Form a US LLC from India
Thousands of Indian freelancers, agencies, SaaS founders and Amazon sellers run their global business through a US LLC. The reasons are practical: US clients prefer paying a US entity, payment platforms such as Stripe and PayPal work smoothly with a US company and bank account, and an LLC gives you limited liability without the paperwork of a corporation.
At a glance for Indian founders
You do not need to visit the US, hold a visa, or have a Social Security Number. Incofile forms the LLC, obtains the EIN from the IRS using our status as a third-party designee, acts as your registered agent and gives you a US business address — everything is handled online from India.
Why Indian founders choose a US LLC
Getting paid is the number one reason. A US LLC with a US bank account can accept card payments through Stripe, invoice US clients in dollars without wire-transfer friction, and sell on US marketplaces as a domestic seller. For software and services, the US entity signals credibility to enterprise buyers who are reluctant to contract with an overseas sole proprietor.
Liability protection is the second reason. If a product or service dispute arises, claims are against the LLC, not against your personal assets in India.
Rules to know on the Indian side
Investing in a foreign company from India falls under FEMA. Most individual founders use the Liberalised Remittance Scheme (LRS), which permits remittances up to USD 250,000 per financial year, and the RBI's Overseas Investment rules require reporting of the investment (Form ODI / annual performance report through your bank). Income earned by the LLC and distributed to you is taxable in India as your worldwide income, with credit for any US tax paid under the DTAA.
None of this stops you forming an LLC — it means you should tell your chartered accountant what you are doing before the first remittance, and keep the LLC's books clean from day one.
- Remit the formation fee through LRS and keep the bank advice
- Report the overseas investment to your AD bank as the RBI rules require
- Declare LLC income in your Indian return and claim treaty credit where applicable
US taxes for an Indian-owned LLC
A single-member LLC owned by a non-resident is "disregarded" for US tax purposes: the LLC itself pays no US income tax. Whether you personally owe US tax depends on whether the income is effectively connected with a US trade or business. Pure online services performed from India are usually not; selling physical goods from US warehouses can be. The India–US treaty then decides what the US may tax.
What every foreign-owned single-member LLC must do, regardless of income, is file Form 5472 with a pro-forma Form 1120 each year by April 15. The penalty for missing it is $25,000, so build it into your calendar — Incofile can connect you with a US tax preparer.
Banking and payments from India
After the EIN is issued, you can apply to US fintech banks that accept non-resident owners (Mercury, Relay and Wise Business are the usual starting points; availability and document checks depend on your country and industry). Stripe US accounts are opened in the LLC's name with its EIN and US address. PayPal Business accounts can be linked to the LLC's US bank.
Keep the US bank account strictly for the LLC. Mixing personal Indian funds with LLC funds is the fastest way to weaken liability protection and complicate both tax filings.
Which state should Indian founders choose?
Wyoming
Low fees, strong privacy, simple yearly license tax. The default choice for online businesses.
Delaware
Best known to investors and banks; higher annual tax. Choose it if you plan to raise money.
What Incofile does for you
- Form the LLC in your chosen state
We prepare and file the formation documents, act as organiser and provide the registered agent in that state — your home address stays off the public record.
- Obtain the EIN without an SSN
As an IRS third-party designee we apply for your Employer Identification Number without a Social Security Number. Typical issue time is 1–3 weeks.
- US business address and mail scanning
A real US street address for banks, marketplaces and payment platforms, with every letter scanned to your portal ($155/year).
- Operating agreement and banking resolution
The documents banks, Amazon, Walmart and payment processors ask for, prepared in your company's name.
- Compliance calendar in your client portal
Annual report deadlines, registered agent renewal and tax-filing dates, with reminders before each one — plus 24/7 access to every document.
Ready to form your US LLC from India?
Transparent one-time pricing from $0 + state fee. Real humans answer your questions by email and chat, and your client portal shows every step of the filing.
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US LLC from India — frequently asked questions
Can an Indian citizen own 100% of a US LLC?
Yes. There is no citizenship or residency requirement to own or manage a US LLC, and no minimum capital.
Do I need an ITIN?
Not to form the LLC or get its EIN. You may need an ITIN later if you must file a personal US return (for example, to claim a treaty benefit or a refund of withheld tax). Incofile offers an ITIN application service when that time comes.
Will I be double taxed?
The India–US Double Taxation Avoidance Agreement gives credit in India for US tax actually paid, and most purely online service income earned from India is not taxed by the US at all. Your CA should confirm your specific position.
Can I use my Indian address for the LLC?
The registered agent must be in the formation state — Incofile provides that. For the business address, banks and payment platforms strongly prefer a US address, which is why most Indian founders add a US virtual business address.
How do I get paid out to India?
Transfer from the LLC's US account to your Indian account as owner distributions or salary, reported appropriately on both sides. Wise and traditional wires are the usual routes; keep every transfer documented.