How to Set Up a US LLC from Denmark (2026 Guide)

Setting up a US LLC from Denmark is straightforward once you know the order of operations, but the Danish tax side is where most guides go quiet. Here is the full picture.

Why Danish founders set up a US LLC

Most founders in Denmark who form a US LLC are not trying to avoid Danish tax. They are trying to sell to US customers who prefer paying a US entity, use payment processors like Stripe that work more smoothly with US businesses, hold funds in USD, or get access to US business credit cards and banking rails that simply do not exist in the same form back home. A US LLC also reads well to US clients and investors who are unfamiliar with a Danish ApS.

None of that changes your Danish tax residency or your obligation to report worldwide income to Skattestyrelsen. The LLC is a US legal structure sitting on top of a Danish tax resident, and both systems apply their own rules to it independently.

The exact steps to form a US LLC from Denmark

1. Choose your state

You do not need to live in, visit, or have any connection to the state where you form your LLC. Most non-US founders default to Wyoming because it has no state income tax on income not sourced there, low and predictable annual fees, strong privacy for members, and no franchise tax. Delaware is the alternative, mainly chosen by founders who plan to raise venture capital, since US investors and their lawyers are most familiar with Delaware corporate law.

2. File your Articles of Organization

You form the LLC by filing Articles of Organization with the Secretary of State and appointing a registered agent physically located in that state. This is a company that receives official mail and legal notices on your behalf. You cannot act as your own registered agent from Denmark, so this is a required annual expense regardless of who handles it.

3. Get your EIN

The EIN (Employer Identification Number) is your LLC's tax ID with the IRS, and you need it before you can open a US bank account. Non-residents apply using Form SS-4. Because you do not have a Social Security Number, you cannot use the online EIN application, so it has to go in by fax or mail to the IRS. This is the step that trips up most DIY founders, since the form asks for an SSN or ITIN in a field that is genuinely optional for foreign applicants, and processing by fax typically takes a few weeks rather than the same-day turnaround Americans get online.

4. Decide whether you need an ITIN

An ITIN (Individual Taxpayer Identification Number) is not required to form the LLC or get its EIN. You need one if you personally have to file a US tax return, which becomes relevant once the LLC has US-source income or in certain banking and payment processor situations. Getting an ITIN does not require a US visa. It exists specifically for people who are not eligible for a Social Security Number but still have a US tax filing requirement, applied for with Form W-7, usually alongside your first US tax return or through a Certifying Acceptance Agent.

5. Open a US business bank account

With your EIN and formation documents in hand, you can open a US business account remotely through providers such as Mercury, Wise, or Relay, all of which are built for exactly this situation and do not require a US visit or an SSN. From there you can also apply for US business cards, which is usually far easier once you have US banking history and revenue flowing through the account.

6. Stay compliant every year

A foreign-owned single-member LLC is treated by the IRS as a disregarded entity, but that does not mean it is invisible to them. You still have to file Form 5472 alongside a pro-forma Form 1120 every year, even if the LLC had zero income and zero activity. This is an information return, not a tax calculation in itself, but skipping it carries a penalty of $25,000 per violation. On top of that, expect an annual report and fee in your state of formation, registered agent renewal, and a Beneficial Ownership Information report to FinCEN when ownership changes or on initial formation. This is the part of LLC ownership that most people underestimate, and it is exactly the ongoing admin that a done-for-you service like Founders Credit is built to handle, alongside the initial LLC, EIN, ITIN, and bank account setup, so nothing gets missed a year in.

How Denmark actually taxes your US LLC

This is the section most guides skip entirely, and it is the one that matters most if you live in Denmark.

The US and Denmark can disagree on what your LLC even is

By default, the IRS treats a single-member LLC as a disregarded entity: profits pass straight through to you and are reported on your personal US filings, with no entity-level US tax. Denmark does not automatically follow that classification. Skattestyrelsen applies its own test to decide whether a foreign entity is transparent (taxed like a partnership, flowing straight to you) or opaque (taxed like a separate company, similar to a Danish ApS). That test looks at things like whether the entity has limited liability, a separate legal personality under its home state's law, and how profits and losses are allocated. A US LLC, with its limited liability and separate legal existence under Wyoming or Delaware law, can quite plausibly be classified as opaque by Danish standards even though the IRS treats it as transparent for US purposes.

That mismatch matters in practice. If Denmark treats your LLC as opaque, its profits may only become taxable to you personally when distributed, similar to dividends from a foreign company, and Denmark's rules on foreign companies and controlled foreign entities can come into play depending on the income type and your level of control. If Denmark treats it as transparent, its income is generally taxed to you as it is earned, in the year it arises, regardless of whether you paid yourself anything out of the US bank account.

Avoiding double taxation

There is a tax treaty between the US and Denmark, and foreign tax credit mechanisms exist on both sides so you are not meant to pay full tax twice on the same income. But treaty relief and credits only work cleanly when the classification and reporting are done correctly and consistently in both countries. Getting this wrong in one direction can mean paying more than necessary, and getting it wrong in the other direction can mean under-reporting to Skattestyrelsen without realising it.

When to get local advice

Before your LLC has any real revenue, it is worth a paid session with a Danish revisor or tax advisor who has specifically handled US LLCs owned by Danish residents, not just US tax generally. Ask them directly how they would classify your specific LLC (transparent or opaque), how and when its profits should appear on your Danish return, and whether any CFC-style rules apply given your ownership and the type of income involved. This is a narrow enough question that a good advisor can usually answer it in one focused conversation, and it is far cheaper to ask upfront than to correct two or three years of filings later.

Where a done-for-you service fits

The US side, forming the LLC, getting the EIN without an SSN, deciding on an ITIN, opening the bank account, and keeping up with 5472 and annual report deadlines, is mechanical and well understood once you have done it once. Founders Credit handles that entire US setup and its ongoing filings for non-US founders remotely, so the only thing left for you to sort out locally is the Danish tax classification conversation above, which genuinely does need a Danish advisor and cannot be outsourced to a US-side service.

Frequently asked questions