If you're an Indian entrepreneur dreaming of selling software, launching a digital product, or starting a service-based business that targets global customers, forming a U.S. LLC might be the smartest move you make.
Many founders based in India choose to register a U.S. LLC because it offers global credibility, easier access to payment platforms like Stripe and PayPal, and a more straightforward way to work with U.S.-based customers.
Can You Legally Form a U.S. LLC from India?
Yes, absolutely. There are no citizenship or residency requirements to form a U.S. LLC. Indian residents can register and fully own a U.S.-based LLC. The process can be done 100% online without needing to visit the U.S., and many use formation services to help streamline it.
How to Form a U.S. LLC from India
Forming a U.S. LLC from India is easier than you might think. The entire process is digital and can be completed without ever stepping foot in the U.S. Whether you handle it yourself or go through a formation service, getting started is straightforward.
Start by choosing a state. Delaware is popular among startups and tech founders due to its strong legal system and business-friendly laws. Wyoming is another great choice, known for low costs, simple compliance, and strong privacy protections.
Next, you’ll need to choose a business name that’s available in your selected state. Then, hire a registered agent—this is a service with a physical U.S. address that accepts mail on your behalf and helps keep your business compliant.
After that, you’ll file Articles of Organization with the state to officially register your LLC. You’ll also need to get an EIN (Employer Identification Number) from the IRS. This is like a tax ID for your business and is necessary to open a U.S. bank account and file taxes.
Many founders prefer to use platforms like Firstbase, Doola, or Clerky, which can handle all of these steps for you. These services simplify the process, prevent errors, and often bundle helpful features like EIN acquisition and operating agreement templates.
Common Businesses Formed by Indian Entrepreneurs
Founders from India commonly form LLCs to operate SaaS platforms, sell digital products, run consulting businesses, offer marketing or development services, and manage ecommerce operations via platforms like Shopify and Amazon.
A U.S. LLC often builds trust with American customers and vendors, and it resolves common issues with cross-border payments.
The process involves a few key steps:
- Choose a state to incorporate in—Delaware and Wyoming are the most popular. Delaware is known for strong legal protections and startup-friendliness, while Wyoming offers privacy and low ongoing fees.
- Select a unique business name and hire a registered agent with a physical address in the state.
- File Articles of Organization with the state, which officially registers your LLC.
- Obtain an EIN (Employer Identification Number) from the IRS so you can open a bank account and meet tax obligations.
Most entrepreneurs use services like Firstbase, Doola, or Clerky to handle these steps on their behalf.
Tax Obligations for a U.S. LLC Formed from India
As a foreign founder of a U.S. LLC, you’ll typically have just two key tax obligations to handle each year—one at the state level and one at the federal level. These requirements are straightforward, only need to be done once per year, and help keep your business in good standing.
For state taxes, if your LLC is registered in Delaware, you’ll owe a flat $300 franchise tax due by June 1 each year. No additional reports are required. If your LLC is in Wyoming, you’ll need to file an annual report and pay a minimum fee of $60, based on in-state assets. This report is due on the anniversary month of your formation.
At the federal level, the IRS requires certain informational returns depending on how your LLC is structured. If you're the sole owner and not a U.S. resident, your LLC is treated as a “disregarded entity.” You must file Form 5472 along with a pro forma Form 1120 by April 15 to disclose the ownership and any financial transactions between you and the LLC.
If your LLC has more than one owner, it’s treated as a partnership. This means you must file Form 1065, issue Schedule K-1s to each member, and each non-resident member may also need to file Form 1040-NR. These federal forms ensure the IRS is aware of who owns the business and what their share of income or loss is.
These obligations may sound technical, but with the right help, they’re easy to manage and only required once a year.
How Bookmate Helps with Federal Tax Filing
Bookmate offers a fully remote, paperless tax filing solution for Indian founders managing a U.S. LLC. Whether your company is earning income or just getting started, we make sure your IRS filings are done correctly and submitted on time—without you having to deal with any physical paperwork or complex government forms.
Here’s how our process works:
We begin with a free Zoom consultation to understand your LLC’s structure and tax situation. We clarify what filings apply to you and answer your questions up front.
Next, we send you a digital invoice and an engagement letter so you know exactly what we’ll be handling.
You’ll then complete a secure online form to provide us with your LLC’s details, including income and expenses, EIN, ownership structure, and any other necessary info.
Our experienced tax professionals prepare your forms—whether it's Form 5472, pro forma 1120, Form 1065, or 1040-NR—and review them with you before submission.
Finally, we handle the filing through the correct IRS-approved method (e-filing, fax, or mail). And if the IRS sends any notices about a return we prepared, we help you respond quickly and resolve the issue without stress.
If you’re unsure what forms you need or when to file, book a free consultation today. Learn more at trybookmate.co
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Each tax situation is unique. Please consult Bookmate or a qualified advisor.
