Germany has one of the largest groups of founders forming U.S. LLCs from Europe. The reasons are practical: U.S. clients who prefer a U.S. entity, Stripe with U.S. rails, Amazon.com as a second marketplace, and pricing in dollars without a German GmbH's 25,000 euro capital requirement and notary process. The LLC is fast and cheap. The German side is where care is needed.

How the German tax office sees a U.S. LLC

Germany does not accept the U.S. "disregarded entity" label. The Finanzamt applies a type comparison (Typenvergleich) to decide whether the LLC looks more like a German corporation or a German partnership, based on the operating agreement: centralized management, limited liability, free transfer of interests, unlimited life, and so on. Most single-member LLCs with a standard operating agreement are classified as corporations. That classification decides how distributions are taxed in Germany (as dividends, in the corporate case) and interacts with the U.S.-Germany tax treaty. Your operating agreement is therefore a German tax document, not just a U.S. formality.

The management-and-control question

If the LLC is managed day to day from Germany, Germany can treat the LLC itself as tax-resident in Germany (place of management, Ort der Geschäftsleitung) and subject it to German corporate tax and trade tax. This is the single most important issue for a German founder. It does not make the LLC useless; it changes the tax result and the filing obligations. A German Steuerberater who has handled U.S. LLCs before should look at your facts once.

CFC rules

German controlled-foreign-company rules (Hinzurechnungsbesteuerung under the Außensteuergesetz) target passive, low-taxed income in foreign companies. An LLC with real trading activity is usually outside their scope; an LLC that only holds a domain and collects royalties may not be. Ask.

Treaty

The U.S.-Germany income tax treaty is in force. It matters for withholding on U.S.-source royalties and for defining permanent establishment. It does not remove the yearly U.S. filing: every foreign-owned single-member LLC files Form 5472 with a pro forma 1120 regardless of treaty.

Banking from Germany

German residents are generally within the supported regions of the main U.S. fintechs. The application is the same as for anyone else: state articles, EIN letter, passport, a real website and a clear description. Read what Mercury checks. Keep the German business bank account too; you will need euros.

Which state

With no U.S. office or staff, Wyoming for almost every German founder. Florida only with a real Florida tie.

Cost and timeline

Wyoming LLC through Monezzi: $1,136 for year 1 ($1,032 plus $104 state fee at cost), including EIN, registered agent, business address, U.S. phone, accounting software and the yearly Form 5472 filing. State approval in days, EIN in 2 to 6 weeks, bank review a few days after. Full breakdown in the cost guide.

UK founders already have a cheap, fast company form at home: the private limited company. The reason they still form a U.S. LLC is not incorporation cost. It is access: U.S. clients who want to pay a U.S. entity by ACH, Stripe U.S. with Apple Pay and Link, Amazon.com, and U.S. dollar pricing without conversion on every sale.

HMRC does not see a disregarded entity

The IRS treats a single-member LLC as transparent. HMRC's long-standing position is that a U.S. LLC is opaque, that is, a company, and that distributions from it are dividends. The Anson case created a narrow exception for a specific fact pattern, and HMRC has stated it will continue to treat LLCs as opaque in most cases. The practical result: profits taxed in the U.S. at the owner level (if any) may not line up with UK tax on distributions, and double-tax relief can be imperfect. For a UK founder with no U.S. tax liability (services performed outside the U.S., no effectively connected income), this is manageable: the LLC's profit is taxed in the UK when distributed, or possibly as it arises depending on your position. Get a UK accountant who has actually dealt with an LLC to confirm which.

Management and control

A company managed and controlled from the UK is UK tax resident. A single-owner LLC run from London is, in HMRC's eyes, very likely a UK-resident company that must register for and pay UK corporation tax. That is not a disaster; it is a filing. But it means "I have a U.S. company so I do not pay UK corporation tax" is wrong.

When a Ltd is simply better

If your clients are in the UK or EU, if you do not need U.S. payment rails, and if you are not selling on U.S. marketplaces, a UK Ltd with a Wise or Stripe UK account is cheaper and cleaner. The U.S. LLC earns its cost when U.S. access is the point.

Treaty and forms

The U.S.-UK treaty is in force. For U.S. clients you provide a W-8BEN reflecting you as the owner of a disregarded entity, with the treaty section completed. Read the W-8 guide. The yearly Form 5472 with pro forma 1120 is due April 15 regardless.

Banking

UK residents are within the supported regions of the main U.S. fintechs. Applications are judged on the business, not the passport. Read the remote banking guide.

State

Wyoming unless you have a Florida tie. Delaware is for raising venture capital through a C corporation, not for this.

Cost

Wyoming LLC through Monezzi: $1,136 year 1 including the $104 state fee, then $1,032 per year plus the state's $60. What is inside is on the Monezzi page.

"Best state" is a search people type before they know what they are optimizing for. A non-resident founder usually cares about four things: what it costs, what it costs every year after, whether the owner's name is public, and whether banks and payment processors treat the state as normal. No state wins all four. Here is the honest ranking for someone who lives outside the United States and has no office, employee or warehouse in any state.

The rule that decides most cases

If your business has a physical presence in a state (an office, a warehouse, staff, inventory in your own space), form there. Forming elsewhere does not remove that state's rules; it adds a second registration on top. If you have no physical presence anywhere in the U.S., you are free to choose, and the choice comes down to cost, privacy and reputation.

The four states people compare

State fees are set by each state and change. The numbers above are what founders pay today; treat them as a snapshot, not a contract.

Cheapest state to form an LLC in 2026

On formation fee alone, Kentucky ($40), New Mexico ($50) and Colorado ($50) are the cheapest. On total five-year cost, New Mexico wins because there is no annual report and no annual fee. Wyoming comes second at about $404 over five years including formation. The catch with the cheapest option is not the state; it is the registered agent, which you must pay for in every state, and the ongoing federal filing, which is identical in every state. Saving $54 on formation and then paying a $25,000 penalty for a missed Form 5472 is a bad trade.

Most private state to form an LLC

Wyoming, New Mexico and Delaware do not publish member or manager names in the public formation record. Nevada is often listed here too, but Nevada requires a list of managers or managing members with the initial list filing, so the privacy is weaker and the fees are higher ($425 in the first year). Privacy from the public record is not privacy from the IRS or the bank. Both will know exactly who owns the company, and both should.

Which state banks and Stripe like

None of them care much about the state. They care about whether the documents match, whether the business has a real website and description, and whether the owner's country is on their supported list. Wyoming and New Mexico LLCs owned by non-residents are common, so compliance teams see a lot of them and a thin application gets more questions. That is a reason to make the application strong, not a reason to pick a different state.

Our recommendation by situation

• Online seller, freelancer or SaaS founder with no U.S. footprint: Wyoming. Low yearly cost, private, familiar to every bank. Read Wyoming vs New Mexico if the $60 yearly fee bothers you.
• Founder with property, a 3PL, a partner or a planned move in Florida: Florida. Read Wyoming vs Florida.
• Startup raising from U.S. investors: Delaware, but as a C corporation, not an LLC. That is a different product and a different conversation.
• Consultant who will physically work in the U.S.: the state where you will be. Read the consulting guide.

India is one of the largest sources of U.S. LLC formations by non-residents. Agencies billing U.S. clients, SaaS products priced in dollars, Amazon.com sellers, and freelancers tired of 30% withholding and slow international wires. The LLC works well for all of them. The rules that bite are Indian, not American.

Indian foreign exchange rules

An Indian resident acquiring ownership of a foreign company is making an overseas investment under FEMA. The framework is the Overseas Investment Rules and Regulations of 2022, administered by the Reserve Bank of India through your authorized dealer bank. The practical points:

• Money sent from India to fund or capitalize the LLC goes under the Liberalised Remittance Scheme (LRS), currently capped at USD 250,000 per financial year per individual, with TCS (tax collected at source) applying above a threshold.
• Acquiring the LLC is typically classified as Overseas Direct Investment (ODI) if you hold control, which requires reporting through your bank (Form FC), obtaining a Unique Identification Number, and filing an Annual Performance Report each year.
• Even if you fund nothing from India and the LLC earns its own revenue, the ownership itself is what triggers the reporting.

Many founders skip this. The RBI's compounding process for late reporting exists precisely because many skip it. A chartered accountant who handles ODI filings should be part of your setup.

Indian income tax

You are taxed in India on worldwide income. The LLC's profit is reportable, and foreign assets (the LLC interest, the U.S. bank account) must be disclosed in Schedule FA of your Indian return. The U.S.-India treaty is in force and provides foreign tax credit mechanics if any U.S. tax is actually paid.

U.S. side

Services performed from India for U.S. clients are generally foreign-source and not U.S.-taxed. The LLC still files Form 5472 with a pro forma 1120 every year. For clients, provide a W-8BEN with the treaty section and your PAN as foreign TIN; see the W-8 guide.

Banking

Indian residents are within the supported regions of the main U.S. fintechs. The common decline reasons are a thin website and a vague description, not the passport. Read what Mercury checks. Keep in mind that moving profit to India is an inward remittance to you personally with a purpose code; your bank will ask.

State and cost

Wyoming for nearly every Indian founder. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. Inside: EIN, registered agent, business address, U.S. phone, accounting software and the yearly Form 5472 filing. See the full cost guide.

Pakistan is a top-five source of freelancers worldwide and a country where Stripe, PayPal and Etsy Payments are not available to local sellers. That gap is the reason so many Pakistani founders form U.S. LLCs. The LLC gives the business a U.S. identity that those platforms accept. It does not make the founder American, and it does not remove Pakistani obligations.

What the LLC solves

• A U.S. Stripe account for a Shopify store, SaaS product or agency invoicing. Read the Stripe guide.
• An Etsy shop as a U.S. business seller, since Etsy Payments does not serve Pakistan. Read the Etsy guide.
• Amazon.com seller account under a U.S. entity.
• U.S. clients paying by ACH to a U.S. business account instead of a costly SWIFT wire to Pakistan.

What it does not solve

• Identity verification. Stripe, Etsy and the bank verify the person who owns the LLC, and that person is you, with a Pakistani passport and a Pakistani address. The LLC is not a disguise and should not be used as one.
• Country restrictions at the bank. Each U.S. fintech publishes a list of supported and restricted countries. Check the current list before forming. If your residence is not supported, a U.S. LLC does not change that.

Banking path that works in practice

1. Apply to the U.S. fintechs whose current list includes Pakistan, with a complete application: state articles, EIN letter, passport, real website, clear description. Read what gets applications approved.
2. Payoneer and Wise Business as the layer for moving earnings to Pakistan; both are widely used by Pakistani freelancers and support PKR withdrawal.
3. Keep the business and personal flows separate. Every owner transfer becomes a line on Form 5472.

Pakistani side

Residents are taxed in Pakistan on worldwide income, and the FBR requires declaration of foreign assets and foreign income in the annual return, with a wealth statement. The State Bank of Pakistan regulates outward investment by residents; forming a foreign company can require permission or reporting depending on how it is funded. The U.S.-Pakistan tax treaty is in force. A Pakistani tax advisor who has seen a U.S. LLC should confirm your reporting before the first year closes.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. It covers formation, EIN, registered agent, business address with Form 1583, U.S. phone, accounting software and the yearly Form 5472 filing. No bank guarantee is included, because none exists.

New Mexico is the state people discover after Wyoming. The pitch is simple: $50 to form, nothing to file each year, nothing to pay each year, owner names off the public record. On paper it beats Wyoming. In practice the two states serve slightly different founders.

Side by side

What the $60 actually buys

The Wyoming annual report is a yearly confirmation that the company still exists, has a registered agent and is in good standing. Because it is filed yearly, Wyoming can issue a certificate of good standing instantly and for free. Banks, Stripe, Amazon and marketplaces ask for that certificate more often than founders expect, usually at the worst moment (a payout hold, an account review).

New Mexico has no annual report, so "good standing" has less to confirm. You can still order a certificate, but it takes a request and a fee. For a founder who will need proof of standing two or three times over the life of the company, the difference is small. For a founder who runs Amazon, Etsy and two payment processors, the Wyoming version is simply less friction.

Where New Mexico wins

• A holding LLC that owns a domain, a brand or intellectual property and does almost nothing else.
• A second or third LLC where you already have a Wyoming operating company and want the cheapest legal wrapper for a side project.
• A founder who has read the compliance calendar and knows the state fee is the smallest line on it.

Where Wyoming wins

• Your first U.S. company, where you will open a bank account, a Stripe account and a marketplace account within 90 days.
• Any business where a counterparty may ask for proof of good standing on short notice.
• Founders who value a state with a large, well-documented ecosystem of registered agents and business services.

What does not change

Federal duties are identical. Both LLCs need an EIN, both file Form 5472 with a pro forma 1120 every year, both need a registered agent with a street address in the state, and both face the same bank and Stripe review. The state fee is the one line that differs, and it is $60 a year.

Monezzi's first paying customers included founders from Bangladesh, and the pattern has held: agencies, developers, dropshippers and Etsy sellers who need Stripe, PayPal or Etsy Payments and cannot get them at home. The LLC gives their business a U.S. entity that those platforms recognize.

Why the LLC

• Stripe and PayPal Business are not offered to businesses located in Bangladesh. A U.S. LLC with a U.S. bank account can apply. Read the Stripe guide.
• Etsy Payments does not serve Bangladesh. A U.S. LLC seller account solves it. Read the Etsy guide.
• U.S. clients pay by ACH instead of wires that lose $30 to $50 per transfer and take days.

Banking reality

This is the honest part. U.S. fintechs publish their supported-country lists and update them. Residency in Bangladesh has been on and off some lists. Check the current list of each provider before you form, and have a second plan: Wise Business and Payoneer are commonly used by Bangladeshi founders to receive dollars and withdraw to a local account in taka. Read the remote banking guide for how these differ from a bank account and which ones Stripe accepts for payouts.

Bangladesh foreign exchange

Bangladesh Bank tightly controls outward remittance by residents. Investing abroad generally requires permission, and sending money out to fund a foreign company is restricted. Most Bangladeshi founders therefore form the LLC using the LLC's own earnings or a small card payment, keep the company self-funded, and bring profit home as inward remittance, which is encouraged and in some cases rewarded with an incentive. Bringing money in is easy; sending it out is not. Structure accordingly and confirm with a local advisor.

Taxes

Bangladesh taxes residents on worldwide income. The U.S.-Bangladesh tax treaty is in force. On the U.S. side, services performed from Bangladesh are generally not U.S.-taxed, but the LLC files Form 5472 with a pro forma 1120 every April, with zero activity or not. Provide U.S. clients a W-8BEN; see the W-8 guide.

State and cost

Wyoming. $1,136 for year 1 through Monezzi including the $104 state fee, then $1,032 per year plus $60 to the state. See the full cost guide and the Monezzi page.

Nigeria has one of Africa's largest tech and freelance communities and a currency that has lost most of its dollar value over the last decade. Earning and holding in dollars is not a luxury for a Nigerian founder; it is the business model. A U.S. LLC is the most common way to do it legally and at scale.

What the LLC gives you

• A U.S. entity that can apply for Stripe, PayPal Business and Amazon, none of which serve Nigerian businesses fully.
• Dollar invoicing and dollar holdings outside the naira system.
• U.S. clients paying by ACH to a U.S. business account.

The banking constraint

Each U.S. fintech publishes supported and restricted countries. Nigeria has been treated cautiously by several, partly because of fraud statistics that have nothing to do with you and everything to do with the compliance team's spreadsheet. Check the current lists before forming. Where a fintech does onboard Nigerian residents, expect enhanced review: more questions about the business, proof of address, sometimes a video call. A complete, consistent application with a real website and a plain description is the whole game. Read what gets applications approved and the alternatives.

No tax treaty

There is no income tax treaty in force between the United States and Nigeria. For a service business performing work from Nigeria, this matters less than it sounds: foreign-source service income is not subject to U.S. withholding regardless of treaty. It matters for U.S.-source royalties or certain platform income, where the full 30% statutory rate can apply. Provide U.S. clients a W-8BEN without a treaty claim; see the W-8 guide.

Nigerian side

Residents are taxed on worldwide income. The Central Bank of Nigeria regulates foreign exchange, and the 2025 tax reforms strengthened reporting of foreign income and assets. A Nigerian tax advisor should confirm how the LLC's profit is reported and how repatriated dollars are treated. Bringing dollars in is straightforward; the questions are about declaring them.

U.S. filing

Form 5472 with a pro forma 1120 every April 15. Zero activity does not exempt you.

State and cost

Wyoming. Monezzi's package: $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. Formation, EIN, registered agent, business address, U.S. phone, accounting software and the yearly federal filing are inside; bank decisions are not, because they cannot be sold. Details on the Monezzi page.

Delaware is where Fortune 500 companies incorporate. Founders read that and assume it must be the best place for their LLC too. The reasoning does not transfer. What makes Delaware attractive for a corporation with investors, a board and possible litigation is irrelevant to an LLC with one owner selling products online.

The numbers

What Delaware is actually good at

Predictable corporate law, a specialized court, and a body of case law that investors' lawyers know by heart. If you are raising a seed round from U.S. venture funds, they will ask for a Delaware C corporation, and there is no point arguing. That is the Delaware use case. It has nothing to do with LLCs owned by one person abroad.

What Florida is actually good at

Being a real, large, business-friendly state with no personal income tax, a huge Latin American trade connection, ports, 3PLs and a Secretary of State (Sunbiz) that processes filings quickly. A Florida LLC looks completely normal to a Miami bank, a Colombian supplier or a Brazilian customer. If you have a reason to be in Florida, form in Florida.

The trade-off Florida asks you to accept

Privacy. Florida publishes the names of the managers or authorized persons on the annual report. If you do not want your name searchable on Sunbiz and you have no Florida connection, Wyoming solves that.

When a non-resident should still pick Delaware

• You are forming a C corporation to raise from U.S. investors, not an LLC.
• A specific counterparty (an accelerator, a fund, a large customer) requires Delaware in writing.
• You already have a Delaware entity and are adding a subsidiary for structural reasons your lawyer has explained.

Outside those cases, Delaware costs $300 a year for a name.

Most non-resident founders start with the same question: which state? The internet answer is usually "Wyoming, it is cheap and private." That answer is not wrong, but it is incomplete. Here is how we compare the two states Monezzi sells, with real government fees.

The government fees, side by side

These are state fees. They are paid to the state, not to Monezzi, and we show them separately in every quote. Over five years the difference is roughly $400 in Wyoming's favor. That is real money, but it is not the deciding factor for most founders.

When Wyoming makes sense

Wyoming fits founders who sell online to customers everywhere and have no physical tie to any U.S. state. Think Amazon FBA sellers, Shopify stores, SaaS products, freelancers billing U.S. clients. The state does not put your name in a public database, the yearly fee is low, and the paperwork is short.

One thing to know: Wyoming LLCs are common among non-residents, and some banks and payment processors see a lot of them. That is not a problem by itself. It does mean your business profile (a real website, a clear description, real activity) matters more than the state on your certificate.

When Florida makes sense

Florida fits founders who plan to do something physical in Florida or nearby: a warehouse, a 3PL partner in Miami, an Airbnb or rental property, a partner or family member who lives there, or future plans to move to the U.S. with a visa that expects a real business presence. Florida is also familiar to banks and suppliers in Latin America, which helps founders from Venezuela, Colombia, Brazil and Mexico who do business with both sides.

The trade-off is privacy. Florida lists the names of the people who manage the company on the public Sunbiz record. If that bothers you and you have no reason to be in Florida, pick Wyoming.

What does not change between the two

• Your federal filings are the same. A foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120 every year in both states.
• You need a registered agent with a street address in the state in both cases.
• Your EIN application, bank account application and Stripe application look the same to the IRS, the bank and Stripe.
• Neither state makes you a U.S. tax resident. That depends on you, your activity and your home country's rules, not on the state.

The mistake to avoid

Do not form in Delaware because you read that startups do it. Delaware is built for venture-backed corporations with investors and a board. For a single-owner LLC it adds a $300 yearly franchise tax and no practical benefit. Wyoming and Florida cover almost every non-resident use case we see.

Vietnam has become one of the most active sources of Amazon.com sellers and print-on-demand stores in Asia, and a large developer community billing U.S. clients. A U.S. LLC is the standard vehicle: it opens Stripe, a U.S. Amazon seller account under a U.S. entity, U.S. bank rails and dollar pricing.

What Vietnamese founders use the LLC for

• Amazon.com and Walmart marketplace accounts under a U.S. company with a U.S. bank account.
• Shopify stores with Stripe or Shopify Payments, which require a U.S. entity, EIN and bank account. Read the Stripe guide.
• Agency and freelance invoicing to U.S. clients by ACH.

Vietnam's outward investment rules

Vietnamese law treats owning a foreign company as outward investment, which formally requires an Outward Investment Registration Certificate from the Ministry of Planning and Investment (now merged into the Ministry of Finance) and registration of the capital transfer with the State Bank. Many founders form LLCs without this and fund them with card payments or the LLC's own revenue. The law exists nonetheless, and enforcement has tightened as e-commerce income has grown. A Vietnamese lawyer or accountant who handles outward investment should tell you what your specific setup requires.

Tax

The U.S. and Vietnam signed an income tax treaty in 2015; as of this writing it is not in force. So no treaty rates apply. For services performed from Vietnam and goods shipped from Vietnam or from a U.S. 3PL to U.S. buyers, whether U.S. income tax applies is a facts-based question about effectively connected income and, for physical goods, inventory location; get it answered once. Vietnam taxes residents on worldwide income. The LLC files Form 5472 with a pro forma 1120 every year.

Banking

Vietnamese residents are generally within the supported regions of the main U.S. fintechs, and Amazon sellers from Vietnam are a familiar profile to them. The decline reasons are the usual ones: no website, vague description, mismatched documents. Read what Mercury checks.

Sales tax note for sellers

Amazon collects and remits U.S. sales tax as a marketplace facilitator. Your own Shopify store is your responsibility once you cross a state's economic nexus threshold, typically $100,000 in sales in that state.

State and cost

Wyoming for most; Florida if your 3PL and returns center are in Florida and you want the entity in the same state. Monezzi: Wyoming $1,136 or Florida $1,157 for year 1, state fee at cost, then $1,032 per year plus the state fee. See the Monezzi page.

The Philippines supplies a large share of the world's virtual assistants, customer support teams and creative agencies serving U.S. small businesses. Most of that work is billed to U.S. clients. A U.S. LLC changes how that billing works: ACH instead of PayPal fees and wires, a U.S. contract entity, and a Stripe account for subscriptions.

Why Filipino founders form the LLC

• Agency invoicing in dollars with ACH collection. Clients pay a U.S. company like any vendor.
• Stripe subscriptions for productized services. Read the Stripe guide.
• Credibility with U.S. clients who prefer a U.S. counterparty and U.S. governing law.
• Amazon and Etsy access for product sellers.

Philippine side

Philippine residents (citizens residing in the country) are taxed on worldwide income, so the LLC's profit is reportable to the BIR. The U.S.-Philippines tax treaty is in force. Foreign exchange rules are liberal for individuals; the Bangko Sentral does not generally restrict receiving dollars or holding foreign accounts, though large outward investments have reporting rules. Bringing agency income home through Wise or a local dollar account is routine. An accountant familiar with freelancer and BPO structures can set up the reporting.

U.S. side

Services performed from the Philippines are generally foreign-source and not U.S.-taxed. Give clients a W-8BEN with the treaty section completed; see the W-8 guide. File Form 5472 with a pro forma 1120 every April.

If you hire a team

Your Filipino team members are contractors or employees under Philippine law, paid by the LLC or by your local entity. The U.S. LLC does not become a Philippine employer by itself, but paying local staff from a foreign entity has PhilHealth, SSS and withholding implications. Many agencies run a local sole proprietorship or corporation for payroll and the U.S. LLC for client billing.

Banking

Philippine residents are generally within the supported regions of the main U.S. fintechs. Read what Mercury checks and the full formation-with-bank-account sequence.

State and cost

Wyoming. Monezzi's package: $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state, with EIN, registered agent, business address, U.S. phone, accounting software and the yearly federal filing inside. See the Monezzi page.

Brazil and Florida have a commercial relationship that goes back decades: Miami is a second home for Brazilian business. Brazilian founders form U.S. LLCs for dollar revenue, U.S. e-commerce, protection from currency swings, and access to U.S. suppliers and 3PLs. The structure is well understood in both countries. What changed recently is the Brazilian tax treatment.

Law 14,754 of 2023

Starting with the 2024 tax year, Brazilian residents who control an offshore entity are taxed annually on that entity's profits at a flat 15%, whether or not the profit is distributed, for entities in low-tax jurisdictions or with mostly passive income. A U.S. LLC with active trading income may fall outside the automatic annual regime, and taxpayers were given an option to treat the entity as transparent. The rules are new, technical and worth a specialist's hour before you form. The point is simply this: "the profit stays in the LLC so I do not pay Brazilian tax" is no longer a safe assumption.

CBE declaration

Brazilian residents with foreign assets totaling USD 1,000,000 or more on December 31 must file the annual Declaração de Capitais Brasileiros no Exterior with the Central Bank. Below that, the LLC and the U.S. bank account are still reported in your annual income tax return under foreign assets.

No treaty

There is no income tax treaty in force between the U.S. and Brazil. Foreign-source service income is still not subject to U.S. withholding, but U.S.-source royalties or certain platform income face the statutory 30% rate. Provide clients a W-8BEN without a treaty claim; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

Florida or Wyoming

Brazilian founders are the group most likely to have a real Florida reason: a warehouse or 3PL in Miami, a partner or family member there, property, or a planned move. In that case Florida ($125 state fee, $138.75 annual report) is the natural choice, and Florida banks and suppliers are used to Brazilian owners. If the business is purely online with no Florida tie, Wyoming is cheaper and private. Read the comparison.

Banking

Brazilian residents are generally within the supported regions of the main U.S. fintechs. Read what Mercury checks. Moving reais to dollars and back has its own costs; Wise Business is widely used alongside the U.S. account.

Cost

Florida LLC through Monezzi: $1,157 for year 1 ($1,032 plus $125 state fee at cost). Wyoming: $1,136. Both renew at $1,032 plus the state's yearly fee. See the Monezzi page.

A certificate of good standing (Wyoming calls it a Certificate of Good Standing; some states say Certificate of Existence or Certificate of Status) is a document from the Secretary of State confirming that your company exists, has filed what it must file, and has paid what it must pay. It has a date on it and is usually accepted for 30 to 90 days.

Who asks for it

• Banks and fintechs during onboarding or during a periodic review, especially if your formation date is more than a year old.
• Stripe, PayPal and marketplaces during risk reviews, when they want to see that the entity is still active.
• Amazon Seller Central during identity verification for a non-resident owner.
• Foreign authorities when you register the U.S. LLC's income, ownership or bank account in your home country. They often want it apostilled.
• Counterparties such as a supplier extending credit, a landlord, or a buyer of the company.

How to get it in Wyoming

1. Go to the Wyoming Secretary of State business search and find your LLC by name or filing ID.
2. Check the status. It must show "Active" and the annual report must be current.
3. Use the certificate option on the entity page. Wyoming issues the certificate online, immediately, at no charge, with a verification code that the recipient can check on the state website.

That is the whole process. It takes under two minutes. Compare that with states that charge $25 to $50 and mail it in a week.

Why it might not be available

If the annual report is late or the registered agent has resigned, the status will show something other than Active and the certificate cannot be issued. Wyoming's annual report is due on the first day of your formation anniversary month, with a $60 minimum license tax. Sixty days late leads to administrative dissolution. Fixing that means filing the late report, paying the tax, and if dissolved, filing for reinstatement with an additional fee. Read the compliance calendar to avoid this.

Apostille for use abroad

Many countries will only accept a U.S. public document with an apostille under the Hague Convention. In Wyoming the apostille is issued by the Secretary of State on a certified copy of the document, for a small fee, and it can be requested by mail. Plan two to three weeks for the round trip, longer if you then need a certified translation.

Good standing versus "compliant"

A certificate of good standing confirms state compliance only. It says nothing about the IRS. A company can be in perfect standing with Wyoming and two years behind on Form 5472. Banks know this, which is why some now ask for a copy of the last federal filing as well.

Argentina's developers and service exporters are among the most active users of U.S. LLCs in Latin America. The reason is not complicated: years of currency controls, a wide gap between official and market exchange rates, and clients who pay in dollars. A U.S. LLC with a U.S. bank account lets an Argentine founder invoice in dollars, hold dollars, and decide when and how to bring them home.

What a Wyoming LLC costs for an Argentine founder

The same as for anyone else. Formation, EIN, registered agent, business address, U.S. phone, accounting software and the yearly federal filing through Monezzi: $1,032 per year plus the $104 Wyoming state fee, $1,136 for year 1. Renewal is $1,032 plus $60 to the state. Bought separately from different vendors, a realistic year 1 is $1,400 to $3,500; see the full breakdown.

Why Wyoming

No Argentine founder we have met has a physical operation in a U.S. state. That makes Wyoming the default: $60 a year, owner name off the public record, free instant certificate of good standing for when a client's procurement department or an Argentine bank asks for proof. Florida is for founders with a Miami connection, which some Argentines have; if so, Florida works too.

Argentine side

Argentine residents are taxed on worldwide income and pay Bienes Personales on worldwide assets, including a foreign company interest and a foreign bank account, above the exemption thresholds. Foreign exchange controls have loosened since 2025 but rules on bringing dollars in, holding them abroad and declaring them still exist and change often. Argentina has no income tax treaty with the U.S. A contador who works with service exporters should set up your declarations; the regime for exporters of services has had its own incentives and its own paperwork.

U.S. side

Services performed from Argentina for U.S. clients are generally not U.S.-taxed. No treaty means no reduced withholding on U.S.-source royalties, but service income is not withheld on. Provide clients a W-8BEN; see the W-8 guide. File Form 5472 with a pro forma 1120 every April 15.

Banking

Argentine residents are generally within the supported regions of the main U.S. fintechs. Applications are approved on the business profile: a real website, a clear description, matching documents. Read what Mercury checks. Many Argentine founders pair the U.S. account with Wise or a local dollar account for the final step home.

Mexico is the United States' largest trading partner. Mexican founders form U.S. LLCs for the reasons that geography suggests: selling on Amazon.com from inventory in a Texas 3PL, invoicing U.S. clients as a U.S. vendor, running a Shopify store with Stripe U.S., or holding a piece of a cross-border operation on the U.S. side.

What the LLC does for a Mexican business

• U.S. vendor status for U.S. customers who prefer to pay a U.S. entity by ACH.
• Stripe and Shopify Payments in dollars with U.S. wallets. Read the Stripe guide.
• Amazon.com under a U.S. company with a U.S. bank account and, if you want, inventory in a U.S. warehouse.
• A clean separation between the Mexican operating company and the U.S. sales entity.

Mexican tax treatment

Mexico's income tax law has rules on income from foreign entities and preferential tax regimes (REFIPRE). Whether a U.S. LLC's income is caught depends on whether it is taxed at less than 75% of the Mexican rate and on whether the LLC is treated as transparent. Since a disregarded LLC pays no U.S. entity-level tax, Mexican advisors look closely. Many structures work fine; the point is to have the question answered by a Mexican contador before the first payout, and to register the foreign entity and account as the SAT requires.

Treaty

The U.S.-Mexico income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section and your RFC as foreign TIN; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April regardless.

If you hold inventory in the U.S.

Inventory in a U.S. warehouse and sales to U.S. buyers can create effectively connected income, which means U.S. income tax and a Form 1040-NR for the owner in addition to Form 5472. It also creates sales tax nexus in the warehouse state. This is the point where a pure "disregarded, no U.S. tax" picture stops applying, and where a cross-border advisor earns their fee.

State

Wyoming for online and service businesses with no U.S. footprint. If your warehouse and operations are in Texas, a Texas LLC or a Texas registration of the Wyoming LLC may be the right structure; ask. Florida for founders with a Florida tie.

Banking and cost

Mexican residents are generally within the supported regions of the main U.S. fintechs. Read what Mercury checks. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee; Florida $1,157. Both renew at $1,032 plus the state fee. See the Monezzi page.

An LLC is a company registered with a U.S. state that separates the business from its owner. If the company owes money or is sued, the owner's personal assets are generally protected. That is the "limited liability" part. The "company" part means it can sign contracts, open bank accounts, own property and hire people in its own name.

How an LLC differs from a corporation

A corporation (Inc. or Corp.) has shareholders, a board of directors and officers, and pays its own income tax at 21% federally. An LLC has members instead of shareholders, no board requirement, almost no formalities, and by default does not pay its own income tax. The tax passes through to the owner. For one person running a business, the LLC is simpler in every practical way. Corporations make sense when you raise money from investors who want shares.

Single-member vs multi-member

A single-member LLC has one owner. The IRS treats it as a "disregarded entity": for income tax, the company and the owner are the same person. A multi-member LLC has two or more owners and is taxed as a partnership by default, which means a Form 1065 partnership return every year and a Schedule K-1 for each member. Most non-resident founders start single-member because the filing is simpler.

What an LLC gives a non-resident

• A U.S. legal entity that can open a U.S. business bank account.
• An EIN, the tax ID that Stripe, PayPal, Amazon, Etsy and every U.S. platform ask for.
• A U.S. business address and phone number on your invoices and storefront.
• Access to U.S. payment rails, U.S. dollar pricing, Apple Pay and Google Pay.
• Contracts with U.S. clients under U.S. law, which many clients prefer.

What an LLC does not give you

• A visa, a right to live in the U.S., or a path to a green card. Owning a company and immigrating are separate matters.
• Freedom from taxes at home. You still live in your country and your country still taxes you on your income, in most cases including income earned through a U.S. LLC.
• Anonymity from the government. The IRS knows the owner through Form 5472 and the bank knows through its onboarding.
• Automatic approval from banks or payment processors. The LLC makes you eligible to apply. The application is judged on its own.

The pieces of a working LLC

1. Articles of Organization, filed with a state. This creates the company.
2. Registered agent, a person or company with a street address in the state who receives legal notices for you. Required in every state.
3. Operating agreement, the internal contract that says who owns what and how decisions are made. Not filed with the state, but banks and Stripe ask for it.
4. EIN from the IRS. Read how to get one without an SSN.
5. Business address that can legally receive mail for a company. Read why that needs Form 1583.
6. Yearly filings: the state annual report and the federal Form 5472 with pro forma 1120.

Which state

An LLC is formed in one state and can do business anywhere. Non-residents with no U.S. office usually pick Wyoming or Florida. The state affects fees and privacy; it does not affect the federal rules above.

Turkey has a large export-oriented e-commerce sector and a developer community that bills U.S. clients. Stripe is not available to Turkish businesses, PayPal withdrew from Turkey in 2016, and Amazon.com selling is easier under a U.S. entity. Those three facts explain most Turkish U.S. LLC formations.

What the LLC gives a Turkish founder

• A U.S. Stripe account for a Shopify or custom store. Read the Stripe guide.
• Amazon.com, Etsy and Walmart seller accounts as a U.S. business.
• Dollar invoicing to U.S. and European clients through a U.S. bank account, with ACH for U.S. payers.
• A U.S. counterparty for clients and suppliers who prefer one.

Turkish side

Turkish residents are taxed on worldwide income. Owning a foreign company is legal and does not require permission; income from it is reported in your Turkish return. Turkey has controlled-foreign-company rules aimed at passive, low-taxed foreign entities; an actively trading LLC is usually outside them, a holding LLC may not be. The U.S.-Turkey income tax treaty is in force. Turkish e-export incentives and the micro-export regime (ETGB) apply to goods shipped from Turkey, and can work alongside a U.S. LLC that handles the U.S. sales side. A mali müşavir who has handled U.S. LLC clients should confirm the reporting.

U.S. side

Services performed from Turkey are generally not U.S.-taxed. Goods shipped from Turkey directly to U.S. buyers are generally foreign-source; inventory placed in a U.S. warehouse changes that analysis. In every case, the LLC files Form 5472 with a pro forma 1120 every April, and you give U.S. clients a W-8BEN with the treaty section completed; see the W-8 guide.

Banking

Turkish residents are generally within the supported regions of the main U.S. fintechs. The decline patterns are the usual ones: no website, vague description, documents that do not match. Read what Mercury checks. Moving dollars to Turkey is straightforward as inward remittance to a Turkish bank or through Wise.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state, with EIN, registered agent, business address, U.S. phone, accounting software and the yearly Form 5472 filing inside. See the full cost guide and the Monezzi page.

A founder in Dubai or Abu Dhabi has access to free zone companies, multi-currency banking and no personal income tax. Why add a U.S. LLC? Because some doors only open to a U.S. entity: Stripe U.S. with full features, Amazon.com as a domestic seller, U.S. clients who want to pay a U.S. vendor by ACH, and app stores or platforms that treat a U.S. company as lower friction.

When the U.S. LLC earns its place

• You sell to U.S. consumers and want dollar checkout with Apple Pay, Google Pay and Link through Stripe U.S. Read the Stripe guide.
• You sell on Amazon.com and want a U.S. seller entity with a U.S. bank account.
• Your U.S. clients' procurement teams are slow with foreign vendors and fast with domestic ones.

When it does not

If your customers are in the GCC, Europe or Asia and your free zone company with a UAE bank account already works, a U.S. LLC adds a yearly cost and a yearly IRS filing for no gain. The LLC is a tool for U.S. access, not a general upgrade.

UAE corporate tax

Since 2023 the UAE applies 9% corporate tax to business profits above the threshold, with free zone regimes for qualifying income. A U.S. LLC owned personally by a UAE resident individual is a separate question: individuals are generally not taxed on personal income, but a foreign entity effectively managed from the UAE can be treated as a UAE tax resident entity. If your UAE company owns the U.S. LLC, the LLC's profits enter the UAE company's tax picture. A UAE tax advisor should map your structure once.

No U.S. treaty

There is no income tax treaty between the U.S. and the UAE. Foreign-source service income is not withheld on regardless. U.S.-source royalties or certain platform income face the statutory 30% rate. Provide a W-8BEN or W-8BEN-E as appropriate; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

UAE residents are generally within the supported regions of the main U.S. fintechs. UAE banks, for their part, are used to residents owning foreign companies. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. Details on the Monezzi page.

If you own 100% of a U.S. LLC and you are not a U.S. person, the IRS treats your LLC as a "foreign-owned U.S. disregarded entity." Since 2017 that status comes with a yearly reporting duty. It does not matter if the company made no money. It does not matter if the company had zero customers. If the LLC existed during the year and had any transaction with you, it reports.

What gets filed

Two forms go to the IRS together:

• Form 1120, pro forma. This is the U.S. corporate income tax return, but you only fill in the top part: name, address, EIN, and a checkbox. No income is computed on it. It exists to carry the second form.
• Form 5472. This is the real report. It describes the LLC, its foreign owner, and the "reportable transactions" between the two during the year.

The package is filed on paper by mail or by fax to the IRS. A disregarded entity cannot e-file this combination, which surprises people who expect everything to be online.

What counts as a reportable transaction

Almost anything that moves value between you and your company:

• Money you put into the company to start it or keep it running (capital contributions).
• Money you take out (distributions).
• Loans in either direction, and the interest on them.
• Payments the company makes for you, or you make for the company, such as paying the state fee from your personal card.
• Sales, rent, commissions, royalties or services between you and the LLC.

The form asks for the amounts. That means someone has to look at the bank statements and separate owner money from customer money. In our own system we do this automatically: every line on the Mercury or Relay statement is scanned for the owner's name, and matched lines are tagged as contribution or distribution and queued for review before they land on the form.

Deadline

For a calendar-year LLC the package is due April 15. You can extend it by filing Form 7004 before April 15, which moves the deadline to October 15. The extension is automatic if the request is on time. Filing nothing and hoping is not an extension.

The penalty

The IRS applies an initial $25,000 penalty when a required filing is not properly and timely filed. If the IRS sends a notice and the form is still not filed 90 days later, another $25,000 can be added for each 30-day period after that. "Properly" matters as much as "timely": a form with missing owner information or missing transaction amounts can be treated as not filed.

What you need to prepare it

1. The LLC's EIN. You cannot file Form 5472 without one.
2. Your foreign tax identification number from your home country, if you have one, and a reference ID for you as the owner.
3. Full-year bank statements for every account the LLC used.
4. A record of anything you paid personally on behalf of the LLC.
5. The formation date and the state of formation.

What if you missed past years

File them. A late form with a reasonable-cause statement is treated far better than a form that never arrives. Monezzi prepares past-year packages (Form 5472 plus the pro forma 1120) at $288 per tax year, and the current year is included in the Pro plan's Federal Tax Package. The point is not the fee. The point is that a foreign-owned LLC with clean 5472 history is a company a bank, a marketplace or a future buyer can trust.

This guide exists to save Canadian founders money. The U.S. LLC that works well for a founder in Germany, India or Brazil is usually the wrong vehicle for a Canadian resident, and formation services that sell it to Canadians without saying so are doing them a disservice.

The mismatch

The IRS treats a single-member LLC as disregarded: the owner is taxed, the entity is not. The Canada Revenue Agency treats a U.S. LLC as a corporation. That creates two problems:

1. Timing and character. The U.S. may tax the owner on the LLC's income as it arises (if there is U.S.-source effectively connected income). Canada taxes the owner when the "corporation" distributes, as a dividend. The foreign tax credit rules do not line up well when one country taxes now and the other taxes later, on a different kind of income.
2. Treaty residency. A disregarded LLC is not a resident of the U.S. for treaty purposes because it is not taxed there. Article IV(6) of the Canada-U.S. treaty extends some benefits through fiscally transparent entities, but the interaction is technical and does not solve the double-tax mechanics in many common cases.

The result, in the cases Canadian tax professionals warn about, is income taxed in the U.S. with a credit that Canada does not fully grant, or Canadian tax on distributions with no credit for U.S. tax paid at a different time. The effective rate can exceed what a Canadian corporation would pay.

What Canadians use instead

• A Canadian corporation selling into the U.S., often with a U.S. Stripe account or U.S. dollar account at a Canadian bank. Many U.S. platforms accept Canadian entities directly.
• A U.S. C corporation owned by the Canadian or by the Canadian corporation, when a real U.S. entity is needed. A C corporation is taxed as a corporation in both countries, so the treaty works as designed. Cost is higher (a corporate return in the U.S., 21% federal tax on U.S. profits) but predictable.
• A U.S. LLC that elects to be taxed as a corporation (Form 8832), which aligns the treatment. This is a real option; it turns the LLC into a corporation for U.S. tax and removes most of the mismatch. It also removes the "disregarded" simplicity.

When a Canadian might still use a disregarded LLC

Almost never for an operating business. Some Canadians use one for a single U.S. rental property or a very small side income, with advice, understanding the exposure. If a cross-border accountant has looked at your numbers and says it works for you, fine. If a formation service says it works for everyone, it does not.

What is the same

Whatever the structure, a foreign-owned single-member LLC files Form 5472 each year, and an LLC that has elected corporate treatment files a real Form 1120. Canadian residents also report foreign property over CAD 100,000 on Form T1135.

A "$39 LLC" advertisement is not lying. It is describing one line of a seven-line invoice. Here is the whole invoice for a single-owner LLC formed by someone who lives outside the United States, using Wyoming as the example and noting where Florida differs.

Year 1

Added up separately, a realistic year 1 is between $1,400 and $3,500. Buying each piece from a different vendor also means five logins, five renewal dates and nobody responsible for the whole.

Every year after

• State annual fee: $60 minimum in Wyoming, $138.75 in Florida.
• Registered agent renewal.
• Business address and phone renewal.
• Federal filing: Form 5472 with pro forma 1120, due April 15.
• Accounting or bookkeeping.

A reasonable ongoing budget is $900 to $2,000 per year. The federal filing is the item that moves the number most, and it is the one you cannot skip. The IRS applies an initial $25,000 penalty when a required filing is not properly and timely filed.

Costs that depend on you

• Bank account: Mercury and Relay have no monthly fee. Traditional banks charge $15 to $30 per month unless a balance is kept. Read the banking guide.
• Payment processing: Stripe charges 2.9% + $0.30 per U.S. card transaction, plus 1.5% for international cards and 1% for currency conversion. Read the Stripe guide.
• Sales tax software: only once you have nexus in a state, usually above $100,000 of sales in that state.
• Home-country taxes and advice: the LLC's profit is your income at home. Budget for a local accountant who has seen a U.S. LLC before.
• Apostilles and translations: $100 to $400 when your home country asks for certified U.S. documents.

The Monezzi number

Wyoming LLC: $1,032 Pro plan plus $104 state fee, $1,136 for year 1. Florida LLC: $1,032 plus $125, $1,157 for year 1. Both renew at $1,032 per year plus the state's yearly fee. The package covers formation, EIN, operating agreement, registered agent, unique business address with Form 1583, U.S. phone, accounting software, and the yearly Form 5472 + 1120 filing. Bank decisions are not included in any price, because nobody can sell those. Details on the Monezzi page.

New Zealand is a country of five million people with a founder culture that builds for export from day one. The United States is the destination for many of them: SaaS, e-commerce, digital products, specialty goods. A U.S. LLC gives the business a U.S. face, U.S. payment rails and a U.S. bank account without moving anyone.

Opening a U.S. business bank account from New Zealand

This is the most searched question from NZ founders, and the answer is the same sequence as everywhere: form the LLC, get the EIN by fax (2 to 6 weeks), set up a compliant U.S. business address, build a real website, then apply to a U.S. fintech with the state articles, EIN letter, passport and a plain description of the business. New Zealand residents are generally within the supported regions of the main providers. Approval takes a few business days on a complete application. Read the full sequence and what Mercury checks. Keep the NZ account too; Wise Business handles the NZD leg well.

How the IRD looks at a U.S. LLC

New Zealand taxes residents on worldwide income. A U.S. LLC is generally treated as a company for NZ tax purposes, and NZ's controlled foreign company and foreign investment fund rules can apply to a resident's interest in it. An LLC with an active business usually passes the active business exemption; a passive one may attribute income to you annually. Distributions are dividends in NZ terms. The U.S.-New Zealand tax treaty is in force. An NZ accountant who has dealt with U.S. LLCs should confirm which regime applies to yours; the answer changes the filing, not the viability.

U.S. side

Services performed from New Zealand and goods shipped from New Zealand to U.S. buyers are generally foreign-source. Inventory placed in a U.S. warehouse changes the analysis toward effectively connected income. In all cases the LLC files Form 5472 with a pro forma 1120 every April, and you give U.S. clients a W-8BEN with the treaty section completed; see the W-8 guide.

Payments

Stripe is available in New Zealand, so the U.S. LLC's Stripe account is about U.S. features and dollar settlement, not access. Read the Stripe guide for when that is worth it.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state, with EIN, registered agent, business address, U.S. phone, accounting software and the yearly Form 5472 filing inside. See the Monezzi page.

Australian founders are not forming U.S. LLCs to escape anything. They already have Stripe, PayPal, competent banks and a clear tax system. They form them to sell into the U.S. as a U.S. business: Amazon.com, U.S. Shopify checkout in dollars, U.S. clients paying a U.S. vendor by ACH, and a U.S. entity to hold the U.S. side of a growing company.

How the ATO treats a U.S. LLC

The ATO generally treats a U.S. LLC as a company for Australian tax purposes, not as transparent. That has three consequences. Australia's controlled foreign company rules can attribute the LLC's income to you if it fails the active income test (mostly passive income). Distributions are treated as dividends, generally unfranked. And the LLC may be an Australian tax resident if its central management and control is in Australia, which for a single founder running it from Sydney is a real possibility. None of this makes the structure unworkable; all of it means an Australian accountant should map it before you start.

Treaty

The U.S.-Australia income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section and your TFN as foreign TIN; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April regardless of treaty.

U.S. tax exposure

Services from Australia and goods shipped from Australia are generally foreign-source and not U.S.-taxed. Inventory in a U.S. 3PL and sales to U.S. buyers can create effectively connected income and sales tax nexus in the warehouse state. Australian Amazon FBA sellers hit this early; get the answer for your model once.

Banking

Australian residents are within the supported regions of the main U.S. fintechs, and the application is judged on the business. Read what Mercury checks and the remote banking guide.

State and cost

Wyoming for online and service businesses; the warehouse state if you run U.S. inventory and want the entity where the operations are. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Consulting is the cleanest case for a U.S. LLC. No products, no returns, no sales tax on most services, no warehouse. The state decision reduces to one question: will you ever perform the work while physically inside the United States?

If you work from outside the U.S.

Your LLC has no physical presence in any state. Pick on cost and privacy. That points to Wyoming: $104 to form, $60 a year, owner name off the public record, free instant certificate of good standing when a client's procurement department asks. Read the state comparison for the alternatives.

Your U.S. federal position in this case is usually favorable. Services performed entirely outside the U.S. are generally foreign-source income and not effectively connected to a U.S. trade or business, which means no U.S. income tax on that income even though the client and the invoice are American. You still file Form 5472 with a pro forma 1120 every year, and you still pay tax at home.

If you sometimes work inside the U.S.

This changes things. Days spent performing services on U.S. soil can create U.S.-source income, which can be taxable in the U.S. and reportable on Form 1040-NR. The state where you work may also treat you as doing business there. If you know you will spend meaningful time working from, say, New York or California, the state question becomes a tax question first, and you should form or register where the work happens. Talk to a cross-border tax advisor before, not after, the first trip.

Client-facing details that matter more than the state

• W-9 vs W-8BEN-E: a U.S. client will ask for a tax form before paying. A foreign-owned single-member LLC that is disregarded generally provides a W-8BEN-E in the owner's capacity, not a W-9. Getting this wrong triggers 30% backup withholding on your invoices.
• Contracts under U.S. law: many clients prefer a U.S. entity and a U.S. governing law clause. Your LLC gives you both.
• Getting paid: ACH from a U.S. client to your U.S. business account clears in one to two days with no wire fee. That alone is a reason many consultants form the LLC. Read the formation-with-bank-account guide.
• Professional liability: the LLC protects your personal assets from business claims, but an insurer will still want to know where you work and what you do.

Single-member or multi-member

Two consultants forming together get a partnership for tax purposes, with a Form 1065 due March 15 and Schedule K-1s for each partner. It is workable, but it is a heavier filing than a single-member LLC. Many pairs form two single-member LLCs and invoice each other instead.

Chinese sellers are the largest single group of third-party sellers on Amazon.com, and many of them operate through U.S. LLCs. Forming one as a Chinese citizen is legal and routine. The state does not care about your passport, the IRS issues EINs to foreign owners, and the LLC can own U.S. trademarks, sign with U.S. 3PLs and appear as a U.S. seller. The difficulty is concentrated in one place: the bank account.

Formation and EIN

Identical to any other non-resident. Wyoming or Florida articles, registered agent, operating agreement, then Form SS-4 by fax to the IRS with "Foreign" on line 7b. Two to six weeks for the EIN. Read the EIN guide. Chinese passports are accepted for identity at every step of this.

Where banks draw lines

U.S. fintechs publish supported and restricted country lists based on residence, not citizenship. Several exclude residents of mainland China; some accept Chinese citizens residing elsewhere (Hong Kong, Singapore, Canada, the U.S. itself). Traditional U.S. banks generally require an in-person visit, and some branches will open an account for a Chinese-owned LLC with the owner present and the documents in order. Payment service providers used by cross-border sellers (Payoneer, PingPong, LianLian, WorldFirst, Airwallex) offer U.S. dollar receiving accounts that Amazon accepts for disbursement, and those are how most Chinese Amazon sellers actually get paid. Read the difference between these and a bank account, because Stripe and some platforms treat them differently.

SAFE and outbound investment

China's State Administration of Foreign Exchange limits individuals to USD 50,000 per year in foreign exchange purchases, and outbound direct investment by individuals in a foreign company formally requires registration. Companies investing abroad go through ODI approval with the Ministry of Commerce and NDRC depending on size. In practice, many LLCs owned by Chinese sellers are self-funded from platform revenue and never receive capital from China, which sidesteps the outbound transfer but not the ownership reporting. A PRC lawyer or accountant who handles cross-border e-commerce should tell you what your setup requires.

Tax

The U.S.-China income tax treaty is in force. China taxes residents on worldwide income, and the CRS exchange of information between the two countries' financial institutions means foreign accounts are increasingly visible. On the U.S. side, inventory in U.S. warehouses (which is the Amazon FBA model) can create effectively connected income for the owner and sales tax nexus in warehouse states; Amazon collects sales tax as a facilitator, but the income tax question is yours. The LLC files Form 5472 with a pro forma 1120 every April, and possibly a Form 1040-NR for the owner.

State

Wyoming is the default and by far the most common among Chinese-owned Amazon LLCs. Florida if your 3PL and returns handling are in Florida.

Cost

Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state, with EIN, registered agent, business address, U.S. phone, accounting software and the yearly Form 5472 filing inside. Bank decisions are not included and cannot be. See the Monezzi page.

Search results for "U.S. company formation with bank account" are full of promises. The reality is a sequence with dependencies. Skip a step or do two out of order and the bank application stalls for weeks. Here is the sequence that works, with realistic timing.

Week 1: form the company

Choose the state (Wyoming or Florida for most non-residents). File the Articles of Organization. Appoint a registered agent. Sign the operating agreement. State approval takes one to five business days. Save the stamped articles as a PDF; you will upload them at least four times in the next two months.

Week 1: apply for the EIN

The same week, fax Form SS-4 to the IRS. The LLC name on the SS-4 must match the state certificate character for character. A non-resident owner without an SSN writes "Foreign" on line 7b. Read the EIN guide for each line. Then wait. Two to six weeks is normal. This is the slow step and the one nobody can accelerate.

Weeks 1 to 2: build the business profile

While the EIN is pending, do the work that decides the bank application:

• Set up a U.S. business address with Form 1583. A shared registered agent address on a bank application is a common flag.
• Get a U.S. phone number that can receive SMS.
• Put up a real website: what you sell, to whom, contact details, the LLC's legal name in the footer. A template with placeholder text is worse than no website.
• Write a two-sentence business description you will paste everywhere: product, customer, how money moves.
• Check the bank's supported-country list against your passport and your residence. Do this before, not after.

Week 3 to 6: the EIN letter arrives

The CP 575 letter is the document. Check the name. If it is wrong, fix it with the IRS before you apply anywhere, because every downstream application will inherit the error.

Same day: apply for the bank account

Mercury and Relay are the two fintech options most non-residents use. Both are online, both are free of monthly fees, both hold deposits at FDIC-member partner banks. Upload the articles, the EIN letter, your passport, and the business description. Answer follow-up questions within 24 hours. Approval typically takes a few business days. Read what Mercury checks for the details, and the remote account setup guide for alternatives.

After the bank: payments

Stripe requires the EIN, the U.S. address and a U.S. bank account for payouts, so it comes after the bank, not before. PayPal Business likewise. Amazon Seller Central wants the EIN, a bank account and the state certificate. Read the Stripe guide.

Realistic timeline

Four to eight weeks from order to first payout is realistic. Anyone quoting one week either has a client with an SSN or is not counting the EIN.

Egypt has a large, young developer and design workforce and a currency that has been devalued several times since 2016. Earning in dollars and holding them outside the pound is the practical reason Egyptian founders form U.S. LLCs. Platform access is the second: Stripe does not serve Egyptian businesses, and PayPal's receiving and withdrawal options in Egypt are limited.

What the LLC gives an Egyptian founder

• A U.S. Stripe account for a Shopify store, SaaS product or agency billing. Read the Stripe guide.
• Amazon.com and Etsy seller accounts under a U.S. entity with a U.S. bank account.
• U.S. and Gulf clients paying a U.S. company in dollars, by ACH or wire, into an account you control.
• A U.S. counterparty for contracts and invoices.

Egyptian side

Egyptian tax residents are taxed on Egyptian-source income and, for individuals whose center of commercial activity is Egypt, on income from abroad as well. Freelance and export income has its own treatment, and the Egyptian Tax Authority has increased attention on foreign platform income. The Central Bank of Egypt regulates foreign exchange; receiving dollars into Egypt is straightforward, sending them out to fund a foreign company is more constrained, so most Egyptian founders fund the LLC with a card payment and let it run on its own revenue. An Egyptian accountant who has seen foreign platform income should set up your declarations.

Treaty

The U.S.-Egypt income tax treaty is in force. For U.S. clients you provide a W-8BEN with the treaty section completed; see the W-8 guide. Services performed from Egypt are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Egyptian residents have been within the supported regions of some U.S. fintechs and not others; the lists change. Check each provider's current country list before forming. Payoneer and Wise Business are widely used by Egyptian freelancers as the layer for receiving dollars and withdrawing to an Egyptian account. Read how these differ from a bank account and what gets an application approved.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state, with EIN, registered agent, business address, U.S. phone, accounting software and the yearly Form 5472 filing inside. See the full cost guide and the Monezzi page.

Indonesia is Southeast Asia's largest economy with a fast-growing export e-commerce sector: furniture, apparel, crafts, coffee, and digital services. Stripe's availability in Indonesia has been limited and Amazon.com selling under a U.S. entity is far smoother than under a foreign one. A U.S. LLC solves both.

What Indonesian founders use the LLC for

• Amazon.com and Walmart seller accounts under a U.S. company with a U.S. bank account.
• Shopify stores with Stripe or Shopify Payments for U.S. buyers. Read the Stripe guide.
• Agency and developer invoicing to U.S. and Australian clients by ACH and wire.
• Etsy shops for handmade and craft products. Read the Etsy guide.

Indonesian side

Indonesian tax residents are taxed on worldwide income and must report foreign assets, including a foreign company interest and foreign bank accounts, in the annual return (SPT). Indonesia has controlled-foreign-company rules that can deem dividends from a controlled foreign entity even if not distributed, with exemptions tied to active business. Bank Indonesia's foreign exchange rules are relatively liberal for individuals; receiving export proceeds has reporting requirements. An Indonesian tax consultant who handles export businesses should set up your reporting.

Treaty

The U.S.-Indonesia income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section and your NPWP as foreign TIN; see the W-8 guide. Services performed from Indonesia and goods shipped from Indonesia are generally not U.S.-taxed; inventory in a U.S. warehouse changes that. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Indonesian residents are generally within the supported regions of the main U.S. fintechs. Amazon sellers from Indonesia are a familiar profile. Read what Mercury checks.

State and cost

Wyoming for most; Florida if your 3PL is in Florida. Monezzi: Wyoming $1,136 or Florida $1,157 for year 1, state fee at cost, then $1,032 per year plus the state fee. See the Monezzi page.

The Employer Identification Number is the tax ID of your company. Banks ask for it. Stripe asks for it. Amazon asks for it. The IRS needs it on Form 5472. Without it, the LLC is a certificate in a folder.

Why the online application does not work for you

The IRS online EIN tool only accepts a "responsible party" who has a U.S. Social Security Number or an ITIN. If you have neither, the tool stops. This is the point where many founders buy a wrong service or, worse, let someone use their own SSN as the responsible party. Never do that. The responsible party must be the person who controls the company, and that is you.

The route that works: Form SS-4

Non-resident owners apply with Form SS-4, the paper application, sent to the IRS by fax (or by mail, which is slower). Key lines:

• Line 7b (SSN, ITIN or EIN of the responsible party): write "Foreign" if you have no U.S. number.
• Line 8a: yes, it is an LLC, with 1 member.
• Line 9a: for a single-member LLC owned by a foreign person, "Other" with "Foreign-owned U.S. disregarded entity" is the usual entry, because you will file Form 5472.
• Line 10: reason for applying, usually "Started new business" plus a short description.
• Line 18: state whether the entity ever applied for an EIN before.

Sign it yourself. You may name a third-party designee who is allowed to receive the EIN on your behalf, which is what Monezzi does for customers, but the signature stays yours.

How long it takes

Fax applications from outside the U.S. typically come back in 2 to 6 weeks, sometimes longer in the spring filing season. Mail can take 8 weeks or more. There is no paid fast lane at the IRS. Anyone who promises "EIN in 24 hours" for a non-resident with no SSN is either using their own number or guessing.

The IRS also accepts phone applications from international applicants at a dedicated line during U.S. business hours. This can be faster when it works, but wait times are long and the agent will ask the same SS-4 questions. Have the completed form in front of you.

What you receive

The IRS sends a CP 575 notice with your EIN. Keep the original. Banks and Stripe often ask for this exact letter, not a number typed into a form. If you lose it, you can request a 147C verification letter by phone, which is accepted in the same way.

Common mistakes we fix

• The LLC name on the EIN letter does not match the state certificate (a missing "LLC" or a typo).
• The business address on the SS-4 is the registered agent's address, and the agent does not forward IRS mail.
• The founder applied twice after not hearing back, and now two EINs exist for one company.
• The wrong entity type was selected, so the IRS expects a Form 1065 partnership return that will never be filed.

Each of these can be fixed with a letter to the IRS, but each costs weeks. Getting the SS-4 right the first time is the cheapest thing you will ever do for your company.

Nairobi has one of Africa's strongest developer and creative communities, and much of its work is billed to U.S. clients. Stripe is not available to Kenyan businesses, PayPal withdrawals route through M-Pesa with fees and delays, and U.S. clients dislike international wires. A U.S. LLC with a U.S. bank account turns that into a domestic ACH payment.

What the LLC solves

• U.S. clients pay a U.S. vendor by ACH, one to two days, no wire fee.
• A U.S. Stripe account for subscriptions and productized services. Read the Stripe guide.
• Dollar holdings outside the shilling, moved home when the rate is right.
• Amazon and Etsy access for product sellers.

Kenyan side

Kenya taxes residents on worldwide employment income and on business income derived from Kenya; the treatment of business income earned through a foreign entity by a Kenyan resident depends on where the business is actually carried on, and KRA has taken an expanding view. Kenya introduced a minimum top-up tax and continues to tighten reporting on foreign platform income. The Central Bank of Kenya's foreign exchange regime is liberal; receiving dollars is routine. A Kenyan tax advisor should confirm how the LLC's profit is reported.

No treaty

There is no U.S.-Kenya income tax treaty in force. Foreign-source service income is still not subject to U.S. withholding; U.S.-source royalties face the statutory 30% rate. Provide clients a W-8BEN without a treaty claim; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Kenyan residents have been within the supported regions of some U.S. fintechs; lists change, check before forming. Expect a careful review and have a real website, a clear description and matching documents ready. Read what gets applications approved and the alternatives.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. Bank decisions are not included. See the Monezzi page.

"Virtual bank account" is used for three things: a real deposit account at a fintech that you open online, a set of U.S. account details attached to a money-transfer service, and a sub-account inside a payment platform. They are not interchangeable. Which one you need depends on who will send you money and who will ask for your account details.

Type 1: fintech business account (Mercury, Relay)

A full U.S. business checking account in your LLC's name, opened online, with deposits held at FDIC-member partner banks. You get a routing and account number, ACH in and out, domestic and international wires, debit cards, and an API. No monthly fee. This is the account Stripe, PayPal, Amazon and Etsy expect for payouts, and the one your U.S. clients expect for ACH payments. The application is reviewed by a compliance team; read what Mercury checks.

Type 2: money-transfer account with U.S. details (Wise Business, Payoneer)

Wise gives your business U.S. account details (routing and account number) so you can receive ACH and domestic wires in dollars, hold them, and convert at close to the mid-market rate. It is fast to open and works from more countries than Mercury. It is not a bank account: Wise is an electronic money institution, funds are safeguarded rather than FDIC-insured, and some U.S. platforms and payroll systems reject the routing number or treat it as higher risk. It is excellent as a second account and for currency conversion. It is a weak primary account for a company that needs Stripe payouts and marketplace deposits.

Type 3: platform balance (Stripe balance, PayPal balance, Amazon disbursement)

Not a bank account at all. Money sits with the platform until it pays out to a type 1 or type 2 account. Do not plan a business around leaving money here.

Comparison

Our default setup

1. Mercury (or Relay) as the primary operating account: payouts in, expenses out, cards for software.
2. Wise Business as the conversion and international payments layer: pay suppliers abroad, move profit home at a fair rate.
3. Stripe connected to the primary account. Read the Stripe guide.

What a remote application needs

State-stamped Articles of Organization, the EIN letter, your passport, a U.S. business address that is a registered CMRA with Form 1583, a working website, and a plain business description. The application quality decides the outcome far more than which fintech you pick. And the bank decides; nobody else does.

South Africa has a mature tech and services sector, a volatile currency, and a regulated exchange-control system. Founders form U.S. LLCs to bill U.S. clients as a U.S. vendor, to run Stripe and Amazon in dollars, and to hold revenue in a hard currency. All of this is legal; it has to be done inside the exchange-control rules.

Exchange control

South African residents may move money abroad under the R1 million single discretionary allowance per year without tax clearance and up to R10 million per year with a SARS tax compliance status (TCS) PIN. Funding a foreign company falls under these allowances. Loop structures (a foreign entity owning South African assets) have their own rules. In practice most founders fund the LLC with a small card payment and let it run on revenue, which keeps the exchange-control side simple. Bringing profit home is an inward remittance and is straightforward.

SARS

Residents are taxed on worldwide income. South Africa's controlled foreign company rules (Section 9D) can attribute a foreign company's net income to the resident shareholder, with a foreign business establishment exemption for real operating businesses. Distributions are foreign dividends. A South African tax practitioner who has handled foreign entities should map your structure before the first payout.

Treaty

The U.S.-South Africa income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section and your SARS tax number as foreign TIN; see the W-8 guide. Services performed from South Africa are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April.

Payments and banking

Stripe's availability in South Africa has been limited, which is one reason for the U.S. LLC. South African residents are generally within the supported regions of the main U.S. fintechs. Read the Stripe guide and what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Colombia has a strong export services sector (software, design, customer support), a Miami connection that runs through family, trade and travel, and limited access to Stripe. Colombian founders form U.S. LLCs for U.S. client billing, dollar e-commerce, and a U.S. entity that Florida banks and suppliers recognize.

Florida or Wyoming

Colombian founders are second only to Brazilians in having a real Florida reason: a 3PL in Doral, a family member in Miami, property, or a planned move. In that case Florida ($125 state fee, $138.75 annual report) fits and Florida institutions are used to Colombian owners. A purely online business with no Florida tie is better in Wyoming. Read the comparison.

Colombian side

Colombian tax residents are taxed on worldwide income and must declare foreign assets above the threshold in the annual return. Colombia's controlled foreign entity regime (ECE) attributes passive income of a controlled foreign entity to the resident owner as it arises; active trading income generally falls outside it. Distributions are taxed as dividends. There is no U.S.-Colombia income tax treaty in force, so no reduced withholding on U.S.-source royalties, though foreign-source service income is not withheld on. Provide clients a W-8BEN; see the W-8 guide. Foreign exchange operations go through the Banco de la República's channels; investing abroad is registered. A Colombian contador who works with exporters of services should set this up.

U.S. side

Services performed from Colombia are generally not U.S.-taxed. Inventory in a Florida 3PL and sales to U.S. buyers can create effectively connected income. In all cases the LLC files Form 5472 with a pro forma 1120 every April.

Payments and banking

Stripe's presence in Colombia has been limited, which is why the U.S. Stripe account matters. Colombian residents are generally within the supported regions of the main U.S. fintechs. Read the Stripe guide and what Mercury checks.

Cost

Florida LLC through Monezzi: $1,157 for year 1 ($1,032 plus $125 state fee at cost). Wyoming: $1,136. Both renew at $1,032 plus the state fee. See the Monezzi page.

There are dozens of companies that will form a U.S. LLC for you. They fall into three groups, and the group matters more than the brand.

The three kinds of formation service

1. Domestic filers (the $0 to $99 plus state fee offers). Built for Americans with an SSN. They file the articles, sell you a registered agent, and upsell an operating agreement. They cannot get you an EIN without an SSN in most cases, do not offer a Form 1583 address, and do not touch Form 5472. Cheap year 1, and you assemble everything else yourself.
2. Startup platforms (Stripe Atlas and similar). Built for Delaware C corporations raising venture capital. Excellent at that. Wrong product for a single-owner LLC selling online.
3. Non-resident specialists (Monezzi, Doola, Firstbase and others). Built around the fact that the owner has no SSN, no U.S. address and a foreign bank. They handle the SS-4 by fax, the CMRA address, the banking guides, and in some cases the yearly federal filing. Higher year 1, far lower total cost of ownership.

Questions that separate them

• "How do you get the EIN for an owner with no SSN?" The right answer is Form SS-4 by fax with the service as third-party designee, 2 to 6 weeks. A promise of 24 hours means someone's SSN is being used, which is not your EIN.
• "Is Form 5472 with the pro forma 1120 included, and who signs it?" If the answer is "we can refer you to a CPA," budget $300 to $1,200 a year on top. Read why this form matters.
• "Will I sign USPS Form 1583 for the address?" If not, the address is not a compliant mail-receiving address. Read the Form 1583 guide.
• "What does year 2 cost, all in?" Ask for the number in writing. Renewal pricing is where the $39 offers become $600 offers.
• "Is the state fee inside your price or separate?" Either is fine; hidden is not. A state fee "included" in a discounted price is often a sign the service is compensating elsewhere.
• "Do you guarantee the bank account?" The only honest answer is no. Anyone who says yes is selling you something they do not control.

Where the hidden costs sit

How Monezzi fits

Non-resident specialist. Wyoming or Florida. The package is one yearly price, $1,032, with the state fee shown at cost ($104 or $125). Inside: formation, EIN by SS-4, operating agreement, registered agent, unique business address with Form 1583, U.S. phone, accounting software, and the yearly Form 5472 + pro forma 1120 filing. Outside: bank decisions, which we guide but do not control. Compare it against any other service using the questions above; that is what the questions are for. Details on the Monezzi page and the full cost breakdown.

Venezuela's economy has pushed a generation of developers, designers, marketers and traders into remote dollar work. Local banking cannot hold that income safely and most payment platforms do not serve Venezuelan businesses. A U.S. LLC is how many Venezuelan founders give their work a legal, bankable home. Some of Monezzi's earliest customers came from Venezuela, so what follows is from experience.

What the LLC gives you

• A U.S. entity for Stripe, PayPal Business, Amazon and Etsy, none of which serve Venezuelan businesses directly.
• Dollar invoicing to U.S., Spanish and Latin American clients, paid into an account outside Venezuela.
• A U.S. counterparty for contracts, which some clients require before they will pay at all.

Banking, honestly

U.S. fintechs apply enhanced review to Venezuelan residents because of U.S. sanctions programs that target the Venezuelan government and certain sectors, not individuals, but compliance teams are cautious anyway. Some providers accept Venezuelan residents; others do not. The rules change and they are published. What consistently helps: a complete application, a real website, a plain description of a business that is clearly outside sanctioned sectors, and quick answers to follow-up questions. What consistently hurts: applying through a relative's identity or residence to pass a filter; those accounts get closed and the funds get held. Read what gets applications approved and the alternatives.

Venezuelan side

Venezuelan tax law taxes residents on worldwide income, and the practical enforcement environment is different from that of most countries covered here. There is no U.S.-Venezuela income tax treaty in force. Provide U.S. clients a W-8BEN without a treaty claim; see the W-8 guide. Founders who have relocated to Colombia, Spain, Chile, Argentina or the U.S. should read the guide for their current country of residence instead, because residence, not citizenship, drives both tax and banking.

U.S. side

Services performed from Venezuela are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April regardless.

State and cost

Wyoming for most; Florida for founders with family or business ties in Miami, which many Venezuelans have. Monezzi: Wyoming $1,136 or Florida $1,157 for year 1, state fee at cost, then $1,032 per year plus the state fee. No bank guarantee is part of any price. See the Monezzi page.

Ukraine's IT sector exports billions of dollars of services a year, most of it to U.S. and European clients. Many founders already run as individual entrepreneurs (FOP) on the simplified tax system or through Diia.City companies. A U.S. LLC is added when a client requires a U.S. counterparty, when Stripe is needed (Stripe does not serve Ukrainian businesses), or when a U.S. product company is being built.

Ukraine's CFC rules

Since 2022 Ukrainian tax residents who control a foreign company must notify the tax authority of acquiring or disposing of the company and file an annual CFC report with financial statements, and may be taxed on the CFC's adjusted profit, with exemptions (for example, where a treaty applies and the CFC pays real tax or has mostly active income, or where total CFC income is below the threshold). A disregarded U.S. LLC pays no U.S. entity-level tax, which makes the exemption analysis specific. A Ukrainian tax advisor who files CFC reports should be part of your setup from day one; the penalties for non-notification are significant.

Currency restrictions

Under martial law the National Bank of Ukraine has restricted outward transfers by individuals and companies, with gradual easing. Funding a foreign company from Ukraine may be limited; most founders fund the LLC with a card payment and let it run on revenue. Inward transfers of export earnings are encouraged and have mandatory conversion rules in some periods. Check the current NBU rules before planning how money moves.

Treaty

The U.S.-Ukraine income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section; see the W-8 guide. Services performed from Ukraine are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Ukrainian residents are generally within the supported regions of the main U.S. fintechs and Ukrainian IT founders are a familiar profile. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

A single-owner LLC owned by someone outside the U.S., with no U.S. employees and no U.S. office, has a short, fixed list of yearly duties. It is not a tax return in the ordinary sense. It is a reporting package. Once you see the list, the question "do I need a CPA?" answers itself for most founders.

The federal list

1. Form 5472 with pro forma Form 1120, due April 15 (extendable to October 15 with Form 7004). Reports the LLC, its foreign owner, and the money that moved between them. Required every year, even with zero activity. The IRS applies an initial $25,000 penalty when a required filing is not properly and timely filed. Read the Form 5472 guide.
2. Form 1099-NEC, due January 31, only if the LLC paid a U.S. contractor $600 or more during the year.
3. Form 1040-NR, only if the owner has U.S.-source income effectively connected to a U.S. trade or business. Many online sellers shipping from abroad do not. This is the one item where advice specific to your facts is worth paying for once.
4. Form W-8BEN-E, not filed with the IRS but given to U.S. clients and platforms so they do not withhold 30% from your payments.

The state list

• Annual report: Wyoming, $60 minimum, due first day of anniversary month. Florida, $138.75, due May 1.
• Registered agent renewal, yearly.
• Sales tax registration and returns, only if you have nexus in a state, typically above $100,000 in sales there.

The home-country list

This is the part no U.S. service can do for you, and the part that varies most. Your country taxes you on the LLC's profit in most cases, may require you to declare foreign company ownership or foreign bank accounts, and may have rules about how money leaves and returns. Our country guides (Germany, India, Brazil and others) describe the shape of these rules; a local accountant applies them.

What "CPA support" should mean

For this profile, it means three things: someone prepares and files the 5472 package on time from your real bank data; someone answers an IRS notice if one arrives; and someone can tell you, once, whether your activity creates effectively connected income. It does not need to mean a monthly retainer. It does need to mean a named responsible party who signs the form as preparer.

What the compliance work looks like when done well

• Bank statements are pulled for the full year. Every transaction with the owner is identified and classified as contribution or distribution.
• The owner's foreign tax ID and reference ID are on file before April.
• The pro forma 1120 and Form 5472 are prepared, reviewed, signed and sent by fax or mail with proof of transmission, because this package cannot be e-filed for a disregarded entity.
• Copies are stored where a bank or a buyer can be shown them.
• Past years, if missed, are filed with a reasonable-cause statement rather than left to accumulate.

A Spanish founder can form an SL, open a Spanish business account and use Stripe Spain in a week. The U.S. LLC is not a replacement for that. It is a tool for founders selling into the U.S.: dollar checkout with U.S. wallets, Amazon.com as a domestic seller, U.S. clients paying a U.S. vendor by ACH, and a U.S. entity for a product company aimed at the U.S. market.

Modelo 720 and foreign asset reporting

Spanish tax residents must declare foreign assets on Modelo 720 when a category (accounts, securities and company interests, real estate) exceeds 50,000 euros, and then again when a category grows by more than 20,000 euros. The LLC interest and its U.S. bank account fall under this. Penalties were reduced after the 2022 EU court ruling but the obligation stands. Foreign accounts may also need Modelo 720 and, for the company interest, Modelo D-6 or ETE filings depending on amounts.

Where is the company resident?

A company effectively managed from Spain is a Spanish tax resident under Spanish law, whatever its place of incorporation. A single-owner LLC run from Madrid is very likely a Spanish-resident company that should register and pay Impuesto sobre Sociedades. Spain's international tax transparency rules (CFC) also attribute passive income of low-taxed foreign entities. None of this makes the LLC pointless; it means the LLC is a Spanish taxpayer with a U.S. bank account and U.S. platform access, and your asesor fiscal needs to know about it before the first payout.

Treaty

The U.S.-Spain income tax treaty is in force. For U.S. clients, a W-8BEN (or W-8BEN-E if a Spanish company owns the LLC) with the treaty section; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Spanish residents are within the supported regions of the main U.S. fintechs. Read what Mercury checks.

State and cost

Wyoming, or Florida for founders with a Miami tie, which many Spanish founders in Latin American trade have. Monezzi: Wyoming $1,136 or Florida $1,157 for year 1, state fee at cost, then $1,032 per year plus the state fee. See the Monezzi page.

Ten years ago a non-resident founder had to fly to a U.S. branch with a passport and a utility bill and hope the banker was in a good mood. Today the account is opened online. The trade-off is that the review is done by a compliance team that only sees what you upload. Your job is to make that upload tell a clear story.

Who Mercury is, in one paragraph

Mercury is a financial technology company, not a bank. Deposits sit at partner banks that are FDIC members, and Mercury provides the software layer: the dashboard, cards, wires and API. This matters for two reasons. First, the application is reviewed against Mercury's own risk policy, which is stricter than a typical branch. Second, Mercury openly publishes which countries it supports and which it does not. Check that list before you form the company, not after.

What the application asks for

• Formation documents: the state-stamped Articles of Organization or Certificate of Formation.
• EIN confirmation: the CP 575 or 147C letter from the IRS.
• Owner identity: passport for every person with 25% or more ownership, plus the person who controls the company.
• Company address: a U.S. business address. A registered agent address alone is often flagged, because thousands of companies share it.
• Business description: what you sell, to whom, and how money moves. Two clear sentences beat two paragraphs of buzzwords.
• Website or online presence: a live site, a store, an app listing, or at minimum a professional LinkedIn or social profile that matches the description.
• Expected activity: monthly volume, where payments come from, whether you receive international wires.

What gets applications declined

From what we see across our customers, declines cluster around a few patterns:

1. The description says "e-commerce" and nothing else. No products, no market, no channel.
2. The website is a template with placeholder text or does not exist yet.
3. The owner's country is on the restricted list, or the founder used a VPN that made the location inconsistent with the passport.
4. The business model touches a restricted category (crypto trading, adult content, gambling, money services, certain supplements) without saying so upfront.
5. Documents do not match: the LLC name on the EIN letter has a typo, or the address differs across documents.

Timeline

A complete Mercury application is usually reviewed within a few business days. Requests for more documents add a few days each. The slow part is not the bank; it is the weeks you wait for the EIN. Start the bank application the day the EIN letter arrives.

Alternatives worth knowing

Relay and Wise Business are the two others we see most. Relay is a similar fintech layer with strong multi-account budgeting. Wise Business gives you U.S. account details and is very good for currency conversion, but it is a money-transfer account, not a bank account, and some counterparties treat it differently. Traditional banks such as Chase or Bank of America still generally require an in-person visit for a non-resident owner.

How we help

Monezzi customers can book a Mercury Bank Account Opening Session for $249: a 40-minute live video call where a specialist walks through the application screen by screen with you. You submit it yourself, from your own device, with your own login. We guide, the bank decides. That is the honest version of "we open your bank account."

France has good company forms (SAS, SASU, micro-entreprise), Stripe, and strong banks. French founders form U.S. LLCs for one reason: selling to Americans as an American business. Dollar checkout, Amazon.com, U.S. clients paying by ACH, and a U.S. entity that U.S. partners find familiar.

How France sees a U.S. LLC

France does not adopt the U.S. "disregarded" classification. The French tax authority looks at the entity's characteristics and treaty position; a single-member LLC is often treated as a company (société de capitaux) for French purposes, so distributions are dividends taxed at the flat tax (PFU) or the progressive scale. Article 123 bis of the tax code can attribute income of a low-taxed foreign entity holding mostly financial assets to the French resident; an active trading LLC is usually outside it. And a company effectively managed from France is a French tax resident that should file French corporate tax. Your expert-comptable needs the operating agreement and a description of where decisions are made.

Declarations

French residents declare foreign bank accounts (Formulaire 3916 / 3916-bis) every year, including the LLC's U.S. account if they hold signing authority, with penalties per undeclared account. Foreign company interests appear in the wealth and income returns as applicable.

Treaty

The U.S.-France income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section; see the W-8 guide. Services performed from France are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

French residents are within the supported regions of the main U.S. fintechs. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Etsy runs two checks that trip up sellers outside its main markets. First, it requires a taxpayer identification number for the seller account. Second, it only offers Etsy Payments, the system that actually pays you, in a published list of countries. If your country is not on that list, you cannot open a shop as a seller from that country, whatever your taxpayer ID situation.

The taxpayer ID question

For a seller located in an Etsy Payments country, the taxpayer ID is your local tax number and Etsy collects the appropriate form. For a U.S. seller, Etsy asks for an SSN or an EIN, issues Form 1099-K when sales cross the federal reporting threshold, and reports to the IRS. A U.S. LLC with an EIN satisfies this requirement as a U.S. business seller.

Why sellers form a U.S. LLC for Etsy

• Their own country is not supported by Etsy Payments (sellers in Pakistan and Bangladesh are the most common examples we see).
• They want U.S. dollar pricing, U.S. shipping profiles and U.S. buyer trust, especially for made-to-order jewelry, personalized gifts and digital products.
• They already sell on their own Shopify or Stripe storefront through a U.S. LLC and want Etsy as a second channel under the same entity.

What the LLC setup needs for Etsy

1. A formed LLC in Wyoming or Florida with state-stamped articles.
2. An EIN from the IRS. Read how to get one without an SSN.
3. A U.S. business bank account in the LLC's name for Etsy Payments deposits. Read the bank sequence.
4. A U.S. business address that can receive mail. Read Form 1583.
5. A U.S. phone number for verification codes.
6. Your own passport and identity for the account owner verification. Etsy verifies the person, and the person is you, wherever you live.

What it does not change

• You still ship from where you are. Delivery times and customs are what they are. Say so in the listing.
• Etsy still verifies the human behind the shop. A U.S. LLC does not hide the owner and should not be used to pretend the seller is someone else.
• Your income is still taxable at home. The LLC is disregarded for U.S. income tax and files Form 5472 every year.
• Etsy's policies on what can be sold, and its seller protection rules, apply the same way.

Sales tax

Etsy is a marketplace facilitator and collects and remits U.S. sales tax on your Etsy orders in every state that requires it. That is one thing you do not need to manage for the Etsy channel. Your own Shopify or Stripe sales are a separate question that starts to matter above roughly $100,000 in a single state.

Italian founders in fashion, food, design and software have an obvious market in the United States and a domestic company form (SRL) that is slower and costlier to run than a Wyoming LLC. The LLC is attractive. The Italian rules around it are specific and the Agenzia delle Entrate enforces them.

Quadro RW and IVAFE

Italian tax residents must report foreign financial assets and investments, including a foreign company interest and foreign bank accounts, in Quadro RW of the annual return, and pay IVAFE (a small wealth tax) on foreign financial assets. Missing Quadro RW carries penalties as a percentage of the undeclared amount. Report the LLC interest and its U.S. account every year.

Esterovestizione

Italy's "esterovestizione" doctrine treats a foreign company as Italian-resident when its effective management is in Italy, and the tax authority applies it actively to single-owner foreign entities run from Italy. A U.S. LLC managed from Milan is likely an Italian corporate taxpayer (IRES and IRAP) with U.S. platform access, not a way around Italian tax. Italy's CFC rules also apply to low-taxed foreign entities with mostly passive income. A commercialista who has handled foreign entities should map your structure before the first payout.

Treaty

The U.S.-Italy income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section and your codice fiscale as foreign TIN; see the W-8 guide. Services performed from Italy and goods shipped from Italy are generally not U.S.-taxed; inventory in a U.S. warehouse changes that. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Italian residents are within the supported regions of the main U.S. fintechs. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

The Netherlands has one of the most international small-business cultures in Europe, a BV that can be formed in days, and excellent banking. A U.S. LLC is not a replacement for a BV. Dutch founders form one to sell into the U.S. as a U.S. business: dollar checkout, Amazon.com, U.S. clients paying by ACH, U.S. partners who expect a U.S. entity.

How the Netherlands classifies a U.S. LLC

The Dutch tax authority classifies foreign entities by comparison with Dutch legal forms. A single-member LLC with a standard operating agreement is generally treated as a non-transparent entity (comparable to a BV), which means your interest falls in Box 2 (substantial interest): distributions are taxed as dividends, and the LLC itself is not taxed in the Netherlands unless it is Dutch-resident. Classification rules were revised for 2025 and edge cases exist; a belastingadviseur should confirm yours.

Residence of the company

A company effectively managed from the Netherlands is Dutch tax resident and subject to vennootschapsbelasting. A single-owner LLC run from Amsterdam is likely in that position. The LLC then becomes a Dutch corporate taxpayer with a U.S. bank account and U.S. platform access. That is a legitimate structure; it is not a tax saving.

Treaty

The U.S.-Netherlands income tax treaty is in force. For U.S. clients, a W-8BEN (or W-8BEN-E if your BV owns the LLC) with the treaty section; see the W-8 guide. Services performed from the Netherlands are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Dutch residents are within the supported regions of the main U.S. fintechs. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

A U.S. company paying another business is required to know the payee's tax status before paying. That is why the first invoice to a U.S. client is followed by a request for a W-9 or a W-8. The form you give decides whether the client pays you 100% of the invoice or withholds 30% and sends it to the IRS.

The two forms

• Form W-9 certifies that the payee is a U.S. person: a U.S. citizen, resident, or a U.S. entity that is taxed as one.
• Form W-8BEN-E certifies that the payee is a foreign entity, and if a treaty applies, claims treaty benefits. Form W-8BEN (without E) is the individual version.

Why a U.S. LLC does not automatically mean W-9

A single-member LLC is disregarded for U.S. income tax. The IRS looks through it to the owner. If the owner is a non-resident individual, the payee for withholding purposes is a foreign person, even though the LLC was formed in Wyoming. That is why the instructions to Form W-9 tell a disregarded entity with a foreign owner not to use the W-9. The correct form is a W-8 that reflects the owner: for an individual owner, Form W-8BEN in the owner's name with the LLC noted as the disregarded entity; for an entity owner, Form W-8BEN-E.

What happens when you give the wrong form

Give a W-9 and you have certified something untrue, which the client relies on and the IRS can later question. Give no form and the client must apply 30% withholding (or 24% backup withholding, depending on the payment type) and send it to the IRS. Recovering withheld tax means filing a U.S. return to claim it back, months later.

Services performed outside the U.S.

Payments for services performed entirely outside the United States are generally foreign-source income and not subject to U.S. withholding at all, regardless of treaty. The W-8 documents that. If some services are performed on U.S. soil, that portion can be U.S.-source and treaty rules or withholding may apply. Keep a simple record of where the work was done.

Treaty countries

Founders in treaty countries (Germany, the United Kingdom, India, Pakistan, Bangladesh, Turkey, Mexico, the Philippines, Egypt, Canada, Australia, New Zealand, Indonesia and others) can claim reduced withholding on certain U.S.-source payments such as royalties by completing the treaty section of the W-8 with their foreign tax ID. Founders in non-treaty countries (Brazil, Argentina, Colombia, Nigeria, Vietnam, the UAE) cannot claim treaty rates, but foreign-source service income is still not withheld on.

Practical checklist

• Keep a signed W-8 ready as a PDF before you send your first invoice.
• Use your foreign tax identification number on the form; leave the U.S. TIN line blank unless you have an ITIN.
• Re-sign every three years; the form expires.
• Do not confuse this with the EIN. The LLC has an EIN for banking and for Form 5472; the withholding form is about the owner.

Poland has one of Europe's largest software workforces and a domestic setup (JDG sole trader, sp. z o.o.) that works well for EU clients. The U.S. LLC enters when a U.S. client wants a U.S. vendor, when a product is priced in dollars for U.S. buyers, or when a U.S. Stripe account with Apple Pay and Link is needed. Stripe is available in Poland, so the LLC is about U.S. features and U.S. optics, not access.

Polish CFC rules

Poland taxes residents on worldwide income and has controlled foreign company rules that can attribute a foreign entity's income to the Polish resident owner when the entity is low-taxed and meets certain criteria, including a test based on passive income and, since 2022, tests based on asset yield and management. A disregarded U.S. LLC pays no U.S. entity-level tax, which brings it into the analysis. An active services LLC often falls outside; a holding LLC may not. A doradca podatkowy should confirm your case.

Residence

A company managed from Poland can be treated as Polish tax resident and subject to CIT. A single-owner LLC run from Warsaw is likely in that position. Plan for it rather than hoping otherwise.

Treaty

The U.S.-Poland income tax treaty is in force. For U.S. clients, a W-8BEN with the treaty section and your NIP or PESEL as foreign TIN; see the W-8 guide. Services performed from Poland are generally not U.S.-taxed. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Polish residents are within the supported regions of the main U.S. fintechs and Polish developers are a familiar profile. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Saudi Arabia's e-commerce and startup sectors have grown quickly under Vision 2030, and Saudi residents have no personal income tax. They form U.S. LLCs for access, not for tax: a U.S. Stripe account with full features (Stripe's availability in Saudi Arabia has been limited), Amazon.com as a domestic seller, U.S. clients paying a U.S. vendor, and a U.S. entity for a product company aimed at the U.S. market.

When the LLC earns its place

• You sell to U.S. consumers and want dollar checkout with Apple Pay, Google Pay and Link. Read the Stripe guide.
• You sell on Amazon.com and want a U.S. seller entity with a U.S. bank account.
• Your U.S. clients' procurement teams move faster with a domestic vendor.

When it does not

If your customers are in the GCC and your Saudi company with a local bank account already works, the LLC adds a yearly cost and a yearly IRS filing for no gain.

Saudi side

Individuals pay no personal income tax. Saudi companies pay corporate income tax (foreign-owned share) or Zakat (Saudi-owned share). If your Saudi company owns the U.S. LLC, the LLC's results enter your Saudi company's Zakat or tax base under ZATCA rules. If you own it personally, there is generally no Saudi tax on it, though the Saudi Central Bank and your bank will ask about the source of inbound dollars. A ZATCA-experienced advisor should confirm the structure.

No treaty

There is no U.S.-Saudi income tax treaty. Foreign-source service income is still not subject to U.S. withholding. U.S.-source royalties face the statutory 30% rate. Provide a W-8BEN or W-8BEN-E as appropriate; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Saudi residents are generally within the supported regions of the main U.S. fintechs. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Singapore is one of the easiest places in the world to run a company, and Stripe, banks and payment infrastructure are excellent. Founders add a U.S. LLC for one purpose: to be a U.S. business in the U.S. market. Amazon.com as a domestic seller, U.S. clients paying a U.S. vendor by ACH, a U.S. entity for U.S. partners and app-store or platform programs that treat U.S. companies differently.

Singapore side

Singapore taxes on a territorial basis. Foreign-sourced income received in Singapore by a resident individual is generally exempt; foreign-sourced income of a Singapore company is taxable when received in Singapore, with exemptions for dividends and branch profits meeting conditions. Singapore has no general CFC regime. A U.S. LLC owned personally and kept offshore generally has no Singapore tax until income is brought in, and often not then. Owned by your Pte Ltd, the LLC's distributions are foreign dividends to the company, often exempt if conditions are met. A Singapore tax advisor should confirm your case; the answer is usually favorable but not automatic.

No comprehensive treaty

The U.S. and Singapore have only a limited agreement (covering shipping and aircraft), not a comprehensive income tax treaty. So no reduced withholding on U.S.-source royalties or other passive income; the statutory 30% applies to those. Foreign-source service income is not withheld on. Provide a W-8BEN or W-8BEN-E; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

Banking

Singapore residents are within the supported regions of the main U.S. fintechs. Singapore is also where many founders of other nationalities are resident, which matters because bank country lists follow residence. Read what Mercury checks.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Stripe is available in your home country, maybe. Or maybe it is not, or it is but with limited payouts, or your local version cannot accept U.S. dollars without conversion. That is why many founders form a U.S. LLC in the first place: to open a U.S. Stripe account and sell to U.S. customers in their own currency, with their own wallets.

The four things Stripe requires for a U.S. account

1. A U.S. legal entity with its EIN. Stripe verifies the name and EIN against IRS records, so a typo on the EIN letter blocks you here.
2. A U.S. business address. A registered agent address is technically an address, but Stripe reviewers see the same Sheridan or Cheyenne suite numbers thousands of times. A dedicated business address on your account lowers the number of "tell us more" emails.
3. A U.S. bank account for payouts, in the LLC's name. This is why the bank step comes before the Stripe step.
4. A verified representative: you, with your passport, your date of birth and your home address. Stripe does not require an SSN for a non-resident representative, but it will ask for a government ID and may ask for proof of address.

Do you need Stripe Atlas?

Stripe Atlas forms a Delaware company for $500 and connects it to Stripe. It is built for startups that want a C-Corp for investors. If you are a single owner selling products or services, a Wyoming or Florida LLC costs less to run every year, files simpler taxes, and connects to Stripe the same way. Atlas is a fine product; it is just aimed at a different founder.

The part nobody prepares for: risk reviews

Stripe monitors every account continuously. New accounts with fast growth, high refund rates, disputes above roughly 0.75% of transactions, or a mismatch between the stated business and the actual charges get reviewed. A review can mean a hold on payouts for days or weeks while you send documents. It is not personal and it is not rare.

What keeps you out of trouble:

• Describe the business exactly. If you sell gold-plated jewelry made to order with a 3-week delivery time, say that. Long delivery windows are a risk flag only when they are a surprise.
• Turn on Stripe Radar rules and 3D Secure for higher-risk orders. We saw our own fraud attempts drop sharply after enabling 3DS on flagged transactions.
• Keep the statement descriptor recognizable. Half of all disputes are customers who did not recognize the charge.
• Answer Stripe's emails within 24 hours. Silence is what turns a question into a hold.

Alternatives

PayPal Business works for a U.S. LLC and is faster to open, but holds and reserves are more common and support is slower. Shopify Payments is Stripe underneath and has the same requirements. Wise Business cannot process card payments. For most founders the answer is Stripe as primary and PayPal as a second option for customers who prefer it.

Hong Kong companies have been the vehicle of choice for cross-border e-commerce for two decades. A U.S. LLC is added on top when the business needs to be American in the U.S. market: a U.S. Amazon seller entity with a U.S. bank account, a U.S. Stripe account with U.S. wallets, U.S. clients paying a domestic vendor, and a U.S. trademark owner.

Hong Kong side

Hong Kong taxes on a territorial basis: profits tax applies to profits arising in or derived from Hong Kong. Income of a U.S. LLC owned by a Hong Kong resident or company is generally outside Hong Kong profits tax if the business is not carried on in Hong Kong, subject to the refined foreign-sourced income exemption regime for companies receiving certain passive income. Hong Kong has no CFC regime. A Hong Kong tax advisor should confirm your case, but the home side is usually the simple half.

No treaty

There is no U.S.-Hong Kong income tax treaty (and the U.S.-China treaty does not extend to Hong Kong). U.S.-source royalties and similar passive income face the statutory 30% rate. Foreign-source service income is not withheld on. Provide a W-8BEN or W-8BEN-E; see the W-8 guide. The LLC files Form 5472 with a pro forma 1120 every April.

U.S. tax exposure for sellers

Inventory in Amazon's U.S. warehouses and sales to U.S. buyers can create effectively connected income for the owner and sales tax nexus in warehouse states. Amazon collects sales tax as a facilitator; the income tax question is the owner's, and may require Form 1040-NR or, if a Hong Kong company owns the LLC, Form 1120-F. Get this mapped once.

Banking

Hong Kong residents are generally within the supported regions of the main U.S. fintechs, which is one reason mainland Chinese founders resident in Hong Kong find U.S. banking easier than those resident in the mainland. Read what Mercury checks and the China guide.

State and cost

Wyoming. Monezzi's Wyoming LLC package is $1,136 for year 1 including the $104 state fee, then $1,032 per year plus $60 to the state. See the Monezzi page.

Your LLC needs an address for three different jobs: the registered agent address (required by the state, receives legal notices), the mailing address (where the IRS, banks and vendors send letters), and the business address you show to customers and payment processors. Many founders assume one address does all three. It can, but only if it is set up correctly.

What a CMRA is

Any company that receives mail on behalf of other people is a Commercial Mail Receiving Agency under U.S. Postal Service rules. Coworking spaces, virtual office providers and services like Monezzi's business address all fall under this. The USPS requires the CMRA to verify the identity of every person and every company whose mail it accepts. The instrument for that is Form 1583.

What Form 1583 asks

• Your name and home address (the real one, in your home country).
• Two forms of identification, one with a photo. A passport plus a national ID or driver's license is the usual pair for non-residents.
• The business name, its type, and where it is registered.
• The names of other people who may receive mail at the address.
• Your signature, either notarized or verified through an approved online identity check.

Since 2023 the USPS accepts remote online notarization and approved digital identity verification, so you no longer need to find a U.S. notary. Monezzi runs this step inside the customer workspace: upload the two IDs, complete the verification, and the signed 1583 is stored with your company records.

Why providers who skip this are a problem

A provider that hands you an address with no 1583 is either not a registered CMRA or is breaking the rules. In both cases your mail can be refused or returned by the USPS, and an IRS letter returned as undeliverable does not stop the deadline it contains. Banks and Stripe also increasingly check whether a business address is a registered CMRA and whether it appears on thousands of other applications.

What you receive with a proper business address

• A unique suite number in your company's name, not a shared PO box.
• Scanned mail in your dashboard, usually same day, with forwarding on request.
• An address you can use on Stripe, Amazon, your website and your invoices without a mismatch across documents.
• A completed, stored Form 1583 that you can show a bank if asked.

Monezzi includes a unique business address in the Pro plan and offers it as a $49 per month add-on for Solo. Whichever provider you use, ask one question first: "Will I sign a Form 1583?" If the answer is no, walk away.

The certificate arrives, the EIN arrives, the bank account opens, and most founders think the paperwork is done. It is not done. It has moved from a project to a calendar. This is the calendar for a single-owner LLC formed in Wyoming or Florida by someone who lives outside the U.S.

Month 0: formation week

• State approves the Articles of Organization. Save the stamped copy.
• Sign the operating agreement. The state does not ask for it. Banks, Stripe and later a buyer will.
• Submit Form SS-4 for the EIN the same week.
• Complete USPS Form 1583 for your business address.

Months 1 to 2: activation

• EIN letter arrives. Check the name spelling against the state certificate before you do anything else.
• Apply for the bank account. Apply for Stripe once the bank account is open.
• Register for a sales tax permit only if you have nexus. Selling through Amazon FBA or Shopify to U.S. customers can create marketplace-collected or economic nexus depending on the state and volume. Most new stores are below the thresholds; check once revenue passes roughly $100,000 in a single state.

Ongoing every month

• Keep company money and personal money separate. Every mixed transaction becomes a line on Form 5472.
• Download bank statements and keep them in one place. You will need twelve of them in April.
• Read your scanned mail. IRS letters have deadlines that start on the date printed on the letter, not the date you open it.

January

• If the LLC paid any U.S. contractor $600 or more during the year, Form 1099-NEC is due to them and to the IRS by January 31.
• Stripe and marketplaces issue their 1099-K forms this month. Reconcile them against your records.

March and April

• April 15: Form 5472 with pro forma Form 1120 is due for a calendar-year LLC. File Form 7004 before this date if you need the six-month extension to October 15.
• If the LLC has effectively connected U.S. income, you as the owner may also need to file Form 1040-NR. This depends on your activity and your country's tax treaty with the U.S. Ask, do not guess.

State yearly filing

• Florida: annual report due May 1, fee $138.75. Missing it costs a $400 late penalty and, later, administrative dissolution.
• Wyoming: annual report due on the first day of your formation anniversary month, minimum license tax $60. Missing it for 60 days leads to dissolution.

Registered agent renewal

Your registered agent contract renews yearly. If it lapses, the agent resigns with the state, and the state can dissolve the company. Monezzi's Solo plan renews at $408 per year and includes the agent; state fees are billed separately and shown separately.

What Monezzi does with this calendar

Every item above sits in the customer dashboard with a due date, a status and a document slot. Customers see what is due, what is filed and what is missing, in one screen, and get reminders before each deadline. That is the product. Formation is the door; the calendar is the house.