Table of Contents
▼
Which US state should a non-resident pick for an LLC?
Pick the state where you actually run the business. For most non-residents selling online, that is not Delaware or Wyoming, it is the state where your operations, staff or warehouse sit. If you have no US physical presence at all, you get to choose, and then Wyoming or Delaware become reasonable, not because they are cheap, but because they are predictable.
Here is the trap. Form in Wyoming, then hire a contractor and open a small office in Texas, and Texas wants its own registration. That second registration is called foreign qualification: you register your existing LLC as an out-of-state company. You pay a second filing fee and you need a registered agent in that state too.
Say your software company is registered in Wyoming but you rent a coworking desk in Austin for six months. Texas treats you as doing business there. You file a foreign qualification, pay the Texas fee, and now you carry two annual obligations instead of one. That is the cost nobody puts in the headline.
| State | Filing fee | Annual obligation | Member names public? |
|---|---|---|---|
| Delaware | Check the current official fee | Annual franchise tax | No |
| Wyoming | Check the current official fee | Annual report | No |
| New Mexico | Check the current official fee | None | No |
| Florida | Check the current official fee | Annual report | No |
| New York | Check the current official fee | Biennial report | Yes, plus publication |
New York deserves its own warning. The state requires LLCs to publish a notice of formation in two newspapers and file proof with the Department of State [1]. That publication bill lands on top of the filing fee, and it is the single most-missed cost in US formation.
If you want the longer state-by-state reasoning, read the reference guides on US company setup before you commit.
What does the state actually require from a non-resident founder?
The same form a US resident files. No state requires you to be a US citizen or resident. What the state does require is a registered agent: a person or company with a physical street address in that state who accepts official mail and legal papers on your behalf.
Your Articles of Organization (called a Certificate of Formation in some states) asks for four things:
- The LLC name, which must be distinguishable from existing names on the state register
- The registered agent's name and physical address
- An organizer's signature, which can be you
- Member names, in some states only
No SSN is needed for the state filing. A passport number is enough where a personal identifier is requested.
Heads-up: some banks and payment providers ask for a notarized or apostilled copy of your passport. Get the apostille from your home country's authority before you start, because it takes time and you will want it ready when a bank asks.
Filing online is faster than mail in nearly every state, and several states charge less for it. Check your state's Secretary of State website for the current fee and channel before you pay anyone else.
Why is a registered agent mandatory, and what does the fee actually cover?
The registered agent is a legal requirement in every state that allows LLCs. For a non-resident it is almost always a paid service, because you do not have a US street address of your own.
What the agent does: receives service of process (the legal paperwork when someone sues the company), receives state correspondence, and keeps a physical address on file. What the agent does not do: file your taxes, act as your lawyer, or run your business.
A PO box fails the test in most states. So does a virtual mailbox on its own, because the rule asks for a physical address where a person can be reached during business hours. Confirm your state's exact wording on its Secretary of State site, since the language differs.
The fee is a provider fee, billed yearly, and it is separate from anything you pay the state. Budget it as a permanent line, not a startup cost.
Which costs are government fees, which are provider fees, and which recur?
Three buckets, and mixing them is how founders get surprised.
| Cost item | Paid to | One-time or recurring | Varies by state? |
|---|---|---|---|
| State filing fee | Secretary of State | One-time | Yes |
| Registered agent | Agent service | Recurring, yearly | No, but price varies by provider |
| Formation service package | The service | One-time, sometimes yearly | No |
| Annual report or franchise tax | State | Recurring | Yes, widely |
| New York publication | Newspapers | One-time | New York only |
| EIN | IRS | Free | No |
| Business bank account opening | Bank | Free to open | No |
| BOI report | FinCEN | Free | No |
That "$0 + state fees" headline you keep seeing? The $0 is the provider's base tier, which files the Articles and nothing else. The registered agent, which you legally must have, is an add-on. Read the checkout page, not the banner.
Do not pay a third party for your EIN. The IRS issues it free. If a service bundles EIN help into a package, you are paying for the paperwork handling, not the number.
NexFyla publishes its own package structure openly at NexFyla pricing if you want to see how a provider separates state fees from service fees.
How does a non-resident get an EIN after the LLC is formed?
File IRS Form SS-4. The EIN is free, and you can get one without an SSN or ITIN.
Sequence matters. Form the LLC first, because the SS-4 asks for the entity's legal name and formation date. Apply in the LLC's name, list yourself as the responsible party, and use the registered agent's US address where a US address is required.
The online SS-4 application requires an SSN or ITIN. Without one, you apply by fax or phone. Fax is the standard route for non-residents and the wait runs in weeks, not days. Phone is faster when you can reach the IRS international line during US hours. Check the IRS site for current processing times before you plan around them.
Three acronyms, three different things:
- EIN: the company's tax ID, issued by the IRS, free
- ITIN: a personal tax ID for people who cannot get an SSN, filed on Form W-7
- SSN: only for people authorized to work in the US
An LLC is not a tax status. The IRS treats a single-member LLC as a disregarded entity by default, a multi-member LLC as a partnership, and either can elect corporate treatment [2]. Which one applies to you changes your filing obligations, so confirm it with a qualified tax professional before your first return.
If you need the personal tax ID for a treaty claim or a refund, applying for an ITIN with Form W-7 support is a separate process from the EIN and takes its own time.
What does a non-resident need to open a US business bank account?
A formed LLC, an EIN, a US address, your passport, and evidence that the business is real. That last one is where applications die. A website, a contract, an invoice, a Stripe dashboard, something that shows you sell.
Fintech banks are easier for non-residents than brick-and-mortar banks. Mercury and Wise Business both publish non-resident onboarding paths. Traditional banks usually want an in-person visit and a US credit history, which most founders abroad do not have.
| Bank type | Non-resident friendly? | Typical documents | Monthly fee |
|---|---|---|---|
| Fintech (Mercury, Wise Business) | Usually yes | EIN, formation docs, passport, US address | Varies, check current policy |
| Traditional US bank | Often requires in-person visit | EIN, formation docs, passport, proof of address | Varies |
No bank approves everyone. An LLC makes you eligible to apply. Approval stays with the provider, and policies change without notice.
Imagine you formed in Wyoming, got your EIN by fax, and applied to Mercury with your Indian passport and a Wyoming registered agent address. That is a normal application. What sinks it is a missing business description or a website that does not resolve.
Payment processing is the next step. Stripe's own documentation sets out the account requirements, and a US bank account plus EIN is the usual baseline. Read Stripe setup for non-US founders before you apply so you know what it asks for.
What ongoing compliance costs should a non-resident budget for every year?
Budget three recurring lines: the state's annual report or franchise tax, the registered agent renewal, and your federal tax filings. Add a fourth when your ownership or address changes, because the BOI report has to be updated.
Some states charge an annual report, some charge a franchise tax, some charge neither. New Mexico, for example, has no annual report. New York bills a biennial report plus that publication requirement [1]. Confirm your state's rule and deadline on its Secretary of State site, because the penalty for missing it is real: late fees first, administrative dissolution later.
BOI reporting sits under the Corporate Transparency Act and is filed with FinCEN. Filing is free. The rules have been through litigation and revision, so check the current status on FinCEN's site before you rely on any deadline you read elsewhere.
Suppose you formed in Delaware in January and forgot the annual franchise tax in the following year. Delaware does not send a reminder to your inbox in India. It goes to your registered agent. If that agent is a cheap service with no forwarding, you find out when the state charges a penalty.
Federal filing is separate from all of this. A single-member LLC owned by a non-resident with no US trade or business still has an information return obligation in most cases, and a foreign-owned LLC files Form 5472 with Form 1120. That is a filing penalty zone, not a paperwork formality. If you are unsure which applies, federal tax support for Form 5472 and Form 1120 is worth the call.
How do you compare formation options without overpaying?
Compare total first-year cost and total recurring cost. Nothing else.
Ask four questions of every provider:
- Is the registered agent included, or is it an add-on?
- Is EIN support included, or extra?
- Is mail forwarding included, and for how long?
- What do I pay in year two?
Do the math on year two before you sign. A cheap year one with an expensive renewal is the most common trap.
DIY is cheaper if you have a US address and patience. File directly with the Secretary of State, buy a registered agent separately, and file the SS-4 yourself. A formation service earns its fee when you need a US address, mail handling, and someone to chase the EIN for you.
Common Mistakes
Paying a third party for the EIN. The IRS issues it free. You are paying for handling, not the number.
Choosing a state on filing fee alone. A low filing fee with a high annual franchise tax costs more by year three.
Forgetting foreign qualification. Operating in a second state without registering there leaves you exposed to penalties and back fees.
Using a PO box as the registered agent address. Most states reject it. You need a physical street address.
Missing the annual report. Late fees compound, then the state dissolves the company administratively and you have to reinstate it.
Skipping the BOI update. Change of address or ownership triggers an update, and missing it is a federal issue, not a state one.
Frequently Asked Questions
Can a non-resident form a US LLC without visiting the US? Yes. The state filing, EIN and bank account can all be done remotely. The only physical requirement is a US registered agent address.
Do I need an SSN or ITIN to form an LLC? No. The state filing needs neither. You get the EIN without one by filing Form SS-4 by fax or phone.
Is Delaware or Wyoming cheaper for a non-resident LLC? Filing fees differ, but the annual franchise tax or report is the bigger number. Compare total first-year and recurring cost.
How much does it cost to form a US LLC as a non-resident? Three buckets: one-time state filing fee, optional provider fees, and recurring annual costs. Check your state's official fee schedule for the filing fee.
Do I file in another state if I operate from India? Only if you have a physical presence, employees or property in another US state. Otherwise the formation state is enough.
What happens if I miss the annual report? Late fees first, then administrative dissolution. The amount and deadline vary by state, so check the Secretary of State site.
Where to start
Pick your state based on where you actually operate, not on the lowest filing fee. Then file the Articles, buy a registered agent with a real street address, and file Form SS-4 yourself by fax. That sequence gets you a working US LLC with no wasted spend.
If you want help with US LLC formation, EIN and business setup, NexFyla can assist. Start with the state decision, then let the paperwork follow.
*Last updated: February 2026.*