| You are… | Options open to you | Key condition |
|---|---|---|
| US resident / US person | LLC · C-Corp · S-Corp · Sole proprietorship · Partnership | S-Corp open only to US citizens and residents |
| Indian resident individual | LLC · C-Corp | Investment from India through LRS and ODI reporting |
| Indian company | Wholly owned subsidiary (LLC or C-Corp) · Joint venture · Branch (foreign company registered in a US state) | ODI filing through your bank; a branch must also report beneficial owners to FinCEN |
| NRI or other non-resident | LLC · C-Corp | No US residency, visa or SSN needed; a US registered agent is required |
A non-resident can't own an S-Corp. If you're raising US venture funding, a Delaware C-Corp is usually what investors expect.
One owner, simple to run, and taxed as a pass-through by default. Foreign owners must file Form 5472 with the IRS every year, even with zero income.
Best for: solo founders, consultants, e-commerce and service businesses.
Two or more owners, taxed as a partnership by default.
Best for: co-founders who don't plan to raise venture capital.
A separate taxpayer that can issue different share classes and stock options. Usually formed in Delaware.
Best for: startups raising US investment, and Indian companies building a US subsidiary.
A tax election for corporations owned only by US citizens or residents. Not available to non-residents.
Your Indian company registers to do business in a US state without forming a new entity. The parent is directly liable for US obligations.
Best for: limited or project-based US activity.
| State | Why founders choose it |
|---|---|
| Delaware | Business-friendly courts and the standard for venture-funded C-Corps |
| Wyoming | Low annual costs and simple upkeep for LLCs |
| Your operating state (e.g. Texas, California, New York) | Where you have staff, an office or most customers; you'd register there anyway |
When an Indian resident or Indian company invests in a US entity, India's Overseas Investment rules apply. We prepare the India filings alongside the US setup, so your bank processes the remittance without delay.
| Who is investing | Route | What's filed in India |
|---|---|---|
| Indian resident individual | Liberalised Remittance Scheme, within the US$250,000 yearly limit | Form FC with your bank before remitting; Annual Performance Report (APR) by 31 December each year |
| Indian company or LLP | Overseas Direct Investment (ODI) | Form FC through your bank; APR every year; Foreign Liabilities and Assets return |
| Founder type | Documents |
|---|---|
| Individual (any country) | Passport, proof of residential address, ownership split |
| Indian company as owner | Certificate of incorporation, board resolution, authorised signatory details |
| For India-side filings | PAN, bank details, valuation where needed |
State formation can take from a day to a couple of weeks depending on the state. An EIN for a foreign owner usually takes longer than for a US person. We'll give you a timeline for your case.
| When | What | Applies to |
|---|---|---|
| Every year (state due date) | Annual report or franchise tax | All entities |
| Every year | Registered agent renewal | All entities |
| By 15 April (calendar year) | Form 5472 with pro forma Form 1120; $25,000 penalty if missed | Foreign-owned single-member LLCs and 25%+ foreign-owned corporations |
| By 15 April (calendar year) | Federal corporate tax return (Form 1120) | C-Corps |
| As applicable | Sales tax and payroll filings | Entities with US activity or staff |
| By 31 December | India-side APR | Indian investors |
Questions we hear
Yes. Non-residents can own a US LLC or C-Corp. The company gets its own EIN without you needing an SSN or ITIN.
An LLC is simpler and cheaper to run. A Delaware C-Corp is what US investors usually expect and suits companies planning to raise funds or grant stock options.
Delaware for venture-backed C-Corps. Wyoming for low-cost LLCs. If you have staff or an office in another state, you'll register there too.
It's an IRS information return for foreign-owned US companies. It's due every year, even with no income, and the penalty for missing it is $25,000.
No, if your company was formed in the US. Since FinCEN's August 2026 final rule, only foreign companies registered in a US state still report.
We help you apply with banks and fintechs that accept non-resident owners. Approval rests with the bank.
Tell us a little about your business and we will get back to you shortly.