Register an LLC in the US: Expert guide for foreigners in 2025

If you are a business owner who is…

1. Worried about staying compliant with U.S. laws and running your operations transparently;
2. Unsure about the correct process to form an LLC in the USA;
3. Curious about how to prepare accurate documents right from the start;
4. Struggling with how to manage operating costs and run your business when selling in the U.S.;
5. Unclear on how to handle taxes properly to avoid costly penalties from the IRS and state tax authorities.

You’re not alone. Many clients turn to Global Link Asia Consulting for our expertise in answering exactly these questions.

Keep reading to discover why an LLC in the U.S. is the top choice for global business owners, and how you can start your own business expansion journey right from the start, with our expert’s insights.

1. Can foreigners set up an LLC in the U.S.?

One common misconception we often hear at Global Link Asia Consulting is whether foreigners are allowed to form an LLC in the United States.

The answer is a definite 100% yes.  Foreign owners are permitted to own companies in the U.S., except for an S-Corporation (which requires shareholders to be 100% U.S. citizens or residents).

So, what exactly is an LLC, and why do so many American and foreign business owners choose this structure when setting up their U.S. entity?

2. What is an LLC?

An LLC is one of the 9 main types of business entities in the United States that you can choose from.

Specifically, an LLC (short for Limited Liability Company) is a popular business structure that combines the flexibility of a sole proprietorship with the legal protection of a corporation.

When you own an LLC, your assets are legally separated from the company’s liabilities. This means you can reduce your risk if the company faces legal or financial issues.

3. Who is a US LLC best suited for?

An LLC is an excellent choice for:

• Freelancers and independent contractors
• Consultants and solo professionals
• Small startups seeking a flexible launch structure
• Foreign entrepreneurs looking to enter the U.S. market (e.g., selling on Amazon, Etsy, Walmart, etc.)

They chose to open an LLC in the US because this kind of company type offers numerous benefits that are too good to ignore for foreigners.

4. Benefits of forming an LLC in the US

Beyond the practical advantage of protecting your assets and investment, an LLC also offers several outstanding benefits compared to other business structures, including operational efficiency, suitability for low-capital startups, high credibility, and ease of registration.

5. Should you choose an LLC or a C-Corp as an international business owner?

In addition to the LLC structure, the C-Corp is also a top choice for many business owners — both U.S. citizens and foreign nationals.

To help you clearly understand the differences between the two, Global Link Asia Consulting has prepared a comparison table of the most important factors:

6. Which state should you chooose to open an LLC in the USS

The U.S. has 50 states, and each state has its own government with separate business laws.

That’s why choosing the right state is one of the most important decisions business owners must make from the very start.

To make a clear decision, it’s essential to understand the difference between a Foreign LLC and a Domestic LLC.

6.1. Foreign LLC or Domestic LLC?

An LLC in the U.S. is governed at the state level, not the federal level.

Each state has its own rules for registering, maintaining, and taxing an LLC.

• If you set up and operate your business in the same state, your company is called a Domestic LLC.
• If you set up your company in one state but operate your business in another state, your company is considered a Foreign LLC.

For example, 

• If you operate in North Carolina and set up your LLC in North Carolina, it’s a Domestic LLC.
• If you live in Florida but set up your LLC in North Carolina, it is considered a Foreign LLC in Florida.

Choosing the right state is critical because where you live and where your LLC earns revenue can directly affect how much tax you pay and how you calculate it. Each state has its own tax rules — including income tax, franchise tax, and sales tax — and these can differ widely.

For example, an LLC formed in Florida may have to pay franchise tax and sales tax in Florida. If your business sells products or services in another state, you may also be required to register there and pay sales tax according to that state’s rules.

This means that your state choice isn’t just about registration costs; it can have a long-term impact on your tax obligations and compliance requirements.

What should foreign business owners running an online busiiness choose

Most online businesses operate across the entire U.S. or globally, without being tied to one specific state.

Generally, foreign business owners choose a Foreign LLC because:

Their business operates in multiple states

They sell online to customers across the U.S., or to several key states

This is why many foreign business owners — even U.S. citizens — choose to form their LLC in business-friendly states such as:

1. Delaware
2. Wyoming
3. Nevada

These states offer:

1. Attractive tax incentives
2. Strong owner privacy protection
3. Simple, streamlined business maintenance

These states are perfect for

1. Foreign entrepreneurs living abroad
2. Online businesses that don’t require a physical U.S. office for employees but need to have a storage space for fulfillment services.

7. Standard 6-Step process for forming an LLC in the U.S.

At first glance, the business registration process may seem simple — choose a name, register legally, apply for a tax ID, open a bank account, set up payment gateways, and maintain annual compliance.

However, many business owners get stuck at different stages and can’t fully or smoothly complete their company setup. That is the typical state our clients come from,  they try do do it by themselves or by a corporate service provider who promises at a cheap price but fail to deliver.

Each step requires preparing proper documents, understanding U.S. laws, and navigating U.S. systems — something many international entrepreneurs find challenging when doing it themselves.

Global Link Asia Consulting helps business owners simplify this entire process. We partner with you from A to Z, offering strategic advice for the most suitable growth path. (No hidden fees. No misleading information. Just professionalism, dedication, and a genuine desire for your company to grow sustainably).

8. 3 common mistakes bussiness owners make when registering an LLC in the US

With over 10 years of experience advising and helping hundreds of business owners resolve complicated issues, Global Link Asia Consulting has seen many cases where companies face serious consequences  such as frozen bank accounts, license suspension, penalties for unpaid sales tax, and even lawsuits from landlords or warehouse providers.

Below are some of the most common mistakes businesses make when registering a U.S. LLC, based on our experience supporting hundreds of American company owners.

8.1. Forgetting to pay Franchise Tax

Global Link Asia Consulting provides timely reminders and complete annual compliance services so you never miss a deadline.

Many business owners believe that if they have no revenue, they don’t have to pay this tax. However, in many states, Franchise Tax is a legal requirement regardless of revenue.

For example, in California, the law requires all companies to pay a minimum $800 Franchise Tax each year, even if their revenue is zero.

If you fail to pay:

• Your business will be suspended.
• You may face a $250/year penalty plus interest, not including reinstatement fees.
• You could lose your legal standing, have your bank accounts frozen, and be unable to sign contracts.

One of our clients who registered an LLC in California had to pay $2,200 to reinstate the company’s status, after which we took over the tax and accounting management to ensure it never happens again.

8.2. Using an unreliable address for the company

In an attempt to save costs, many owners use a residential address, a friend’s address, or a random address found online. This is a high-risk decision that can seriously affect your rights as a business owner.

Possible risks include:

• Your personal information becomes public in the state’s online database.
• You are vulnerable to spam, identity theft, or fraud.
• You may miss important legal or government notices because they were sent to an address you don’t actively monitor.
• If you move and forget to update your business address, your company may be fined, lose its legal standing, and have its bank and payment accounts frozen.

Global Link Asia Consulting provides a real, legal U.S. business address that meets state requirements, allowing you to communicate with U.S. authorities and banks when needed.

8.3. Operating without a proper operating agreement

Some businesses with only one or two members think this document isn’t necessary. However, the Operating Agreement is a key legal document that separates your personal assets from your business assets.

Without it, you risk:

• Internal disputes becoming difficult to resolve (especially with multiple members).
• Increased chance of “piercing the corporate veil”, where a court may treat your LLC as a sole proprietorship or partnership — eliminating your limited liability protection.

9. How can we help you build an evergreen business in the US as a foreigner?

Opening an LLC in the U.S. isn’t complicated—once you clearly understand the process.

However, setting up your company the right way so it operates efficiently and sustainably is a strategy worth investing in.

You don’t need to do everything at once. Start by answering these key questions:

1. Are you running an online business or planning to open a physical store?
2. Where are your current customers located?
3. Do you plan to expand into the U.S. or global markets in the next 6–12 months? What preparations have you made?
4. How will you pay suppliers and receive payments from customers?

Once you’ve answered these questions, Global Link Asia Consulting can help turn your U.S. LLC setup into a stepping stone for global business expansion.

• Register a company in the U.S in your chosen state;
• Open a corporate bank account in the U.S with a 99% success rate;
• Choose the right company types for tax optimization in the U.S;
• Apply for US business licenses;
• Get an affordable, professional registered office address for business;
• Support to register DUNS Number for SaaS Businesses in Delaware 
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

10. FAQs about opening a SaaS company in Delaware

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

• Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
• Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
• Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
• Opreation support:
• Registered adress;
• Foreign consular legalization;
• Trademark and patent protection registration in Singapore and the US;
• Employment Pass application in Singapore and Hong Kong;
• Website design, international SIM number provision;
• DUNS registration.

With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

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