Are you based in India and dreaming of expanding your business into the United States? You’re not alone. Thousands of Indian founders, freelancers, and tech startups are registering US LLCs every year — without ever leaving India.
This guide is your one-stop page for everything you need to know about how to open a US LLC from India, how it’s taxed, how to open a US bank account, and which state is best for you.
Why Indian Entrepreneurs Choose a US LLC
For Indian business owners and startups, forming a US company — especially a Limited Liability Company (LLC) — is often the first step to going global.
Here’s why it makes sense:
- Access to US clients and investors – Having a US entity gives immediate credibility when dealing with American partners, marketplaces, or SaaS platforms.
- Easier payment processing – Platforms like Stripe, PayPal, and Amazon prefer working with US entities.
- Limited liability protection – Your personal assets stay safe if something goes wrong in the business.
- 100% online setup – No need to visit the United States or hold US citizenship.
- Favorable business climate – Low taxes, strong privacy, and world-class legal protection.
- Global recognition – A “US company” status can open new opportunities, even in the Indian market.
If you’ve ever struggled to receive payments from US clients, or your Stripe account was limited due to being outside the US — forming an LLC solves that problem.
Step-by-Step: How to Open a US LLC from India
1. Choose the Right State for Your LLC
Not all US states are equal. Each has its own rules, taxes, and privacy standards. For non-US residents (including Indians), the best options are:
- Wyoming – No state income tax, low annual fees, strong privacy.
- Delaware – Excellent reputation and legal system, ideal for startups seeking investors.
- New Mexico – Low cost, but less recognized by payment processors.
👉 For most Indian founders, Wyoming LLC offers the best combination of low cost, simplicity, and global credibility.
2. Pick a Name and Check Availability
Your company name must be unique within the state you choose. It must include “LLC” or “L.L.C.” and not conflict with an existing business. You can check and reserve your name easily on the Secretary of State’s website for a small fee.
3. Hire a Registered Agent
Every US LLC needs a registered agent — a local contact with a physical address in the state of formation. This person or company receives legal and tax documents on behalf of your LLC.
There are many professional registered agent services that cost between $50 and $150 per year. They will handle all correspondence and reminders for compliance.
4. File the Articles of Organization
This is the official step where your LLC is legally created.
You (or your agent) file a document called “Articles of Organization” with the state’s Secretary of State. It includes your company name, registered agent information, and business purpose (usually very broad).
In most states, you can file 100% online. Approval can take just a few business days.
5. Get an EIN (Employer Identification Number)
After your LLC is approved, you’ll need an EIN from the IRS — this is the company’s tax ID number, similar to a PAN for your business.
You can get it directly from the IRS using Form SS-4.
Non-US residents, including Indian citizens, can obtain an EIN without needing a Social Security Number (SSN).
You’ll need your EIN to open a US bank account, file taxes, and connect to platforms like Stripe or Amazon.
6. Open a US Bank Account (Remotely)
The next step is setting up your banking. The good news: you can do it from India.
Fintech banks such as Mercury, Relay, or Wise Business (US) allow Indian founders to open US business accounts fully online.
These accounts give you a real US bank routing number and checking account — essential for receiving payments in USD and managing business finances.
Avoid using a personal Payoneer or TransferWise account for your LLC; open a dedicated business account to maintain proper legal separation.
7. Draft an Operating Agreement
Even if you are the only owner, you should create an Operating Agreement.
It defines ownership, management, and profit distribution.
While not always mandatory, banks and payment platforms often ask for it.
8. Maintain Your LLC (Annual Reports and Compliance)
Every US LLC must stay compliant by filing an Annual Report and paying a small fee to the state.
- Wyoming: around $60 per year (if no local assets).
- Delaware: $300 franchise tax per year.
- New Mexico: no annual report, but keep proper records.
You don’t have to file any US income tax if you have no US-source income, but you must submit a simple Form 5472 + pro-forma 1120 once per year for foreign-owned LLCs. This keeps your business in good standing with the IRS.
US LLC Taxation for Indian Residents
1. How the US Sees It
By default, a single-member LLC is a “disregarded entity” for federal tax purposes.
That means the LLC itself doesn’t pay tax — the income passes through to the owner.
If your LLC earns money only from clients outside the US, you usually don’t pay US income tax, because it’s not “US-source income.”
You still file the information forms mentioned above.
2. How India Sees It
India taxes its residents on worldwide income, which means profits from your US LLC are taxable in India.
You must declare your LLC’s income in your Indian Income Tax Return (ITR), under “Income from Business or Profession.”
India does not have a specific category for US LLCs, but the income is treated similar to profits from a foreign partnership or sole proprietorship, depending on how you manage it.
If your LLC is treated as a separate entity and distributes money to you, that amount may be seen as dividend income.
If it’s transparent (pass-through), then profits are added directly to your taxable income.
3. Double Taxation Avoidance (DTAA)
The India–US Double Taxation Avoidance Agreement (DTAA) ensures you don’t pay tax twice on the same income.
If you’ve paid any US tax (for example, on US-source income), you can claim credit in India for that amount.
Most Indian founders, however, structure their LLC so that it has no US-taxable income, meaning they only pay Indian tax.
4. Important Compliance Notes for India
- Report your foreign business ownership (LLC) under the Foreign Asset Schedule (FA) in your ITR if applicable.
- Keep copies of your US filings and bank statements.
- If your LLC holds a foreign bank account, you may need to disclose it under Indian FEMA or RBI rules when repatriating funds.
- Consider consulting a CA who understands US–India tax treatment for small businesses.
Benefits of a US LLC for Indian Entrepreneurs
| Benefit | Why It Matters |
|---|---|
| Access to US clients | Work directly with US customers and platforms. |
| No need to visit the US | 100% online formation and banking. |
| Limited liability | Your personal assets are safe. |
| Easy payments | Stripe, PayPal, and Amazon onboarding is smoother. |
| Low maintenance cost | Wyoming LLC annual fee only ~$60. |
| Global credibility | “US company” branding increases trust. |
| Privacy options | In Wyoming and New Mexico, owners’ names can stay private. |
For freelancers, software developers, or agencies in India, this setup is one of the easiest ways to grow internationally.
Challenges and Considerations
It’s not all smooth sailing — be aware of these potential challenges:
- Indian tax reporting can be complex; keep clean documentation.
- Some Indian banks are conservative with foreign remittances.
- Currency conversion and FEMA rules apply when sending profits home.
- Payment processors require clear KYC (proof of ID, EIN, company docs).
- You still need to maintain both US and Indian compliance annually.
With the right structure and guidance, however, these challenges are manageable — and the benefits often outweigh them.
Best State for Indian Founders — Why Wyoming Wins
For Indian entrepreneurs starting lean (consulting, software, SaaS, services, eCommerce), Wyoming LLC is usually ideal.
Why?
- No state income tax.
- No public disclosure of owners (privacy).
- Simple online registration.
- Only ~$60 annual maintenance.
- Recognized globally and compatible with all major banks and payment processors.
Delaware may be better if you’re seeking US investors or planning to raise venture capital later, but for 90% of Indian founders, Wyoming is the clear winner.
FAQs – US LLC for Indian Residents
Can I open a US LLC from India?
Yes. You can form and manage your US LLC entirely online without traveling to the United States.
What documents are required?
Only a valid passport, address proof, and payment for registration. No visa, ITIN, or SSN needed.
Can I open a US bank account from India?
Yes, with fintech banks like Mercury or Wise Business US. You’ll need your EIN and LLC documents.
Do I pay tax in the US or India?
Usually only in India, as long as your LLC doesn’t have US-source income.
Is a US LLC better than a US corporation for Indians?
For small business and freelancers, yes — LLCs are simpler and cheaper. C-Corps are useful only for venture-backed startups.
How long does it take?
3–7 days on average, including EIN issuance.
Can WyomingExperts help?
Yes! We handle formation, EIN, registered agent, and banking setup — 100% online for Indian residents.
Final Thoughts
Starting a US LLC from India is easier than most people think.
With the right guidance, you can register your US business, open banking, start billing clients in USD, and grow globally — all without stepping foot in the United States.
WyomingExperts helps Indian founders do exactly that: we handle every step, from formation to compliance, so you can focus on building your business.
👉 Start your US LLC today with WyomingExperts — trusted by entrepreneurs across India and beyond.