Introduction: Why This Guide Is Different
Most articles about forming a US company from India are written by Americans, for Americans. They skip the compliance obligations that actually matter when you live in India.
This guide covers what US-only writers ignore: FEMA reporting, ITIN misconceptions, Form 5472 penalties, India-side tax liability, and how to open a US bank account remotely.
Non-US residents, including Indian citizens, can legally form a US LLC — no citizenship or physical presence required. Per the IRS and SBA.gov, this guide is for Indian residents who want to form a US LLC from India without traveling.
Frequently Asked Questions: Register a US Company from India in 2026
Can I register a US LLC from India without traveling?
Yes. You can form and operate a US LLC entirely from India. No physical presence in the US is required at any stage.
How long does it take to register a US company from India?
State filing takes 1–3 business days. EIN takes 1 day to 2 weeks. Full setup including BOI report: 2–4 weeks.
Can I open a US bank account from India without traveling?
Mercury has suspended new non-resident accounts. Viable alternatives include Relay (remote-friendly, EIN-only onboarding) and US branches of Indian banks HDFC, ICICI, or YES Bank — these have established processes for Indian passport holders.
Do Indian residents pay tax on US LLC income?
Yes. A US LLC is a foreign entity. Profits are taxed in India under the Income Tax Act 1961. A single-member LLC is a "disregarded entity" by default — profits pass through to you and are reportable on your Indian return. To elect C-corp treatment, file IRS Form 8832.
What are the most critical IRS filing deadlines?
Form 5472: annually (April 15 deadline; $600 penalty for non-filers, automatically assessed). BOI Report: within 90 days of LLC formation (up to $10,000 civil penalty for willful violations).
What does FEMA compliance require for Indian residents?
FEMA regulations apply when you transfer capital from India to your US LLC. Transfers exceeding INR 2 lakh require reporting to RBI via your Authorized Dealer (bank) using FEMA APR forms. No prior RBI approval is required for the LLC investment itself.
Which state is best for Indian entrepreneurs in 2026?
Wyoming is the practical choice for most: $100 filing fee, zero corporate income tax, zero franchise tax. Delaware ($110 + $300 annual) is only preferable if you anticipate legal disputes — its Court of Chancery offers strong corporate dispute resolution.
Step 1: Choose Your State
Your state's rules determine your LLC's legal obligations and tax burden. Wyoming is the practical choice for most Indian entrepreneurs: $100 filing fee, no corporate income tax, zero franchise tax. Delaware is preferable only if you expect legal disputes over ownership or contracts.
| State | Filing Fee | Annual Franchise Tax | State Income Tax | Best For |
|---|---|---|---|---|
| Wyoming | $100 | $0 | None | Most non-residents; lowest cost |
| Delaware | $110 | $300 | None on out-of-state earnings | Future legal disputes |
| New Mexico | $50 | $0 | None | Budget-conscious; new businesses |
- Timeline: 2–3 days to research and decide
- What to do: Compare fee schedules on each state's SOS website before filing
- Common mistake: Choosing Delaware for prestige and getting surprised by the $300 yearly franchise tax
Step 2: Hire a Registered Agent
A registered agent receives legal notices on behalf of your LLC. Every US state requires one. Wyoming agents cost $50–$200 per year. Delaware agents run $50–$300 per year.
- Timeline: 1 day to hire — can be done simultaneously with state research
- What to do: Search for registered agent services in your chosen state. Many offer first-year rates under $100
- Common mistake: Skipping the registered agent to save money. Without one, your LLC risks default status
Step 3: File Articles of Organization
Submit your Articles of Organization to the state Secretary of State. Online filing takes 1–3 business days for approval. Wyoming's portal is sos.state.wy.us; Delaware's is corp.delaware.gov.
| State | Filing Fee | Processing Time |
|---|---|---|
| Wyoming | $100 | 1–3 business days |
| Delaware | $110 | 1–3 business days |
| New Mexico | $50 | 1–3 business days |
- Timeline: 1–3 business days for approval after submission
- What to do: File directly through the state SOS website. Paying a formation service $300 to file this same document is unnecessary — you can file directly
- Common mistake: Overpaying formation services for documents you can file yourself
Step 4: Apply for Your EIN Immediately
Your EIN is your LLC's tax ID number. Apply the same day your LLC gets approved using IRS Form SS-4 via the IRS website or fax to +1 304-707-9471.
- Timeline: Same day to 2 weeks via fax. Online applications often process faster
- What to do: Download Form SS-4 from IRS.gov. Enter your LLC name, principal address, and a responsible party
- Common mistake: Waiting for an ITIN before applying. This wastes 7–11 weeks. EIN and ITIN are separate systems
Step 5: File Your FinCEN BOI Report Within 90 Days
The Beneficial Ownership Information Report is required for most newly formed LLCs. File it at fincen.gov/boi. The filing is free and takes under 30 minutes.
- Timeline: 90 days from LLC approval — mark this date immediately
- What to do: Gather your LLC's formation date, principal address, and the Indian resident's passport details
- Common mistake: Forgetting the deadline. The IRS does not send reminders
Step 6: Understand Form 5472 Reporting Obligations
Foreign-owned single-member LLCs must file Form 5472 with the IRS annually. This applies even to LLCs with zero US income. The penalty for not filing is $600 per year, automatically assessed. The IRS does not issue warnings.
LLC Tax Classification: Default Disregarded Entity vs. Form 8832 Election
By default, a single-member US LLC is a "disregarded entity" — the IRS ignores the LLC and taxes income directly on your personal return. For Indian residents, this means profits pass through to your Indian tax return. To elect C-corp treatment, file IRS Form 8832 — this subjects your LLC to the 21% US corporate tax rate but simplifies Indian-side reporting. Most Indian entrepreneurs stick with the default disregarded entity classification.
Step 7: FEMA Compliance — RBI Reporting for Capital Transfers
FEMA (Foreign Exchange Management Act) governs money transfers from India to your US LLC. Transfers exceeding INR 2 lakh must be reported to RBI through your Authorized Dealer (your bank) via FEMA APR forms. No prior RBI approval is required for investing in a US LLC — but the reporting mechanism is mandatory for each capital contribution. Consult a FEMA-compliant CA or authorized dealer bank for form assistance.
Step 8: India-Side Tax Liability Under the Income Tax Act
A US LLC is a foreign entity under Indian law. Profits generated by the LLC and attributed to you as an Indian resident are taxable in India under the Income Tax Act 1961, Section 5. Report US LLC income on your Indian return using the remittance amount or your share of profits, whichever applies. The US-India Double Taxation Avoidance Agreement (DTAA) may reduce withholding tax on cross-border income — verify your eligibility with a tax professional familiar with DTAA provisions.
Step 9: Draft Your Operating Agreement
An Operating Agreement defines your LLC's ownership structure, profit-sharing, and operating rules. It is legally required in many states (including Delaware) for multi-member LLCs and strongly recommended even for single-member LLCs. Store a signed copy in India — this matters for FEMA documentation purposes. If you plan to add Indian or US-based co-founders later, having this document in place prevents disputes. US attorneys charge $200–$500 for custom agreements; templates are available for single-member LLCs at lower cost.
Step 10: Post-Registration Annual Compliance
Your LLC requires ongoing compliance after formation. Wyoming requires a biennial report ($50 filing). Delaware requires an annual franchise tax ($300). All states require a registered agent — renew this every year. On the IRS side, file Form 5472 annually if foreign-owned. On the India side, report LLC income on your Indian tax return. Missing these obligations risks state administrative dissolution or IRS automatic penalties.
Opening a US Bank Account from India
Mercury has suspended new account openings for non-residents. Viable alternatives include Relay (remote-friendly, EIN-only onboarding) and US branches of Indian banks HDFC, ICICI, and YES Bank — these have established processes for Indian passport holders. HDFC and ICICI branches may allow in-person account management if you plan travel to the US.
Conclusion
Registering a US LLC from India is entirely legal and increasingly common. The process involves ten steps: choose a state, hire a registered agent, file formation documents, obtain your EIN, file your BOI report, understand Form 5472 obligations, classify your LLC for tax purposes, comply with FEMA for capital transfers, draft an Operating Agreement, and maintain annual compliance. Each step has a specific cost, timeline, and consequence for skipping it. Use this guide as your checklist — work through it in order and you will have a legally compliant US LLC.
Key Takeaways
Ready to Register Your US LLC?
Start with Step 1 above: choose your state and begin filing. NexFyla assists international entrepreneurs with every step of US company formation — from state filing to EIN, FEMA compliance, and annual reporting. Contact us to get started.