Can a foreigner start a US company?
Yes. US law doesn't require company owners to be US citizens or residents, so a founder from almost any country can start a US company and own 100% of it. You don't need a visa, a US address or a US partner. The one legal requirement is a registered agent — a person or company with a physical address in your formation state who receives legal and tax mail on your company's behalf. Residents of OFAC-sanctioned countries face restrictions and should speak to us first.
Choosing between a US LLC and a C-Corp
For most non-residents, a US LLC (limited liability company) is the simplest and most tax-efficient choice. It protects your personal assets, needs very little paperwork, and a foreign-owned single-member LLC with no US trade or business is generally treated as a "disregarded entity" for US federal income tax.
A C-Corporation pays 21% federal corporate tax, but it's the structure US investors expect. If you plan to raise venture capital or join an accelerator, a Delaware C-Corp is almost always required.
Choosing the best state for your US company
You can form your company in any state, regardless of where your customers are. For online businesses run from abroad, the most popular choices are:
- Wyoming LLC — no state income tax, strong privacy and a $60 minimum yearly fee
- New Mexico LLC — no annual report and the lowest lifetime cost
- Delaware LLC or C-Corp — the standard for startups and investors
- Texas or Florida LLC — for staffing, trade and businesses with real US operations
If your business will have an office, employees or inventory in a particular state, forming there directly usually saves you registering twice. The state finder at the top of this page gives a quick recommendation.
How much does it cost to form a US company?
There are two separate parts. The government filing fee is set and charged by the state (from about $40 to $500) and is passed through at cost. The Koshika service fee is our professional fee: $299 for the Standard package, which covers preparing and submitting your formation filing, your registered agent for the first year, your operating agreement and EIN application assistance. After Year 1, budget for your state's yearly government fee, registered agent renewal and your yearly IRS filing.
Applying for an EIN as a non-resident
An EIN (Employer Identification Number) is your company's US tax ID, and it is issued by the Internal Revenue Service (IRS). You typically need it to open a bank account, use payment processors and file taxes. Applicants without an SSN can't use the IRS online application, so the application is submitted to the IRS by fax or mail. Koshika International assists eligible clients with the preparation and submission of their EIN application; processing times are determined by the IRS. An ITIN is different: it's a personal tax number, also issued by the IRS, and most LLC owners don't need one.
Opening a US bank account as a non-resident
Traditional US banks usually want you to visit a branch, but several fintech banking platforms onboard non-resident companies fully online. You'll typically need your formation documents, EIN, operating agreement, passport and a clear description of your business. Approval is never automatic: each financial institution decides independently. Premium clients receive additional assistance with their banking application.
Keeping your US company compliant
After your US company formation, three things keep you in good standing: renewing your registered agent, filing your state's annual report (where required), and filing Form 5472 with a pro-forma 1120 with the IRS every year — even if the company earned nothing. Missing Form 5472 carries penalties starting at $25,000, so we add every deadline to your compliance calendar and can prepare and file it for you.