A company can help a digital nomad accept client payments, separate business money from personal money, and look established to customers. This guide explains how to start a US LLC from abroad in seven steps, with 2026 state fees and the IRS forms involved. The guide also covers an Estonian company as a second option. Fees and rules were checked on October 16, 2026.
Do You Need a Company Yet?
A company adds yearly costs and paperwork, so it helps to check whether the extra work fits your situation.
- Reasons to start: A Daily Trust guide to registering US companies lists three common ones. They are acceptance by US payment processors, a legal identity that American clients recognize, and a split between personal and business money.
- Reasons to wait: A freelancer with two or three clients who pay directly may do fine without a company. The fees in steps 1, 2, and 6 apply even in a year with no income.
How to Start a US LLC From Abroad
A person who lives outside the United States can own a US LLC, and the formation steps work online. The steps below assume the owner is not a US citizen or resident. US citizens file differently, and step 6 points to a guide for that case.
1. Pick a State
The state sets the filing fee and the yearly costs. Wyoming, New Mexico, and Delaware come up often for owners who live abroad.
- Wyoming: The filing fee is $100. The yearly report carries a license tax of $60 or more. It is due by the first day of the LLC’s formation month. Wyoming has no personal or corporate income tax, according to Nolo.
- New Mexico: The filing fee is $50. The state asks for no annual report and no annual fee.
- Delaware: The filing fee has been $110 since August 1, 2026. A flat annual tax is due each June 1, and House Bill 400 raised it from $300 to $400 starting with tax year 2026.
The first $400 Delaware payment falls due on June 1, 2027, so some older guides still list $90 and $300. Delaware costs the most of the three each year. Founders who do not plan to seek investors often pick Wyoming or New Mexico, according to LLC University.
2. Hire a Registered Agent
An LLC needs a registered agent with a street address in the state where it is formed. A founder abroad usually hires a company for this role.
- Typical price: Commercial services often charge $50 to $300 per year. Northwest Registered Agent lists $125 per year in a 2026 price comparison by Global Solo.
- Renewal price: Some formation companies include the first year and charge full price from year two, according to The Quint.
Reading the renewal price before buying can help avoid a surprise in year two.
3. File the Formation Document
Each state uses its own form name. Wyoming and New Mexico use Articles of Organization, and Delaware uses a Certificate of Formation.
- What the form lists: The LLC name, the registered agent, and an organizer, according to Daily Trust.
- Where to file: Wyoming and New Mexico accept online filings through their Secretary of State portals. New Mexico accepts online filing only.
- Timing: Delaware filing takes about two weeks and can be sped up for an extra fee. New Mexico online filings often finish in one to three business days.
A written operating agreement is worth having, since banks such as Mercury may ask for it.
4. Get an EIN Without a Social Security Number
An EIN is the tax number the IRS gives a business, and the IRS charges nothing for it. The IRS online tool works only for applicants in the United States or its territories, so owners abroad use Form SS-4.
- By phone: International applicants may call 267-941-1099, which is not a toll-free number. The caller must be authorized to receive the EIN and answer questions about Form SS-4.
- By fax: The IRS sends the EIN back by fax within four business days when the form includes a fax number.
- By mail: Processing takes about four weeks, according to Taxes for Expats.
The responsible party on the form must be a person, and owners without an SSN or ITIN write “Foreign” on that line. Applying after the state approves the LLC makes the form easier to complete.
5. Open a Business Bank Account
A business account keeps LLC money apart from personal money. Large US banks often ask for US-issued ID or an in-person visit, so many owners abroad look at online providers first. Many banks also want a physical US business address, and a registered agent address may not meet that need.
- Mercury: The company accepts non-US founders who have a US LLC, an EIN, and a real operating address. It also asks for ID from each owner with 25 percent or more. Founders in countries on its prohibited list cannot apply. Invoice Bloom’s September 2026 guide says reviews for non-resident applicants can take a couple of weeks. Mercury is a financial technology company, and partner banks provide the accounts.
- Wise Business: Wise says non-US residents can open an account online, with no monthly fee or minimum balance. Wise describes itself as a money services business, and the features offered depend on the country where you live.
A US dollar account means income arrives in dollars while many nomads spend in other currencies, so currency exchange risk is worth planning for. More options appear in a guide to bank accounts without local residency.
6. File the Yearly IRS Form
A single-member LLC owned by a non-US person must file Form 5472 with a pro forma Form 1120 each year. Money the owner puts into the LLC or takes out counts as a reportable transaction, even a small amount. Most active LLCs have at least one each year.
- Due date: April 15 for an LLC on a calendar year. Filing Form 7004 by that date extends the deadline to October 15.
- How to file: The form cannot be e-filed. It goes by mail or fax, following the current IRS instructions.
- Penalty: The Form 5472 instructions state a $25,000 penalty per form for a missing, late, or incomplete filing, according to Alaz Law. The 2017 tax law raised the amount from $10,000, according to EY.
- Preparation cost: Cross-border accountants often charge $500 to $1,500 per year for the filing, according to Gulf News.
- Income tax: Pay for personal services is generally sourced where the work is done. Services performed entirely outside the US are generally foreign source, according to Tax Haven Directory’s summary of IRS Publication 519. A US income tax return may not be required then, according to HCVT. An office, employee, or inventory in the US can change the result.
- BOI report: None for US-formed LLCs. FinCEN’s final rule took effect on August 14, 2026, and exempts domestic companies from beneficial ownership reporting. Older guides may still list this filing.
US citizens and residents do not file Form 5472 and generally report LLC income on a personal return. The guide on how US citizens file taxes abroad covers that path.
7. Check Taxes in Your Home Country
The US treats a single-member LLC as part of its owner. Other countries may treat the same LLC as a separate company. The UK and Canada have both commonly treated US LLCs as companies, according to law firm CMS. A different classification can increase tax or change when it is due, and the UK proposed changes in 2026, according to Cooley.
Tax residency rules differ by country, and the guides below cover several:
- United Kingdom: The post on UK tax rules for nomads covers residency tests.
- Canada: The post on Canadian tax rules for nomads covers ties to Canada.
- Australia: The post on Australian tax rules for nomads covers residency.
- European Union: The post on EU tax residency rules covers moving between countries.
What a US LLC Costs Over Three Years
The example assumes the LLC forms at the start of year one. Two yearly payments then fall due in years two and three. State fees come from step 1.
- Wyoming state fees: $100 + $60 + $60 = $220
- New Mexico state fees: $50 + $0 + $0 = $50
- Delaware state fees: $110 + $400 + $400 = $910
- Registered agent: $50 to $300 per year, or $150 to $900 over three years
Adding the agent gives about $370 to $1,120 in Wyoming, $200 to $950 in New Mexico, and $1,060 to $1,810 in Delaware. An accountant for Form 5472 at $500 to $1,500 per year would add $1,500 to $4,500 over the same period. Bank fees and formation service fees come on top, and prices change, so confirm each fee on the state website before paying.
Another Option: An Estonian Company
Estonia lets non-residents form a private limited company, called an OÜ, online with an e-Residency digital ID. The government fees are small, and the yearly costs depend on the support you hire.
- e-Residency: The state fee is €150 in 2026 and becomes a flat €165 on January 1, 2027.
- OÜ registration: The online state fee is €265.
- Ongoing costs: An Estonian contact person is needed when no founder lives there, plus accounting.
The e-Residency program says e-Residency is not tax residency, and personal tax residency stays where you live. Estonian and home-country tax rules can both apply, so an adviser in each place may help. Guides differ on the company address rule, so confirm it with the e-Residency program. The Tallinn digital nomad guide covers more about e-Residency.
A sole proprietor setup or a company in your home country is a third option, and its rules depend on where you live.
Common Mistakes With a New LLC
Three assumptions cause trouble for nomads with a new LLC.
- Home-country tax: A US LLC may avoid US income tax on foreign-source income. The country where you live may still tax the profit.
- Visas: An LLC does not by itself give permission to live or work in another country. Immigration rules where you stay still apply, and the post on digital nomad visa vs tourist visa explains the difference.
- Mixed money: Paying personal costs from the LLC account can weaken liability protection. Daily Trust says the protection depends on keeping the two separate.
This guide gives general information only and is not legal, tax, or financial advice. A qualified professional can review your own situation before you form a company.
Ready to Plan Your Next Base?
Starting an LLC comes down to six tasks. Pick a state, hire a registered agent, file the formation document, get an EIN, open a bank account, and file the yearly IRS form. Once the setup is done, client payments and record keeping can become simpler. When you plan your next base, search flights on FlyBibe and pick dates that fit your visa plans and work schedule.