Last Updated on 4 weeks by Komolafe Bamidele
Starting a business in the United States as a non-U.S. resident is entirely possible and offers numerous advantages.
However, while it is feasible to form an LLC by yourself, it requires careful navigation of legal, financial, and compliance-related processes.
In this guide, we will explore whether you can set up an LLC independently, the steps involved, potential challenges, and why using a professional service like Bizee can save you time, effort, and costly mistakes.
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Why Form an LLC in the U.S. as a Non-Resident?
A U.S.-based LLC provides numerous benefits, including:
- Limited liability protection – Protects personal assets from business liabilities.
- Credibility – Enhances trust among U.S. customers, suppliers, and financial institutions.
- Access to the U.S. market – Enables seamless transactions with U.S. clients and vendors.
- Tax flexibility – Pass-through taxation avoids double taxation on profits.
- Ease of setup – Unlike corporations, LLCs require minimal documentation and ongoing formalities.
Can You Form an LLC by Yourself?
Yes, but it comes with challenges. While some steps can be done independently, there are legal and procedural hurdles that may make the process difficult. If you make errors during the process, it could lead to rejected filings, delays, and unnecessary expenses. Here’s what you need to know:
1. Choosing a State for Your LLC
Each U.S. state has different regulations, fees, and tax implications. Popular choices include:
- Delaware – Business-friendly laws and strong legal protections.
- Wyoming – Low fees and strong privacy protections.
- Nevada – No state income tax and strong liability protection.
If you plan to operate in a specific state, it may make sense to register there. Otherwise, Delaware, Wyoming, and Nevada are ideal choices. Keep in mind that each state has different annual reporting and tax requirements, which could affect your business in the long run.
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2. Choosing a Business Name
Your LLC’s name must be unique and comply with state regulations. You can check name availability on the Secretary of State’s website of your chosen state.
Some states also require specific words in the name, such as “LLC” or “Limited Liability Company.” Additionally, certain words, like “Bank” or “Insurance,” may require additional approvals.
3. Appointing a Registered Agent
A registered agent is required in the state of formation. This individual or service must have a physical address in the U.S. and will receive legal documents on your behalf. As a non-U.S. resident, you cannot act as your own registered agent unless you have a U.S. address.
Hiring a professional registered agent service ensures you never miss legal notices and keeps your personal information private. Most states require the registered agent to be available during business hours, making it impractical for non-residents to fulfill this role themselves.
4. Filing the Articles of Organization
The Articles of Organization (sometimes called a Certificate of Formation) must be filed with the Secretary of State. This document includes:
- Business name
- Registered agent details
- Business purpose (if required by the state)
- Management structure (member-managed or manager-managed)
Filing fees vary by state, ranging from $50 to $200. Some states process filings within a few days, while others take weeks. Errors in your application can result in rejection and delays, so careful attention to detail is crucial.
5. Obtaining an EIN (Employer Identification Number)
An EIN is required for:
- Opening a U.S. business bank account
- Filing taxes
- Hiring employees
Since May 2019, non-U.S. residents cannot apply for an EIN online without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). You must submit Form SS-4 to the IRS by mail or fax. Many professional services, like Bizee, can obtain an EIN for you, ensuring accuracy and avoiding lengthy processing times.
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6. Drafting an Operating Agreement
An Operating Agreement outlines:
- Ownership structure
- Roles and responsibilities of members
- Decision-making processes
- Profit and loss distribution
Though not legally required in most states, it is highly recommended, especially if you have multiple members. Without an Operating Agreement, state default rules may apply, which could create conflicts in the future.
7. Opening a U.S. Bank Account
A U.S. business bank account is essential for conducting transactions. However, most banks require an in-person visit. Some alternatives include:
- Using fintech solutions that allow remote account setup
- Partnering with a U.S. resident who can assist with banking
Opening a U.S. business bank account also helps in establishing business credit, making it easier to secure loans and other financial services in the future.
8. Maintaining Compliance
To keep your LLC active, you must:
- File annual reports (requirements vary by state)
- Pay necessary taxes (federal and state, if applicable)
- Maintain a registered agent
Failure to comply may result in fines or dissolution of your LLC. Certain states impose franchise taxes or additional fees for LLCs, so understanding your obligations ahead of time is crucial.
Challenges of Forming an LLC by Yourself
- Compliance Errors – Minor mistakes, such as incorrect signatures, insufficient fees, or missing documents, can delay your registration.
- EIN Application Hurdles – Without an SSN or ITIN, applying for an EIN is a manual process that takes time.
- Banking Issues – Many banks require in-person visits, making account setup challenging.
- Legal and Tax Complexity – Understanding state and federal tax obligations can be overwhelming.
Why Use a Professional Service Like Bizee?
Although forming an LLC by yourself is possible, professional services streamline the process and reduce risks. Bizee offers an all-inclusive LLC formation package, making your business setup seamless and cost-effective.
Top 6 Reasons to Choose Bizee:
- $0 LLC Formation – Only pay state fees.
- Free Registered Agent Service – First year included.
- Next-Day Processing – Get your LLC filed quickly.
- Free EIN Service – They handle EIN application hassle-free.
- Unlimited Customer Support – Email and phone support for any queries.
- Lifetime Company Alerts – Never miss important compliance deadlines.
Exclusive Offer: I’ve partnered with Bizee to offer you a special deal—save $250 on your LLC formation! This means more money to invest in your new business. Click here to get started today.
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Final Thoughts
While forming an LLC as a non-U.S. resident is possible, doing it yourself can be complex and time-consuming. Using a professional service like Bizee eliminates stress, ensures compliance, and helps you set up your business efficiently.
So, why wait? Get your U.S. LLC formed within 24-48 hours with Bizee and enjoy a hassle-free experience!