just let me know—I’ll help you step by step or create a personalized checklist for your needs.