How to Form a U.S. LLC from Latin America: Step by Step

A U.S. LLC lets you sell to clients in the United States, Canada and Europe, open U.S. bank accounts and get paid through Stripe or PayPal. In most cases you can own 100% of it without visiting the U.S., without a Social Security Number and without a visa. Here is the process, step by step.

1. Choose a state

You don’t have to form your LLC where your clients are. For non-residents, three states are the most common:

• Wyoming: the best choice for most non-residents. Low annual costs (annual report from $60), strong privacy and no state income tax.
• Delaware: best if you plan to raise money from investors. Higher annual costs.
• New Mexico: very low maintenance costs, but less widely used.

2. Hire a registered agent

Every LLC needs a registered agent: a company with an address in that state that receives official letters for you. It’s a yearly fee and it’s required.

3. File the Articles of Organization

This is the document that creates your LLC with the state. Once it’s approved, your company legally exists, usually within a few days.

4. Write an Operating Agreement

This document sets out who owns the LLC and how it’s run. Even with a single owner, banks and payment processors often ask for it.

5. Get an EIN (tax ID)

The EIN is your company’s tax number, and you need it before any bank will open an account. Non-residents can’t use the IRS online application, so the request goes on Form SS-4, sent by fax, which is the fastest option.

6. Open a U.S. bank account

With your LLC documents and EIN, you can apply to online banks such as Mercury, Relay or Wise, or to traditional banks where you’re eligible. Approval depends on your country and type of business.

7. Set up payments

Connect your bank account to Stripe, PayPal or another payment processor so you can charge clients by card.

8. Stay compliant every year

This is the step most people miss. A foreign-owned single-member LLC must file Form 5472 with a pro forma Form 1120 by April 15 every year, even with little or no income. Missing it can trigger a $25,000 IRS penalty. You also need to file the state’s annual report and renew your registered agent.

What an LLC does not remove

• Annual IRS filings (Form 5472 and pro forma 1120)
• State fees and annual reports
• U.S. tax on any U.S.-source income
• Possible taxes in your home country

Need help?

VCG helps you choose the right structure and set everything up. For U.S. tax filings, we work with our partner James Baker, CPA. If your budget is tight, ask us about working in exchange for equity, services or referrals. Contact us.

Book a free consultation with Mauricio →

Sources: based on guidance from James Baker, CPA, VCG’s U.S. tax partner. This guide is general information, not legal or tax advice.