Can You Run a US LLC from India? Legal & Practical Truths Explained 

What is a US LLC? 

An LLC, or Limited Liability Company, is an easy and flexible way to start a business. It protects the personal money and property of its owners from any business debts or problems. This means if the business owes money, the owner’s personal assets are safe. A big advantage of an LLC is how taxes work. The profits of an LLC go straight to the owners, which helps avoid paying tax twice and make things simpler, especially for owners who do not live in the U.S.  

For Indian entrepreneurs, an LLC is attractive because:

• You get pass-through taxation (profits are taxed only once, not at both company and personal level).

• The paperwork is minimal compared to a US Corporation.

• You don’t need to live in the US to form or manage one.

Legal Requirements for Indians Starting a US LLC  

Here are the main legal points:

• Follow state laws: Every state has its own rules for LLCs. You must follow the specific rules of the state where you create your LLC.

• Registered Agent: You need a registered agent with a real address in the state where your LLC is formed. This person or a company gets official papers for your business.

• Federal Rules: You must follow the US federal rules, like getting an Employer Identification Number(EIN) from the IRS for taxes.

• Operating Agreement: Even if it’s not required, it is a good idea to have an Operating Agreement. This document explains how your LLC will run and helps avoid arguments between owners.

• Permits and Licenses: Depending on what your business does, you might need special permits or licenses to operate legally.

Steps to Form an LLC for Non US Residents  

Step 1: Choose the state for your LLC– Pick the US state that fits your business best, like Delaware, Wyoming, and Nevada are popular for easy rules and low taxes.

Step 2: Name your LLC– Choose a unique name that follows state rules and ends with “LLC” or “Limited Liability Company”.

Step 3: File the Articles of Organisation– Fill out and send a form to the state to create your LLC officially, listing your business name, address, and registered agent.

Step 4: Appoint a Registered Agent– Hire someone with a real address in your chosen state to receive official papers for your business.

Step 5: Obtain an Employer Identification Number– Apply for an EIN from the IRS. This is like a tax ID for your business and is needed for taxes and banking.

Step 6: Open a US Business Bank Account- Use your LLC documents and EIN to open a business bank account in the US to manage your company’s money.

Step 7: Comply with State and Federal Tax Obligations– File the right tax form each year and follow new rules, like reporting who owns your LLC, to keep your business legal in the US.

 Types of Visa Implications for US Business 

• B-1 or B-2 Short Term Visa: Lets you visit the US for meetings or conferences, but you can not work or sign business contracts while there.

• E-1 Treaty Trader Visa: It lets you run a US business that trades with your home country if your country has a special treaty with the US.

• E-2 Treaty Investor Visa: Lets you invest and manage a US business if you are from a treaty country; renewable as long as your business is running.

• EB-5 Investor Green Card: If you invest $800,000 to $1,050,000 and create 10 jobs, you and your family can get a US green card. (Note: $800K is for Targeted Employment Areas; $1.05M otherwise)

• L-1 Intercompany Transfer Visa: Lets you transfer from a foreign company to its US branch if you have worked there for at least a year.

• H-1B Visa: Lets you work in the US in a specialised job, but not for your own company. There is a yearly limit on these visas.

• O-1 Extraordinary Ability Visa: Lets you work in the US if you can prove you are outstanding in your field.

Ebizfiling Can Help  

Forming a US LLC from India is easy to start but hard to get right without expert guidance. Ebizfiling offers:

• End-to-end US LLC registration for non-residents

• Registered Agent service

• IRS EIN application

• Bank account advisory

• Ongoing compliance (BOI, 5472, State Reports, etc.)

We handle the backend, so you can focus on building your business.

In Short

A non-resident can legally start and operate a U.S. LLC remotely from India. However, compliance with state and federal regulations, obtaining an EIN, and having a U.S. bank account are essential. While ownership is allowed, working inside the U.S. requires a valid visa. Consulting professionals can help ensure proper legal and tax compliance.

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