Your Complete Guide to LLC Formation, ITIN Applications, and U.S. Tax Compliance
By the BeFiling Expert Team | Updated 2026 | 10 min read
Every year, tens of thousands of foreign entrepreneurs ask the same question: “Can I start a real U.S. business without living in America?” The short answer is yes — and in 2026, it has never been more accessible. But navigating U.S. LLC formation, obtaining an ITIN (Individual Taxpayer Identification Number), and staying compliant with IRS requirements requires a clear roadmap. This guide walks you through every step, explains common pitfalls, and shows you how BeFiling.com makes the entire process possible from anywhere in the world.
| What You Will Learn in This Guide • What an LLC is and why non-residents choose it • How to register a U.S. LLC from outside the United States • What an ITIN is, who needs one, and how to apply • U.S. tax obligations for foreign-owned businesses • Frequently asked questions answered by filing experts • How BeFiling.com simplifies the entire process end-to-end |
Section 1: Why Non-Residents Form U.S. LLCs
A Limited Liability Company (LLC) registered in the United States gives foreign entrepreneurs access to the world’s largest consumer economy and the financial infrastructure that powers global commerce. With a U.S. LLC, non-residents can open PayPal and Stripe merchant accounts, receive payments from U.S. clients, apply for a business bank account, list products on Amazon or Etsy, and establish a credible brand in the eyes of American customers and partners.
Beyond payment processing, a U.S. LLC provides liability protection — separating your personal assets from your business obligations. Unlike corporations, LLCs are relatively simple to maintain with no mandatory board meetings and minimal administrative burden.
Top Reasons Foreign Entrepreneurs Choose U.S. LLCs
- Access to U.S. payment processors: PayPal, Stripe, Square, and Payoneer all require a U.S. business entity and/or ITIN for verification.
- Global credibility: A U.S.-registered business builds trust with international clients and partners.
- Marketplace access: Amazon FBA, Etsy, eBay, and Upwork typically require a U.S. entity and EIN.
- Banking: Fintech banks like Mercury and Relay open accounts for foreign-owned LLCs entirely online.
- Tax treaty benefits: A properly structured U.S. LLC helps non-residents leverage international tax treaties to reduce withholding taxes.
- U.S. credit history: An LLC with an EIN is the foundation for building a U.S. business credit profile.
Section 2: How to Form a U.S. LLC as a Non-Resident — Step by Step
You do not need to be a U.S. citizen or resident to own or operate an LLC in the United States. Here is a straightforward breakdown of the process:
Step 1: Choose Your State of Formation
The most popular states for non-resident LLC formation are Wyoming, Delaware, New Mexico, and Montana because of their favorable privacy laws, low fees, and minimal ongoing compliance requirements. You do not need to live or operate in the state you register in — but you will need a Registered Agent with a physical address in that state.
Montana is especially attractive for non-residents because it has no state sales tax — one of only five U.S. states with this advantage. This makes Montana-registered LLCs particularly appealing for e-commerce businesses and entrepreneurs selling products or services online. Montana also has low annual fees, no franchise tax on LLCs, and straightforward compliance requirements, making it a cost-effective choice for foreign founders looking to minimize ongoing expenses.
Step 2: Select a Business Name
Your LLC name must be unique within the state of registration and must include a designator such as “LLC” or “Limited Liability Company.” Conduct a name availability search on the state’s Secretary of State website before finalizing your selection.
Step 3: Appoint a Registered Agent
Every U.S. LLC must have a Registered Agent — a person or entity with a physical U.S. address who receives legal and government correspondence on behalf of your company. BeFiling.com provides registered agent services in all 50 states as part of its LLC formation package, so you never need to expose your personal foreign address on public state filings.
Step 4: File the Articles of Organization
The Articles of Organization is the primary legal document that officially creates your LLC. It is filed with the state and requires your LLC name, registered agent information, and the name(s) of members or organizer. State filing fees range from approximately $50 to $500 depending on the state.
Step 5: Obtain an EIN (Employer Identification Number)
An EIN is your LLC’s federal tax identification number. It is required to open a U.S. business bank account, hire employees, file taxes, and register for marketplace seller accounts. Non-residents without an SSN can still obtain an EIN by filing IRS Form SS-4. BeFiling’s LLC formation package includes EIN obtainment as part of the service.
Step 6: File the BOI Report
As of January 2024, most U.S. LLCs must file a Beneficial Ownership Information (BOI) report with FinCEN under the Corporate Transparency Act. This report discloses the individuals who own or control the company. BeFiling assists clients in completing and submitting this filing to maintain full compliance.
| BeFiling LLC Formation — Starting at $139 + State Fees BeFiling.com handles the entire LLC formation process: name check, Articles of Organization filing, Registered Agent, EIN application, BOI report, and business address service — in any U.S. state. Over 10,000 companies formed across 75+ countries. Get started: befiling.com/form-my-llc |
Section 3: What Is an ITIN and Who Needs One?
An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the IRS to individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN). ITINs always begin with the digit 9 and follow the format 9XX-XX-XXXX.
Who Needs an ITIN?
You likely need an ITIN if you are:
- A non-resident alien required to file a U.S. federal tax return
- A U.S. resident alien not eligible for an SSN but with U.S. tax filing obligations
- A dependent or spouse of a U.S. citizen, resident alien, or non-resident alien visa holder
- A non-resident alien claiming a tax treaty benefit
- A foreign entrepreneur who owns a U.S. LLC and receives U.S.-sourced income or must file IRS Form 1040-NR
What Can You Do With an ITIN?
An ITIN unlocks a wide range of financial and business capabilities for non-U.S. residents:
- File U.S. individual or business tax returns with the IRS
- Open a U.S. business bank account or personal checking account
- Verify and activate a PayPal Business account
- Set up a Stripe payment processing account
- Apply for a U.S. credit card to begin building U.S. credit history
- Claim refunds on U.S.-withheld taxes
- Access benefits under applicable U.S. international tax treaties
What an ITIN Does NOT Do
An ITIN does not provide work authorization in the United States, does not make you eligible for Social Security benefits, cannot be used for immigration purposes, and is not a substitute for an SSN. It is strictly a tax processing number issued by the IRS.
Section 4: How to Apply for an ITIN — The BeFiling Process
The standard ITIN application process is notoriously complex. The IRS requires applicants to submit IRS Form W-7 along with a certified copy (or original) of their passport, a completed tax return, and supporting documentation. Traditionally, this meant mailing your original passport overseas — a stressful experience for most foreign applicants.
BeFiling.com eliminates this risk entirely. As an IRS Certified Acceptance Agent (CAA), BeFiling is officially authorized by the IRS to verify identity documents remotely, meaning your original passport never leaves your hands.
The BeFiling ITIN Application Process — 4 Steps
- Complete the online application — A secure form that takes 3 to 5 minutes. No documents required upfront.
- Document review (1–3 business days) — BeFiling’s expert team reviews your documents, checks for errors, and guides you through any corrections before submission.
- IRS submission — Once confirmed and signed, BeFiling submits your application directly to the IRS as your Certified Acceptance Agent.
- Receive your ITIN — The IRS processes applications in 7–14 weeks. BeFiling provides real-time status updates via your secure portal and WhatsApp.
| BeFiling ITIN Application — $225 Includes: IRS Certified Acceptance Agent service, no original passport mailing required, document review and preparation, DHL/FedEx tracking, 100% money-back guarantee, and 24/7 WhatsApp support. 99% approval rate | 6,300+ clients served | 75+ countries Apply now: befiling.com/itin-application |
Section 5: DIY vs. BeFiling — Side-by-Side Comparison
When deciding whether to apply for your ITIN yourself or through a professional service, consider the following comparison:
| Feature | DIY (Self-filing) | BeFiling.com |
| Service cost | Free (gov fees apply) | $225 + IRS fee |
| Passport must be mailed | Yes — original required | No — certified copy only |
| IRS Acceptance Agent | No | Yes — IRS certified |
| Approval rate | Varies widely | 99% |
| Money-back guarantee | N/A | 100% guaranteed |
| Expert support | None | Team + secure portal |
| Processing guidance | Self-managed | Step-by-step expert support |
| Countries served | Global (self-managed) | 75+ countries |
| Average response time | Self-managed | 24 hours |
While the IRS allows individuals to apply directly at no service charge, the complexity of the process and the high risk of rejection for first-time foreign applicants makes professional assistance a worthwhile investment. A rejected application can delay your ITIN by months and require restarting the entire process from scratch.
Section 6: U.S. Tax Obligations for Foreign-Owned LLCs
One of the most common misconceptions among non-resident LLC owners is that their U.S. business has no tax obligations if they don’t earn money in the United States. This is often incorrect — and the penalties for non-compliance are significant.
Single-Member LLCs Owned by Non-Residents
A U.S. LLC with a single non-resident foreign owner is treated as a disregarded entity for federal tax purposes — but it still has reporting obligations. If the LLC is engaged in a U.S. trade or business or has U.S.-source income, the owner must file IRS Form 1040-NR (Non-Resident Alien Income Tax Return). Even if the LLC has zero income, it may still be required to file IRS Form 5472 and a pro-forma Form 1120 to report transactions between the LLC and its foreign owner. Failure to file these forms can result in penalties of up to $25,000 per violation.
Multi-Member LLCs Owned by Non-Residents
Multi-member LLCs are treated as partnerships and must file IRS Form 1065 annually. Each non-resident member receives a Schedule K-1 and must file Form 1040-NR to report their share of U.S. income.
Annual State Compliance
Most states require LLCs to file an Annual Report and pay a franchise tax or annual fee to maintain good standing. Failure to file can result in administrative dissolution of your LLC. BeFiling’s managed compliance services ensure non-resident owners stay current on both federal and state requirements.
Section 7: Frequently Asked Questions (FAQ)
The following questions reflect the most common inquiries received by the BeFiling expert team from foreign entrepreneurs around the world.
Q: Can I form a U.S. LLC without visiting the United States?
A: Yes. U.S. LLCs can be formed entirely online without any physical presence in the U.S. BeFiling.com handles the entire process remotely, including state filings, Registered Agent, EIN, and BOI report. Thousands of entrepreneurs in 75+ countries have formed U.S. LLCs through BeFiling without ever visiting the United States.
Q: Do I need an ITIN to form an LLC?
A: No — you do not need an ITIN to form an LLC. However, if you plan to file a U.S. tax return, open certain bank accounts, verify PayPal or Stripe, or claim tax treaty benefits, you will need an ITIN. The EIN is what is typically required for business formation and banking, while the ITIN is a personal tax identifier for the individual owner.
Q: How long does it take to get an ITIN through BeFiling?
A: After BeFiling submits your completed application to the IRS, standard processing takes 7 to 14 weeks. BeFiling’s internal document review takes 1 to 3 business days. You will receive real-time updates via your secure portal and WhatsApp throughout the process.
Q: What if my ITIN application is rejected?
A: BeFiling offers a 100% money-back guarantee. Their expert team performs a thorough document review before submission specifically to minimize rejection risk. With a 99% approval rate across more than 6,300 clients, rejections are extremely rare. In the unlikely event of an error in BeFiling’s preparation, the team will refile at no additional charge.
Q: Can I open a U.S. bank account as a non-resident LLC owner?
A: Yes. Many fintech banks — including Mercury, Relay, and Wise Business — open accounts for foreign-owned U.S. LLCs online without requiring an in-person U.S. visit. A valid EIN and your LLC formation documents are typically required. Your ITIN may be required for certain account types.
Q: Do I need to pay U.S. taxes if my LLC makes no money?
A: Possibly. Even an LLC with zero income may have IRS reporting obligations. A foreign-owned single-member LLC must typically file Form 5472 and a pro-forma Form 1120 to report the existence of reportable transactions between the LLC and its foreign owner. Failure to file can result in penalties of up to $25,000 per violation. BeFiling’s tax preparation team ensures all required filings are completed accurately and on time.
Q: What is the difference between an EIN and an ITIN?
A: An EIN (Employer Identification Number) is a business tax identifier assigned to your LLC. An ITIN (Individual Taxpayer Identification Number) is a personal tax identifier for the individual owner. You need an EIN to open a business bank account and file business taxes. You need an ITIN to file your personal U.S. tax return as a non-resident. BeFiling helps clients obtain both.
Q: Which U.S. state is best for a non-resident to form an LLC?
A: Wyoming, Delaware, New Mexico, and Montana are the most popular states for non-resident LLC formation. Wyoming and Delaware offer strong privacy protections and business-friendly laws. New Mexico has low fees and no publication requirement. Montana stands out because it has no state sales tax, no franchise tax on LLCs, and very low annual fees — making it an excellent choice for e-commerce and online businesses. BeFiling can form your LLC in any of the 50 U.S. states.
Q: What is BeFiling’s Nia AI Co-Founder?
A: Nia is BeFiling’s proprietary AI assistant — an advanced tool designed to help entrepreneurs solve real-time business problems, answer U.S. compliance questions, and provide guidance on business formation strategy. Nia is available directly on the BeFiling platform and reflects the company’s commitment to combining technology with expert human support.
Section 8: Why Thousands of Entrepreneurs Choose BeFiling.com
BeFiling.com is a U.S.-based, IRS-recognized business filing and compliance platform serving entrepreneurs in more than 75 countries. Since its founding, BeFiling has helped over 10,000 entrepreneurs form U.S. companies and processed ITIN applications for more than 6,300 clients with a 99.7% success rate.
What Sets BeFiling Apart
- IRS Certified Acceptance Agents — Officially certified by the IRS to verify identity documents for ITIN applications, eliminating the need to mail original passports.
- One platform, one point of contact — ITIN, LLC formation, EIN, BOI, tax preparation, and business address all managed in one secure portal.
- No documents required to get started — Just provide your name, address, email, and company name to begin.
- 100% Money-Back Guarantee — Every ITIN application is backed by a full refund policy if not approved.
- 4.9/5 average rating — Verified across Google, Trustpilot, and Facebook from 2,500+ real client reviews.
- 24/7 WhatsApp support — Multilingual support team available around the clock at +1 (406) 607-2216.
- Nia AI Co-Founder — Real-time AI assistance for business problem-solving, available on the BeFiling platform.
| Ready to Start Your U.S. Business Journey? BeFiling.com is your trusted partner for LLC formation, ITIN applications, and U.S. tax compliance — from anywhere in the world. Form Your LLC: befiling.com/form-my-llc Apply for ITIN: befiling.com/itin-application Tax Preparation: befiling.com/tax-preparation WhatsApp Support: +1 (406) 607-2216 |
Conclusion
Starting a U.S. business as a non-resident is more achievable in 2026 than ever before. With the right guidance, you can form a U.S. LLC, obtain your ITIN, open a business bank account, and begin accepting payments from American customers — all without setting foot on U.S. soil. The key is working with a trusted partner who understands the full landscape of U.S. business formation and IRS compliance for international founders.
BeFiling.com exists precisely for this purpose. Whether you are a freelancer hoping to accept PayPal payments, a software entrepreneur forming a Delaware LLC, or a consultant looking to expand your client base to the United States, BeFiling’s expert team and technology platform are built to make the process seamless, compliant, and stress-free.
Take the first step today. Your U.S. business journey starts at befiling.com.
Disclaimer: BeFiling Inc. is a private, third-party document preparation service and is not affiliated with or endorsed by the IRS, U.S. Department of the Treasury, or any U.S. government agency. BeFiling is not a law firm or CPA firm and does not provide legal or tax advice. Information in this article is for general educational purposes only.