Why Form a US LLC in 2027? What Changed, What It Costs and When It Isn't Worth It

Quick answer: for a freelancer, consultant or software founder who lives outside the US and sells to clients abroad, a US LLC still makes sense in 2027 if you need what it unlocks: a US bank account, Stripe, and clients who prefer paying a US company. It is cheaper to run than two years ago because the federal BOI report is gone for US-formed LLCs. It does not lower the tax you owe where you live, and it comes with one filing you cannot skip: Form 5472, due April 15.

I run my own US LLC from outside the US, and this is the checklist I would use if I were deciding today. It's not tax advice: the right answer depends on where you are a tax resident, so the last step is always a conversation with an accountant who knows your country.

What changed going into 2027

The BOI report is gone for US-formed LLCs

From 2024 every small company was supposed to file a beneficial ownership (BOI) report with FinCEN. That ended in two steps: an interim rule in March 2025, then a final rule issued on August 11, 2026 and in force from August 14, 2026. Today only companies formed outside the US and registered to do business in a US state have to report. A Wyoming, Delaware or New Mexico LLC owned by a foreign individual does not file a BOI report. Some states have their own disclosure rules, New York's LLC Transparency Act for example, so check the state you form in.

Banks and payment providers ask more questions

Opening Mercury, Wise or Stripe as a non-resident still works, but onboarding is stricter than in the early 2020s. Expect to show your passport, the EIN letter, the articles of organization, a description of what you sell with a website that matches, and sometimes proof of an address. Formation services report that some providers no longer accept a registered agent address on its own. Requirements change often and differ by provider, so check each one's current onboarding page before you form the company.

EINs still take weeks

Without an SSN or ITIN you can't use the IRS online form. You apply for the EIN with Form SS-4 by fax or mail, and it can take several weeks. Plan for it: without an EIN you can't open the bank account.

What didn't change

• The US tax treatment. A single-member LLC owned by a non-resident is a "disregarded entity". If it has no US trade or business (no US office, no US employees, no US dependent agents), it usually owes no US federal income tax.
• Form 5472 every year. The same LLC must file Form 5472 with a pro forma Form 1120, even with zero income. It reports the money between you and the company: what you put in, what you took out, loans, and LLC costs you paid personally. The penalty for not filing is $25,000, plus $25,000 for each further 30 days once the IRS has sent a notice and 90 days have passed. For the 2026 tax year it is due on April 15, 2027.
• Your home country still taxes you. Most countries tax their residents on worldwide income, and many look through a foreign LLC to its owner. If you manage the company from home, your tax office can treat it as a local company. The LLC changes where the money lands, not where you pay tax.

What it costs to run in 2027

State fees change; check the Secretary of State website of your state before filing. For a full comparison of the two most popular states, read Delaware vs Wyoming for non-residents.

When a US LLC is worth it

• Your clients are in the US or prefer a US vendor. Many companies process a W-8 or a US invoice faster than a foreign one.
• You need Stripe or a US bank and your country doesn't have them. This is the most common reason, and still a good one. See how to open Stripe with a US LLC and the banks that accept non-residents.
• You sell software or digital products worldwide and want one company, one currency for reporting and one set of payment rails.
• You don't have a stable tax residence yet and have had professional advice on how the LLC fits your situation. If you travel, read US LLC or offshore company for digital nomads.

When it isn't

• You expect it to cut your taxes while you live and work in a high-tax country. It usually won't, and doing it wrong can cost more than it saves.
• All your clients are in your own country and pay you locally. A local company or sole trader status is simpler.
• You won't keep records. The LLC is cheap only if you file Form 5472 on time and can show your accountant every transfer between you and the company.

A 2027 decision checklist

1. Write down where you will be a tax resident in 2027 and ask an accountant there how a US LLC owned by you is taxed.
2. Pick the state: Wyoming or New Mexico for low yearly cost, Delaware if investors or US partners ask for it.
3. Budget the yearly cost: state fee, registered agent, Form 5472, home-country accountant.
4. Check the current onboarding rules of the bank and payment provider you need, before you form.
5. Apply for the EIN as soon as the LLC exists, and expect a few weeks.
6. From the first day, keep every invoice in USD value and log the money between you and the LLC, so Form 5472 is a one-hour job in April. That is the part Invollc does for me.

For the full setup, step by step, read how to form a US LLC as a non-resident. For the tax side, do non-US founders pay taxes on a US LLC?.

Sources

• FinCEN, beneficial ownership information: fincen.gov/boi. Summary of the August 2026 final rule: Troutman Pepper Locke.
• IRS, Instructions for Form 5472: irs.gov/forms-pubs/about-form-5472.
• IRS, Form SS-4 and EIN for foreign persons: irs.gov.
• Wyoming Secretary of State, annual reports: sos.wyo.gov. Delaware Division of Corporations, LLC annual tax: corp.delaware.gov.