US LLC formation for Indian founders
A Delaware or Wyoming LLC with registered agent, EIN and the annual Form 5472 filing — for SaaS, freelancing, e-commerce and US clients.
A US limited liability company gives Indian founders a familiar contracting entity for American customers, payment platforms and marketplaces. It is simple to form, but it carries US federal filings that are easy to miss — and the Indian tax treatment of an LLC needs care.
Key facts at a glance
| Entity | Limited liability company formed in a state such as Delaware or Wyoming; a registered agent in that state is required |
| Tax classification | A single-member LLC is disregarded by default; a multi-member LLC is a partnership by default (Form 1065) |
| Form 5472 | A foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 for each year with a reportable transaction with its owner or a related party (contributions, distributions and formation costs count), even with no US tax due; the penalty for failure is USD 25,000 per return |
| EIN | Applied for on Form SS-4; where the responsible party has no SSN or ITIN, or the principal place of business is outside the US, the application is made by phone, fax or mail rather than online |
| US income tax | A non-resident owner is taxed in the US on income effectively connected with a US trade or business and on certain US-source income; services performed outside the US are generally foreign-source |
| State fees | Delaware charges an annual LLC tax due by 1 June; Wyoming charges an annual report licence tax with a USD 60 minimum |
| Beneficial ownership | US-formed companies are exempt from FinCEN beneficial ownership (BOI) reporting under FinCEN's final rule effective 14 August 2026, following the March 2025 interim final rule |
| India link | India–US DTAA signed in 1989 |
Best suited for
- SaaS and software companies selling to US customers
- Freelancers and agencies billing US clients
- E-commerce sellers on US marketplaces
- Founders planning a US fundraise (often via a later conversion)
What we handle
- Choice of state and entity, articles and operating agreement
- Registered agent and EIN application
- Form 5472 / pro forma 1120 (prepared by a US preparer holding a PTIN) and state annual filings
- Bookkeeping and US–India tax coordination
- ODI filing in India, the APR and Schedule FA
The Indian side
An interest in a US LLC is an overseas direct investment for a resident individual, so the ODI conditions and reporting apply. Because a single-member LLC is "disregarded" in the US but is a separate entity under Indian law, claiming credit in India for US tax can be complex — this is planned before you start trading. See ODI & FEMA compliance.
Sources: Treas. Reg. §1.6038A-1 (T.D. 9796) and IRS Instructions for Form 5472; IRS Instructions for Form SS-4; IRS guidance on effectively connected income; FinCEN interim final rule of 21 March 2025 and final rule of 11 August 2026 (effective 14 August 2026) on beneficial ownership information reporting; Delaware Division of Corporations; Wyoming Secretary of State fee schedule; India–US DTAA (1989).
Ready to set up in United States (LLC)?
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