I've written before about registering an LLC through Bizee, but a fair number of people want to skip the service fee entirely and DIY the whole thing. Being able to legally own a US LLC as a foreigner doesn't mean banks and payment platforms are going to automatically approve your account. Non-US residents and foreign nationals can generally form an LLC online โ you don't need US citizenship or residency to do it. LLC formation is handled at the state level, while federal tax matters like the EIN fall under the IRS, and the exact requirements depend on which state you choose and how your LLC is actually structured. For most overseas founders, the basic path looks like: pick a state, check the name, line up a registered agent, file the formation documents, get your company paperwork back, apply for an EIN, open a bank or financial account, then handle ongoing state and federal compliance. Getting through registration is just step one โ the company isn't really operational until you've worked through this whole chain.
Can foreigners actually register an LLC? Yes, flatly
Foreign individuals can generally be LLC members and hold all or part of the ownership โ no US citizenship, green card, visa, or SSN required. A Chinese resident can absolutely set up a 100%-owned Wyoming or Delaware LLC. But legally owning the LLC is one thing; passing every financial institution's review is another. Banks, Stripe, PayPal, Amazon, and Shopify Payments each run their own KYC and risk assessments. Company registration eligibility and financial account eligibility are two entirely separate questions โ and this distinction is going to keep coming up throughout this whole process.
Which state should you actually pick
| State | Common advantages | Worth watching for |
|---|---|---|
| Wyoming | Friendly toward small online businesses, generally lower cost | Keep an eye on annual compliance fees |
| Delaware | Mature corporate law system, well-regarded by investors | Not necessarily the cheapest option for small businesses |
| Nevada | A business environment founders often look at | Needs a full annual cost comparison |
| Your actual state of operation | Aligns more closely with real business and tax obligations | May require additional foreign qualification for cross-state operation |
For Shopify, WooCommerce, or SaaS businesses with no physical US office or employees, most founders end up comparing Wyoming and Delaware. But don't just look at "which state has the cheapest registration fee" โ the real comparison is registration fee plus registered agent plus annual report plus state tax or franchise tax plus banking requirements, all added together. And if your actual business operates in a different state, you may end up needing foreign qualification, an additional cross-state registration obligation.
Three different addresses โ don't use them interchangeably
The Registered Agent Address receives legal documents, government notices, and service of process. The Business Address is where the company actually operates. The Mailing Address is just where correspondence goes. These can all be completely different addresses โ your registered agent's address is neither your actual residence nor your company's actual place of business. When applying for a bank or payment account, whatever you do, don't pass off your registered agent's address as your real residential address.
Getting your documents together and checking the name
A typical foreign founder needs to prepare: the LLC name, member names, state of formation, registered agent, mailing address, business description, and contact email and phone. Exact requirements shift a bit depending on the state and whether you're filing directly with the state or going through a third-party formation service. For the name itself, don't just check the state database โ also check domain availability and trademark conflicts. A name the state lets you register isn't automatically clear of trademark risk if you use it as a commercial brand.
The formation document goes by different names depending on the state โ Articles of Organization, Certificate of Organization, or Certificate of Formation โ but they're all functionally the LLC's founding document. Filing directly with the state costs less, but you handle the process, registered agent, EIN, and ongoing compliance entirely on your own. Using a bundled LLC formation service is generally easier for a first-time overseas founder, but pricing structures vary a lot between providers โ don't just go by a "$0 LLC" headline. What actually matters is the total first-year cost plus what you'll be paying annually from year two onward.
An Operating Agreement isn't required to be filed with the state in every jurisdiction, but it's worth keeping on hand in practice โ it documents basic facts like the LLC being 100% owned by a single individual, and banks or other partners sometimes ask for it.
Applying for an EIN as a non-US resident
US residents who qualify can use the IRS's online system. Non-US residents without a legal residence, principal place of business, or principal office/agency inside the US can't use the standard online application and instead need to apply by phone, fax, or mail. The IRS's current phone line for international applicants is 267-941-1099, Monday through Friday, 6am to 11pm Eastern. The fax number for applications sent from outside the US is 304-707-9471. The mailing address is Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999. One restriction that's easy to overlook: no matter which method you use, the same Responsible Party can only apply for one EIN per day.
Not having an SSN doesn't block you from getting an EIN. The IRS's instructions for Form SS-4 explicitly state that if the responsible party qualifies but doesn't have an SSN or ITIN and isn't eligible to obtain one, they can enter "foreign" or "N/A" in the relevant field. What you can't do is put down a fake SSN, someone else's SSN, or a fake US address just to get the EIN issued โ and you shouldn't list your registered agent's address as your own residence either. The IRS also explicitly states that a nominee doesn't qualify to apply for an EIN โ the Responsible Party has to be the actual individual who owns or controls the entity. If Mr. Zhang owns 100% of the LLC, the Responsible Party field should reflect his real identity, not the formation agent's company.
Registering an LLC generally doesn't require an ITIN on its own. The EIN is the business's federal tax ID; the ITIN is a tax ID for certain individuals who don't qualify for an SSN โ they're not the same thing. Don't assume "foreigners must get an ITIN before they can form an LLC" โ that's usually not the case. Whether you actually need an ITIN depends on your individual US tax situation.
Bank and payment accounts โ incorporating is just the entry ticket
A US LLC can apply for a bank account, but approval isn't guaranteed. Banks typically review the formation documents, EIN, operating agreement, passport, residential address, business address, business description, ownership structure, and source of funds. Traditional banks and fintech platforms can apply completely different KYC standards to overseas founders โ don't assume a bank will open an account for you just because the LLC is registered in Delaware.
Payment platforms like Stripe and PayPal independently review the entity type, address, owners, actual business, products, website, customer base, bank account, and transaction volume. A US LLC is just one of the baseline requirements for applying for a payment account โ it's not a guarantee of approval. For a cross-border e-commerce DTC store, it's worth getting the website fully built out before applying for a payment account โ About Us, contact information, privacy policy, terms of service, refund policy, shipping policy, and product pages should all be in place, and your company details, website content, banking information, and actual business should all match up consistently.
Taxes aren't automatically zero
A US LLC doesn't mean automatic tax exemption, and it's not "0% tax across the board." Federal tax treatment depends on the LLC's tax classification, the owner's status, US business activity, US-source income, and the actual business model. The most common setup โ a single-member LLC โ defaults to being treated as a disregarded entity. If a foreign-owned LLC like this has a reportable related-party transaction under IRS rules โ a shareholder capital contribution, distribution, or related-party payment โ it generally needs to file Form 5472 along with a Pro Forma Form 1120. The detailed mechanics and penalty rules around this are covered in depth in an earlier guide specifically about Form 5472, so there's no need to repeat all of it here. "No US sales revenue" doesn't mean "nothing needs to be filed."
What happens every year after registration
There's the state's Annual Report, registered agent renewal, state tax or franchise tax, federal tax filing (depending on tax classification), Form 5472 if applicable, sales tax filing once you cross a sales tax nexus threshold, and payroll tax filing if you hire US employees. When comparing the real cost of an LLC, don't just ask "how much does it cost to register" โ add up the registration cost, registered agent, annual state fees, accounting fees, tax filing costs, and banking/payment-related expenses together.
There's no single nationwide LLC registration price in the US. A "$0 LLC" promotion usually just means the service provider's own fee is zero โ you still pay the state filing fee, registered agent, annual report, franchise tax, mail forwarding, and tax preparation costs. When comparing formation services, it's worth comparing both the first-year cost and the ongoing annual cost, not just whatever attractive number is on the homepage.
There's no universal right answer between Delaware and Wyoming. If you're prioritizing lower cost, a small online business, and a simple structure, Wyoming tends to lean favorable. If you're thinking about a mature corporate law framework, future fundraising, or equity structuring, Delaware makes more sense. For a foreign founder simply running Shopify, WooCommerce, SaaS, or a consulting business with no US physical operations, there's no reason to default to Delaware just because the name is more recognizable โ the things actually worth weighing are your real place of business, your customer market, whether you'll need to raise funding, whether you have US employees, and the annual costs and tax obligations involved.
The most common mistakes people make
Treating the registered agent's address as your own actual residence. Confusing the EIN with the state registration number โ the former is a federal tax ID issued by the IRS, the latter belongs to the state's own system. Using a fake SSN just to get an EIN. Listing the formation agent as the Responsible Party instead of yourself. Assuming that once the LLC is registered, tax obligations are done โ when in reality, state annual reports, federal tax filings, Form 5472, and sales tax can all show up down the line. And only looking at the first-year registration price without calculating the total cost of holding the LLC over three to five years.