Can a U.S. Expat Form an LLC in the United States While Living Abroad?

Yes. U.S. expats can form a single-member or multi-member limited liability company (LLC) in any U.S. state while living abroad. You do not need to be a U.S. resident to be a member, and most states (Delaware, Wyoming, and New Mexico are popular choices) allow 100% foreign-address ownership.

By default, a single-member LLC is a disregarded entity for U.S. tax purposes. That means its income and expenses flow to your personal Form 1040 on Schedule C, and you owe self-employment tax on the net earnings. A multi-member LLC defaults to a partnership and files Form 1065.

You can elect corporate tax treatment by filing:

• Form 8832 to be taxed as a C corporation
• Form 2553 to be taxed as an S corporation (but S-corp election is blocked if any member is a nonresident alien, including a spouse without a green card)

Key considerations for expat LLC owners:

• A U.S. LLC generally does not shield foreign-earned income from self-employment tax unless paired with entity restructuring
• You need a U.S. mailing address (registered agent service handles this) and often a U.S. bank account
• Applying for an EIN from abroad is done by fax or international phone to the IRS
• Some states charge franchise taxes (Delaware’s $300 annual LLC tax, California’s $800 minimum) regardless of whether the LLC generates U.S. income
• Foreign-owned single-member LLCs must file Form 5472 with a pro forma 1120 each year

For more on whether an LLC actually helps your tax position abroad, see our best business structures for expats guide.