How to register an LLC in the US from India

Setting up a US LLC from India is entirely possible and can be done online without visiting the US. Here’s how:

• Why Register a US LLC?
  • Access a market of 330M+ US consumers.
  • Avoid double taxation if no physical US presence.
  • Gain credibility and attract investors globally.
• Steps to Register Your LLC:
  1. Choose a unique business name.
  2. Appoint a registered agent in your chosen US state.
  3. File Articles of Organization with the state.
  4. Draft an Operating Agreement for internal governance.
  5. Obtain an EIN (Employer Identification Number) from the IRS.
• Choosing the Right State:
  Popular options include:
  • Wyoming: Low costs, no state income tax, strong privacy.
  • Delaware: Investor-friendly, widely recognized.
  • Nevada: No state income tax, minimal reporting.
  • New Mexico: Affordable, no annual reports.
• Banking and Compliance:
  Open a US business bank account through fintech platforms like Mercury or Wise. Stay compliant with annual reports, state fees, and federal tax filings.

What is a US LLC and Why Choose It

US LLC Definition and Structure

A Limited Liability Company (LLC) is a business structure recognized under state law that combines the liability protection of a corporation with the simplicity of a partnership. By forming an LLC, your business becomes a separate legal entity, which means your personal assets are generally protected from any debts or legal issues tied to the business.

An LLC can have one or more owners, referred to as members. A single-member LLC is owned by one individual, while a multi-member LLC has multiple owners. Typically, members manage the business themselves, but they can also appoint non-members to handle daily operations. The specifics of how an LLC operates are usually outlined in an internal document called an operating agreement, which covers roles, responsibilities, and how profits are shared.

This structure is particularly appealing for its simplicity and flexibility, making it an excellent choice for entrepreneurs.

Key Benefits for Indian Entrepreneurs

The structure of a US LLC offers several advantages that are especially useful for Indian entrepreneurs looking to expand globally:

• Limited Liability Protection: Your personal assets are safeguarded from business-related liabilities, ensuring financial security.
• Tax Flexibility: LLCs use a pass-through taxation model, meaning profits and losses are reported on your personal income tax return. This avoids the double taxation often associated with corporations. However, members are considered self-employed and must pay self-employment taxes, which include contributions to Social Security and Medicare.
• Operational Simplicity: LLCs require minimal paperwork, allowing you to focus on growing your business instead of being bogged down by administrative tasks.
• Global Credibility: Forming a US LLC can enhance your business’s reputation, making it easier to build partnerships and gain customer trust on an international scale.

This combination of benefits makes a US LLC a practical option for Indian entrepreneurs aiming to manage a global business efficiently.

Eligibility for Indian Citizens

Indian citizens can establish and own a US LLC without needing to be US residents or citizens. This makes it an accessible option for Indian entrepreneurs to create a legitimate US business presence while operating remotely.

Here’s what you’ll need to get started:

• Registered Agent: Ensure your registered agent complies with the requirements of the US state where your LLC is being formed.
• Employer Identification Number (EIN): This is issued by the IRS and is necessary for opening a US business bank account and conducting transactions in US dollars.
• US Business Bank Account: Many online banking services now cater to non-residents, making it easier to manage your finances remotely.

Once your LLC is set up, you’ll need to stay compliant with state and federal tax obligations, file required paperwork, and submit annual reports. With proper planning, these tasks can often be handled remotely.

With these steps in mind, you’re ready to move on to the process of registering your US LLC.

How to Choose the Right State for LLC Registration

Picking the right state for LLC registration is a critical decision for Indian entrepreneurs entering the U.S. market. Each state has its own set of rules, fees, tax structures, and compliance requirements that can significantly influence your business operations and costs.

Factors to Consider When Choosing a State

When deciding where to register your LLC, keep these important factors in mind:

Filing Fees and Ongoing Costs
The initial filing fees are just the beginning. States also charge annual fees that vary widely. For instance, Wyoming’s annual fee is about $60 for LLCs with assets under $250,000, while Delaware charges a $300 franchise tax regardless of business size.

Tax Obligations
Taxes can have a big impact on your bottom line. Wyoming and Nevada, for example, don’t impose state income taxes, while other states may require franchise taxes, gross receipts taxes, or other levies that can add to your yearly expenses.

Privacy Protection
Privacy rules differ by state. Wyoming allows LLC owners to remain anonymous, and Delaware also offers strong privacy protections. On the other hand, some states require detailed ownership disclosures.

Compliance Requirements
Reporting obligations vary, too. Some states, like New Mexico, don’t require annual reports, while others do. Complex compliance rules can increase both administrative workload and the need for professional support.

Popular States for Non-Residents Compared

Here’s a comparison of four popular states for non-resident LLC formation, each offering distinct benefits for Indian entrepreneurs:

Wyoming is ideal for entrepreneurs focused on minimizing costs while maximizing privacy and asset protection. The state has seen a 90% increase in business applications from 2020 to 2024, reflecting its growing appeal.

"Wyoming is the preeminent destination for small businesses. The state has low fees, the strongest asset protection, and allows anonymous LLCs."

• Jonathan Feniak, Esq., MBA

Delaware is a favorite for businesses planning to attract investors. Over 66% of Fortune 500 companies are registered there, and more than half of U.S. publicly traded corporations incorporate in Delaware. Its specialized Court of Chancery offers predictable legal interpretations that investors trust.

"Most founders prefer Delaware because it offers ultimate privacy. LLC members’ names aren’t required to be disclosed."

• Katelynn Minott, CPA & CEO, Bright!Tax

Nevada appeals to entrepreneurs seeking tax advantages alongside robust legal protections. The absence of state income tax and minimal reporting requirements makes it an attractive choice for those valuing privacy and simplicity.

New Mexico stands out for its affordability, with a $50 filing fee and no annual reports required. However, its lower prestige in the business world might be a drawback for some.

Best State Options for Indian Entrepreneurs

The best state for your LLC depends on your business model. Here’s a breakdown of state-specific advantages:

• For Online Businesses and Digital Services:
  Wyoming is a top pick for companies operating online without a physical U.S. presence. Its low costs, strong privacy protections, and lack of state income tax help keep expenses down and profits high.
• For Investment-Seeking Businesses:
  Delaware is the go-to choice for businesses aiming to attract venture capital or angel investors. Its investor-friendly legal framework and reputation enhance credibility, even though the franchise tax adds to costs.
• For Cost-Sensitive Operations:
  New Mexico is perfect for entrepreneurs on a budget. Its low filing fee and absence of annual reporting requirements make it highly affordable. However, be mindful of its lesser standing in the business community.
• For Businesses with a Physical Presence:
  If your business will have employees, customers, or facilities in a specific state, it’s often best to register there. For instance, Florida, which processed 634,321 business applications in 2024 and has no personal state income tax, is a strong option for businesses with significant physical operations.

Balancing costs, legal protections, and tax advantages is key to making the right choice. Many Indian entrepreneurs running online businesses favor Wyoming for its combination of benefits, while those seeking investors often lean toward Delaware for its established legal framework.

Once you’ve selected the best state for your LLC, you’ll be ready to dive into the registration process.

Step-by-Step Process to Register a US LLC from India

You can complete every step of the process remotely using online filing systems. Here’s a detailed look at each step to guide you through registering a US LLC from India.

Step 1: Select a Business Name

Choosing the right name for your LLC is crucial. Most states require your LLC’s name to be unique and include a designator like "LLC", "L.L.C.", or "Limited Liability Company" to indicate its legal status. Avoid names that suggest government affiliation or regulated industries unless you have the proper licenses. Additionally, your name cannot closely resemble another business or misrepresent your entity type.

To avoid potential conflicts, check both state and federal databases for name availability. A well-chosen name not only meets legal requirements but also reflects your brand’s identity. It’s a good idea to secure a matching domain name (e.g., YourLLCName.com) and check for available social media handles. If you plan to operate under a different name later, you can register a "doing business as" (DBA) name.

Step 2: Appoint a Registered Agent

Nearly every US state requires LLCs to designate a registered agent. This person or service acts as the official point of contact for your LLC, handling legal notices, government correspondence, and service of process. The registered agent must have a physical address in the state where your LLC is formed and be available during standard business hours.

A registered agent helps protect your privacy by keeping your personal address off public records. For Indian entrepreneurs without a US address, this service is especially convenient. Fees for registered agent services typically range from $50 to $300 per year. Platforms like BusinessAnywhere provide registered agent services across all states, offering the first year free when you register your LLC through them.

Step 3: File Articles of Organization

Filing the Articles of Organization officially creates your LLC as a legal entity. This document typically includes:

• Your LLC’s name (with the required designator)
• A principal business address
• The business purpose
• Registered agent details
• Names of initial members or managers

You can usually file online or by mail, depending on the state. Filing fees range from $50 to over $400, excluding any additional service costs. Once processed, the state office (commonly the Secretary of State) will provide a filed copy of the Articles of Organization. This document is essential for opening a business bank account, filing taxes, and other official activities.

Step 4: Draft an Operating Agreement

An Operating Agreement, while not always legally required, is a vital internal document for your LLC. It outlines how your business will be run, including member roles, decision-making procedures, profit and loss distribution, and rules for adding or removing members. For multi-member LLCs, this agreement can help prevent disputes by clearly defining each member’s responsibilities and ownership percentages.

If you’re managing your LLC remotely from India, consider including clauses that address international operations, currency exchange, and communication across time zones. While templates are available, working with a business attorney familiar with your state’s laws can ensure the agreement is tailored to your needs. BusinessAnywhere can connect you with legal experts who specialize in assisting international entrepreneurs.

Step 5: Get an EIN (Employer Identification Number)

An Employer Identification Number (EIN) acts as your LLC’s tax ID. Issued by the IRS, it’s required for tasks like opening a US business bank account, filing taxes, hiring employees, and applying for business licenses. For Indian entrepreneurs, an EIN is particularly important because it allows you to establish your LLC’s tax identity without needing a Social Security number.

The IRS provides multiple ways to apply for an EIN, with the online application being the fastest for eligible applicants. However, international applicants may face restrictions with the online system. In such cases, you can apply by mail, though this method may take longer. If you need help with the process, BusinessAnywhere offers an EIN application service to make this step easier.

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How to Open a US Business Bank Account Remotely

Once your LLC registration is complete, the next step is managing your finances. For Indian entrepreneurs, opening a US business bank account has become more challenging due to stricter policies from traditional banks, especially for non-resident LLC owners. However, there are still viable options. Below, we’ll cover the necessary documents, banking choices, and how BusinessAnywhere can make the process easier.

Required Documents for Account Setup

While requirements vary from bank to bank, most institutions ask for a standard set of documents. These typically include:

• Certificate of Incorporation or Articles of Organization from your state filing.
• EIN Confirmation Letter from the IRS to verify your tax identification.
• Operating Agreement to outline your LLC’s structure and ownership.

You’ll also need a valid passport copy as your primary ID, and in some cases, additional photo IDs. A proof of address is mandatory – this could be a recent utility bill (dated within 60 days), a pay stub, or an official letter displaying your name and address.

Some banks may ask for proof of US business activity, such as lease agreements, customer contracts, or transaction records with US-based clients. If you don’t have a Social Security Number (SSN), banks might require you to fill out IRS Form W-8 BEN. For those needing an alternative to an SSN, an ITIN (Individual Taxpayer Identification Number) can often be used. It’s always a good idea to contact the bank beforehand to confirm their exact documentation requirements, as these can vary and are subject to change.

Banking Options for Non-Residents

Traditional banks often require in-person visits or have intricate verification processes, making it tough for non-residents to open accounts remotely. Thankfully, fintech companies and digital banks provide more accessible solutions.

Here are some options:

• Mercury, Brex, Wise, Airwallex, and Payoneer: These fintech platforms offer simplified online account applications tailored for remote businesses.
• Relay Bank: A fully online bank designed for startups and small businesses.
• NorthOne: Known for its intuitive digital banking experience and mobile-friendly platform.
• BlueVine: Offers no-fee business checking accounts with the potential to earn interest.
• Lili Bank: Focused on freelancers and small business owners, providing easy-to-use banking tools.

Most of these options let you complete the application process entirely online. However, you’ll still need to provide the required documents and, in some cases, make a minimum deposit. Deposits are typically handled via ACH, wire transfer, or check, depending on the bank’s policies.

How BusinessAnywhere Can Help

BusinessAnywhere makes opening a US business bank account simpler by offering tailored support as part of their business formation services. They understand the hurdles Indian entrepreneurs face and work with banks that are more welcoming to non-resident LLC owners.

One standout feature is their virtual mailbox service, which provides a legitimate US business address in states like Florida, Arizona, New Mexico, or Wyoming. This address meets the requirements of many banks while also including unlimited mail scanning and global forwarding, ensuring you never miss critical correspondence.

Additionally, BusinessAnywhere offers an EIN application service, ensuring all your tax documentation is correctly handled. Their compliance support and centralized dashboard make it easy to manage and provide any required business documents, helping you maintain a smooth relationship with your chosen bank.

How to Maintain and Manage a US LLC from India

Setting up your LLC is just the first step. To keep your business running smoothly, staying compliant is key – especially when managing it remotely from India. For Indian entrepreneurs, keeping up with these requirements ensures your LLC remains in good standing and avoids unnecessary penalties.

Annual Reports and Compliance Deadlines

Each state has its own rules for LLC upkeep, and most require you to file annual or biennial reports. These reports update details like your registered agent’s information, business address, or membership roster. Filing deadlines vary by state, so check with your state’s business filing office to stay on track.

At the federal level, the requirements are strict, with hefty penalties for missing deadlines. For example:

• Single-member LLCs owned by foreign individuals must file Form 5472 along with a pro forma Form 1120 by April 15 each year.
• Multi-member LLCs need to file Form 1065 by March 15.

Missing these deadlines can be costly. Take the case of Rohan Patel, an Indian entrepreneur with a Wyoming-based single-member LLC. In 2025, he faced a $25,000 penalty for not filing Form 5472. With professional help, he successfully reduced the penalty to $0 by showing reasonable cause and implementing a compliance system.

For LLCs formed on or after March 26, 2025, the FinCEN BOI report must be filed within 30 days of state approval. Older LLCs have until April 25, 2025. Non-compliance can lead to civil fines of $591 per day, plus up to $10,000 and two years in jail for willful violations.

Staying compliant with these filings is only part of the puzzle. Taxes and franchise fees are equally important.

Tax Obligations and Franchise Fees

Understanding your tax responsibilities is critical to avoiding unexpected costs. Even if your LLC doesn’t generate income, some states still impose franchise taxes or fees. For instance:

• California requires an $800 annual franchise tax for all LLCs, regardless of activity.
• Single-member LLCs owned by Indian residents must file Form 1040-NR if they have effectively connected income. Deadlines are April 15, 2025, if wages were withheld, or June 16, 2025, otherwise.

Late filings come with penalties. In 2025, the penalty is 5% of the tax due per month, capped at 25%. Returns filed more than 60 days late face a minimum penalty of $525.

Accurate bookkeeping is vital to managing these obligations. Keeping real-time financial records helps you demonstrate that your LLC’s income is tied to U.S. business activities, which can prevent double taxation. Many Indian entrepreneurs work with expat-focused CPAs or Enrolled Agents who understand treaty benefits and can assist with extensions or penalty relief.

Some states offer tax-friendly environments. For example, Wyoming doesn’t impose personal or corporate income tax, making it an attractive choice for reducing tax burdens.

Another key player in ensuring compliance is your registered agent.

Role of the Registered Agent in Ongoing Compliance

Your registered agent is your LLC’s official point of contact in the U.S., receiving legal documents, government notices, and other critical communications. They ensure you’re informed about important deadlines, even with time zone differences and potential communication delays.

Failing to maintain a registered agent can lead to penalties, loss of good standing, or even the administrative dissolution of your LLC. Hiring a professional registered agent typically costs between $99 and $300 annually.

When choosing a registered agent, prioritize reliability and prompt communication. Look for services offering electronic document delivery and responsive customer support. This is especially important for Indian entrepreneurs managing a U.S. LLC remotely.

Services like BusinessAnywhere provide compliance alerts, document management, and a centralized dashboard to help you track deadlines. Their virtual mailbox service adds another layer of convenience, offering unlimited mail scanning and global forwarding so you never miss critical correspondence, no matter where you are.

Conclusion: US LLC Formation Made Simple for Indian Entrepreneurs

Setting up a US LLC from India becomes manageable when you break it down into clear steps. From picking a business name to obtaining an EIN, staying organized and understanding each requirement ahead of time can make the process much smoother.

BusinessAnywhere simplifies the journey with services tailored for entrepreneurs. They offer free business registration across all 50 states (state filing fees still apply), a professional registered agent service for $147 per year after the initial free year, and custom operating agreement creation for $97.

"BusinessAnywhere.io makes LLC formation simple for digital entrepreneurs and remote business owners."

To tackle the challenges of managing a US LLC from afar, BusinessAnywhere provides tools like compliance monitoring, a virtual mailbox service, and an intuitive dashboard to handle documents and track important deadlines – all in one place.

FAQs

What are the main advantages of starting a US LLC for entrepreneurs in India?

Forming a US LLC comes with several perks, starting with limited liability protection, which ensures your personal assets stay shielded from any business-related debts or obligations. It also opens the door to the US market, one of the largest and most dynamic economies globally. Plus, having a US LLC can boost your business’s credibility, making it more appealing to American clients and partners.

There’s also the potential for tax advantages, depending on how the LLC is set up. On top of that, it simplifies the process of opening a US business bank account and tapping into funding opportunities. For Indian entrepreneurs, setting up a US LLC is a smart move to build an international footprint while keeping operations manageable from afar.

Which US state is the best choice for Indian entrepreneurs to register their LLC?

Indian entrepreneurs often gravitate toward states like Wyoming, Delaware, or Nevada when registering their LLCs. These states are attractive because they offer low filing fees, minimal ongoing expenses, strong privacy protections, and streamlined compliance procedures.

When choosing the right state, think about factors such as tax advantages, legal flexibility, and whether your LLC will have a physical location in a specific state. For businesses without a physical presence in the U.S., Wyoming tends to be a popular choice thanks to its affordability and simple setup process. Take the time to assess your business needs carefully to ensure the state you select aligns with your overall goals.

How can I ensure compliance and effectively manage a US LLC while based in India?

To efficiently manage your US LLC while based in India, it’s crucial to stay on top of essential responsibilities like filing annual reports, meeting state and federal tax deadlines, and maintaining accurate financial and operational records. Additionally, keeping an eye on changes to US laws or regulations that might impact your LLC is equally important.

Using professional services or compliance tools can be a smart move to help you manage deadlines, organize documentation, and steer clear of penalties. Regularly checking your LLC’s status with the state and ensuring all necessary filings are current will save you a lot of hassle over time. Staying organized and taking a proactive approach will make managing your LLC much smoother.

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