How to Set Up an E-Commerce LLC in the US as a Non-Resident

Did you know that in 2023, a record-breaking 5.5 million new business applications were filed in the U.S.? That’s right, 5.5 million!

And a significant number of these weren’t from U.S. residents. Entrepreneurs from all over the globe; India, Europe, the Middle East..you name it, are looking to set up an e-commerce LLC in the US.

So, why the rush?

Well, let’s just say building a brand with a “Made in the USA” stamp still carries serious weight. A U.S. LLC gives you global credibility, front-door access to platforms like Stripe, Shopify, and Amazon US, and lets you dodge a good chunk of the international payment chaos.

And if that wasn’t enough to spark your inner entrepreneur, there’s more brewing behind the scenes.

In a recent move that turned quite a few heads, President Trump proposed the “$5M Gold Card” visa. It’s simple: drop $5 million straight into the U.S. economy, and you could land permanent residency, maybe even citizenship down the line.

No job creation metrics. Just a direct bet on your American Dream.

In short, the U.S. is doubling down on attracting serious entrepreneurs who want to build real businesses. And if you set things up right, you’re positioning yourself in one of the strongest markets in the world.

Now, you might be wondering:

 “Is setting up a U.S. LLC as a non-resident complicated? Do I need a lawyer, a translator, and a miracle?”

Well, it’s not that complicated. Of course, there’ll be some bureaucratic hoops (there always are), no matter where you try to set up your LLC.

But with the right guidance or a reliable launch partner, you can set up your LLC in the U.S. without even needing a single trip there.

In this guide, we’ll walk you through all the top doubts you have about setting up an e-commerce LLC in the U.S.

Ready? Let’s get started.

Why Set Up a U.S. E-commerce LLC as a Non-Resident?

Okay honestly… I really wish you could just crash one of our 1:1 sessions with the LLC experts. You’d hear like 50 legit reasons (not even kidding) why setting up a U.S. e-commerce LLC as a non-resident is a total game-changer. 

And here’s the cool part, most people who come in “just curious” end up actually convinced to jump into borderless e-commerce. 

(Quick side note—borderless e-commerce just means running your online business without getting stuck by your country’s limits. You sell to U.S. customers, get paid in dollars, use U.S. banking and logistics, without physically moving to the U.S.)

Anyway, I’ve pulled a few of the best reasons from those sessions for you. 

Heads up though! These aren’t the same old reasons you’ll see recycled in every blog post.

We’re not just talking about reasons like:

• Global trust (Yes, U.S.-registered brands do earn more supplier trust and customer confidence).

• Platform access (Amazon, Stripe, PayPal, Shopify; many platforms require a U.S. entity to get started).

• Currency advantage (Earning and holding your profits in strong, stable U.S. dollars).

• Legal protection (Separating your personal assets from your business risks if things ever go sideways).

Some of the reasons that we’re about to discuss might actually surprise you. If they do, take it with a grain of salt 🙂

Let’s dive in.

1. U.S. Payment Processors Trust U.S. Entities More

It’s sad but true. If you apply to Stripe, PayPal, or Amazon Payments as a non-U.S. entity, you’ll get way more friction (or flat-out rejections).

But when you show up as a U.S. LLC, with a U.S. address and EIN, you blend in like any other domestic business.

From a payments company’s point of view, it’s statistically riskier to deal with companies registered outside the U.S. because:

• International fraud rings often operate through shell companies.

• It’s harder (and more expensive) for U.S. platforms to legally pursue non-U.S. companies if something shady happens.

• KYC (“Know Your Customer”) compliance is stricter when the business is offshore.

For example, if “GlobalStore LLC” from Delaware applies to Stripe, it gets verified faster than “GlobalStore Pvt Ltd” from India, even if both owners are based outside the U.S.

2. It’s Easier to Raise Funds Later if You Scale

Investors like things that are simple. If you’re operating as a U.S. LLC, raising capital becomes smoother because American investors prefer wiring funds to U.S. registered companies.

Imagine you’re scaling your Shopify store and want a $100K angel investment.

A Delaware LLC with a U.S. bank account makes it a 2-step process. And if you’re a foreign entity, it could be 12 steps, tons of paperwork, or just “no.”

3. U.S. LLC Tax Rates Can Sometimes Be Lower Than Home Country Taxes

Depending on how you structure it, a U.S. LLC can offer significant tax efficiencies, especially if you’re not doing business directly with U.S. customers (and even then, it’s often better than high corporate taxes elsewhere).

Plus, LLCs are pass-through entities, meaning profits can flow to you without double taxation (but with proper planning).

Let’s say you live in Country X, where the corporate tax rate is 30%. If you run a regular company there, every $100 you earn, $30 goes straight to taxes.

Now, say you set up a U.S. LLC instead.

Because of the “pass-through” setup, and assuming you don’t have a U.S. permanent establishment:

• You may not owe U.S. taxes (or owe a very minimal amount on U.S.-sourced income if applicable).

• You report your business income in your home country under personal income rules (which, in some countries, might have lower brackets compared to corporate taxes).

So, instead of paying a flat 30% corporate tax, you could be taxed personally at, say, 15–20%, depending on your local personal income tax rates.

Even if you still owed some U.S. tax, you’d likely only pay effective rates around 21% (current U.S. corporate flat rate), still better than 30–35% corporate rates elsewhere.

👉 In what way do you save?

• You might dodge two layers of taxes (corporate + personal).

• You might fall into a lower personal tax bracket instead of getting slammed with flat corporate rates.

💡 doola’s Tax Tip for the Do’ers: Always check if your home country has a tax treaty with the U.S.

If your country has a tax treaty with the U.S., you might be eligible for reduced withholding rates or even complete tax exemptions on certain types of income. This could save you thousands over time.

👉 Just Google:

“[Your Country]–U.S. Tax Treaty PDF“

Or better yet, ask a U.S. tax advisor from doola to review it for you

4. Working With U.S. Warehouses and 3PLs Becomes Easy

Fulfillment partners, warehouses, and 3PLs (third-party logistics providers) in the U.S. prefer working with U.S.-registered companies because it’s easier, faster, and legally safer for them.

Why they prefer U.S. LLCs:

• Simplified onboarding: When you’re a U.S. entity, your tax ID (EIN), legal docs, and contracts fall under U.S. jurisdiction. No foreign compliance headaches.

• Easier background checks: U.S. companies are easier to verify through public databases.

• Fewer legal risks: If you break the warehouse’s terms or there’s a payment dispute, they know they can legally pursue you within U.S. law.

• Standard billing: They can issue invoices and receive payments without worrying about international currency conversions, extra paperwork, or compliance reporting.

But, if you’re a foreign company? They have to treat you like a “high-risk client.”

That usually means longer onboarding timelines, endless documentation, higher deposits, or simply ignoring your inquiry altogether to avoid the hassle.

5. Your Business Builds Its Own Credit History in the U.S.

A U.S. LLC can start building its own credit profile (through services like Dun & Bradstreet or just using business credit cards).

That way, even if your personal credit isn’t amazing back home, your business in the U.S. can qualify for loans, better payment terms, and funding.

Example: You set up a U.S. LLC, get a U.S. business credit card, and 12 months later, you’re eligible for Shopify Capital financing based solely on your U.S. business cash flow. Isn’t that amazing?

6. You Avoid Huge Forex Losses on Every Sale

Here’s something nobody tells you when you first start selling internationally: When you collect payments directly into your home country’s bank account (without a U.S. setup), you’re automatically losing 2–5% of your money.

Why? Because banks (and even payment gateways) make their money on:

• Hidden currency conversion fees

• Bad exchange rates

• Cross-border transfer fees

So, even if your Shopify, Stripe, or Amazon dashboard says $10,000 earned, what you actually receive in your home currency can be $9,700 or even lower, before any other fees hit you.

And when you’re running tight-margin businesses like e-commerce? That loss adds up faster than you think.

Here’s where a U.S. LLC changes the things for you:

• When you have a U.S. LLC, you can set up a U.S. business bank account (like Mercury, Relay, Brex).

• Your payments from Shopify, Stripe, Amazon US, etc., go straight into your U.S. bank account in dollars.

• You hold the money in dollars without being forced to convert immediately.

• You can spend in dollars too, for inventory, tools, ads, without touching your local currency.

• You control when and how much you convert based on better forex rates or business needs.

7. You Create a Stronger Base if You Ever Move to the U.S.

If moving to the U.S., even years from now is somewhere on your vision board, setting up a U.S. LLC today could quietly stack the odds in your favor.

For example, if you ever apply for something like an E-2 investor visa, immigration officers aren’t just looking for an idea. 

They want to see proof of:

• A real, operating business

• Money already invested

• U.S. clients or operations already active

• Business tax filings showing you’re part of the economy

The U.S. immigration system tends to favor applicants who can show they’re already contributing to the economy, and not just planning to.

Multiple immigration experts, including Path Law Group and Boundless Immigration, advise setting up your business, generating activity, and even filing U.S. taxes before you apply. It makes you look serious and committed.

For example: An entrepreneur who set up a U.S. LLC two years ago, has active customers, and filed two rounds of U.S. tax returns will be seen as a much stronger E-2 candidate compared to someone trying to build everything from scratch after applying.

📝 Important: This isn’t a reason to rush into an LLC if you have zero intention of moving. But if expanding into the U.S. is even a remote dream, setting up now quietly puts future you in a much stronger position.

🔖 Related Read: What Are the Benefits of an Ecommerce LLC for My Online Business?

What Type of LLC Should You Choose for Your  E-commerce Business?

If the reasons above have even slightly convinced you to set up an e-commerce LLC in the U.S., the next step is understanding which type of LLC setup would make the most sense for you.

There’s a bunch of small details (criteria, form filing requirements) you’ll want to go through before you lock in your ideal LLC structure.

Don’t worry though! We’ll keep this section super easy to scan.

Take a look at the different types of LLC structures below, do a quick gut-check based on your goals, and once you have a rough idea, you can always reach out to our LLC experts if you want insights on the final call.

Let’s go:

Single-Member LLC

An LLC with just one owner (“member”). You’re the captain. You’re the crew. You take all the profits (and all the responsibilities).

✅ Tax implications for non-residents:

• The IRS treats you as a “disregarded entity” by default.

• You personally report any income earned by the LLC (even if you live outside the U.S.).

• You MUST file, Form 5472 and Pro Forma 1120 every year (even if you have no revenue).

Good for you if: You’re running the business solo and you want maximum control.

Example: Launching your own Shopify brand, no partners, no investors (yet)? Single-Member LLC is clean and built for you.

Multi-Member LLC

An LLC with two or more owners. Each member has ownership percentages, rights, and responsibilities spelled out (ideally in an Operating Agreement).

✅ Tax implications for non-residents:

• Multi-Member LLCs are treated as partnerships for tax purposes unless you elect otherwise.

• You’ll file a partnership tax return (Form 1065) with the IRS.

• Each member will also get a Schedule K-1 showing their share of the profits (even non-resident members).

• Plus, you still deal with Form 5472 requirements if there are substantial foreign ownership transactions.

Good for you if: You’re starting the business with someone else. Plus, you need clear agreements on profit splits, roles, exit rules, etc.

Series LLC

A special kind of LLC where you can set up mini-LLCs (“series”) under one master LLC. Each series can have separate assets, liabilities, and operations.

✅ Tax implications for non-residents:

• Each series might need to file separately depending on the state rules.

• Very complicated tax reporting; even more IRS paperwork (separate Forms 5472 per active series if foreign owned).

• Not recognized in every state.

Good for you if: You’re planning to launch multiple brands under one umbrella. And, you want to separate risks between businesses without forming 10 different LLCs.

Example: You want one LLC that owns a pet products store, another series for clothing, another for kitchenware — each isolated legally.

Anonymous LLC

An LLC where your name doesn’t appear publicly in state databases. Usually available in states like Wyoming and New Mexico.

✅ Tax implications for non-residents:

• Same federal filing obligations (Form 5472, Pro Forma 1120, or Form 1065 depending on the structure).

• Only difference: your ownership privacy is better protected at the state level.

Good for you if: You value privacy and don’t want your name searchable in public databases. Also, you’re running sensitive brands or just don’t want your personal details linked to your business easily.

Example: You’re selling controversial products (e.g., hemp, supplements) or you just don’t want competitors/stalkers seeing your info easily.

Manager-Managed LLC

When you set up an LLC, you have to choose how it will be managed. This is about who is actually running things day-to-day, not just who owns it. 

In a Manager-Managed LLC, you (the owners, called “members”) officially appoint one or more managers to handle daily operations.

 That manager can be:

• You (the owner)

• Another member

• Or even a professional manager you hire separately

✅ Tax implications for non-residents:

If you’re a non-resident owner, you still need to file:

• Form 5472 (and Pro Forma 1120) if you’re Single-Member

• Or Form 1065 + K-1s if you’re Multi-Member

Good for you if: You have passive investors or partners who only put in money but don’t want daily headaches. Plus, you want to bring in an external CEO/manager to run operations while you focus on bigger strategic stuff.

If You Own a U.S. LLC, Here’s What the IRS Expects You to File

🔖 Related Read: Dropshipping, Print-on-Demand, and Beyond: Best 5 E-commerce LLC Ideas for First-Time Founders

Step-by-Step: How to Set Up an E-Commerce LLC as a Non-Resident

Here’s how you can set up an e-commerce LLC as a non-resident:

1. Pick Your Business Name and State Carefully

The business name you choose becomes your brand legally, financially, and globally.

Checklist Before Choosing a Name:

• Make sure it’s available for LLC registration (check your chosen state’s business name search).

• Check if the .com domain is available (because 68% of online buyers trust businesses more when they have a professional domain).

• Make sure it’s not already trademarked in the U.S. (search USPTO.gov).

Checklist Before Choosing the State:

• Delaware: Best for future fundraising, VC backing.

• Wyoming: Best for cost savings, privacy (anonymous ownership allowed).

• Florida: Good if you plan to eventually open warehouses, hire, or physically operate there.

One key thing to remember: You don’t need to register in the state where your buyers live. Register where it’s most strategic for your business.

2. Hire a Registered Agent (You Cannot Skip This)

A registered agent is your official point of contact between your LLC and the U.S. government.

It’s legally mandatory in every state.

What a Registered Agent Does for You:

• Acts as your official point of contact with the U.S. government. They’ll receive any legal notices, tax documents, or compliance reminders on behalf of your LLC.

• Maintains a real, physical street address (not just a P.O. Box) in your LLC’s registration state. This is critical because state and federal authorities often won’t accept a business without a verifiable in-state address.

• Ensures you don’t miss important deadlines or legal documents.  If someone sues your company (even unfairly) or if the IRS sends you critical tax correspondence, your Registered Agent makes sure you actually get it on time.

• Protects your privacy.  Instead of listing your personal information publicly, you can list the Registered Agent’s address on state records.

📋 Quick FAQ: Can I Be My Own Registered Agent?

Technically yes, but it’s not recommended (especially if you’re a non-resident).

Instead of risking legal trouble by trying to do it yourself, it’s smarter to hire a Registered Agent from doola who can keep your business protected and compliant. 

3. File Your Articles of Organization

Think of this as your official birth certificate for the company.

The Articles of Organization is the document you submit to the state to legally form your LLC.  It includes your company name, address, Registered Agent info, and sometimes your business purpose.

Some states approve LLCs within 2–5 business days (Wyoming), while others like New York can take longer.

Get in touch with our incorporation experts if you want to file your Articles of Organization. 

4. Get Your EIN (Even Without an SSN)

You can’t really operate a U.S. business without an EIN (Employer Identification Number).

It’s the first thing banks, payment processors, and even the IRS will ask you for. 

EIN is the ID that officially says: “This business exists. It earns. It pays taxes. It’s playing by the rules.”

Now, if you’re not a U.S. citizen or don’t have a Social Security Number?

Well, you’re still 100% eligible for an EIN. You’ll just need to file a different way (Form SS-4). The IRS wants you to exist in their systems, even if you live oceans away.

5. Set Up a U.S. Business Bank Account (Remotely)

Without a U.S. business bank account, you can’t:

• Get paid by Stripe, Amazon, PayPal, etc.

• Hold your earnings in USD (you’ll lose 2-5% in currency conversion otherwise).

• Qualify for U.S. loans, capital advances, or business credit cards later.

Recommended Options for Non-Residents:

📑 Mercury:

Best for e-commerce founders, SaaS businesses, global entrepreneurs. No minimum deposits. You can open your account and operate even if you’re starting lean.

Plus, you can connect easily to Shopify, Stripe, Amazon Seller Central, PayPal — everything an online brand needs to operate.

If you’re just starting solo with one or two products:

👉 Mercury will feel lighter, faster, and less overwhelming.

📑 Relay:

Best for founders who want more advanced money management and cash flow control.

Great if you want multiple sub-accounts like taxes, inventory, marketing budget — all under one master account. 

These banks allow you to open accounts 100% online without visiting the U.S. And both provide you with a real U.S. checking account (with routing and account numbers), which you need to plug into Stripe, Amazon, PayPal, Shopify, Etsy, and more.

If you already have plans to manage multiple cash flows, hire remote contractors, or split budgets:

👉 Relay’s sub-accounts and permission controls will save you a lot of headaches down the road.

6. Set Up a U.S. Mailing Address 

You can’t build a serious U.S. business with an address that sounds like “P.O. Box 47823 Somewhere.” E-commerce platforms, banks, and even the IRS expect you to have a real street address tied to your company.

Here’s what your U.S. mailing address actually enables:

✅ Verifies your legitimacy when opening your business bank account (Mercury, Relay, etc.)

✅ Helps you pass Stripe, PayPal, Amazon account checks faster

✅ Receives important legal and tax documents

As a non-resident, you have two easy ways to get it:

• Virtual Mailboxes (like Earth Class Mail or Anytime Mailbox): You rent a real U.S. street address (not a P.O. Box) and get your mail scanned + forwarded digitally.

• Business-in-a-Box™ solution (like doola): Get your Registered Agent + Mailing Address + Compliance Management all in one, so you don’t have to juggle different services.

7. Launch Your Store and Start Selling

Now comes the part you’ve been waiting for — going live. Launching your storefront properly matters just as much as setting up your LLC.

Here’s what you need to handle (based on where you’re selling):

If you are a seller on Amazon:

• Create your Amazon Seller Central account with your EIN and U.S. bank account.

• Complete your tax interview (use your EIN instead of SSN).

• If you have a brand, register it early with Amazon Brand Registry. It protects your listings from copycats and hijackers.

If you are a seller on Shopify:

• Connect your U.S. business bank account to Shopify Payments (or Stripe).

• Set your store currency to USD (so you avoid automatic foreign exchange fees).

• Configure U.S.-based shipping zones and a U.S. return address if possible (even if through 3PL).

If you are seller on Etsy:

• Set your Etsy Shop location to the U.S. if your fulfillment is based there (better visibility).

• Connect your U.S. bank account to receive faster payouts.

• Mention fast U.S. shipping in your product descriptions and customers care.

🔖 Related Read: How to Start an E-commerce Business in 2025: Your Best Step-by-Step Guide

Compliance Essentials for Non-Resident-Owned LLCs

If you’re a non-resident founder, here’s what you need to stay on top of:

1. Maintain a U.S. Registered Agent

Your registered agent handles all official government notices, lawsuits (“service of process”), and compliance documents.

2. File Your Annual State Reports

Almost every U.S. state requires you to submit an Annual Report (sometimes called a Statement of Information or Annual Renewal).

Filing deadlines and fees vary by state.

• Delaware: March 1

• Florida: May 1

• Wyoming: First day of the anniversary month

3. Submit IRS Form 5472 + Pro Forma 1120 Annually

If your LLC is single-member and foreign-owned, you must file:

• Form 5472 (Disclosure of transactions between your LLC and you as a foreign owner)

• Pro Forma 1120 (a blank U.S. corporate tax form with Form 5472 attached)

Even if your LLC had zero revenue for the year, the IRS still expects these forms.

4. Keep Business and Personal Finances Separate

Mixing personal and business money is one of the fastest ways to destroy your LLC’s limited liability protection.

Have a dedicated business bank account. And make sure you only use your LLC account for business-related expenses.

5. Renew Any Required Business Licenses

Most states don’t require a general “business license” for online sellers, but some cities and counties do. And some product categories (like food, health products) might trigger special permits. 

So, always check local rules based on your sales activities, not just your LLC formation state.

 6. Respond Promptly to IRS and State Notices

If the IRS or a state agency mails you a letter, don’t ignore it.

Sometimes it’s something simple (like address verification or an informational form). Other times, it’s serious (missing filings, penalties, audits).

 Even if you’re outside the U.S., handle notices immediately or appoint a compliance service to monitor them.

Common Mistakes to Avoid When Starting Your LLC

Setting up your LLC is honestly the easy part. The real chaos starts when you miss the boring stuff nobody posts about.

Here’s where people usually mess up:

1. Believing “No Revenue = No Tax Forms”

If you think,“I didn’t make any sales, so the IRS doesn’t care about me,”

Then, you’re already in trouble.

Single-member foreign-owned LLCs must file Form 5472 + a Pro Forma 1120, even if you earned $0.

$25,000 penalty for missing it. No joke.

2. Choosing the Wrong State for Short-Term Savings

Cheap formation fees look easy on your wallet when you’re just starting. But it’s like buying shoes two sizes too small because they were on sale.

Wyoming might be perfect for privacy and low formation fees. But if you plan to scale, get VC money, or ever need bigger legal support, Delaware should be your first choice.

Smart founders pick based on where they want to end up, not where it’s cheapest to start.

3. Mixing Personal and Business Money (Big Rookie Move)

Swipe your personal card “just once” for an ad spend? Transfer a payout to your personal PayPal casually? No big deal, right?

Wrong.

Mixing funds blows up your liability protection (legally speaking), the court can ignore your LLC and come after your personal assets. Lawyers call it “piercing the corporate veil.”

Make sure you avoid this mistake at any cost. And set up a clean business bank account and keep your business money where it belongs.

4. Sleeping on Compliance Deadlines

See, nobody tells you this when you’re starting: Missing a filing isn’t some small slap on the wrist. You miss even one important deadline, the state or IRS doesn’t call, doesn’t warn —they just quietly kill your LLC.

Gone.

And trust me, getting a dissolved LLC back? It’s paperwork hell, crazy expensive, and months wasted on emails and forms you didn’t even know existed.

Deadlines you absolutely cannot afford to miss:

• Annual Report filing (state level)

• Form 5472 + Pro Forma 1120 filing (federal level)

• Registered Agent updates if anything changes

Try setting up reminders on your phone. And, if compliance isn’t your thing get someone like doola to do it for you. The paperwork you ignore today becomes the mess you clean up tomorrow.

Why Use doola for E-commerce LLC Setup?

I’ll keep this one short.

Be your own judge. See what you actually gain with doola versus what you might risk losing by DIY-ing your e-commerce LLC setup.

Have a fair idea of what doola can fix when it comes to all your LLC setup pain points?

Well, let’s break down some key reasons why doola could be your best move if you’re serious about starting your e-commerce business right:

✅ Avoid compliance landmines: doola doesn’t just register your LLC and ghost you. We keep you ahead on deadlines, IRS filings (like Form 5472), state reports; all the invisible stuff that can shut your business down if you miss it.

✅ Get your EIN fast (even without an SSN): No U.S. Social Security Number? No problem. doola helps you file for your EIN correctly so you’re ready for banks, Stripe, PayPal, Amazon, basically, everything that needs your U.S. business ID.

✅ Open a U.S. business bank account — remotely:  You don’t have to travel. doola partners with U.S. banks (like Mercury and Relay) to open your business account fully online, using your LLC and EIN.

✅ Stay on top of taxes without IRS nightmares: Even if you made $0, U.S. law expects filings from foreign-owned LLCs. doola helps you stay compliant with the IRS; so you don’t wake up to a random $25,000 fine for missing a form no one told you about.

Start Your US E-Commerce Business the Easy Way With doola

If you’re serious about your e-commerce brand going global, start like you mean it.

👉 Book a demo and set up your U.S. e-commerce LLC with doola today!

FAQs

Do I need a Social Security Number (SSN) to get an EIN?

No, you don’t. Non-residents can get an EIN without an SSN by filing the right IRS forms (like SS-4).

What’s the best U.S. state to register an e-commerce LLC as a non-resident?

Usually Wyoming or Delaware. Both offer strong privacy, low fees, and simple compliance.

How do I pay taxes on my U.S. e-commerce LLC from abroad?

You report U.S. income and file required IRS forms. You also handle taxes in your home country based on local laws.

Can I open a U.S. bank account as a non-resident LLC owner?

Yes. Platforms like Mercury let non-residents open U.S. business accounts fully online.

Is an LLC better than a C-Corp for e-commerce businesses owned by foreigners?

In most cases, yes. An LLC is simpler, cheaper to maintain, and avoids double taxation unless you’re planning to raise big VC funding.