Can Non-US Citizens Form an LLC in the USA?
Non-US citizens can form an LLC in the US. They do not need to be U.S. citizens. U.S.-resident aliens can also create, own and be a member of an LLC without restriction.
Steps to Form a US LLC as a Non-Citizen:
- Select the state
- Choose a registered agent
- File formation documents
- Create an operating agreement
- Get an EIN
- Open a business bank account
How are Foreign-Owned LLCs Taxed?
The foreign partner of a US LLC will be deemed to be engaged in a US trade or business and the LLC must withhold 35% of its profits for taxes, paid and filed on a quarterly basis to the IRS.
Foreign Ownership of US LLCs
Foreign citizens and foreign companies can form an LLC in the USA. The steps to form a Foreigner-Owned LLC are: Open a US Bank Account, Get a Physical Business Address.
US LLC vs. C-Corp for Foreign Companies
Although both LLCs and C-Corps are ideal options for your foreign company to incorporate in the US, most entities proceed with the Limited Liability Company because of its flexible regulations in comparison to the C-Corp business structure. A Foreign-owned Single Member Disregarded Entity LLC is considered a Reportable Corporation under Section 1.6038A-1 of the IRS code.