Are Non-U.S. Residents Allowed to Own a Corporation or LLC?

Yes, non-U.S. residents can own a U.S. LLC or C Corporation. There's no federal citizenship or residency requirement for either entity type. You'll need a registered agent with a U.S. address, an Employer Identification Number (EIN), and you'll have tax reporting obligations — but none of that requires a green card or U.S. passport.

Yes. Non-U.S. residents — including foreign nationals living outside the country — can form and own a U.S. LLC or C Corporation. There is no federal law requiring U.S. citizenship, a green card, or physical presence in the United States to own either entity type.

Most states follow the same rule. Delaware, Nevada, California, and most other states explicitly permit non-residents and non-citizens to serve as owners, directors, or officers of a U.S. business. The state where you form your business matters more than your nationality.

One exception worth knowing: S Corporations. The IRS bars non-resident aliens from being S Corp shareholders. If you're a non-resident, an LLC or C Corporation is the right path.

Not every U.S. entity type is available to non-residents. The choice you make at formation affects your tax obligations, liability protection, and ability to raise investment — so it's worth getting right from the start.

LLC

Non-U.S. residents can own a single-member or multi-member LLC. Foreign persons can be members of a multi-member LLC taxed as a partnership. A single-member LLC owned by a foreign person is treated as a disregarded entity for U.S. tax purposes, which triggers a Form 5472 filing requirement each year.

C Corporation

Non-U.S. residents can own shares in a U.S. C Corporation without restriction. C Corps are the preferred structure for foreign founders who want to raise venture capital or issue multiple share classes. There are no nationality-based ownership limits at the federal level.

S Corporation

Non-resident aliens cannot be S Corporation shareholders. This is an IRS rule, not a state rule, so it applies regardless of where you form the business. Resident aliens — people with a green card or who meet the substantial presence test — are permitted to own S Corp shares.

Forming a U.S. LLC or C Corporation as a non-resident follows the same basic process as it does for U.S. residents — with a few additional requirements. Most of them are straightforward once you know what to expect.

• Registered agent with a U.S. address: Every U.S. LLC and corporation needs a registered agent — a person or business with a physical U.S. street address that can receive legal and government documents on your behalf. As a non-resident, you can't serve as your own registered agent unless you have a U.S. address. A registered agent service fills this role.
• U.S. business address: Most states require a U.S. address for your business's official records. A registered agent address or a virtual office address typically satisfies this requirement.
• Employer Identification Number (EIN): You need an EIN to open a U.S. business bank account, file taxes, and hire employees. Non-residents without a Social Security Number (SSN) can apply for an EIN by filing Form SS-4 with the IRS by mail or fax. The IRS also issues Individual Taxpayer Identification Numbers (ITINs) for individuals who need a U.S. tax ID but don't qualify for an SSN.
• State formation documents: File Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation) with the state where you're forming your business. Pay the state filing fee. No citizenship documentation is required.
• Visa (if you plan to work in the U.S.): Owning a U.S. business does not automatically give you the right to work in the United States. If you intend to be physically present and working in the business, you'll need the appropriate visa — such as an E-2 Treaty Investor visa or an EB-5 Immigrant Investor Program visa. Talk to an immigration attorney to figure out which visa fits your situation.

Opening a U.S. business bank account is one of the harder steps for non-residents — banks typically want to see your formation documents, EIN, a U.S. address, and a valid passport. Some banks require an in-person visit. Several online banks and fintech options have made this more accessible for foreign owners in recent years, but it's worth researching your options before you start the formation process.

Owning a U.S. business as a non-resident comes with real tax reporting obligations. The specific forms depend on your entity type and how your business is taxed — a tax professional who works with international clients can help you figure out what applies to your situation.

For a single-member LLC owned by a foreign person, the IRS requires Form 5472 to be filed annually. This form reports transactions between the LLC and its foreign owner. Not filing it — or filing it late — can mean a $25,000 penalty per form.

Foreign owners of C Corporations may also have Form 5471 obligations if they own 10% or more of a foreign corporation that has U.S. connections, or if a U.S. corporation they own has foreign shareholders above certain thresholds. The rules here get detailed fast — this is one area where getting professional guidance early saves real headaches later.

The U.S. also has tax treaties with many countries that affect how income from a U.S. business is taxed in your home country. Check whether your country has a treaty with the U.S. — it can affect your overall tax picture significantly.