Establishment of a US LLC

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Table of contents:

1. Five Steps Process: LLC Company Formation USA
2. When is an LLC tax-free?
3. US LLC residence in a foreign country
4. Establish an LLC without residence

1. LLC Company Formation USA in 5 Steps

23 March 2025 5348 7

Step 1: Choose a company type

Before starting a business, the first question to be asked is: What types of companies are there? And what kind of company has what economic and tax implications?

If your residence is outside the USA or in a high-tax country - which type of company should you choose?

A company in the USA,such as the LLC (Limited Liability Company) is the most common form of company formation, alongside the US stock corporation Inc. (Incorporation)

An LLC makes it easy for foreigners to set up a company in the USA. The LLC is treated like a corporation in terms of corporate and liability law, but like a partnership in terms of tax law. In addition, the LLC is not subject to tax if it is set up by just one person and the income comes exclusively from outside the USA.

The legislation on LLCs varies slightly from US state to US state. Which US state is suitable? When choosing a location, two main factors usually come into play:

1. US states with the lowest administrative costs and effort
2. Anonymity of the founder in the external representation

New Mexico, Wyoming, Florida or Delaware are currently the most popular locations in terms of low running costs and anonymity.

The LLC (Limited Liability Company) is a hybrid company that offers liability protection, can hold assets, and is not subject to taxes itself. The members of an LLC file and settle all profits and losses on their personal income tax returns.

The LLC requires a written partnership agreement, or in order to form an LLC, it is usually necessary to file the Articles of Organization with the Secretary of State, i.e. in the state in which the LLC will operate. Here, the share capital of 0 EUR is almost irrelevant in comparison to the establishment of a Limited Liability Company in other countries. Particularly worthy of mentioning is the one-person company, also called a disregarded entity or exempt LLC.

An LLC (limited liability company) with only one member, known as a Single Member LLC, is considered a Disregarded Entity in the USA. The translation is: company (entity) not taken into account for tax purposes.

This means that the LLC is registered for tax purposes, but does not have to pay any taxes.

Step 2: Why USA

With 0% corporate tax, USA has the lowest tax rate in the world. This makes setting up a company in the USA a tax haven for non-residents.

0% Corporate tax

No trade tax

0% taxes on profit distributions

Discretion & anonymity: In several US states, such as New Mexico, there is no requirement for founders of a company, members of the supervisory board (directors) or owners (shareholders) to have their name made public.

Stable tax policy: A stable and consistent tax policy: The United States has a solid tax policy. This helps to provide confidence to companies that plan long-term investments and depend on a predictable tax environment.

No exchange of information: The US does not participate in the international exchange of information under OECD CRS. The US equivalent FACTA excludes accounts of US companies whose shares are held by foreigners.

Step 3: Requirements for company setup

In order to establish a corporation in the form of an LLC, the following questions arise: Is it possible to establish a company without having to travel? What documents must be submitted?
The LLC must be notarized - do I have to go to a notary in my home country or even in USA?

Starting a business remotely, without having to travel at all, is often not entirely possible! - But with GO EU it is definitely possible!

Many providers promise to set up a company without any local notary appointment. In reality, a notary appointment in the country of residence is often necessary. The notarized documents then have to be provided with an apostille, which is a laborious process.

Upon opening an account or authorizing the tax advisor, a physical notary appointment on site is required, contrary to what was previously promised!

--> Exclusively at GO EU - Company formation, bank account opening and tax advisor authorization 100% remote and possible without a physical notary appointment!

Update 2025: 10 Minutes initial consultation 100% free

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Company formation process:

1. The share capital is 0 EURO
2. Payment of the share capital
3. Articles of association drawn up by a Lawyer / Notary
4. Checking and applying for the company name
5. Preparation of the founding documents
6. Registration in the American commercial register
7. Notarial certification

Required content:

1. Determine the amount of share capital
2. Specify the company's object and business purposes
3. Allocate Shareholders shares
4. Establish the company's registered office
5. Define the Rights and Obligations of the Shareholders

Step 4: Costs / Prices

The prices for setting up a company depend on a number of factors. Are there additional costs for traveling to the USA for company registration or opening a bank account? In the best case scenario, no travel is necessary at all and all services can be carried out 100% remotely. The pure company setting up costs are around EUR 1,500 - 2,000.

Establishment & account only with GO EU 100% remote! - But what additional costs are there?

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Additional costs: Company address including mail forwarding, annual fees in the US state, bank account opening and costs for any monthly accounting and annual administration costs

Attention: Legal and tax accounting costs are often expensive, as a lot of filing is still done manually in the USA.
Legal and administrative costs average from 100 EUR per month plus annual fees.

Attention: Even poorly trained lawyers or even large tax firms where often no one is available when things get urgent charge these prices.

--> Exclusively at GO EU - Access to our own tax advisors and English-speaking employees included at a fixed price! (Costs well under 100 EUR per month)

Step 5: Choosing the right start-up agency

Self-employed people and entrepreneurs benefit from the advantages of setting up a company in the USA, including 0% corporate tax, anonymity, no data exchange and a stable tax policy. The economic opportunities, despite bureaucratic obstacles, language barriers and cultural differences, make the USA an extremely attractive location with the right partner.

Update 2025: 10 Minutes initial consultation, 100% free.

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(NEW: Company formation including opening a bank account 100% remote)

2. Operating a US LLC (Disregarded Entity) tax-free?

1. Romania

Entrepreneurs and self-employed people can find exemplary low tax rates in Romania. If you employ at least one Romanian employee and generate less than 500,000 euros in sales, you only pay 3% tax, and if your sales are €60,000 or less, you only pay 1%.

Not really relevant for you, because you expect 7-digit annual sales? And if you are already thinking about emigrating to Romania, then at least there should be no limit on taxes on annual turnover?

You've probably heard of Andrew Tate, who was the most googled person on earth a few months ago. The Tate brothers live in Romania and have an annual turnover of well over 500,000 euros. But how did they manage it?

You probably already know the answer. That's right, with a Disregarded Entity LLC.

Become a resident in Romania, declare all foreign income (in this case from the USA) in Romania and only pay 10% tax.

2. Bulgaria

There is a very simple tax system in Bulgaria. 10% flat tax for everyone! This represents a tax burden of 10% on profits. Unfortunately, expenses that do not originate in Bulgaria are not taken into account for deduction or profit reduction. Therefore, one could almost speak of a 10% sales tax.

But that is the big advantage of GO EU! We specialize in three countries: Romania, Bulgaria and the USA. We have permanent employees working locally. This means we have our own team and a large network in both Bucharest and the Bulgarian city of Ruse (just a 1.5 hour drive from Bucharest airport). We also have our own family-run tax consultancy with their sons employed in our accounting department.

With this expertise, we have developed a setup that allows us to request a corporate tax rate of 7.5% instead of 10% from the tax authorities for newly founded companies in Bulgaria. And it's completely legal and can be implemented by almost anyone, via GO EU!

Alternatively, you can live in Bulgaria, declare your foreign income (in this case from the USA) entirely in Bulgaria and only pay 5-10% tax.

If the topic of company formation in Romania, Bulgaria and the USA is of interest to you, we look forward to hearing from you.

Update 2025: 10 Minutes initial consultation, 100% free.

Inquire Now

Call us: +49 (0)89 90 42 23 60

(NEW: Company formation including bank account opening 100% remote)