Setting up a company in the United States no longer requires a US passport, a US address, or a visit to the country. Indian founders, freelancers, and export businesses register US entities every day — to bill international clients in dollars, use platforms like Stripe and Amazon US, or simply present a US-registered brand to customers and investors. This guide walks through how the process actually works in 2026, what it costs, and the compliance steps that catch most first-time founders off guard.
US law treats company ownership and citizenship as separate matters. A person living in Jaipur, Bengaluru, or anywhere else in India can be the sole owner and manager of a US LLC or corporation, with full control over its bank accounts, contracts, and operations.
The practical reasons founders choose this route tend to repeat:
None of this makes a US company automatically better than an Indian one — for a business that only serves Indian customers, it usually adds cost without benefit. It matters mainly when your customers, payment infrastructure, or investors are based in the US.
This is the first real decision, and it shapes everything that follows — taxation, paperwork, and how investors will view the company.
If you're building a product to sell to US or global customers without near-term plans to raise institutional funding, an LLC is usually the simpler and cheaper starting point. If you already know you'll be pitching venture investors within a year or two, incorporating as a Delaware C-Corporation from day one avoids a costly conversion later.
You can technically form a company in any of the 50 states, but two states account for the overwhelming majority of non-resident formations.
Delaware is the default choice for startups that plan to raise investment. Its Court of Chancery specialises in business disputes, its corporate law is the most tested in the country, and most US venture capital term sheets are written assuming a Delaware entity. The trade-off is a slightly higher ongoing cost: the Certificate of Formation filing fee is $110, and — following Delaware's House Bill 400, signed in May 2026 — the flat annual LLC tax has risen from $300 to $400, effective for the 2026 tax year (the higher amount is first billed when the June 2027 payment comes due).
Wyoming is the more economical choice for freelancers, small e-commerce operations, and consultants who don't need investor-grade prestige. The Articles of Organization filing fee is $100, and the annual report fee is a flat $60 for most small companies (calculated as the greater of $60 or a small percentage of Wyoming-based assets). Wyoming also does not require members or managers to be listed publicly on the annual report, which appeals to founders who value privacy.
Neither state requires you to live there, visit, or hold an office there — a registered agent handles that requirement (see below). If your business will have a genuine physical presence in another state — a warehouse, an office, employees — you may need to register there too, as a "foreign qualification," regardless of where you originally incorporated.
Formation itself needs surprisingly little paperwork from you personally:
The state government fees above are fixed and identical for every applicant, Indian or American. What varies is the cost of registered agent service, professional assistance with filings, EIN processing, and ongoing tax compliance — this is where working with a consultant who handles cross-border cases regularly tends to save both money and mistakes.
Registering the company is the easy part. The recurring compliance obligations are where founders run into trouble, usually from simply not knowing a filing exists.
Form 5472 + pro forma Form 1120. If your LLC is wholly owned by a non-US person, the IRS requires this informational filing every year — even if the company had zero income or activity. It reports transactions between the LLC and its foreign owner (capital contributions, distributions, loans). Missing this filing carries a penalty starting at $25,000 per form, with additional $25,000 penalties for every 30-day period the failure continues after an IRS notice. This is not optional paperwork; it's one of the most consequential deadlines a foreign-owned LLC has.
Delaware franchise tax / Wyoming annual report. These are due annually regardless of revenue, and missing them can eventually lead to the state administratively dissolving your company — which then requires a reinstatement filing (plus back fees) to fix.
Sales tax and state nexus. If you sell physical goods or certain services into specific states, you may owe sales tax there once you cross that state's economic nexus threshold, independent of your state of incorporation.
ITIN, only if needed. You generally don't need a personal US tax ID (ITIN) just to own an LLC. It becomes relevant if you personally need to file a US tax return — for example, if the C-Corporation pays you a salary or dividend, or if you have US-source income taxed at the individual level.
A few rules changed materially in 2026, and a lot of older content on the internet about US company registration is now out of date. Three updates are worth knowing before you file:
1. Beneficial Ownership Information (BOI) reporting has been eliminated for US-formed companies. Under the Corporate Transparency Act, most newly formed LLCs and corporations were previously required to report their beneficial owners to FinCEN within 30 days of formation. Following an interim rule in March 2025 and a final rule issued by the US Treasury's FinCEN in August 2026, this requirement has been permanently removed for all entities formed in the United States. If you register a new US LLC or corporation today, you are not required to file a BOI report — a genuine simplification compared to the process most guides still describe. (The requirement still applies to foreign companies that register to do business in the US without forming a new US entity — a narrower category that doesn't cover most Indian founders setting up a fresh LLC.)
2. Delaware's fee schedule increased under House Bill 400. Signed into law on May 21, 2026, this bill raised the flat annual LLC/LP tax from $300 to $400 (effective for the 2026 tax year, first billed at the new rate in mid-2027), along with increases to several other filing and expedited-processing fees. If you're budgeting for a Delaware entity, use the new figures rather than older $300 estimates you may find elsewhere.
3. RBI's outward remittance rules still apply on the Indian side. Registering the US company is a US-law matter, but funding it from India is governed by FEMA and the RBI. Under the Liberalised Remittance Scheme (LRS), a resident Indian individual can remit up to USD 250,000 per financial year for permitted purposes, including capital investment in an overseas company, using Form A2 through an authorised dealer bank. Structured or larger investments in an overseas company you control may fall under the Overseas Direct Investment (ODI) framework instead, which has its own reporting requirements. Skipping this side of compliance is a common — and avoidable — mistake among Indian founders who focus only on the US paperwork.
Altogether, a straightforward single-member LLC can realistically be formed, EIN-registered, and bank-account-ready within two to four weeks from a standing start.
Registering a US company from India involves coordinating three separate systems — US state law, US federal tax filings, and Indian FEMA/RBI compliance — that rarely get covered together in one place. Our team at LegalDev works through the process end to end: choosing the right entity and state for your specific plans, handling the registered agent and formation filing, securing your EIN without requiring an SSN or ITIN, and setting up the ongoing compliance calendar (Form 5472, state annual reports, and the RBI-side reporting for funds remitted from India) so nothing gets missed after day one.
Talk to our team about registering your US company, or get a free consultation to discuss which structure fits your business.
Yes. US law does not require citizenship, residency, or a visa to own an LLC or a corporation. You can be the sole owner and retain full control from India.
No. You can form the company and obtain an EIN using Form SS-4 through the IRS's non-resident application routes (fax or phone), without an SSN or ITIN.
It refers to the identification number assigned to your entity by the state's Secretary of State upon formation, shown on your Certificate of Formation or Certificate of Incorporation. It's distinct from your federal EIN, which the IRS issues separately for tax purposes.
For companies formed in the United States — which covers the large majority of Indian founders setting up a new LLC or corporation — no. As of the FinCEN final rule effective August 2026, US-formed entities are permanently exempt from BOI reporting. This exemption does not apply to companies formed under foreign law that register to do business in the US.
For most solo founders not raising outside investment, an LLC is simpler and less expensive to maintain. A C-Corporation makes more sense if you already plan to raise venture capital or issue equity to a team.
Yes. A foreign-owned single-member LLC must file Form 5472 with a pro forma Form 1120 every year it exists, regardless of income or activity. The penalty for missing it starts at $25,000 per form.
Under RBI's Liberalised Remittance Scheme, a resident individual can remit up to USD 250,000 per financial year for permitted purposes, including investment in an overseas company. Larger or more structured investments may need to go through the Overseas Direct Investment (ODI) route instead.
In many cases, yes — several banking and fintech platforms built for foreign-owned US companies allow remote account opening once you have your EIN and formation documents. Requirements vary by provider, so it's worth checking current options before you commit to one.