FAQs
Common Questions
And further information about forming a “LLC” Limited Liability Company in the United States
How long does it take until the LLC is ready for use?
The LLC is often formed in just one day
It usually takes 4-5 weeks to get the EIN.
Opening a business account takes about an hour. You can usually use it within a day after verification is complete.
It usually takes 4-5 weeks to get the EIN.
Opening a business account takes about an hour. You can usually use it within a day after verification is complete.
Who can form an LLC?
Anyone with full legal capacity can form an LLC. The formation can be done from anywhere in the world.
You don't have to travel to the USA.
You don't have to travel to the USA.
How do I get paid through a US LLC? How do I invoice?
You issue to your clients a proper invoice from your US LLC.
Your client transfers the money to the business account of your US LLC, or pays you using your LLC Stripe/Paypal accounts.
You then transfer the money from your business account to your own personal account.
This means you officially receive your money from a company in the USA and not from your customer directly.
Your client transfers the money to the business account of your US LLC, or pays you using your LLC Stripe/Paypal accounts.
You then transfer the money from your business account to your own personal account.
This means you officially receive your money from a company in the USA and not from your customer directly.
How secure is the foundation? Can anything go wrong?
The LLC is founded by local experts in the USA.
Forming an LLC is a standardized process and is performed dozens of times every day by our employees and partners, so you can be sure that the company will be founded properly and 100% legally.
Forming an LLC is a standardized process and is performed dozens of times every day by our employees and partners, so you can be sure that the company will be founded properly and 100% legally.
What is an EIN?
EIN stands for Employer Identification Number. This is the US tax identification number of every company.
You need this number to open bank accounts with most financial institutions and also for payment service providers such as Stripe, Skrill or Paypal.
You need this number to open bank accounts with most financial institutions and also for payment service providers such as Stripe, Skrill or Paypal.
How does accounting and financial reporting work for a US LLC?
No tax return needs to be filed, so no accounting, etc., is necessary.
However, as with any business, you should still keep all receipts and invoices electronically.
However, as with any business, you should still keep all receipts and invoices electronically.
Do I have to file a US tax return even if I don't have to pay taxes?
No tax return is required. However, you must complete the following forms annually:
Form 5472 + 1120
FBAR (if the LLC's accounts had more than $10,000 in them at any time during the year)
Annual Return
Annual Return and FBAR can be filed online.
In total it takes about 2 hours to fill everything out.
You will receive instructions on how to fill out each of these forms yourself.
We will always help and support you with this process.
Form 5472 + 1120
FBAR (if the LLC's accounts had more than $10,000 in them at any time during the year)
Annual Return
Annual Return and FBAR can be filed online.
In total it takes about 2 hours to fill everything out.
You will receive instructions on how to fill out each of these forms yourself.
We will always help and support you with this process.
How do I open a bank account for my US LLC, especially if I am not a US resident?
We recommend using WISE for this.
Once you got your EIN number, forming a company bank account is quick and remote.
Alternatively, there are other Fintech banks where you can open a bank account for your LLC regardless of your actual location.
Once you got your EIN number, forming a company bank account is quick and remote.
Alternatively, there are other Fintech banks where you can open a bank account for your LLC regardless of your actual location.
What role does the company address in the USA play and what services are associated with it?
This company address is the official address of the LLC and can be stated, for example, in the imprint of a website.
Mail from US authorities is received there and forwarded to you online via email.
Mail from US authorities is received there and forwarded to you online via email.
Can I use payment service providers such as Stripe, Paypal, Skrill or Digistore24 with the US LLC?
Yes, that is possible.
However, to use Stripe, for example, you have to wait for the EIN (tax identification number).
Paypal is a bit more complicated if you don't have a US Social Security Number (SSN) because you have to apply for an ITIN number in addition to the EIN.
We recommend using Stripe.
However, to use Stripe, for example, you have to wait for the EIN (tax identification number).
Paypal is a bit more complicated if you don't have a US Social Security Number (SSN) because you have to apply for an ITIN number in addition to the EIN.
We recommend using Stripe.
What documents do I need to establish a US LLC?
Only a scan of your Passport, ID or Driving license
To establish the company, we need your full name, address of your current residence (place of residence), telephone number, email address and the desired company name.
To establish the company, we need your full name, address of your current residence (place of residence), telephone number, email address and the desired company name.
What is a Registered Office?
A registered office is the address to which the relevant authorities deliver official mail. A registered office is a prerequisite for the establishment and continued existence of any LLC.
Further Information
How does tax exemption work with the US LLC?
A single-member LLC (a single-member LLC) is taxed as a pass-through entity (disregarded entity for tax purposes). It is also called a flow-through structure.
This means that annual profits are distributed directly to the shareholder, who must pay taxes on them in the country where the shareholder's main residence is located.
The LLC itself therefore pays no taxes . All profits are taxed privately by the partners (income tax).
For corporate and liability law purposes, an LLC is treated like a corporation, and for tax purposes like a partnership.
This means that annual profits are distributed directly to the shareholder, who must pay taxes on them in the country where the shareholder's main residence is located.
The LLC itself therefore pays no taxes . All profits are taxed privately by the partners (income tax).
For corporate and liability law purposes, an LLC is treated like a corporation, and for tax purposes like a partnership.
Is it difficult to get a bank account for the LLC?
A company bank account is important: all expenses and income should be processed through this bank account.
Modern fintech banks now make it easy to open a business account remotely and from any location.
You don't need to be a US citizen or travel to the US to open the account.
We recommend the financial institution WISE because its less complicated and easily integrates with online payment providers like Stripe.
It usually only takes 1-2 days for the account to be fully operational.
Modern fintech banks now make it easy to open a business account remotely and from any location.
You don't need to be a US citizen or travel to the US to open the account.
We recommend the financial institution WISE because its less complicated and easily integrates with online payment providers like Stripe.
It usually only takes 1-2 days for the account to be fully operational.
How complex is the administration and accounting?
As long as you don't make any sales to the USA, the administration and accounting of the LLC is absolutely not complicated.
With a single-member LLC, there are no accounting requirements and no tax returns are required (as long as the owner doesn't live in the US, of course).
However, you should still keep all receipts and invoices electronically.
As a rule, only the following forms are required:
Form 5472 + 1120
FBAR (if the LLC's accounts had more than $10,000 in them at any time during the year)
Annual Return
You'll receive instructions on how to complete each of these forms yourself.
This can be completed in about two hours.
With a single-member LLC, there are no accounting requirements and no tax returns are required (as long as the owner doesn't live in the US, of course).
However, you should still keep all receipts and invoices electronically.
As a rule, only the following forms are required:
Form 5472 + 1120
FBAR (if the LLC's accounts had more than $10,000 in them at any time during the year)
Annual Return
You'll receive instructions on how to complete each of these forms yourself.
This can be completed in about two hours.
Tax-free despite customers in the USA
If you use an LLC to sell digital products from abroad in the US or to invoice US customers, this income is considered tax-free in the US as long as you do not have a US permanent establishment and the service is provided outside the US.
The LLC only remains tax-free in the USA if the LLC is not considered “Engaged in a trade or business in the United States” (ETBUS) and does not operate in the USA through a dependent agent (i.e. an employed agent) .
This means that the LLC can do business in the US, but may not have a presence in the states that would trigger a tax liability.
This means that you can sell goods to the United States and thus generate profits from US sources without automatically triggering a US tax liability.
So, if you rent an office or, for example, employ a freelancer who handles customer service from the US, this may be considered a permanent establishment. We recommend seeking legal and tax advice in such cases.
If you do not live in the USA as a member of an LLC, the following applies:
There is no connection to the US if, for example, you provide consulting services to US clients. This income is not subject to US taxation. These services are taxed at the place where the service is provided, which in this case means: NOT in the US.
There is no connection to the US if you sell products to US customers through the LLC but have no local presence that would trigger tax liability. For example, if you operate a dropshipping business and only ship the products in the US via an independent agent (e.g., the local mail carrier), then this US income does not have to be taxed in the US.
A connection to the US exists if the LLC sells products to US customers, but does so through a dependent contractor—that is, a contractor who works primarily for the LLC, does not conduct his or her own business, and cannot be distinguished from an employee. In this case, profits from US sources must be taxed in the US.
The LLC only remains tax-free in the USA if the LLC is not considered “Engaged in a trade or business in the United States” (ETBUS) and does not operate in the USA through a dependent agent (i.e. an employed agent) .
This means that the LLC can do business in the US, but may not have a presence in the states that would trigger a tax liability.
This means that you can sell goods to the United States and thus generate profits from US sources without automatically triggering a US tax liability.
So, if you rent an office or, for example, employ a freelancer who handles customer service from the US, this may be considered a permanent establishment. We recommend seeking legal and tax advice in such cases.
If you do not live in the USA as a member of an LLC, the following applies:
There is no connection to the US if, for example, you provide consulting services to US clients. This income is not subject to US taxation. These services are taxed at the place where the service is provided, which in this case means: NOT in the US.
There is no connection to the US if you sell products to US customers through the LLC but have no local presence that would trigger tax liability. For example, if you operate a dropshipping business and only ship the products in the US via an independent agent (e.g., the local mail carrier), then this US income does not have to be taxed in the US.
A connection to the US exists if the LLC sells products to US customers, but does so through a dependent contractor—that is, a contractor who works primarily for the LLC, does not conduct his or her own business, and cannot be distinguished from an employee. In this case, profits from US sources must be taxed in the US.
The LLC is limited liability
An LLC is a hybrid limited liability company, meaning its members are not personally liable for the business.
The status of a disregarded entity is irrelevant for liability. With a single-member LLC, you continue to have fully limited liability.
You are therefore only liable with the capital that the LLC has in its bank account or with assets such as buildings, stocks, bonds, etc. in which only the LLC has invested.
The assets of the private individual behind the LLC remain protected.
For corporate and liability law purposes, an LLC is treated like a corporation, but for tax purposes, it is treated like a partnership.
The status of a disregarded entity is irrelevant for liability. With a single-member LLC, you continue to have fully limited liability.
You are therefore only liable with the capital that the LLC has in its bank account or with assets such as buildings, stocks, bonds, etc. in which only the LLC has invested.
The assets of the private individual behind the LLC remain protected.
For corporate and liability law purposes, an LLC is treated like a corporation, but for tax purposes, it is treated like a partnership.
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