How to Set Up a US LLC as a Non-Resident Digital Nomad (and Pay Zero Taxes Legally)

Learn how to open a US LLC as a non-resident of the US. The ultimate guide for digital nomads looking for tax-free advantages, best states, and step-by-step setup process.

If you’re not American, this post is for you! I’ll show you how to legally set up a US LLC as a foreigner, and pay zero US taxes if you qualify. Yes, it’s absolutely possible! I'm from Europe, living in Asia, with a company set up in America, and I don't pay taxes. Let me show how it's done.

If you are a digital nomad like me, freelancing from cafés in Thailand, editing videos in Bali, or running an online business from Portugal, you’ve probably wondered: How can I get paid easily, look professional to clients, and pay less taxes, or even zero, without getting tangled in complex bureaucracy?

I had the same question a few years ago. After lots of research (and a few headaches), I set up my own US LLC in New Mexico — completely online, as a non-US citizen — and it turned out to be one of the smartest business moves I’ve made as a digital nomad.

In this post, I’ll walk you through:

Why so many nomads are forming US LLCs
How much it cost to set up an LLC and maintain it
How the “tax-free” structure really works (and its limits)
The best states for non US residents
A step-by-step guide to setting one up yourself
And how you can start your own LLC today, even if you’ve never set foot in the United States
Enjoy life and work from anywhere you like (except the US)

Can Non-US Citizens Open a US LLC?

Yes, absolutely. You don’t need to live in the US or have a visa or citizenship. Anyone in the world can create a Limited Liability Company (LLC) in the United States. You just need:

A registered agent (I use Northwest Registered Agent and highly recommend them)
A business address for mail
An EIN (Employer Identification Number)

That’s it. You can form it 100% remotely. And here’s the best part: if you’re not a US resident and you don’t earn US-sourced income, you may not owe any US federal income tax. That’s why so many non-resident freelancers and entrepreneurs are using LLCs as a tax-efficient, international business structure.

How Much Does It Cost to Set Up and Maintain a US LLC?

One of the biggest surprises when I started my LLC was how affordable it actually was. In most states, forming an LLC costs between $50 - $200 USD, that’s it. New Mexico (where I registered mine) is one of the cheapest and easiest states, with a one-time filing fee of around $50 and no annual report or renewal fee.

If you use a registered agent service like Northwest Registered Agent, expect to pay about $125 per year for their service. I highly recommend to use them, they provide you with a business address in the US (which you need for opening bank accounts), handle your legal mail, keep your address private, and remind you about compliance filings.

So, in total, you’re looking at roughly $150 - $300 to set it up, and $125 per year to maintain, which is far less than setting up a company in most countries. In return, you get a professional business structure, liability protection, access to US banking and payment systems, and potentially a 0% US tax rate if you’re a non-resident earning foreign income. Sounds great, right?

“Tax-Free” Doesn’t Mean “No Paperwork”

Let’s clear up a common myth. Yes, a foreign-owned US LLC can be tax-free in the US, but that doesn’t mean you can ignore filings. If your income comes entirely from clients or customers outside the US, and you don’t have a physical presence or employees there, then your LLC generally has no US tax liability.

However, you must still file Form 5472 (and a short cover sheet called Form 1120) with the IRS once a year.

It’s simple once you understand it, but skipping it can lead to huge penalties. Don't sweat it though, you can hire someone on Fiverr who will help you with filing those forms, I pay some tax agent on Fiverr yearly around 30$ to do my forms and fax them to the IRS on my behalf.

Why Digital Nomads Love the US LLC Structure

When you work online and travel full-time, you quickly realize that running a borderless business comes with its own set of headaches: getting paid internationally, managing currencies, dealing with tax laws from multiple countries, and proving legitimacy to clients or partners.

That’s why thousands of digital nomads, freelancers, and creators are choosing to form US LLCs: it gives them access to the global financial system, credibility with clients, and a legal business structure that can be managed entirely online, often with zero US tax if their income is foreign-sourced.

Here’s why this setup has become so popular among digital nomads worldwide:

1. Access to Global Payment Platforms: Platforms like Stripe, PayPal, Revolut, and Mercury Bank often require a US entity to open a business account. Having an LLC lets you send invoices in USD, get paid globally, and access banking tools that many local freelancers can’t.

2. Professional Image: A US company gives you instant credibility. Clients and brands, especially in the US and Europe tend to trust a company registered in the States more than an individual abroad.

3. Limited Liability Protection: Your LLC protects your personal assets. If your business gets sued, your personal savings stay safe, a must if you’re doing international work or contracts.

4. No Need to Live in the United States: You can form and run everything online from anywhere, such as places like Chiang Mai, Lisbon, or Medellin. Wherever you want. No visa, no travel, no red tape.

5. Flexible, Low-Cost Setup: LLCs are simpler than corporations. They’re affordable to start, easy to maintain, and have minimal reporting requirements, especially in states like New Mexico.

6. Access to the US Market: With a US company, you can work with US brands, open affiliate accounts, or even sell on US marketplaces like Amazon and Etsy. You’re no longer limited by geography.

The Best States to Form an LLC (and Why I Chose New Mexico)

There are 50 states in the United States, but not all are equal when it comes to LLCs. For non-American digital nomads, only these three stand out:

New Mexico - No annual report, strong privacy, lowest maintenance and smallest annual fees
Wyoming - Great privacy, strong asset protection, small annual fee
Delaware - Popular for startups and investors, but more paperwork

I personally went with New Mexico because:

It doesn’t require annual reports or renewals.
My name isn’t publicly listed on the state website.
It’s incredibly affordable to maintain.

Setting it up took less than 10 minutes, and I never had to talk to anyone. I used Northwest Registered Agent to handle it: they set up everything, gave me a business address in the United States, and sent my EIN fast. It was all done online while I was living in Bali.

Step-by-Step: How to Set Up Your Own US LLC as a Non-Resident

It's very simple and quick to set up the LLC. Here’s how to do it online from anywhere in the world.

1. Choose Your State

Pick one that fits your goals. For digital nomads, New Mexico or Wyoming are usually best (cheap, simple, private).

2. Use a Reliable Registered Agent

You legally need one to receive official mail in the United States. I recommend Northwest Registered Agent, they are reliable, privacy-focused, and fast. You can do the entire process of setting up your LLC on their website within just a few minutes.

3. File Your Articles of Organization

Your agent will submit this to the state. Once approved, your company officially exists!

4. Get an EIN (Employer Identification Number)

This is your business tax ID — you’ll need it for banking, Stripe, and PayPal. Northwest can get it for you, even if you don’t have a US Social Security Number.

5. Open a Business Bank Account in the United States

You can do this remotely without being in America. I use Mercury and highly recommend them. Other options are Relay or Revolut Business. All accept non-US founders.

6. Connect Payment Processors

Now you can use Stripe or PayPal to receive payments in USD and send them from there to your bank account.

7. Stay Compliant

Keep simple bookkeeping, file your IRS Form 5472 and 1120 each year, and renew your registered agent service annually. You can hire someone on Fiverr to help you with the bookkeeping, just search on Fiverr for "IRS 5472 and 1120" and you'll see plenty people offering these services.

That’s it! You now own a fully functional US company.

How the Tax-Free Structure Works (Legally)

The beauty of a US LLC for non-residents is its pass-through structure. That means the company itself doesn’t pay tax. Profits “pass through” to you as the owner, if you:

Live outside the United States
You are not an American Passport holder
Have no office, employees, or US presence
Earn income from clients outside the United States

The United States has no claim on your income. Your business is effectively tax-free in the US. Of course, you still need to check your own country’s tax laws, some countries tax worldwide income, while others (like Thailand, Malaysia, Georgia, or Panama) have territorial systems or foreign-income exemptions.

Tip: Always confirm with an international tax advisor before assuming you owe nothing. It’s better to be safe than surprised later.

When a US LLC Might Not be the Right Choice

Setting up a US LLC isn’t perfect for everyone. It might not suit you if:

Most of your clients are based in the US (you’ll owe US tax on that income).
You live in a high-tax country that taxes global income.
You don’t want to deal with any paperwork.
You plan to raise venture capital (a C-Corp may be better).

But for freelancers, content creators and digital nomads working internationally it’s an incredibly powerful and simple solution.

My Experience Setting Up an LLC in New Mexico

When I finally decided to set up my own LLC in the US, I was super nervous. I thought it would be complicated, expensive, and require endless forms. I came across several companies that offer to set up the LLC for me, but the prices were above $1000/year and at that time I wasn't willing to spend that much. And neither do you, because it's much simpler than it seems.

I did plenty of research, and came to the conclusion that I can do it all myself without spending a lot of money. Northwest Registered Agent was recommended in multiple forums and websites that talked about setting up a US LLC, so I took the leap and went with them.

I picked New Mexico because there is no annual reporting and it has the lowest fees. In total I paid around $150 for the set up, and within a few days, I received all my company documents. Now I invoice clients in USD, have a US bank account (Mercury), and manage everything from my laptop while living in South East Asia. No borders, no middlemen, no friction.

Ready to Start Your Own LLC in the United States?

You can literally have your own US company in less than a week, no matter where you are right now. Setting up a US LLC as a non-resident is one of the simplest ways to run a borderless business. It lets you invoice in US$, access global banking tools, and if your income isn’t US-sourced, operate completely tax-free in the United States.

Don't forget, the best states for foreigners are New Mexico, Wyoming, and Delaware, each offering low fees and minimal maintenance. By partnering with a trusted service like Northwest Registered Agent, you can form your LLC online in minutes and stay compliant without the stress. Just remember to file your annual IRS form (5472 and 1120) and keep your paperwork in order. Beyond that, it’s incredibly easy to manage.

Forming my own LLC in the US was one of the best decisions I’ve made as a digital nomad. It gave me financial independence, credibility with clients, and peace of mind knowing my business was 100% legal and protected. If you’re ready to take control of your income and build a truly global business, starting a US LLC is a powerful first step. You can set it up now within minutes.

I hope you enjoyed this article, and if you have questions, please drop them in the comments. I'm happy to help. Happy travels!

Disclaimer: This article is based on personal experience and general information. I’m not a tax advisor — always check your specific situation with a qualified professional. Some links in this article are affiliate links. At no additional cost to you, I will earn a small percentage if you make a purchase. I only recommend products I love!