How to Set Up a US LLC from Germany (2026 Guide)
Setting up a US LLC from Germany is straightforward on the US side, but the real complexity is back home. Here is what actually matters, step by step.
Why founders in Germany open a US LLC
Most German founders who form a US LLC are not trying to avoid German tax. They are trying to solve a practical problem: US clients and marketplaces (Stripe, Amazon, App Store payouts, US-based agencies and SaaS platforms) prefer to pay a US entity, and a US LLC with a US bank account and a US business address makes invoicing, payment processing, and contracting with American companies much easier. A GmbH or UG can do business in the US too, but it often means slower onboarding with US payment processors, more friction with US clients who expect a US entity and US bank details, and no easy way to get a US business card.
None of that changes where you pay tax. If you are tax resident in Germany, you remain taxed there on your worldwide income regardless of where the LLC is registered. The LLC is a business and banking tool, not a tax shelter, and treating it that way is where founders get into trouble.
Choosing a state: Wyoming, Delaware, or something else
The state you pick affects cost, privacy, and how investors perceive the entity. It does not change your US federal tax obligations, since those apply the same way regardless of state.
| State | Typical use case | Notes |
|---|---|---|
| Wyoming | Solo founders, freelancers, SaaS, agencies | Low annual fees, no state income tax, strong privacy, the common default for non-US founders |
| Delaware | Startups raising VC money | Preferred by US investors and lawyers, but higher franchise tax and more admin for a simple single-member LLC |
| New Mexico | Very low-cost, minimal reporting | Cheap, but less established and can raise questions with some banks or partners |
Unless you have a specific reason to raise US venture capital soon, Wyoming is usually the sensible, boring choice for a non-US founder's first LLC.
The steps to set up the LLC from Germany
- Form the LLC: file Articles of Organization in your chosen state through a registered agent (you need a US registered agent address, you do not need to be physically present).
- Get an EIN: apply to the IRS using Form SS-4. You do not need an SSN or ITIN to get an EIN. As a foreign applicant without an SSN or ITIN, you file the SS-4 by fax or mail rather than online, and list yourself as the responsible party using the instructions for foreign applicants.
- Decide if you need an ITIN: an ITIN (Individual Taxpayer Identification Number) is for people who need to file US taxes but are not eligible for a Social Security Number. It is not a visa and does not grant any immigration status. You typically need one if you will personally file a US tax return (for example Form 1040-NR) or if a bank or platform specifically requires it. You do not need an ITIN just to get an EIN for the LLC.
- Open a US business bank account: providers like Mercury, Wise Business, and Relay let non-US founders open US business accounts remotely with an EIN and formation documents, no US visit required in most cases.
- Get US business cards: once you have a US bank account and some transaction history, you can usually apply for US business debit or credit cards tied to the LLC.
This is exactly the sequence Founders Credit handles for founders end to end: LLC formation, EIN, ITIN where needed, and a US bank account and card, done remotely without a US trip.
The part founders in Germany often miss: how Germany treats your LLC
This is the section that actually matters long term, and it is genuinely more complicated than most US-focused guides admit.
The US treats a single-member LLC as a 'disregarded entity' by default. That means the IRS looks straight through the LLC to you personally, so you report the LLC's activity on your own US tax filings, and the LLC itself pays no US federal income tax as a separate entity.
Germany does not automatically follow that US classification. German tax authorities use their own test, often called a Rechtstypenvergleich (a comparison of the foreign entity's legal characteristics against German entity types), to decide whether your US LLC looks more like a GmbH (treated as an opaque corporation) or more like a GbR or KG (treated as a transparent partnership) for German tax purposes. Depending on how your operating agreement, management structure, and liability protection are set up, the same LLC can be classified differently by the US and by Germany. That mismatch is where double taxation or awkward timing differences can arise, for example if Germany taxes you on the LLC's income as it is earned while the US treats a later distribution differently, or vice versa.
There are also Germany's controlled foreign company style rules under the Aussensteuergesetz (AStG), aimed at low-taxed foreign entities that earn largely passive income and are controlled by German residents. Whether these rules bite depends heavily on how the LLC is classified and what kind of income it earns, so this is not something to assume your way through.
The Germany-US tax treaty exists precisely to prevent the same income being taxed twice, but treaty relief only works cleanly when everyone agrees on how the entity is classified. Because the US and Germany do not automatically use the same test, the practical result is that two founders with what looks like an identical LLC can end up with different German tax treatment depending on the details of their setup.
The bottom line: a US LLC does not remove your German tax obligations, and getting the classification wrong can create real double taxation risk rather than reduce it.
What this means in practice: talk to a German Steuerberater who has specifically dealt with US LLCs owned by German residents, ideally before you file anything, not after your first profitable year. Bring your Articles of Organization and operating agreement to that conversation, since the specific terms affect the classification analysis.
Annual US compliance you cannot skip
A foreign-owned single-member LLC (the usual setup for a solo founder in Germany) has a US filing obligation even if the LLC made no money and did nothing that year. You must file Form 5472 together with a pro-forma Form 1120 to report transactions between the LLC and its foreign owner. This is an information return, it reports activity, it does not itself calculate or generate a tax bill. But the penalty for filing it late or not at all is 25,000 US dollars, and the IRS does enforce this. Alongside that you will usually owe an annual state fee (Wyoming's is modest) and need to keep your registered agent active.
Quick glossary
- EIN: Employer Identification Number, the IRS tax ID for your LLC, obtained via Form SS-4.
- ITIN: Individual Taxpayer Identification Number, for people who must file US taxes but cannot get a Social Security Number. No visa required.
- Disregarded entity: the US default treatment of a single-member LLC, where the IRS ignores the LLC for tax purposes and taxes the owner directly.
- Form 5472: annual information return foreign-owned LLCs must file with a pro-forma Form 1120, reporting owner transactions.
- Rechtstypenvergleich: the German tax test comparing a foreign entity's features to German entity types to decide how to tax it.
- AStG / CFC rules: German anti-deferral rules targeting low-taxed foreign entities controlled by German residents.
Getting the setup right from the start
The US side of this (LLC, EIN, bank account, cards) is genuinely simple once you know the sequence, and it can be done fully remotely from Germany. The part worth taking seriously is the German tax classification question, because that is where mismatches and unpleasant surprises happen, not on the US side. Founders Credit handles the US formation, EIN, ITIN, and banking piece done-for-you, and we always recommend pairing it with a short conversation with a German tax advisor familiar with US LLCs before you start invoicing through the entity.
Frequently asked questions
Do I need to live in the US or visit to set up an LLC from Germany?
No. You can form the LLC, get an EIN, and open a US business bank account entirely remotely. A registered agent provides the required US address for the LLC itself.
Does a US LLC let me pay less German tax?
Not on its own. If you are tax resident in Germany, you are taxed there on worldwide income regardless of where the LLC is formed. The LLC is a banking and operations tool, not a way to reduce German tax liability.
Do I need an ITIN to get an EIN for my LLC?
No. You can get an EIN using Form SS-4 without an SSN or ITIN, applying by fax or mail as a foreign applicant. An ITIN is only needed if you personally have to file a US tax return or a specific bank or platform requires one.
What happens if I skip Form 5472?
Foreign-owned single-member LLCs must file Form 5472 with a pro-forma Form 1120 every year, even with zero activity. Missing or late filing carries a 25,000 US dollar penalty, so this is not optional paperwork to leave for later.
Should I use Wyoming or Delaware for my LLC?
Wyoming is the common low-cost default for solo founders and small teams due to lower fees and simpler ongoing requirements. Delaware is generally preferred only if you plan to raise venture capital from US investors soon.
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