Starting a US Company as a Non-US Resident (1): Overview, Time and Cost

I'm not American, and I don't live in the US. But last month I registered a US company: a Wyoming LLC. From placing the order to having a bank account took 12 days in total, and the upfront cost was under $150.

I split the whole process into a series, one step per post. I write about what I actually did, how much it cost, and the mistakes I ran into. Many guides online are written by formation services, and they end up selling you something. This series isn't selling anything. It's just a record of the path I took.

This post is the overview: why I did it, how long it takes, and how much it costs.

Why start a US company

I build apps. I want to publish them on the App Store and Google Play, and I also want to take payments with Stripe.

• Publish under a company name: The store page shows the company name, not my legal name. It also makes it easier to add people or transfer the business later
• Getting paid: Stripe only supports companies in certain countries. A US company can use it directly
• Keep the company and me separate: The company's income and expenses go through the company account, so the books stay clean

A US LLC (limited liability company) is a common choice for indie developers outside the US. It's fast to set up and cheap, banking and payment services are mature, and you can do everything online without flying to the US.

What an LLC is, in one sentence

An LLC is a limited liability company: in principle, the company's debts are not your personal debts. An LLC with only you as the owner is called a single-member LLC. For US federal tax, it is usually treated as "transparent" (a disregarded entity), so the company itself doesn't pay federal income tax. But if a foreigner owns it, there are still filings to make every year. I cover that in part 5.

The process and timeline

Here is my actual timeline, counting the day I placed the order as day 1:

• Days 1–2: Form the company. I ordered from the registered agent Northwest, and the state approved the formation the next day
• Day 3: Apply for an EIN. I faxed Form SS-4 to the IRS
• Day 7: EIN issued. But I only received the IRS fax reply on day 12
• Days 12–13: Open a bank account. I applied to Mercury and was approved the next day
• Within 45 days of formation: BE-13. A US company owned by a foreigner has to report to the US Department of Commerce. A small company only needs to file the free exemption form

The real bottleneck is the EIN. Foreigners without an SSN can't apply online. You can only apply by fax or phone, and then wait for the IRS.

How much it cost

Upfront:

• Wyoming state fee $103
• Northwest service fee $39, with the registered agent free for the first year
• Dropbox Fax for sending and receiving faxes, first month $3
• EIN, Mercury account, BE-13: free

Total: $145. Fixed costs every year after that:

• State annual report: at least $60
• Registered agent renewal: $125

Not included: domains, and the App Store and Google Play developer fees. You pay those with or without a company.

To be clear

This is my own experience, not legal or tax advice. Rules change. Check the latest official sources before you act. When the amounts are large or you're not sure, ask a professional.

Income from a US company may also be taxable in your own country. Every country is different, so it's best to ask a local accountant.

This series

1. Overview: why, how long, and how much (this post)
2. Forming the company: state, registered agent, operating agreement
3. Getting an EIN: how foreigners fill in Form SS-4
4. Opening a bank account: Mercury, fully online
5. Annual filings: the easiest to miss, the heaviest penalties