For founders outside the US
Form a California LLC as a Non-Resident
California is the right state only if the business will operate in California: an office, staff or a member working there. If it will not, forming here costs more every year than forming in Wyoming, because every California LLC owes the annual LLC tax from its first year, whether or not it earns anything.
Why non-residents choose California
- Required anyway if the LLC does business in California
- Direct access to California customers, partners and investors
- Avoids registering a second time if your operations are in California
- Fully online formation and filings
- A modern LLC statute based on the Revised Uniform LLC Act
What a California LLC costs
One price in every state. All state and government fees are included, so choosing California over anywhere else does not change what you pay.
| What you get | Price | Billing |
|---|---|---|
| Formation California filing, registered agent, and operating agreement, with all state and government fees included | $399 | One-time |
| Managed LLC Ongoing compliance handled for you, including registered agent, annual filings, bookkeeping, and federal tax filing | $149 | Per month |
| A la carte compliance Pick individual services instead of the full plan | From $99 | Per year |
Processing takes about Varies; the Secretary of State posts current processing times once your filing reaches the state.
Tax and filing obligations
California state tax
Every LLC formed or registered in California, or doing business there, owes the annual LLC tax each year until it is formally cancelled, with no first-year exemption now. An LLC fee applies on top once California-source income passes a set level. California taxes income from California sources.
Federal filings you cannot skip
Owing no tax and having nothing to file are not the same thing. A foreign-owned single-member LLC generally must file Form 5472 with a pro forma Form 1120 every year, even with no revenue. The penalty for missing it is $25,000 per form, per year.
Privacy
California is not a privacy state. The Statement of Information names the LLC’s managers or members, and it is public.
Ongoing upkeep
The annual LLC tax and Form 568 every year, the Statement of Information every two years, and a registered agent.
What to watch out for in California
Do not form in California only for its name: an LLC with no California activity still pays the annual tax every year. And the tax keeps accruing until the LLC is cancelled, so close an unused California LLC formally rather than leaving it.
Is California right for you?
Best for: Founders whose business will genuinely operate in California.
Compare other states
Arizona LLC for non-residents
Founders who want low maintenance and do not need their ownership kept off the public record.
Delaware LLC for non-residents
Founders planning to raise US venture capital, join a US accelerator, or issue equity to US investors.
Florida LLC for non-residents
E-commerce sellers, Amazon FBA, real estate holdings, and founders in Latin America who value local banking familiarity.
Nevada LLC for non-residents
Founders whose business will operate in Nevada, or who prefer it over Wyoming for familiarity.
New Mexico LLC for non-residents
Founders who want minimum maintenance, holding companies, and long-lived entities that trade lightly.
Texas LLC for non-residents
E-commerce with US inventory, businesses with Texas staff or customers, and founders who plan to move to or spend time in Texas.
Wyoming LLC for non-residents
Online businesses, consultants, SaaS, freelancers, and holding companies with no US physical presence.
Guides for international founders
Frequently asked questions
Can a non-US resident form a US LLC?
Yes. There is no citizenship or residency requirement to own a US LLC. You do not need a green card, a visa, or to have ever visited the United States. Founders from more than 150 countries own US LLCs, and the formation process is identical to the one a US citizen follows.
Do I need a Social Security Number?
No. You do not need an SSN to form an LLC.
Do I need a US address?
You need a registered agent with a physical address in the state of formation, which is a service rather than something you provide. Your own mailing address on the paperwork can be your home address in any country.
Will I owe US federal tax on my LLC?
It depends on whether your income is effectively connected to a US trade or business. Many non-resident owners of single-member LLCs with no US employees, offices, or dependent agents have no US federal income tax liability. That is a question for a tax adviser about your specific facts, and it is separate from your filing obligations, which exist either way.
What do I have to file even if I owe no tax?
A foreign-owned single-member LLC generally must file Form 5472 together with a pro forma Form 1120 each year, even with zero revenue and zero tax due. The penalty for missing it is $25,000 per form per year, which makes it the most expensive filing mistake in this category.
Can I open a US business bank account from abroad?
Yes. Several US banking providers open accounts for non-resident owned LLCs remotely, without requiring a US visit. You will need, among other things, the formation documents and identification. Approval is at the provider's discretion and depends on your country and business type.
Does forming a US LLC reduce the tax I pay at home?
Generally no, and this is the most common misunderstanding. A US LLC does not change your tax position in your country of residence. Most countries tax residents on worldwide income, so your local obligations continue regardless of where the company is registered. Treat any US tax outcome as separate from, not a replacement for, what you owe at home.
How long does formation take?
State approval typically takes three to seven business days depending on the state.
Start your California LLC today
All-inclusive formation with registered agent and operating agreement. No SSN or US address required.