What Is an LLC? Why Not a Corporation?
A Limited Liability Company (LLC) is a US business structure that combines the liability protection of a corporation with the simplicity of a sole proprietorship. The key characteristics that make it the preferred choice for most non-US founders:
- Limited liability. Your personal assets (savings, home, car) are legally separate from the LLC. Business debts and lawsuits target the LLC — not you personally.
- Pass-through taxation. A single-member LLC is a "disregarded entity" by default — income passes through to your personal tax return. No separate corporate tax at the LLC level. This is critical for non-US residents: properly structured, a foreign-owned US LLC can have zero US federal income tax obligation if no US-source income exists.
- No US citizenship requirement. Any person or entity, anywhere in the world, can be the sole member of a US LLC. Non-residents form US LLCs constantly — for Stripe accounts, Mercury banking, US enterprise clients, and global payment infrastructure.
- Simple maintenance. Unlike a C-Corporation (required for VC investment, more complex), an LLC does not require a board of directors, annual shareholder meetings, or complex corporate formalities. One document (the operating agreement) governs the entity.
Who Can Form a US LLC Online
Non-US residents (any country)
Citizens and residents of any country — Turkey, Germany, UAE, India, Brazil, Egypt — can form a US LLC. No US ties required. No minimum investment.
Foreign companies and entities
A foreign company can be the owner (member) of a US LLC. Multi-member LLCs can be owned by a combination of foreign individuals and foreign entities.
Non-resident visa holders
Tourist visa (B1/B2) holders can own a US LLC. Having an LLC does not affect visa status — passive ownership is not considered "working" in the US.
US citizens and residents
Obviously. US persons can form LLCs in any state. For US persons, online LLC formation is equally fast — and the state fee is the same as for foreigners.
Certain sanctioned countries
Nationals of countries under comprehensive OFAC sanctions (currently North Korea, Cuba, Iran, Syria, and Russia in most categories) may face restrictions in some states.
Minors (in most states)
Most states require the LLC organizer to be at least 18 years old. Some allow LLCs owned by minors through a guardian or parent as the managing member.
Choosing Your State: The Most Important Decision
One of the most consequential decisions in LLC formation is which state to register in. You do not need to register in the state where you live or operate — for non-US residents, the choice is entirely strategic. These are the four states that dominate non-resident LLC formation:
Wyoming
Best Overall for Non-Residents- $100 formation fee
- $60/year annual report (minimum)
- No state income tax
- Strong privacy — member names not in public records
- Strong asset protection laws
- 5-year total cost: ~$1,650 (with Form 5472)
New Mexico
Lowest Total Cost- $50 formation fee — lowest in the US
- No annual report — ever
- No state income tax
- Member names not publicly listed
- No annual state fees after formation
- 5-year total cost: ~$1,300 (with Form 5472)
Delaware
VC-Backed Startups Only- $90 formation fee
- $300+/year minimum franchise tax
- Preferred by investors for equity structures
- Most sophisticated business court (Court of Chancery)
- 5-year total cost: ~$2,840 (with Form 5472)
Florida
US Physical Operations- $125 formation fee
- $138.75/year annual report
- No state income tax
- Best for LLCs with US employees or offices
- 5-year total cost: ~$2,070 (with Form 5472)
For a deeper comparison including privacy rules, asset protection, and 5-year cost calculations, see the complete state comparison guide.
The Online LLC Formation Process: Step by Step
Choose your state and verify your LLC name
Select the state based on your business needs (see state comparison above). Check that your desired LLC name is available in the state's business name database — it must be unique in that state and must include "LLC," "L.L.C.," or "Limited Liability Company" in the name.
Appoint a registered agent
Every US LLC requires a registered agent — a person or service with a physical street address (not a PO Box) in the formation state, available during business hours to receive legal documents and government mail on behalf of the LLC. Non-US residents cannot serve as their own registered agent. A professional registered agent service is the standard solution.
Complete registered agent guide →File Articles of Organization with the Secretary of State
Articles of Organization is the document that legally creates the LLC. It is filed with the state's Secretary of State office. The document includes: LLC name, registered agent name and address, principal office address, organizer information, and management structure (member-managed or manager-managed). Most states process electronic filings within 24–72 hours.
Articles of Organization guide →Draft and sign the Operating Agreement
The Operating Agreement is the internal governance document that defines ownership, management, profit distribution, and exit procedures. It is not filed with the state — it stays private. Mercury, Relay, and Stripe require it to open business accounts. Every LLC needs one, even single-member LLCs.
Complete operating agreement guide →Obtain an EIN (Employer Identification Number)
The EIN is the LLC's federal tax ID number — the business equivalent of a Social Security Number. It is required to open a US business bank account (Mercury, Relay), set up Stripe Business, hire employees, and file Form 5472 annually. Non-US residents apply via IRS Form SS-4, submitted by fax. Processing takes 2–4 weeks for international filers. Monezzi handles this as part of every formation package.
EIN for foreigners guide →Open a US business bank account
With your Articles of Organization, Operating Agreement, and EIN in hand, you can open a US business bank account. Mercury and Relay are the two leading options for non-US LLC owners — both are fully digital, support foreign-owned single-member LLCs, and have no monthly fees. Both require EIN, Articles, and Operating Agreement at onboarding.
File FinCEN BOI Report (Beneficial Ownership Information)
As of 2024, most US LLCs must file a Beneficial Ownership Information report with FinCEN (Financial Crimes Enforcement Network) within 90 days of formation. This free filing identifies the LLC's beneficial owners (individuals who own 25%+ or exercise substantial control). New LLCs formed in 2025 and beyond must file within 30 days of formation. No government fee — optional service assistance available.
Formation Timeline Overview
Required Documents for LLC Formation
Articles of Organization
The foundational formation document filed with the Secretary of State. Creates the LLC as a legal entity. Becomes a public record. Includes LLC name, registered agent, and organizer. Filed as part of formation — Monezzi handles this.
Operating Agreement
Internal governance document defining ownership, management, and operations. Never filed with the state. Required by Mercury, Relay, and Stripe. Protects the corporate veil. Monezzi includes this in every package.
EIN Confirmation Letter
IRS confirmation that assigns the LLC its Employer Identification Number. Received as IRS Letter CP 575 (original) or 147C (replacement). Required for banking, Stripe, and annual Form 5472 filing.
Passport / Government ID
For the EIN application (Form SS-4), the LLC owner must provide their full legal name, address, and Social Security Number or ITIN — or, for non-US residents without either, a foreign TIN and country of citizenship. Monezzi prepares the SS-4 using your passport information.
BOI Report
Beneficial Ownership Information report filed with FinCEN. Required within 90 days of formation (30 days for LLCs formed after January 1, 2025). Identifies individuals who own 25%+ or exercise control. No government fee.
DBA / Trade Name Registration
If you want to operate under a business name different from your LLC's legal name, you register a DBA (Doing Business As) with the state. This is optional and separate from LLC formation. Not required if you operate under the LLC name itself.
After Formation: Annual Compliance Requirements
LLC formation is a one-time event. Compliance is ongoing. Every year your LLC exists, the following obligations apply — failing any of them has financial or legal consequences:
IRS Form 5472 + Pro Forma 1120 — Deadline: March 31
Mandatory annual filing for all foreign-owned US LLCs. Reports all transactions between the LLC and its foreign owner. Due March 31 every year — including years with zero revenue. Penalty for missing: $25,000 minimum per form per year. This is the single most important compliance obligation for non-US LLC owners.
State Annual Report — Deadline varies by state
Most states require an annual or biennial report confirming the LLC is still active. Fees: $0 (New Mexico — no report required), $60 (Wyoming), $138.75 (Florida), $300+ (Delaware). Late fees can be significant — Florida charges $400 after May 1.
Registered Agent — Ongoing
The LLC must maintain an active registered agent in the formation state at all times. If the agent is canceled without replacement, the state may administratively dissolve the LLC. Monezzi's packages include registered agent service with no separate renewal invoice.
FinCEN BOI Report Updates — Ongoing
If the LLC's beneficial ownership information changes (new owner, changed address, new controlling person), the BOI report must be updated within 30 days of the change. No ongoing annual filing required unless information changes.
Operating Agreement Updates
The operating agreement should be amended whenever significant business circumstances change — new members added, ownership percentages change, or the LLC's activities fundamentally shift. No state filing required for most amendments.
EIN Tax Account Maintenance
The LLC's EIN is permanent. Ensure the IRS has the current responsible party information on file. If you later elect S-Corp or C-Corp status for tax purposes, additional IRS filings are required. For most single-member LLCs with disregarded entity status, the EIN requires no ongoing maintenance beyond the annual Form 5472.
For a complete breakdown of ongoing costs, see the LLC formation and annual cost guide. For the Form 5472 obligation in detail, see the Form 5472 complete guide.
Online LLC Formation: What It Actually Means
When people search for "online LLC formation," they are usually asking whether the entire process can be completed remotely — without visiting a government office, mailing physical documents, or having a US address of their own. The answer is yes, for most states and most situations.
Online LLC formation works as follows: the Articles of Organization are submitted electronically through the state's official filing portal (or through a formation service like Monezzi that does this on your behalf). The state processes the filing and returns the stamped formation documents electronically, typically in 24–72 hours. The Operating Agreement is executed digitally. The EIN application (Form SS-4) is sent by international fax to the IRS — the only non-digital step, and one that Monezzi handles. Banking setup with Mercury or Relay is fully digital.
The complete LLC formation process — from starting the order to having a fully documented LLC with EIN — is typically completed in 4–6 weeks for non-US residents, with the EIN processing time being the primary variable.
LLC Formation Cost Summary
The total cost of LLC formation includes several components beyond the state filing fee:
| Component | Cost | Notes |
|---|---|---|
| State filing fee | $50–$200 | New Mexico $50, Wyoming $100, Florida $125, Delaware $90 |
| Registered agent (Year 1) | $0 with Monezzi | Required in formation state — included in Monezzi packages |
| Operating agreement | $0 with Monezzi | Included in Monezzi packages |
| EIN application | $0 with Monezzi | IRS Form SS-4 — free to the IRS, included in packages |
| Ongoing: annual report | $0–$300/year | Varies by state; New Mexico: $0/year |
| Ongoing: Form 5472 | $200–$500/year | Mandatory for foreign-owned LLCs — not optional |
See the complete LLC cost guide including 5-year total cost comparisons by state.
LLC Formation — Frequently Asked Questions
What is LLC formation?
LLC formation is the legal process of creating a Limited Liability Company in a US state. It involves filing Articles of Organization with the Secretary of State, appointing a registered agent, drafting an operating agreement, and obtaining an EIN from the IRS. The result is a separate legal entity that provides limited liability protection to its owner(s) and enables opening US business bank accounts, processing payments through Stripe, and contracting with US enterprise clients.
Can I form a US LLC online from outside the US?
Yes. Non-US residents can form a US LLC entirely online without visiting the US. The Articles of Organization is filed electronically with the state. The Operating Agreement is executed digitally. The EIN application is processed by fax to the IRS. Banking setup with Mercury and Relay is fully remote. Monezzi handles all of this for clients from over 30 countries, with no travel required.
What is online LLC formation and is it legitimate?
Online LLC formation refers to completing the entire LLC registration process digitally, without physical visits to government offices. It is fully legitimate — state Secretary of State offices accept electronic filings and return formation documents electronically. Online formation services like Monezzi file Articles of Organization through official state portals on your behalf, prepare the operating agreement, and submit the EIN application to the IRS. The end result is an LLC that is identical to one formed in person.
How long does LLC formation take?
State filing processing: 24–72 hours in most states (electronic filing). Operating agreement: same day with Monezzi. EIN for non-US residents: 2–4 weeks via IRS Form SS-4 by fax. Mercury or Relay bank account: 1–5 business days after EIN received. Total time from order to fully operational LLC with bank account: typically 4–6 weeks for non-US residents.
What is the cheapest state for LLC formation?
New Mexico has the lowest formation cost: $50 state filing fee and $0/year in annual fees (no annual report required). Over 5 years, the only state-level cost is $50. Wyoming is second at $100 formation + $60/year annual report. For most non-US residents without specific state connections, New Mexico (lowest cost) and Wyoming (best overall value for privacy and protections) are the top two choices. See the state comparison guide for full details.
Do I need an attorney for LLC formation?
Not typically. Single-member LLC formation for a non-US resident with standard needs does not require an attorney. A professional formation service handles the Articles of Organization, operating agreement, and EIN application. Where an attorney adds value: multi-member LLCs with complex ownership structures, LLCs involved in regulated industries, or situations requiring specific legal advice on tax treatment, immigration implications, or cross-border contracts. Monezzi's formation packages cover everything a standard LLC needs without an attorney.
What happens after LLC formation?
After formation: (1) open a US business bank account with Mercury or Relay using your EIN, Articles, and Operating Agreement; (2) file the FinCEN BOI report within 90 days; (3) set up Stripe Business or other payment processors; (4) file IRS Form 5472 by March 31 of the following year (mandatory for foreign-owned LLCs — $25,000 penalty if missed); (5) pay the state annual report fee if your state requires one. These ongoing obligations continue every year the LLC exists.
What is the difference between LLC formation and LLC registration?
LLC formation and LLC registration refer to the same process — creating the LLC in a state by filing Articles of Organization. "Formation" is more commonly used for the initial creation of the LLC. "Registration" is sometimes used to describe either the initial creation or, in certain contexts, registering an already-existing LLC in an additional state (called "foreign qualification" or "foreign registration"). For most people searching online, LLC formation and LLC registration mean the same thing: the process of legally creating a new LLC in a US state.
LLC formation is the process of legally creating a US LLC online. For non-US residents: choose a state (Wyoming or New Mexico for most), appoint a registered agent, file Articles of Organization, draft an operating agreement, and obtain an EIN. After formation: open Mercury or Relay account, file Form 5472 annually. Total timeline: 4–6 weeks. Total first-year cost with Monezzi: state fee + Form 5472 — everything else included.
Monezzi handles the complete LLC formation online — Articles, registered agent, operating agreement, EIN, BOI filing, and compliance calendar. Start your LLC formation today → or view complete pricing →