how to get an EIN as a Non-U.S. Resident
Here’s something that surprises many international entrepreneurs: you don’t need to be a U.S. citizen, have a visa, or live in America to start a U.S. business.
You can form an LLC or corporation from anywhere in the world. Thousands of non-resident founders do it every year to access U.S. banking systems, work with American payment processors like Stripe, serve U.S. customers, and build credibility with a U.S. business address.
The process isn’t complicated, but it does have specific steps that must be done correctly. Getting an EIN (Employer Identification Number) is one of the most important ones. The IRS assigns this nine-digit tax ID number to your business, and you’ll need it to open bank accounts, file tax returns, and handle most business transactions.
This guide walks you through everything: choosing your business structure, picking the right state, forming your entity, getting your EIN, and opening a U.S. bank account. We’ll be honest about what’s easy and what’s challenging, including realistic timelines and costs.
Which Entity Type to Choose
Most international entrepreneurs should form an LLC (Limited Liability Company). It’s simpler than a corporation, offers personal asset protection, and gives you flexibility in how profits are taxed.
Why LLCs Work Well for Non-Residents
An LLC protects your personal assets from business debts. If someone sues your business or it can’t pay its bills, they generally can’t go after your house, car, or personal bank accounts.
LLCs also have fewer ongoing requirements than corporations. You don’t need to hold annual shareholder meetings, keep corporate minutes, or issue stock certificates. This matters when you’re managing a business from another country.
When to Consider a C-Corporation Instead
Choose a C-Corporation if you plan to raise money from U.S. venture capital firms. Most VCs won’t invest in LLCs due to tax complications on their end.
C-Corps also qualify for QSBS (Qualified Small Business Stock) treatment, which can eliminate federal taxes on up to $10 million in gains when you sell the business. This only helps if you become a U.S. tax resident before selling, but it’s worth considering for high-growth businesses.
Skip the S-Corporation
S-Corporations have restrictions that make them impractical for most non-residents. The IRS generally doesn’t allow foreign individuals to be S-Corp shareholders, so this option is usually off the table.
Single-Member LLC Tax Considerations
If you’re the only owner of your LLC, the IRS treats it as a “disregarded entity” for tax purposes. This means the LLC itself doesn’t pay U.S. taxes, but you’ll have reporting obligations we’ll cover in the tax section.
Which State to Form In
You can form your business in any U.S. state regardless of where you live or plan to operate. Here’s where most international founders should consider:
Wyoming (Recommended for Most)
Wyoming offers the best combination of privacy, low costs, and business-friendly laws for international founders. Annual fees are just $60, there’s no state income tax, and you’re not required to list member names publicly.
Wyoming also has strong LLC laws that courts respect, and the state doesn’t require you to publish formation notices in newspapers (unlike New York).
Delaware for C-Corporations
If you’re forming a C-Corporation that might raise venture capital, Delaware is the standard choice. About 60% of Fortune 500 companies incorporate there, and the court system understands complex business disputes.
Delaware’s annual franchise tax starts at $175 for corporations, which is reasonable. For LLCs, the annual tax is $300, making it more expensive than Wyoming without clear benefits for most international founders.
New Mexico for Extra Privacy
New Mexico offers similar benefits to Wyoming with even more privacy protections. You don’t have to disclose member names anywhere, and the state doesn’t share information as readily with other agencies.
The downside is that fewer people know about New Mexico’s business laws, so you might occasionally encounter confusion from banks or service providers who expect Delaware or Wyoming entities.
Avoid High-Tax States
Don’t form in California or New York unless you actually have employees or offices there. California charges LLCs a minimum $800 annual tax even if they make no money. New York requires expensive newspaper publication and has high ongoing fees.
Step-by-Step: How to Form Your U.S. Business
Step 1: Choose Entity Type and State
Based on the guidance above, most international founders should form a Wyoming LLC. This gives you maximum flexibility with minimum ongoing costs and compliance requirements.
Timeline: 1 day to decide
Cost: Free (just your research time)
Step 2: Choose and Check Your Business Name
Your business name must be available in your chosen state and include required words like “LLC” or “Corporation.” Most states let you check name availability on their Secretary of State website.
Pick something professional that won’t embarrass you when talking to banks or customers. Avoid names that are too similar to existing businesses, especially large ones with trademark attorneys.
Timeline: 1-3 days
Cost: Free to check availability
Step 3: Appoint a Registered Agent
Every U.S. business needs a registered agent with a physical address in the state where you’re forming. This person or company receives legal documents and government mail on behalf of your business.
You can’t use a P.O. box, and you can’t serve as your own registered agent if you don’t live in the formation state. We provide registered agent service in all 50 states as part of our formation packages.
Timeline: Same day (when using a service)
Cost: $100-300 annually
Step 4: File Formation Documents
For LLCs, you file articles of organization with the state. For corporations, you file articles of incorporation. These documents officially create your business entity.
Each state has different forms and filing fees. Wyoming charges $100 for LLC formation, while Delaware charges $90. Some states process filings within 24 hours, others take 1-2 weeks.
We handle the filing process and track your application status until approved.
Timeline: 1-15 days depending on state
Cost: $50-500 in state fees
Step 5: Get Your EIN from the IRS
This is where many international founders hit their first real hurdle. The IRS Form SS-4 application is straightforward, but non-residents can’t apply online. You must apply by fax, mail, or phone.
The fax method works best for international applicants. Fill out Form SS-4 completely, including your foreign address and tax ID number from your home country. Fax it to the IRS at (855) 641-6935.
The IRS typically responds within 4-8 weeks by mail to your registered agent address. Don’t start the EIN process until your entity formation is complete, because you’ll need your formation date and state file number.
Timeline: 4-8 weeks
Cost: Free (IRS doesn’t charge fees)
Step 6: Draft Operating Agreement or Bylaws
LLCs need an Operating Agreement that spells out ownership percentages, management structure, and what happens if someone wants to sell their interest. Corporations need Bylaws that cover similar ground plus board and shareholder procedures.
Even single-member LLCs should have an Operating Agreement. Banks often require it, and it helps maintain the legal separation between you and your business.
Timeline: 1-3 days
Cost: $0-2,000 depending on complexity
Step 7: Open a U.S. Business Bank Account
This is honestly the hardest step. U.S. banks have become very cautious about opening accounts for foreign-owned businesses due to anti-money laundering regulations.
Many traditional banks simply won’t work with non-resident business owners. Online business banks like Mercury, Relay, and Wise Business are often more receptive, but requirements change frequently.
You’ll typically need your EIN, formation documents, Operating Agreement, and proof of business address (your registered agent address works). Some banks require additional documentation about your personal identity and business purpose.
Timeline: 2-8 weeks
Cost: Varies by bank (some have minimum deposits)
Opening a U.S. Bank Account — The Hard Part
Let’s be direct: this is where many international founders struggle. U.S. banking regulations make it genuinely difficult for non-residents to open business accounts.
Banks That Sometimes Work
Online business banks tend to be more flexible than traditional banks. Mercury focuses on tech startups and sometimes works with international founders. Relay and Wise Business (formerly TransferWise) also serve non-resident business owners.
Requirements change frequently based on regulatory pressure, so what works today might not work next month. Having all your documentation ready improves your chances.
What Banks Typically Require
Most banks want to see:
- Your EIN letter from the IRS
- Articles of Organization or Incorporation
- Operating Agreement or Bylaws
- Business license (if required in your industry)
- Proof of business address
- Personal identification documents
Some banks also ask for proof of business activity like contracts, invoices, or a business plan. They want to understand what your business does and why you need a U.S. bank account.
Payment Processors as an Alternative
If banking proves difficult, consider starting with a payment processor like Stripe or PayPal Business. These often have simpler approval processes than traditional banks and let you accept credit card payments immediately.
You can use payment processors to build business history while continuing to work on a full business bank account. Many successful international businesses operate this way for months or years.
Tips from Successful Founders
Be patient and apply to multiple banks. Different institutions have different risk appetites and may evaluate your application differently.
Have a clear, honest explanation of your business ready. Banks worry about money laundering, so being transparent about your business model and customers helps build trust.
Consider visiting the U.S. if possible. Some banks are more comfortable opening accounts for foreign business owners who can meet in person, even if it’s not required.
Tax Obligations for Foreign-Owned U.S. Businesses
Important: This section is educational only. Tax rules are complex and change frequently. You must work with a CPA who specializes in international tax matters.
Single-Member LLC Requirements
If you own 100% of your LLC, you must file Form 5472 every year, even if the business made no money. This form reports transactions between your LLC and foreign related parties (basically, you).
The penalty for not filing Form 5472 starts at $25,000. The IRS doesn’t mess around with this requirement.
Your LLC typically won’t owe U.S. income tax on profits that aren’t connected to a U.S. trade or business, but determining what qualifies is complex. You might also have tax obligations in your home country.
Multi-Member LLC Requirements
If your LLC has multiple owners, it must file a partnership return (Form 1065) annually. Each owner receives a K-1 form showing their share of income, deductions, and credits.
C-Corporation Requirements
C-Corporations must file annual tax returns regardless of where the owners live. The corporation pays U.S. tax on its profits, and shareholders pay tax on any dividends received.
ITIN vs. EIN
Your business needs an EIN (the main topic of this guide). You personally might need an ITIN (Individual Taxpayer Identification Number) if you have U.S. tax filing requirements but don’t qualify for a Social Security Number.
Tax Treaties
The U.S. has tax treaties with many countries that can reduce or eliminate certain taxes. Whether these help depends on your specific situation, business activities, and home country.
Get Professional Help
Hire a CPA who regularly works with international clients and U.S. business taxation. This isn’t optional. The penalties for getting it wrong are severe, and the rules change frequently.
Ongoing Compliance Requirements
Forming your business is just the beginning. You’ll have ongoing obligations to keep it in good standing.
Annual Reports
Most states require annual reports that update your business information and confirm you’re still operating. Wyoming’s annual report costs $60 and is due by the first day of the month your LLC was formed.
Registered Agent Maintenance
You must maintain a registered agent as long as your business exists. If you stop paying your registered agent service, your business could be dissolved by the state.
IRS Filing Requirements
Based on your entity type and ownership structure, you’ll have annual federal tax filing requirements even if you owe no tax.
State Tax Obligations
Some states impose taxes on out-of-state businesses that have no physical presence there. Research your chosen state’s requirements or work with a CPA who understands multi-state taxation.
Our compliance tools help international clients track deadlines and requirements across all these areas, so nothing falls through the cracks when you’re managing a business from another time zone.
Common Mistakes International Founders Make
Using Random Addresses Instead of Proper Registered Agents
Some founders try to save money by using mail forwarding services or virtual offices as their registered agent address. This often doesn’t meet legal requirements and can cause problems with banks and government agencies.
Applying for Bank Accounts Before Getting an EIN
Most banks require an EIN before they’ll even consider your application. Get your EIN first, then start the banking process.
Choosing the Wrong State
Many international founders automatically pick Delaware or California because they’re well-known. For most businesses, Wyoming or New Mexico offer better benefits at lower cost.
Ignoring Form 5472 Requirements
The $25,000+ penalty for not filing Form 5472 has surprised many single-member LLC owners. This filing requirement exists even if your business made no money.
Assuming LLCs Have No U.S. Tax Obligations
While your LLC might not owe U.S. income tax, you still have information reporting requirements. Don’t assume that “no tax owed” means “no forms to file.”
Using Personal PayPal Instead of Business Banking
Mixing personal and business finances destroys the liability protection that made you form an LLC in the first place. Keep everything separate from day one.
Frequently Asked Questions
Do I need a visa to form a U.S. business?
No. You can form and own a U.S. business regardless of your immigration status. The business formation process is separate from visa requirements.
How much does it cost to form a U.S. business?
Expect $500-1,500 in total costs for a basic LLC, including state filing fees, registered agent service, and formation assistance. Ongoing costs are typically $200-500 annually.
How long does the entire process take?
Plan on 4-8 weeks from start to having an operational business with a bank account. Entity formation takes 1-2 weeks, EIN processing takes 4-8 weeks, and banking can take 2-8 weeks depending on the institution.
What if I can’t open a U.S. bank account?
Start with payment processors like Stripe or PayPal Business while continuing to work on traditional banking. Many successful businesses operate this way initially.
Do I need to pay U.S. taxes?
It depends on your business activities and entity structure. You’ll likely have inFormation filing requirements even if you owe no tax. Work with an international tax CPA to understand your specific obligations.
Can I serve as my own registered agent?
Only if you have a physical address in your formation state. Most international founders need to hire a registered agent service.
How do I maintain my business once it’s formed?
You’ll need to file annual reports with your state, maintain your registered agent service, and meet any federal tax filing requirements. Keeping good records and working with qualified professionals makes this manageable.
Do I need a U.S. partner?
No. You can own 100% of your U.S. business as a non-resident. Some founders add U.S. partners later to help with banking or operations, but it’s not required for formation.
Conclusion
Forming a U.S. business as a non-resident is absolutely doable, but success depends on getting the details right. The process involves specific steps that must be completed in order, realistic timelines that you need to plan around, and ongoing obligations that you can’t ignore.
The key challenges are usually getting your EIN (which takes 4-8 weeks by fax for international applicants) and opening a U.S. bank account (which requires patience and sometimes multiple applications). The formation itself is straightforward when you have proper guidance.
Most international entrepreneurs find that the benefits — access to U.S. banking, payment processors, and markets — make the effort worthwhile. Just be prepared for a process that takes 1-2 months from start to finish, and budget for professional help with tax compliance.
Ready to get started? We walk international founders through entity selection, state filing, EIN registration, and ongoing compliance — all in one place. Our registered agent service operates in all 50 states, and our compliance tools help you stay on top of requirements no matter where you’re located. [Get started with your U.S. business formation today](https://www.businessformations.com/get-started/).
