Nevada LLC for Foreign Freelancers: 
The Complete Setup Guide for Non-US Citizens

You're a freelancer in Colombia, the Philippines, India, or Mexico. Sixty percent of your clients are US-based companies paying you in dollars via PayPal or Wise.

Then you get the email. "Our accounting department requires all contractors to have a US business entity. We can't process international payments next quarter." 

Or worse: "We need you to provide a W-9 form." 

You panic. 

You're not a US citizen. 

You don't have a US address. 

How can you possibly form a US business entity?

Here's the answer: You absolutely can form a Nevada LLC as a foreign national. 

No US citizenship required. 

No US residency needed. 

Completely legal. 

This guide shows you exactly how. 

Yes, Foreigners CAN Form Nevada LLCs 

Nevada has zero citizenship or residency requirements for LLC ownership. Neither do most US states. 

This, for example, means: 
* Colombian nationals can form Nevada LLCs 
* freelancers can form Nevada LLCs 
* developers can form Nevada LLCs 
* Mexican designers can form Nevada LLCs 

You don't need to live in the US. 

You don't need a green card. You don't need any connection to America except wanting to do business with US clients. 

Why US clients demand this: 

Your US clients aren't being difficult. They have legitimate reasons:
1.1 Cleaner accounting. Paying a US LLC is simpler than paying a foreign individual. They're paying a "US entity" even though you're the foreign owner.

2.2 No 1099-NEC complications. US companies must issue 1099-NEC forms to US contractors. For foreign contractors, the rules are murky. With a US LLC, you provide Form W-8BEN-E instead, certifying you're foreign and exempt from withholding.

3.3 No international wire transfer headaches. ACH payments and US checks work smoothly with US bank accounts. International wires are expensive, slow, and create currency conversion losses. 

4.4 Sanctions protection. If you're in Nicaragua, Venezuela, or another country facing US sanctions pressure, your clients worry about future compliance issues. A Nevada LLC as the contracting entity insulates them from direct exposure to your country. 

The Tax Reality: Will You Owe US Taxes? 

This is your biggest concern. Here's the straightforward answer: If you're physically performing the work from outside the US, you generally owe ZERO US federal income tax. 

Here's why:

Foreign-source income earned by non-resident aliens (NRAs) is typically not subject to US federal income tax. 

You're a Colombian sitting in your Bogotá home office doing UX design for a US client. That work is performed in Colombia. The income is foreign- source. The US doesn't tax it. 

The same applies if you're: 
* A Filipino developer coding from Manila
* An Indian designer working from Bangalore 
* A Mexican marketer creating content from Mexico City 

Where you perform the work determines the income source— not where your client is located. 

The Technical Distinctions You Need to Know

Effectively Connected Income (ECI): If the IRS determines you're engaged in a "US trade or business," different rules apply. For most freelancers working from their home country, you're NOT conducting a US trade or business. You're providing services from abroad. No ECI. 

FDAP Income: Fixed, Determinable, Annual, or Periodical income (like interest, dividends, rent) may be subject to 30% withholding. Service income from design, development, consulting typically isn't FDAP. 

Single-Member LLC = Disregarded Entity: For US tax purposes, your LLC doesn't exist. All income flows through to you personally. The IRS treats you as receiving the income directly. 

What You Still Pay 

Taxes in your home country. Most countries (Colombia, Philippines, India, Mexico) tax worldwide income. You'll report your LLC income on your Colombian/Filipino/Indian/Mexican tax return and pay taxes there according to local rates. 

 The Nevada LLC doesn't shelter you from your home country's tax obligations. It solves your US client problem, not your local tax burden. 

The Forms You MUST Understand 

Form W-8BEN-E (Critical—Prevents Withholding) 

This is a certificate you provide TO YOUR CLIENTS, not filed with the IRS.

It certifies you're a foreign person/entity and claims exemption from US tax withholding on your service income. Without this form, clients might withhold 30% of your payments. 

Details: 
* 4-5 pages, relatively straightforward 
*  for 3 years 
*  copies to each US client 
*  automatic 30% withholding 

Form 1040-NR (Annual Tax Return) 

This is the annual US tax return for nonresident aliens. 

You file this to formally report $0 US tax owed on your foreign- source service income. Some NRAs skip this if they have no US-source income, but best practice is to file. 

Details: 
* April 15 (or June 15 if abroad with no US income tax owed)
* your foreign-source income 
* treaty benefits if applicable (US-Colombia has a tax treaty) 
* you owe $0 US tax
* 5472 + Form 1120 (THE ONE THAT GETS FOREIGNERS IN TROUBLE) If you're a foreign person owning a US LLC, you MUST file Form 5472 annually. 

This reports transactions between you (the foreign owner) and the LLC. It's informational only—no tax owed if you have no US-source income. 

Critical details: 

* Penalty for not filing: $25,000 
* Due with Form 1120 (pro forma corporate return) Most foreign LLC owners don't know about this requirement
* IRS can waive penalties for reasonable cause (first-time, good faith), but don't risk it 

Budget for a US CPA specializing in NRA taxation: $500- $1,200/year to handle Form 1040-NR and Form 5472 correctly. 

 How to Actually Form the LLC (100% Remote) 

What You Need 

The list is surprisingly short:
1.1 Passport copy (for identification)
2.2 Foreign address (your Bogotá, Manila, Bangalore, or Mexico City address)
3.3 Business name choice 

That's it. 

What You DON'T Need 

❌ US Social Security Number (SSN)
❌ US residential address
❌ Travel to the United States
❌ US visa or green card
❌ Existing US bank account 

Getting Your EIN Without an SSN 

The Employer Identification Number (EIN) is your tax ID for the LLC. US persons get EINs instantly online. 

Foreigners can't use the online system. 

Your process: 
* Complete IRS Form SS-4 
* Apply by mail or fax 
* Use your ITIN (Individual Taxpayer Identification Number) if you have one 
* If no ITIN, apply as "foreign individual"
* Wait 4-6 weeks for your EIN 

Optional:
Some foreign clients apply for an ITIN before forming the LLC. ITINs take 7-12 weeks to obtain but speed up the EIN process. This is optional—you can form without it. 

The Complete Timeline 

Day 1-7: Nevada LLC formation filed and approved
Day 7-14: EIN application submitted and received
Day 14-28: US business bank account application and activation Total: 6-8 weeks from start to fully operational. 

If you have US clients starting projects in January, begin formation in early November. 

Solving the Banking Problem 

You need a US bank account. Your US clients want to pay via ACH or send US checks. International wire transfers are expensive and slow. 

Traditional US banks (Chase, Bank of America, Wells Fargo) require US residential addresses and in-person visits. 

You're in Colombia or the Philippines. 

That doesn't work. 

Digital Business Banks for Foreigners 

Mercury explicitly accepts foreign LLC owners. Opens 100% remotely. Provides ACH, wire transfers, debit cards. No US residency required for US LLCs owned by foreign nationals. 

Wise Business (formerly TransferWise) gives you: 
* US account details (routing and account numbers) 
* Banking details for your home country (Colombia, Philippines, etc.) 
* Multi-currency accounts Lower international transfer fees * * * * Receives ACH payments from US clients 

Relay and Novo also work remotely for foreign LLC owners. 

Payment Processors Stripe: Requires a US bank account. You can connect to your Mercury or Wise US account details. 

PayPal Business: Works with US LLCs owned by foreigners. Can connect to both US and international bank accounts. 

Wise: Integrates smoothly for multi-currency flexibility. 

Your Banking Setup Recommended structure: 

* Open Mercury or Wise Business for US client payments
* Keep your Colombian/Filipino/Indian/Mexican bank account for local clients and personal expenses 
* Transfer between them as needed 

When opening accounts, use your Colombia/Philippines address as your residential address and your Nevada registered agent address as your business address. 

Digital banks expect international customers. 

This is normal. 

The Home Country Tax Complication 

This is where most guides fail foreign freelancers. 

Your home country likely taxes worldwide income. Colombia, Philippines, India, Mexico—all tax residents on income earned globally. 

The US says your single-member LLC is a disregarded entity. Income flows to you personally. 

But your home country may view your LLC as a separate corporation. 

If Colombia or the Philippines treats your LLC as a foreign corporation you own, they could assess corporate tax on the LLC's profits, then personal tax when you take distributions. 

Double taxation. How to Handle This 

Before forming your LLC:
1.1 Consult a tax advisor in your home country ($300-$500). Ask how they treat US single-member LLCs. Get confirmation on whether income qualifies as exempt under any territorial taxation rules or requires corporate filings.

2.2 File IRS Form 8832 (check-the-box election) explicitly electing disregarded entity status. Provide this to your home country tax authorities to argue for flow-through treatment.

3.3 Review tax treaty provisions. The US has tax treaties with many countries (Colombia, Philippines, India, Mexico). 

These may help avoid double taxation. 

A $500 consultation could save you $10,000+ in unexpected tax bills. 

Total Cost Breakdown 

Initial Costs 

Nevada LLC formation (state fees): $425 
Registered agent (first year): $100-$250 
EIN application: Free 
Total: $525-$675 

Annual Costs 

Nevada annual fees: $350 ($150 Annual List + $200 Business License) 
Registered agent: $125/year 
US CPA for NRA tax returns: $500-$1,200/year 
Home country tax prep: $300-$500 
Total: $1,275-$2,175/year 

What You Get
✅ Professional US business presence
✅ US clients can pay you easily (ACH, checks)
✅ No 1099 complications for clients
✅ Privacy from public searches (Nevada registered agent address shows, not your foreign address)
✅ Zero US federal income tax on foreign-source service income ✅ Portable structure if you move countries 

Special Situations 

Sanctions Concerns (Nicaragua, Venezuela) 

If you're in a country facing US sanctions, your US clients worry about compliance. A Nevada LLC as the contracting entity insulates them from direct exposure to your country's risks. 

This is legitimate business structuring, not sanctions evasion. 

Business Investment for Residency 

Some countries (Nicaragua, Panama, others) allow foreign nationals to obtain residency by investing in a local company. 

If you're doing this, keep your Nevada LLC completely separate from the local investment company. Don't have the local company own your Nevada LLC. Personal ownership of the LLC is simpler and avoids complex corporate tax filing requirements. 

Moving Countries 

Your Nevada LLC is portable. 

If you move from Colombia to Spain, or Philippines to Thailand: * * Keep your Nevada LLC exactly as is 
* Update your personal address with your registered agent 
* No dissolution needed 
* No refiling required 

The LLC stays in Nevada. You just update where you personally live. 

Common Mistakes That Cost Thousands 

1. Not filing Form 5472. $25,000 penalty. This catches most foreign LLC owners. 

2. Not providing Form W-8BEN-E to clients. Clients withhold 30% of your payments. You have to file for a refund later. 

 3. Mixing LLC ownership with local company structures. Creates complex US corporate tax filing requirements (Form 1120 as actual corporation, not pro forma). 

4. Assuming zero US compliance. Even with $0 US tax owed, you still must file forms. 

5. Not consulting home country tax advisor. Risk of double taxation if your country treats LLC as foreign corporation. 

Your Action Plan Right Now 

Step 1: Consult a tax advisor in your home country. Ask how they treat US single- member LLCs. Budget $300-$500. Do this BEFORE forming the LLC. 

Step 2: Form your Nevada LLC through a reputable formation service . Use a commercial registered agent for privacy. 

Step 3: Apply for your EIN using Form SS-4 by mail/fax. Wait 4-6 weeks. 

Step 4: Open Mercury or Wise Business account once you have your EIN. Approval takes 3-5 business days. 

Step 5: Provide Form W-8BEN-E to all your US clients immediately. This prevents 30% withholding. 

Step 6: Mark your calendar for annual compliance. Nevada Annual List + Business License due every year. Form 5472 due with your US tax return. 

 Step 7: Budget for US CPA who specializes in NRA taxation. First year, pay them to handle everything correctly. You can decide later if you want to DIY future years. 

The Bottom Line 

A Nevada LLC won't eliminate your home country taxes. You'll still pay Colombian, Filipino, Indian, or Mexican taxes on your worldwide income according to local rates.

 What the Nevada LLC does is solve your US client problem. 

Your US clients get a US entity to pay. You get US banking access. You maintain privacy about your foreign location. You avoid US federal income tax on your foreign-source service income (while filing proper forms). You have flexibility if you move countries. 

The annual cost of $1,275-$2,175 is the price of keeping your US clients happy and your business running smoothly. For most foreign freelancers earning $50K-$150K from US clients, that math works. 

NOTICE: This article provides general information and should not be considered legal or tax advice. Consult qualified professionals before making incorporation decisions.