How to Set Up a US LLC from Spain (2026 Guide)
Setting up a US LLC from Spain is straightforward on the US side, but the real complexity is how Spain taxes the entity once it exists. Here is what actually matters.
Why founders in Spain set up a US LLC
If you are building a SaaS product, an agency, or an ecommerce brand and most of your customers pay in USD, a US LLC solves practical problems that a Spanish sociedad limitada does not. US clients and marketplaces (Stripe, payment processors, some B2B procurement teams) trust a US entity more readily. A US LLC also gives you access to Mercury, Wise Business, or Relay for banking, US business credit cards, and a cleaner path to Stripe or PayPal without the friction non-US entities often hit.
None of this replaces your obligations in Spain. A US LLC does not move your tax residency, and it does not exempt you from declaring worldwide income if you live in Spain more than 183 days a year. Think of the LLC as a US-facing operating and banking tool, with the tax outcome decided largely by Spanish rules.
The exact steps to set up a US LLC from Spain
- Choose a state and form the LLC. File Articles of Organization through a registered agent in the state you pick. You do not need to visit the US or hold a US visa.
- Get an EIN (Employer Identification Number). This is your LLC's federal tax ID from the IRS, obtained via Form SS-4. As a non-resident without an SSN, you apply by fax or mail rather than online, which typically takes several weeks.
- Get an ITIN if you need one. An Individual Taxpayer Identification Number is for people who need a US tax ID but are not eligible for a Social Security Number. You do not need a US visa to get one. It is usually needed for certain bank applications, tax filings tied to the individual owner, or if you want to be listed on the entity's US tax filings by ITIN rather than just an EIN.
- Open a US business bank account. Mercury, Wise Business, and Relay all support remote onboarding for foreign founders with a US LLC and EIN, so you generally do not need to fly to the US to open an account.
- Apply for US business cards. Once the account is open and has activity or backing, most of these platforms offer debit cards, and some offer credit-style cards tied to account balance or revenue.
- File your annual US compliance. A foreign-owned single-member LLC must file Form 5472 alongside a pro-forma Form 1120, every year, even with zero US income. Missing this carries a $25,000 penalty per late or missing filing, so it is not optional and not something to guess at.
This is exactly the sequence Founders Credit handles end to end for founders in Spain: formation, EIN, ITIN where relevant, and a working US bank account, done remotely without you chasing five different providers.
Which US state should you pick?
| State | Typical use case | Notes |
|---|---|---|
| Wyoming | Most solo founders and small teams | Low annual fees, no state income tax, strong privacy, the common default for non-US founders |
| Delaware | Raising VC funding, planning a US C-corp conversion later | Preferred by US investors and lawyers, higher franchise tax, more paperwork |
| New Mexico | Very low-cost, low-maintenance setups | No annual report requirement in some cases, less familiar to banks and investors |
For most founders in Spain running a services, SaaS, or ecommerce business without institutional US investors, Wyoming is the practical default. Switch to Delaware only if you have a concrete reason, such as a priced funding round.
The Spain tax angle, and why it is the part people underestimate
This is the section that actually matters if you live in Spain. Forming the LLC is the easy part. What Spain does with it afterward is where founders get caught out.
Spain has to classify your LLC as transparent or opaque
Spanish tax law does not automatically treat a US LLC as a disregarded entity just because the IRS does. The Spanish tax authority (the Agencia Tributaria, guided by DGT rulings) has to decide whether your LLC is fiscally transparent for Spanish purposes, meaning profits are attributed directly to you as they arise (similar to the US default treatment), or opaque, meaning it is treated like a foreign corporation, with tax consequences only when profits are distributed to you as dividends. This classification has genuinely shifted over the years through different administrative rulings and case law, and it depends on the specific facts of your LLC (single-member vs multi-member, how it is managed, where decisions are made). This is not a settled, one-line answer, and it is one of the main reasons a Spanish asesor fiscal with actual US LLC experience is worth paying for before you assume anything.
CFC rules can apply even to a small LLC
Spain's international tax transparency regime (broadly similar in spirit to CFC rules elsewhere) can require you to include certain categories of the LLC's income directly on your Spanish return if you control the entity and it generates passive or certain qualifying income, regardless of whether profits were distributed. Active trading or service income run genuinely through the LLC is treated differently than passive income, so the nature of your business matters here.
The US-Spain tax treaty and double taxation
The US and Spain have a tax treaty, updated by a protocol that specifically addresses fiscally transparent entities, precisely because LLCs caused so much dispute. In practice, if structured and reported correctly, you should not end up paying full tax twice on the same income, either through treaty relief or through a foreign tax credit in Spain for any US tax paid. But you only get that relief if you report the LLC correctly on both sides. Get it wrong and you risk real double taxation, not theoretical double taxation.
Modelo 720 and asset reporting
As a Spanish tax resident, you may need to file Modelo 720 declaring foreign assets, including foreign bank accounts and ownership stakes in foreign entities, once you cross the relevant thresholds. This is separate from your income tax return and has its own penalties for late or missing filing, so it needs to be on your calendar alongside US filings like Form 5472.
When to bring in local advice
Get a Spanish tax advisor involved before your first full tax year with the LLC, not after. Bring them your LLC's operating agreement, how you plan to pay yourself (draw versus salary is not really how single-member LLCs work, but the distinction between reinvested and distributed profit matters), and whether the business is active trading income or more passive in nature. This single conversation prevents most of the expensive mistakes.
Common mistakes founders in Spain make
- Assuming the LLC is invisible to Spain because it is a US entity. It is not, if you are a Spanish tax resident.
- Skipping Form 5472 because there was no US income that year. The filing requirement exists regardless of profit.
- Mixing personal and business spending on the same US account, which makes both US and Spanish bookkeeping harder to defend.
- Not asking, in advance, whether their specific LLC will likely be treated as transparent or opaque in Spain.
- Treating the ITIN as optional paperwork rather than checking early whether their bank or filing situation actually needs one.
Glossary
LLC (Limited Liability Company): a US business structure that separates personal and business liability. A single-member LLC owned by a non-US person is, by IRS default, a disregarded entity for US federal tax purposes.
EIN: the LLC's federal tax ID number, required for banking, tax filing, and most US business operations.
ITIN: a US tax ID for individuals who are not eligible for a Social Security Number. No US visa is required to obtain one.
Form 5472 and pro-forma 1120: the annual information return foreign-owned single-member LLCs must file, even with no activity. Missing it risks a $25,000 penalty.
Fiscal transparency: whether Spain attributes the LLC's income to you directly (transparent) or waits until distribution to tax it (opaque). This determines your annual Spanish reporting.
Registered agent: a person or company in your chosen US state that receives legal and state correspondence on the LLC's behalf.
How Founders Credit fits in
Founders Credit sets up the LLC, EIN, ITIN where needed, and a working US bank account and card for founders in Spain, entirely remotely. The US side is handled for you. Pair that with a Spanish tax advisor who understands US LLCs, and you get a structure that is clean on both ends rather than convenient on one and risky on the other.
Frequently asked questions
Do I need to visit the US to set up an LLC from Spain?
No. LLC formation, the EIN application, ITIN application, and remote-friendly bank accounts like Mercury or Wise Business can all be done without traveling to the US.
Does a US LLC reduce my tax bill in Spain?
Not by itself. If you are a Spanish tax resident, Spain still taxes your worldwide income. The LLC changes how and when that income is reported, depending on whether it is treated as transparent or opaque, not whether it is taxed at all.
What is the biggest compliance risk with a US LLC owned from Spain?
On the US side, missing Form 5472 and the pro-forma 1120, which carries a $25,000 penalty even with zero income. On the Spain side, misreporting the LLC's classification or missing Modelo 720 if you cross the asset reporting threshold.
Is Wyoming or Delaware better for a founder in Spain?
Wyoming is the common default for low-cost, low-maintenance LLCs without US investors. Delaware makes more sense if you are planning to raise venture funding or convert to a C-corp later.
Do I need an ITIN if I already have an EIN for my LLC?
Not always. The EIN is for the entity. An ITIN is for you personally, and whether you need one depends on your bank's requirements and certain individual tax filings, so it is worth checking your specific situation rather than assuming either way.
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