Creating an LLC in the United States gives you legal protection and can offer major tax advantages if structured correctly. In 2026, setting up an LLC is easier than ever, but it is also easier to make costly mistakes if you do not understand the process.

Many people assume they need an expensive lawyer or accountant to get started. In reality, you can set up an LLC yourself online if you follow the correct steps. However, knowing how to structure it properly from the beginning is what determines whether it becomes a powerful business tool or a compliance headache.

This guide explains how to set up an LLC in 2026 from start to finish and what you should consider if you live outside the United States.

Why an LLC Is So Valuable

An LLC provides liability protection by separating your personal assets from your business assets. If something goes wrong in the business, your personal finances are usually protected.

For non residents, a US LLC can also provide tax advantages when structured correctly. If you live outside the United States and operate a service business, ecommerce business, or digital business without performing work inside the US, the LLC can often operate without paying US income tax.

This makes the US LLC one of the most powerful tools for international entrepreneurs who want access to US banking, payment processors, and customers.

Step 1 Choose the Right State

The first decision is choosing where to form your LLC.

If you plan to physically operate in a specific state, you should usually register your LLC in that state.

Examples include:

• if you plan to buy property in Florida, open a Florida LLC
• if you plan to work regularly in Texas, a Texas LLC can make sense

If you will not operate physically in the US, most people choose one of the following states:

• Wyoming
• Delaware
• New Mexico
• Florida
• Texas

Wyoming is popular because it is inexpensive, private, and efficient. Delaware is widely used for corporate structures. Florida and Texas are popular because they have no state income tax and are easier for many foreigners to visit for banking purposes.

The state you choose does not usually affect federal tax rules. The main differences are filing fees, privacy, and ease of administration.

Step 2 Select a Registered Agent

Every LLC must have a registered agent in the state where it is formed.

A registered agent is the person or company that receives legal notices and official mail for your business.

You must pay for this service. It usually costs between twenty five and one hundred dollars per year.

The registered agent must have a physical address in the state where your LLC is registered. This address becomes part of the public record.

Step 3 Get a Business Address

Your LLC also needs a business address.

This should be a US address, not a foreign address. Using a foreign address often causes problems when opening bank accounts.

Many people use:

• virtual mailbox services
• addresses provided by their registered agent
• business address services like iPostal or Anytime Mailbox

The address is used for:

• bank applications
• IRS correspondence
• compliance filings

It should be a stable address that you can access remotely.

Step 4 File the LLC Formation

You now file your LLC with the state.

You can do this:

• directly on the state website
• using an online formation service

Online services can be cheaper and easier. They usually include:

• state filing
• registered agent
• dashboard to track documents

They do not provide tax strategy or operational advice. They simply file paperwork.

When choosing a name, it is smart to avoid overly specific business names. Acronyms are often better because they allow flexibility if your business model changes later.

For example, a name like AIM Consulting works for many industries, while a name like Shopify Marketing Experts limits your future options.

Step 5 Obtain an EIN

After your LLC is formed, you must apply for an EIN from the IRS.

This is your business tax identification number.

Non residents must file Form SS4 and submit it by fax or mail. Processing time can take several weeks or longer.

During this time, you should prepare:

• your operating agreement
• your banking strategy
• your payment processor setup

The EIN is required to open most bank accounts and file tax forms.

Step 6 Prepare an Operating Agreement

An operating agreement explains how your LLC is managed.

Even for single member LLCs, this document is useful because it:

• establishes ownership
• defines control
• shows banks that your business is legitimate

It does not need to be complex, but it should exist.

Some banks request it during account opening.

Step 7 Open a Bank Account

This is often the hardest part for non residents.

Most international founders use online banks.

Popular options include:

• Relay
• Wise
• Payoneer
• Airwallex

Each bank has different requirements and risk profiles. Approval depends heavily on:

• business activity
• address quality
• EIN status
• country of residence

You must be honest about your business model and avoid high risk industries.

Step 8 Maintain Annual Compliance

Once your LLC is active, you must file annual reports and tax forms.

Common forms include:

• Form 5472 with a pro forma 1120 for foreign owned single member LLCs
• Form 1065 for multi member LLCs
• Form 1120 for corporations

You must also:

• renew your registered agent
• file state annual reports
• keep proper records

Failing to file can result in penalties and loss of good standing.

Why Structure Matters for Non Residents

A US LLC owned by a non resident can be tax neutral if:

• no work is performed in the US
• no US employees exist
• no US office exists
• income is foreign sourced

This is why US LLCs are powerful for:

• consultants
• ecommerce operators
• SaaS founders
• digital agencies
• remote professionals

When structured correctly, you gain access to:

• US banking
• Stripe and payment processors
• legal protection
• global credibility

Without unnecessary US income tax exposure.

DIY vs Professional Help

You can set up an LLC yourself if:

• you have time
• you are willing to learn
• your structure is simple

Professional help becomes valuable when:

• you earn significant income
• you operate internationally
• you want to minimize risk
• you need banking support
• you want a long term strategy

Many entrepreneurs spend dozens of hours researching and filing. At some point, paying for a proper setup becomes more efficient than continuing to self manage.

Final Thoughts

Learning how to set up an LLC in 2026 is not just about filing paperwork. It is about choosing the right state, preparing for banking, and understanding your compliance obligations.

When done correctly, an LLC becomes a foundation for global business growth. When done incorrectly, it becomes a risk.

The difference is planning.

We help with US LLC formation, banking setup, compliance, and international tax strategy.

Everything legal. Everything structured. No guessing.