Can Two Foreigners Form a US LLC Together?

Yes. Two or more people from other countries can own a US LLC together, with no US visa, no US residency and no trip to the United States. An LLC with two or more owners is called a multi-member LLC, and it works a little differently from a single-owner one, mainly for the agreement between the partners and for tax. This guide explains how it works, what to settle between the partners, and what the yearly filings look like. To register one, see our LLC formation for non-residents.

Can foreigners be partners in the same LLC?

Yes. No US state requires an LLC's members to be citizens or residents, and the members can live in different countries. The formation steps are the same as for one owner: choose a state, check the name, appoint a registered agent and file the formation document. See the LLC registration process, step by step.

What to settle between the partners first

With one owner, nothing needs to be agreed. With two or more, the operating agreement is the most important paper you will sign. Put these in writing before you file:

• Who owns what share. The ownership percentages, and what each partner puts in (money, work or property).
• How profit is shared and when it is paid out.
• Who decides what. Which decisions need every partner and which one partner can take alone. See member-managed vs manager-managed.
• What happens if there is a disagreement. A 50/50 company with no tie-break can freeze.
• How a partner leaves. Who can buy their share, at what price, and what happens if a partner dies or stops working.
• Who may sign for the company and who may open the bank account.

A single owner can use a short agreement, as in the operating agreement for a single-member LLC. Two or more partners need a fuller one.

How it is taxed

By default, the IRS treats an LLC with two or more members as a partnership. The LLC itself does not pay income tax. Each partner reports their share of the profit.

• The LLC files a partnership return, Form 1065, each year, unless it had no income, deductions or credits.
• It gives each partner a statement of their share (a Schedule K-1).
• If the LLC earns income connected to a US trade or business, a foreign partner's share can be subject to US tax, with tax withheld by the partnership. A foreign partner may then need an ITIN.
• Each partner may also owe tax in their home country, so tax treaties and your local rules matter.

This is the part to get right with an accountant who knows both countries. Our US LLC tax filing service prepares the US filings.

Setting up the EIN and the bank account

• EIN. The LLC needs its own tax number, which is applied for without a Social Security Number. See our EIN service.
• Bank account. A bank will usually ask for the formation document, the EIN letter, the operating agreement and ID from the owners. See US business bank account.

Are the partners' names public?

It depends on the state. Some states do not require member names on the public formation filing, and others do. Read are LLC owners' names public in the USA? before you choose a state, and compare costs in our LLC filing fees by state table.

Common mistakes between foreign partners

• Starting without a written agreement and "sorting it out later".
• Splitting ownership 50/50 with no rule for a tie.
• Paying business costs from a personal account, which blurs the line between the owners and the company.
• Assuming each partner's home country needs nothing, when profit shared from a US LLC is often taxable there.

Frequently asked questions

Can the partners live in different countries?

Yes. The members can live anywhere, and the company can still be formed in one US state.

Can a foreigner and a US citizen own an LLC together?

Yes. The rules are the same, and the LLC is still treated as a partnership by default.

Do we need a lawyer?

The filing does not need one, but a lawyer helps with the partners' agreement, and an accountant helps with tax.

This is general information, not legal, tax or financial advice. Tax rules for foreign partners are detailed, so confirm your own position with a qualified accountant and lawyer before you form the company.

Related guides

• Register a company in the USA from India
• Company formation in the USA, online
• Register an LLC in the USA from abroad
• What an LLC costs in the USA from India