As the startup scene in Europe continues to grow, more and more founders are looking across the Atlantic for growth possibilities. For European startups, setting up an LLC in the US is becoming a smart move. Non-resident entrepreneurs can get a lot out of forming a U.S.-based business entity, whether it’s to get into the U.S. market, get better payment systems, or build trust with investors.
The good news? To begin, you do not need to move to the United States or be a member of the United States.
Why European Startups Are Forming US LLCs
For many early-stage founders in Europe, incorporating a business in their home country no longer feels like the default—or even the best—option. A growing number of startups are choosing to register a US LLC to unlock new growth opportunities, streamline operations, and compete on a global level.
There are a few strong reasons why the LLC structure is becoming a popular choice among European startups:
Access to the World’s Largest Consumer and Tech Market
The United States is home to the largest consumer economy and most mature tech ecosystem in the world. For startups with global ambitions, having a U.S.-based legal entity can make it much easier to sell products or services directly to American consumers and businesses.
Whether you’re targeting SaaS customers, eCommerce buyers, or enterprise clients, forming a US LLC removes many of the geographic and legal frictions that non-U.S. entities often face.
Easier Access to US-Based Clients, Investors, and Accelerators
Many U.S. investors and startup accelerators prefer—or even require—that startups operate through a U.S. business entity. While Delaware C Corporations are common for business-backed companies, LLCs can be a flexible and founder-friendly alternative, especially at the early stage.
Even for bootstrapped startups or those working with angel investors, having a U.S. entity can make deal structuring, revenue sharing, and legal compliance significantly easier.
Plus, U.S. clients often prefer working with U.S.-registered businesses for simplicity in contracts, billing, and legal protections.
Better Payment Tools and Banking Infrastructure
One of the most practical reasons European startups register a US LLC is access to superior financial infrastructure. Platforms like Stripe and Mercury offer smoother, more robust services to U.S.-based businesses than they do to non-U.S. ones.
By forming a US LLC, you can:
- Open a U.S. business bank account (without a personal visit)
- Accept international payments through platforms that require a U.S. entity
- Work with U.S.-based partners and marketplaces with less red tape
This information is especially useful for startups selling online, offering digital services, or running SaaS products that rely on global recurring payments.
Establishing Credibility in the Global Startup Ecosystem
First impressions matter—especially in tech. Having a U.S. business entity on your pitch deck or invoice can instantly elevate how your company is perceived.
For partners, customers, and investors outside your local market, a US LLC can signal legitimacy, ambition, and scalability. It tells the world you’re not just building for your country—you’re building for the global stage.
Steps to Form a US LLC from Europe
Choose a State for Your LLC
The first step in forming a US LLC is deciding which state to register in. Each state has different regulations, taxes, and fees, so it’s important to choose wisely.
Popular States: Delaware and Wyoming are popular due to their business-friendly laws and lower fees.
We always recommend Wyoming, unless there is a very strong reason for any other state. Another thing that you should always consider is that Delaware includes a $300 yearly franchise tax, which you need to pay.
State Requirements: Research the specific requirements for each state, such as annual report fees and franchise taxes.
Business Location: Consider where your primary business operations will occur, as some states may require foreign qualifications if your business operates in multiple states.
File the Articles of Organization
Once you’ve chosen your state, the next step is to file the Articles of Organization.
Prepare Your Documents: Make sure you have all the required data, including the name, address, and registered agent information of your LLC.
Procedure for Filing: Send the Articles of Organization to the Secretary of State’s office in the state. Usually, you may accomplish this via mail or online.
Filing Fees: A filing fee, which differs by state, must be anticipated.
After filing, your LLC will be officially recognized by the state.
Draft the Operating Agreement
The Operating Agreement is a critical step, even if it’s not legally required in your state.
Define Roles: Clearly state each member’s obligations and roles.
Set Procedures: Establish protocols for allocating profits, resolving disputes, and making decisions.
Customize Terms: Adjust the terms to your own company requirements and situation.
A well-drafted Operating Agreement can prevent future conflicts and ensure smooth operations.
Obtain an EIN
For your LLC to operate, an Employer Identification Number (EIN) is required.
Apply Online: The IRS website offers a direct application process for an EIN. The program is simple to use and is free.
Details Needed: Give specifics like the name of your LLC, the date of creation, and the identity of the accountable person.
Instant Issuance: Your EIN will be issued to you as soon as your application has been processed.
Having an EIN is necessary for tax reporting, opening a bank account, and hiring employees.
Appoint a Registered Agent
Your LLC must have a registered agent in the state of formation.
Choose Wisely: Choose a reputable registered agent who can manage official notices and legal paperwork on time.
Service Providers: If you don’t have a physical presence in the state, registering as an agent is a simple alternative that many organizations provide.
Maintain Compliance: To stay out of trouble with the law, make sure your registered agent information is constantly current.
A professional registered agent service can help you stay compliant and protect your privacy.
Benefits of a US LLC for Foreigners
Forming a US LLC offers numerous advantages for foreign entrepreneurs. Here are some key benefits:
- Limited Liability Protection
Your assets are protected from business liabilities. This means if your business faces legal issues, your personal belongings remain safe.
- Tax Flexibility
A US LLC offers pass-through taxation, meaning profits are taxed only once on your personal tax return. This can simplify your tax obligations compared to other business structures.
- Ease of Formation and Management
Setting up a US LLC is relatively straightforward. With the right guidance, you can complete the process quickly and efficiently. Once formed, the ongoing administrative requirements are minimal.
- Business Credibility
A US LLC enhances your business credibility with customers and partners. It shows you are serious about your business and committed to complying with US regulations.
- Access to the US Market
Forming a US LLC allows you to operate seamlessly in the US market, giving you access to a vast customer base and numerous business opportunities.
Managing Your US LLC Remotely
Banking and Payment Methods
Managing banking and payment methods efficiently becomes essential for running your US LLC from Europe. It is quite beneficial to open a US business bank account since it makes transactions easier. Also makes US financial services accessible and helps in keeping personal and business money separate.
You may manage your funds remotely by selecting banks that provide strong online banking services. Plus, payment processors like Stripe handle international transactions quickly and effectively. These systems facilitate payments from international clients and support several currencies.
Conclusion
A remote US company is a fantastic and strategic move that has several possibilities. You may take advantage of advantages like no taxes on money generated abroad, entry into an international market, and world-class banking solutions.
Following a step-by-step guide will guarantee that you handle the registration process complications with simplicity and enable you to conveniently administer your US LLC from any location in the world.
Another option to think through is partnering up with Neubase, and learn more about the Neubase process and packages.
Grab your free ‘1-on-1’ 15-minute consultation with Ivana.
FAQs About US LLCs for European Startups
Forming a US LLC from Europe can seem complicated at first, but in reality, it’s a surprisingly accessible process. Below are answers to the most common questions European founders have when considering a US-based business structure.
Can I open a US LLC without visiting the US?
Yes, you can form a US LLC completely remotely. You do not need to visit the United States to register your business, open a bank account, or obtain an EIN (Employer Identification Number). Many European founders use online service providers to:
- File their LLC in a U.S. state like Delaware or Wyoming
- Appoint a registered agent (a legal requirement)
- Apply for an EIN from the IRS
- Set up a U.S. business bank account using fintech options like Mercury
The entire process can be completed online within 4 weeks.
Do I need a US address or US citizens in the company?
No, you don’t need to have a U.S. address or any U.S. citizens as part of your LLC. European founders can own 100% of the company as non-residents.
You will, however, need to list a U.S.-based registered agent—a legal representative who can receive official government mail on your behalf. This is often provided by LLC formation services and is not the same as a physical office address.
Some founders also choose to get a U.S. mailing address through virtual office providers, but it’s not legally required to form the company.
What’s the difference between a C Corp and an LLC for a startup?
While both are valid U.S. business structures, LLCs and C Corporations differ significantly in how they are taxed, structured, and funded.
- LLC (Limited Liability Company)
- Pass-through taxation (profits go directly to owners)
- Fewer formalities and administrative requirements
- Flexible ownership structure
- Ideal for bootstrapped or service-based startups
- C Corporation
- Taxed at the corporate level plus again when profits are distributed (double taxation)
- Preferred by venture capital firms and U.S. accelerators
- Can issue stock and stock options
- Suitable for startups planning to raise large amounts of capital or go public
For early-stage or solo founders, a US LLC offers simplicity and flexibility. You can always convert to a C Corp later if your fundraising strategy demands it.
Can I raise VC funding with a US LLC?
Yes, but with limitations. Most U.S.-based venture capital firms and Y Combinator-style accelerators prefer investing in Delaware C corporations due to their familiarity, standardized equity structures, and ability to issue shares.
However, this doesn’t mean an LLC can’t raise money. Many angel investors, international funds, and strategic partners are willing to invest in an LLC—especially at the pre-seed or seed stage.
Some founders start with a US LLC for speed and simplicity, and later convert it to a C Corp when they’re ready for institutional investment.
