Which US state is right for your single-member LLC if you live in India? A practical breakdown of taxes, privacy, and ongoing compliance.
The short answer
For an Indian founder operating an online business (SaaS, e-commerce, consulting) with no US physical presence, Wyoming is almost always the right answer. It offers strong privacy, no state income tax, and the lowest ongoing fees of any major formation state.
Delaware is overrated for non-US founders without venture funding. Florida is a good fit only if you have a US team or warehouse there.
What the LLC does not change
An LLC by itself does not eliminate federal tax. A single-member LLC owned by a non-resident is treated as a disregarded entity, which means you (not the LLC) file Form 1040-NR plus the LLC files an informational Form 5472 with a pro-forma Form 1120.
Failure to file Form 5472 carries a $25,000 minimum penalty per year. This is the single most common compliance failure we fix for foreign-owned LLCs.
Bank account and EIN
You can get an EIN as a non-resident by faxing Form SS-4 to the IRS — typically 4–6 weeks. Online EIN issuance requires a US SSN or ITIN.
For banking, Mercury and Relay accept non-resident-owned US LLCs without a US visit. Both require the EIN letter and operating agreement.