Single-member LLC for non-residents: What you need to know before forming one
by Team Devanta Authority
- December 30, 2025
- Business Formation
Forming a US company as a non-resident often sounds more complicated than it actually is. Many founders assume they need US citizenship, a visa, or even physical presence in the country to start a business. Because of that, the single-member LLC is frequently misunderstood before it’s even properly considered.
A single-member LLC is one of the simplest and most flexible business structures in the United States, and it is widely used by founders who live outside the US. In many cases, it allows non-residents to legally own and operate a US company without relocating, while keeping administration and ongoing requirements relatively straightforward.
That said, “simple” does not mean “automatic” or “risk-free.” Questions around ownership, eligibility, state selection, and long-term suitability come up early, and they are exactly what most non-residents search for before forming an LLC. Understanding these basics upfront helps avoid common mistakes and unrealistic expectations later.
This article explains how a single-member LLC works for non-residents, who can own one, when it makes sense, and where the main limitations are. It is meant to give you clarity before you decide whether this structure fits your situation, not to walk you through the filing process or tax mechanics.
Can a non-U.S. citizen own a single-member LLC?
Yes. A non-U.S. citizen can legally own a single-member LLC in the United States.
US company law does not require LLC owners to be US citizens or residents. Ownership is based on legal personhood, not nationality or immigration status. This means an individual who lives entirely outside the US can form and own 100% of a single-member LLC without a visa, green card, or US address.
What often causes confusion is the difference between owning a company and living or working in the US. Owning a single-member LLC does not grant any immigration rights, and it does not allow you to physically work in the US. It simply gives you the right to own and operate a US-registered business entity from abroad.
This is why the question appears so frequently in search data. Many non-residents assume that business ownership is tied to citizenship, when in reality the US separates corporate ownership from immigration rules. As long as the LLC is properly formed and maintained, foreign ownership is fully allowed.
The more important considerations usually come later. While citizenship is not a barrier, other factors such as compliance responsibilities, reporting obligations, and whether this structure fits your business model matter far more than nationality when deciding to form a single-member LLC.
Do LLC owners have to be U.S. citizens?
No. LLC owners do not have to be U.S. citizens.
US law allows foreign individuals to own LLCs regardless of citizenship or residency status. An LLC can be fully owned by a non-U.S. citizen, including cases where there is only one owner. There is no requirement for the owner to hold a US passport, visa, or green card simply to own the company.
This misconception usually comes from mixing up business ownership with immigration rules. Citizenship and residency matter for where a person can live or physically work, but they are not conditions for holding equity in a US company. From a legal standpoint, an LLC owner can live anywhere in the world.
What does matter is that foreign-owned LLCs are subject to specific compliance and reporting obligations that US-owned LLCs may not face. These obligations are tied to ownership structure, not citizenship itself. As a result, while citizenship is not a barrier, understanding the administrative responsibilities that come with foreign ownership is essential before forming an LLC.
For most non-residents, the key question is not whether they are allowed to own an LLC, but whether a single-member LLC is the right structure for their situation once all obligations are taken into account.
Can I open an LLC if I don’t live in the US?
Yes. You can open an LLC in the US even if you do not live there.
Physical presence in the United States is not required to form an LLC. A non-resident can create and own a US LLC while living abroad, as long as the company is properly registered in a US state and meets its ongoing compliance requirements. Many founders manage their LLCs remotely without ever traveling to the US.
This question usually comes up because people associate company formation with relocation. In reality, forming an LLC is a legal and administrative process, not an immigration one. You do not need a US address, residency, or visa simply to register and own the business entity.
That said, living outside the US does affect how the LLC is managed in practice. Certain practical elements, such as banking, documentation, and ongoing reporting, may require additional setup compared to a US-based owner. These are operational considerations rather than legal barriers.
For most non-residents, the decision to open an LLC is less about where they live and more about whether a US entity makes sense for their business goals, customers, and long-term plans.
Is it okay to be a single-member LLC as a non-resident?
Yes. It is generally okay for a non-resident to operate as a single-member LLC.
US law does not restrict single-member LLCs based on the owner’s residency or citizenship. From a structural standpoint, a non-resident can legally form and run an LLC with only one owner, just as a US resident can. This setup is commonly used by solo founders, consultants, and online business owners based outside the United States.
The appeal of a single-member LLC lies in its simplicity. Decision-making is centralized, ownership is clear, and the administrative structure is easier to manage than a multi-member entity. For many non-residents, this makes it a practical starting point when testing or building a US-facing business.
However, “okay” does not mean “always optimal.” A single-member LLC places all responsibility on one person, including compliance, reporting, and long-term planning. As the business grows or becomes more complex, this structure may stop being the best fit.
For non-residents, the real question is not whether a single-member LLC is allowed, but whether it aligns with the scale, risk profile, and future direction of the business they are building.
What is the point of a single-member LLC?
The main point of a single-member LLC is to give one person a simple, flexible way to operate a business as a separate legal entity.
A single-member LLC allows an individual to run a business under a US-registered company without needing partners, shareholders, or a complex corporate structure. For non-residents, this often means being able to work with US clients, platforms, or payment providers through a recognized US entity while keeping ownership and control straightforward.
Another key purpose is separation. A single-member LLC creates a legal distinction between the owner and the business, which can be important for contracts, credibility, and risk management. Even though the owner controls the company, the LLC exists as its own legal entity under state law.
Simplicity is also a major factor. Compared to corporations or multi-member structures, a single-member LLC is easier to manage, easier to change, and easier to close if the business model does not work out. This makes it especially attractive for founders who want flexibility while they validate or grow their business.
For non-residents, the value of a single-member LLC is not in complexity or prestige, but in control, clarity, and the ability to operate a US-based business structure without unnecessary overhead.
How many people can be in a single-member LLC?
A single-member LLC can have only one owner.
By definition, a single-member LLC is owned by one person or one legal entity. The moment a second owner is added, the LLC is no longer considered single-member and becomes a multi-member LLC under US law. This applies regardless of how small the second ownership share might be.
This distinction is important because the number of owners affects how the LLC is classified and managed. A single-member structure is designed for situations where one individual wants full ownership, full control, and a straightforward internal setup. There are no partners to consult, no ownership splits to manage, and no internal governance between members.
It’s also worth noting that “one member” refers strictly to ownership, not involvement. A single-member LLC can still work with contractors, employees, or advisors, but ownership remains with one person only.
For non-residents, this clarity is often an advantage. Knowing exactly who owns the company and how decisions are made helps keep the structure simple, especially in the early stages of a business.
Single-member LLC vs multi-member LLC
The difference between a single-member LLC and a multi-member LLC comes down to ownership structure and how decisions are made.
A single-member LLC has one owner who controls the business entirely. All decisions, responsibilities, and long-term planning sit with that one person. This structure is often chosen for its simplicity, especially by founders who are starting alone or want full control without internal coordination.
A multi-member LLC, on the other hand, has two or more owners. These owners may be individuals or entities, and they typically share decision-making according to an operating agreement. This setup introduces internal governance, shared responsibility, and the need for alignment between members, even if one person holds a majority interest.
For non-residents, the distinction is less about legality and more about practicality. A single-member LLC is easier to manage and adjust, particularly in the early stages of a business. A multi-member LLC can make sense when there are co-founders, investors, or strategic partners involved from the start, but it also adds complexity that may not be necessary for every situation.
Choosing between the two is not about which structure is “better” in general. It depends on how many owners are involved, how decisions will be made, and how much complexity the business is prepared to handle as it grows.
Should I choose a single-member or multi-member LLC?
The choice between a single-member and a multi-member LLC depends on how your business is structured today and how you expect it to evolve.
A single-member LLC is usually the right choice when you are starting alone and want full control over decisions, direction, and operations. It keeps the internal structure simple and avoids the need to coordinate ownership, voting, or profit sharing with other parties. For many non-residents, this simplicity makes it easier to manage a US company from abroad, especially in the early stages.
A multi-member LLC becomes relevant when there is more than one owner involved. This might include co-founders, partners, or investors who will hold an ownership interest in the business. In these cases, a multi-member structure provides a formal framework for shared ownership and decision-making, but it also requires clearer agreements and ongoing coordination between members.
There is no universally “better” option. The right choice is the one that matches your current ownership reality. If you are the sole owner and plan to stay that way for the foreseeable future, a single-member LLC is usually the most straightforward fit. If multiple owners are involved from the start or expected soon, a multi-member LLC is more appropriate, even though it adds complexity.
For non-residents in particular, starting with the simplest structure that accurately reflects ownership is often the most practical approach, with the option to adjust the structure later if the business changes.
What does it mean to be a multi-member LLC?
Being a multi-member LLC means that the company has more than one owner.
In a multi-member LLC, ownership is shared between two or more individuals or entities, known as members. Each member holds an ownership interest in the company, and those interests are usually defined in an operating agreement. This agreement sets out how decisions are made, how profits and losses are allocated, and what happens if a member wants to leave or transfer their interest.
Unlike a single-member LLC, a multi-member LLC requires some level of internal coordination. Decisions may need approval from multiple members, and responsibilities are often divided according to agreed roles. Even when one member owns a larger share, the presence of additional owners changes how the business is governed and documented.
For non-residents, a multi-member LLC is commonly used when there are co-founders, partners, or investors involved from the beginning. While this structure allows for shared ownership and collaboration, it also introduces more complexity, particularly around communication, agreements, and ongoing administration.
In practical terms, choosing a multi-member LLC means accepting a more structured internal setup in exchange for the ability to build and operate the business with multiple owners under a single legal entity.
What are the disadvantages of a single-member LLC?
A single-member LLC is often chosen for its simplicity, but that simplicity comes with trade-offs.
One limitation is the lack of internal checks and balance. With only one owner, all strategic, legal, and administrative decisions depend on a single person. For non-residents, this can increase pressure, especially when managing a US entity across time zones and legal systems.
Another disadvantage is how the structure scales. While a single-member LLC works well for solo operations, it can become restrictive once the business grows. Adding partners, co-founders, or investors usually requires restructuring the ownership, which means revisiting agreements and changing how the company is classified.
There can also be practical perception issues. Some institutions and counterparties may view a single-member LLC as less robust than entities with multiple owners or more complex structures. This does not affect legality, but it can influence negotiations, onboarding processes, or credibility assessments.
Ultimately, a single-member LLC offers control and simplicity, but it also concentrates responsibility and limits flexibility. For some non-residents, that trade-off is acceptable. For others, it becomes a reason to reconsider the structure as the business evolves.
What are the disadvantages of a single-member LLC for non-residents?
For non-residents, the disadvantages of a single-member LLC tend to be more practical than structural.
One key challenge is compliance awareness. Foreign-owned single-member LLCs often have additional reporting and administrative obligations compared to those owned by US residents. While the structure itself is simple, staying compliant from abroad requires attention, accuracy, and ongoing monitoring of requirements that may not be intuitive to non-residents.
Another disadvantage is operational friction. Managing a US company remotely can introduce delays or complications with banking, documentation, and third-party verification. When there is only one owner, there is no internal support system to share or delegate these responsibilities, which can increase the day-to-day burden.
A single-member LLC can also limit flexibility for non-residents who plan to grow or bring in partners later. Changing the ownership structure usually means reworking agreements and adjusting how the company is organized, which can feel disruptive after the business is already operating.
Finally, non-residents often underestimate how much long-term responsibility comes with being the sole owner. All strategic decisions, compliance obligations, and future planning rest on one person navigating a foreign legal and business environment. For some, this is manageable. For others, it becomes the main reason to reconsider whether a single-member LLC is the right structure over time.
Is a single-member LLC a disregarded entity?
Yes, in most cases a single-member LLC is treated as a disregarded entity for US federal tax purposes.
A disregarded entity is a business that exists as a separate legal entity under state law but is not treated as separate from its owner for federal tax reporting. For a single-member LLC, this means the IRS generally “disregards” the company as its own taxpayer and instead looks through it to the owner.
It is important to understand that this classification applies by default and mainly affects how taxes are reported, not how the company exists legally. A single-member LLC is still a valid and separate legal entity that can enter contracts, hold assets, and operate a business in its own name, even though it is disregarded for tax purposes.
For non-residents, the term “disregarded entity” often causes confusion. It does not mean the LLC is ignored altogether, nor does it mean there are no obligations. It simply describes how the IRS views the entity for tax reporting unless a different tax treatment is formally chosen.
This distinction between legal structure and tax classification is a common source of misunderstanding, which is why it is important to separate the concept of a single-member LLC from the way it is taxed.
Which state is best for a non-resident single-member LLC?
There is no single “best” state for a non-resident single-member LLC, because the right choice depends on how and where the business will operate.
Many non-residents search for a universally optimal state because they assume certain states are automatically better for foreign owners. In reality, US LLC laws are state-based, and each state comes with its own rules, costs, and expectations. What works well for one business may be unnecessary or inefficient for another.
The most important factor is where the business has a real connection. If your company will have customers, operations, or a physical presence tied to a specific state, that state is often the most appropriate place to form the LLC. Forming in a different state can create additional obligations without providing meaningful benefits.
For non-residents running location-independent or online businesses, the decision is usually driven by simplicity and predictability rather than reputation. Some states are known for streamlined administration and clearer processes, but that does not make them universally “better” for every foreign owner.
Instead of looking for a default answer, it is more useful to understand what you actually need from a state: manageable compliance, reasonable ongoing costs, and alignment with how your business operates. Choosing a state based on those factors is far more effective than following a one-size-fits-all recommendation.
What is the best state to form a non-resident LLC?
There is no single best state to form a non-resident LLC, because the answer depends on how the business will actually operate.
This question appears frequently because many non-residents assume that certain states are universally better for foreign founders. In practice, US states differ in costs, administration, and compliance expectations, but none of them is objectively “best” in every situation. The right state is the one that aligns with your business activity, not the one with the strongest reputation online.
If your business has a real connection to a specific state, such as customers, operations, or physical presence, that state is usually the correct choice. Forming an LLC elsewhere can create additional obligations without offering meaningful advantages, especially for non-residents trying to keep things simple.
For location-independent businesses, the decision often comes down to predictability and ease of ongoing compliance rather than tax myths or popular recommendations. Some states are known for clearer processes and lower administrative friction, but that does not automatically make them the best option for every non-resident founder.
Instead of looking for a universal answer, it is more useful to evaluate where your business operates, what level of complexity you are willing to manage, and how you plan to run the company long term. The best state is the one that fits those realities, not the one most often mentioned in generic advice.
What makes a state more or less friendly for non-residents?
A state is considered more or less friendly for non-residents based on how easy it is to form, maintain, and operate an LLC from outside the United States.
One major factor is administrative simplicity. Some states have clearer filing processes, predictable annual requirements, and fewer unexpected notices or follow-ups. For non-residents managing everything remotely, clarity and consistency matter more than minor cost differences.
Ongoing compliance expectations also play a role. States differ in how often they require reports, how strictly deadlines are enforced, and how straightforward it is to stay in good standing. A state that is easy to manage year after year is often more valuable to a non-resident than one that looks attractive at formation but becomes burdensome over time.
Another consideration is how the state’s systems interact with non-US owners. Online access, acceptance of foreign documentation, and practical support for remote management can significantly affect the experience of running an LLC from abroad.
Ultimately, a state feels “friendly” to non-residents when it reduces friction. Predictable rules, manageable administration, and alignment with how the business actually operates tend to matter far more than popularity or marketing-driven recommendations.
What comes next after choosing a single-member LLC
Legal basics
Understand what’s required to stay compliant
Learn which legal requirements apply to non-resident LLC owners from day one only
Identity setup
Get your LLC recognized by US institutions
Set up the essentials that allow your non-resident LLC to operate in the US market
Financial access
Prepare your LLC to receive payments
Understand how non-resident LLCs typically handle banking and payment access early
Ongoing clarity
Know what changes as your LLC grows
Get clarity on ongoing responsibilities so your non-resident LLC avoids surprises later
Frequently Asked Questions about US LLCs for nonresidents
Starting and running a US LLC as a non-resident often raises practical and legal questions. Below you’ll find clear answers to the most common concerns around ownership, taxes, residency, and compliance, so you can move forward with confidence and avoid costly mistakes.
Yes. A non-U.S. citizen can legally own a single-member LLC in the United States. Citizenship and residency are not requirements for LLC ownership, as long as the company is properly formed and maintained under US law.
No. LLC owners do not have to be U.S. citizens or US residents. Foreign individuals can fully own an LLC without holding a visa, green card, or US passport.
Yes. A single-member LLC is a common and legally recognized structure in the US. It is often chosen for its simplicity and full ownership control, especially by solo founders and non-residents.
The main disadvantages are concentrated responsibility, limited flexibility for adding partners, and potential perception issues with some banks or counterparties. All decisions and compliance obligations rest on one owner.
In most cases, yes. By default, a single-member LLC is treated as a disregarded entity for US federal tax purposes, meaning the IRS looks through the company to the owner for tax reporting. This does not affect the LLC’s legal existence.
There is no universally best state. The right state depends on where the business operates and how it is structured. For many non-residents, simplicity and predictable compliance matter more than a state’s reputation.
Yes. You do not need to live in the US to open or own an LLC. Non-residents can form and manage a US LLC remotely, provided they meet the required administrative and compliance obligations.