Forming a U.S. business as a non-U.S. resident: what you should know

This is one of the most common conversations in our office. A non-U.S. resident can generally form and own a U.S. company, and thousands do. The mistakes rarely happen at formation — they happen in the filings afterwards.

What is usually possible - Forming an LLC or a corporation as a non-resident, without moving to the U.S. - Getting an EIN for the entity, through a process with extra steps for applicants without a U.S. taxpayer number. - Opening banking and payment processing, though requirements vary widely by institution and often involve identity verification and documentation.

Forming a company does not by itself grant you a visa, work authorization or residency. Those are immigration questions, separate from the business filings.

The filings that surprise people - Foreign-owned entities can have additional information reporting. For example, a foreign-owned single-member LLC treated as a disregarded entity generally has an annual reporting obligation with the IRS that many owners do not expect. - Corporations with foreign ownership have their own reporting requirements when certain related-party transactions occur. - Payments from the U.S. to foreign persons may involve withholding and documentation, depending on the type of payment and any applicable treaty. - Whether you owe U.S. tax on the business profit depends on the entity type, where the activity happens and your personal situation — not on where you live alone. - State-level obligations continue regardless: annual reports, franchise taxes or fees, and registration in states where you actually do business.

Penalties for missing certain foreign-owner information filings can be significant even when no tax is due, which is why the calendar matters as much as the return.

ITIN If you need to file a U.S. return or be identified on one and are not eligible for a Social Security number, you may need an ITIN. As an IRS Certifying Acceptance Agent, we certify identity documents directly, so clients do not mail original passports.

Choosing a state Owners often ask about the state with the lowest fee. In practice, if the business has real activity, employees or a physical presence somewhere, that state usually matters more than the state of formation, because doing business in a state can create registration and tax obligations there. Compare total obligations, not the formation fee alone.

A workable order - Decide the entity type with someone who understands the cross-border tax side. - Form the entity and appoint a registered agent. - Obtain the EIN, then banking. - Set up bookkeeping and a compliance calendar covering federal, state and foreign-owner filings. - Review the tax picture annually, and before any change in ownership or activity.

Cross-border rules depend heavily on your specific facts and any treaty between your country and the U.S., so treat this as general information rather than advice for your situation. Foreign requirements are our daily work — we form the company, handle the filings and explain everything in Portuguese or English. Contact us to start.