How to start an LLC in the US, also as a non-resident

Step by step

1. 1

   Choose the state

   Form the LLC in the state where you live and do business. If you form it in another state, such as Delaware, and work in your home state, you also register there as a foreign LLC and pay fees in both states. Services for founders who live outside the US usually form in Delaware or Wyoming.

2. 2

   Check the name

   The name must be different from the names of companies already registered in that state. Search it in the business database on the state's Secretary of State website before you file.

3. 3

   Name a registered agent

   The agent receives lawsuits and official mail for the LLC at a street address in the state, during business hours. You can be your own agent if you live in that state. If not, an agent service costs about $100-$300 a year.

4. 4

   File the formation document

   Delaware and Texas call it a Certificate of Formation, California calls it Articles of Organization. The state fee is $110 in Delaware, $300 in Texas and $70 in California. Many states take it online on the Secretary of State website; some only by mail or in person.

5. 5

   Write an operating agreement

   It records who owns which share, how profits are split and who makes decisions. Not every state requires one, but it is widely recommended, and a bank may ask for it when you open an account. Many formation services include a template.

6. 6

   Get an EIN

   Apply after the state approves the LLC. It is free. With an SSN or ITIN and a business in the US, you apply online at irs.gov and get the number in minutes. Without them, send Form SS-4 by fax (about 4 business days) or mail (about 4 weeks); from abroad you can also call 267-941-1099.

7. 7

   Plan the yearly costs

   Delaware LLCs pay a $400 tax by June 1 every year. California LLCs owe at least $800 a year to the Franchise Tax Board and file a $20 Statement of Information within 90 days, then every two years. An LLC owned entirely by one foreign person also files Form 5472 with the IRS; a tax professional can tell you what your LLC must file.