Tag: LLC

Are you a US non-citizen considering opening a business in the USA and wondering what you need to know about filing a limited liability company (LLC)? There are rules to follow, and whether you’re operating from your home country or the U.S., it’s worth working with a certified public accountant or an experienced attorney familiar with LLC formation for US non-citizens.

To get started, you’ll choose a unique business name, select a state, and obtain a federal tax ID. Other steps include appointing a registered agent and opening a business bank account for the LLC. This guide walks through exactly what a US non-citizen needs to know at each stage.

Business Requirements for US Non-Citizens Filing an LLC

Operating a business in the United States requires no citizenship certificates for a US non-citizen. You can file for company formation and establish an LLC without hassle.

A US non-citizen can also operate a business in many U.S. states without a residency permit. There are no extra legal requirements beyond appointing a registered agent to receive company documents and having a legitimate business address in the state of formation.

Do US Non-Citizens Need a Visa or Green Card to File an LLC?

No immigration status is required to form or own an LLC. It’s important to separate two different things, though: owning an LLC and personally working inside the U.S.

Forming and owning an LLC doesn’t require work authorization. But if a US non-citizen plans to personally live and work in the U.S. for that business, an appropriate visa or green card would be required, since work authorization governs the ability to work in the country, not the ability to own a company.

Consider visiting the U.S. Citizenship and Immigration Services (USCIS) site to understand which visa or green card category, if any, applies to your specific plans. Some are permanent, temporary, or employment-based, so it’s worth understanding which situation applies to you. A US non-citizen with a master’s or bachelor’s degree may qualify for an H-1B visa if seeking to personally work in the U.S., while green cards are available based on refugee status, employment, or, in some cases, substantial investment.

A US non-citizen can incorporate a business online without living in the U.S. However, a registered agent with a legitimate U.S. address is required to receive official documentation on the LLC’s behalf.

Steps to Filing an LLC as a US Non-Citizen

Selecting a business name, state, and registered agent service are the proper first steps to filing an LLC as a US non-citizen. Articles of Organization and a business bank account are also crucial. Here’s the full breakdown:

Choose a Business Name

The first step is choosing a unique business name that doesn’t already belong to another organization in the chosen state. A US non-citizen can operate under a different company name by registering a “Doing Business As” (DBA) with the state. Check your target state’s Secretary of State website to confirm your chosen name is available and compliant with local rules, since each jurisdiction has its own regulations.

Choose a State

A US non-citizen can form an LLC in any U.S. state. That said, New Hampshire, Nevada, South Dakota, Texas, Wyoming, Florida, and Delaware are popular choices because they have no state income tax and generally business-friendly filing rules. Where you form your LLC doesn’t have to match where you plan to do business, though this can affect your tax and compliance obligations, so it’s worth discussing with an advisor.

Get Your Employer Identification Number (EIN)

Every LLC needs a federal tax ID to open a business bank account, file taxes, and operate legally. This is called an Employer Identification Number (EIN), and a US non-citizen without a Social Security Number (SSN) can still obtain one.

The IRS’s online EIN application requires an SSN or ITIN, so it isn’t available to most non-citizens. Instead, a US non-citizen can apply using IRS Form SS-4 by fax, mail, or the IRS’s international phone line, entering “foreign” or “N/A” in the SSN/ITIN field where applicable. There’s no cost to apply directly with the IRS, and no citizenship or residency requirement to receive an EIN.

Choose a Registered Agent or Sign Up for a Service

After the LLC is formed, a registered agent, either an individual or a service, is required. This party must meet state requirements, including maintaining a legitimate physical address to receive legal and tax documents on the company’s behalf.

File Articles of Organization

The Articles of Organization is the official document that formally creates an LLC, outlining the company’s initial statements and legal rights at the state level. It must be filed with the state’s Secretary of State along with the required filing fee. Legal assistance can help ensure this is filed correctly the first time.

Open a Business Bank Account

A dedicated business bank account keeps company finances separate from personal expenses and prepares a US non-citizen for tax season. It also strengthens your position when applying for business licenses and permits, and makes it far easier to track daily transactions and calculate cash flow.

After Formation: Ongoing Requirements for US Non-Citizen LLC Owners

Once the LLC is formed, a US non-citizen should also consider:

• Necessary permits and licenses, depending on industry and state
• An Operating Agreement, detailing company members, objectives, owners, and day-to-day operations
• Public notice, since some states require publishing information about the new LLC in a local paper, while others don’t, so check your specific state’s requirement
• Tax filings, since a US non-citizen typically needs to prepare and file proper tax returns, including the Nonresident Alien Income Tax Return (Form 1040-NR) and, for multi-member LLCs, a Partnership Income return (Form 1065)

A tax professional familiar with non-resident filings can confirm exactly which forms apply to your situation.

Why LLC Structure Matters for US Non-Citizen Real Estate Investors

For a US non-citizen investing in U.S. real estate specifically, an LLC is a common ownership structure because it can offer liability protection and, depending on your situation, certain tax efficiencies. If you’re forming an LLC specifically to hold U.S. investment property, see our guide on LLC and tax strategies for U.S. real estate investors for a deeper look at how ownership structure affects financing and tax exposure.

It’s also worth knowing that most DSCR loan programs allow eligible investors to close directly through an LLC, which is one reason many foreign national real estate investors set one up before purchasing.

Get Help With LLC Formation with America Mortgages

America Mortgages has partnered with Nobility Consulting, a leading LLC provider, to offer seamless LLC formation services for our clients. This partnership ensures that setting up an LLC is straightforward and efficient for a US non-citizen. They are a trusted registered agent service across all 50 U.S. states, with a user-friendly platform for online company formation, virtual mailbox, and registered agent service. Click here to get in touch with Nobility Consulting.

If you’re a US non-citizen forming an LLC to finance U.S. real estate, contact our team at America Mortgages to discuss how your ownership structure affects your financing options.

Frequently Asked Questions