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. Learn what's required: registered agent, EIN, tax reporting, and which entity types are open to foreign owners.
Bizee Editorial Staff
Editorial Team
Introduction
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 will need a registered agent with a U.S. address, an Employer Identification Number (EIN), and you'll have specific tax reporting obligations. One entity type — the S Corporation — is off the table for non-resident aliens.
Can a non-U.S. resident own a U.S. LLC or corporation?
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 or a green card to own either entity type. Most states impose no nationality restrictions on LLC or corporation ownership either.
The one exception is the S Corporation. The IRS requires all S Corp shareholders to be U.S. citizens or resident aliens. Non-resident aliens are not eligible to hold S Corp shares. If you're a non-resident, an LLC or C Corporation is the right starting point.
LLC — open to non-U.S. residents and foreign nationals with no citizenship requirement
C Corporation — open to non-U.S. residents; foreign shareholders are permitted
S Corporation — not available to non-resident aliens; U.S. citizenship or resident alien status required
Why entity choice matters for foreign owners
The entity type you choose affects your tax obligations, ownership flexibility, and how the IRS treats your business income. For non-residents, the LLC and C Corporation each come with distinct tax reporting requirements — and getting this wrong can mean back taxes, penalties, and months of paperwork.
A single-member LLC owned by a non-resident is treated as a disregarded entity by default, but it still has a federal filing requirement. The IRS requires foreign-owned single-member LLCs to file Form 5472 and a pro forma Form 1120 each year to report transactions between the LLC and its foreign owner. Missing this filing can mean a $25,000 penalty per form.
A C Corporation with foreign shareholders may trigger Form 5471 reporting obligations depending on the ownership percentage. A tax professional can help you figure out which forms apply to your situation before you file anything.
How to form a U.S. LLC or corporation as a non-resident
Forming a U.S. LLC or corporation as a non-resident follows the same basic process as it does for U.S. residents — with a few additional requirements. Most non-residents can complete the entire process from outside the country. You don't need to be physically present in the U.S. to form or own a U.S. business.
Choose a state of formation
You can form your LLC or corporation in any U.S. state. Delaware, Wyoming, and Nevada are popular choices for non-residents because of their business-friendly rules and privacy protections. Delaware allows non-residents to serve as incorporators, directors, or officers of corporations. Nevada and California also permit non-U.S. residents to own both LLCs and corporations. If you don't have a physical U.S. presence, forming in a state with low fees and minimal ongoing requirements often makes the most sense.
Appoint a registered agent with a U.S. address
Every U.S. LLC and corporation must have a registered agent — a person or business with a physical U.S. address in the state of formation who can receive legal and government documents on behalf of the business. As a non-resident, you'll need to appoint a registered agent service. This is one of the most practical requirements for foreign owners, and it's straightforward to handle before you file.
Get an EIN
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You need one to open a U.S. business bank account, hire employees, and file taxes. U.S. residents apply online at IRS.gov. Non-residents without a Social Security Number (SSN) can apply by fax or mail using Form SS-4, or by phone if calling from outside the U.S. Some non-residents qualify for an Individual Taxpayer Identification Number (ITIN) instead of an SSN, which can also be used in the EIN application process.
Open a U.S. business bank account
Opening a U.S. business bank account as a non-resident is possible, but takes more preparation than it does for U.S. residents. Most banks require your business formation documents, your EIN, a U.S. business address, and a valid passport or government-issued ID. Some banks require an in-person visit; others work with non-residents remotely. Online business banks and fintech options have made this more accessible in recent years, though requirements vary by institution.
Understand visa requirements 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 U.S. If you plan to be physically present and actively working in your business on U.S. soil, you'll need the appropriate visa. Common options include the E-2 Treaty Investor visa for nationals of treaty countries and the EB-5 Immigrant Investor Program for larger investments. An immigration attorney can help you figure out which visa applies to your situation.
FAQ
Yes. Non-U.S. residents can own a U.S. LLC without citizenship or a green card. There's no federal residency requirement for LLC ownership. You'll need a registered agent with a U.S. address in your state of formation, an EIN, and you'll have annual tax reporting obligations — including Form 5472 if your LLC is a foreign-owned single-member LLC.
Choose a state of formation, appoint a registered agent with a U.S. address, file your Articles of Organization with the state, and get an EIN from the IRS. Non-residents without an SSN apply for an EIN by fax, mail, or phone using Form SS-4. You can complete the entire process from outside the U.S. — no physical presence is required to form the LLC.
Yes. Non-resident aliens can be members of a U.S. LLC, including multi-member LLCs taxed as partnerships. The IRS allows foreign persons to participate in U.S. partnerships. Non-resident alien members will have U.S. tax obligations on income connected to the U.S. business, and the LLC may have additional reporting requirements. A tax professional can help you figure out what applies to your specific situation.
Yes. U.S. citizenship is not required to form an LLC. Foreign nationals — whether living abroad or in the U.S. on a visa — can form and own a U.S. LLC. The formation process is the same as for U.S. citizens. The main differences are in how you get an EIN (by fax, mail, or phone rather than online) and in your annual tax reporting obligations.
No. The IRS requires all S Corporation shareholders to be U.S. citizens or resident aliens. Non-resident aliens are not eligible to hold S Corp shares. If you're a non-resident and want to form a corporation, a C Corporation is the right entity type. If you later become a U.S. resident, you can explore whether an S Corp election makes sense at that point.
It depends on your LLC structure. Form 5472 is an IRS form that foreign-owned single-member LLCs must file each year to report transactions between the LLC and its foreign owner. It's filed alongside a pro forma Form 1120. Missing this filing can mean a $25,000 penalty per form. Multi-member LLCs with foreign members have different reporting requirements. A tax professional can help you figure out which forms apply.
No. You don't need a Social Security Number (SSN) to form a U.S. LLC. You do need an EIN, which non-residents without an SSN can get by applying with Form SS-4 by fax, mail, or phone. Some non-residents qualify for an Individual Taxpayer Identification Number (ITIN), which can also be used in the EIN application process. The IRS issues ITINs to foreign nationals who have U.S. tax obligations but aren't eligible for an SSN.
