US LLC formation for non-residents: tax and App Store
Zero federal tax, and a $25,000 penalty for one forgotten form. What to pick for the App Store, Google Play and consulting: LLC or C-Corp, Wyoming or Delaware, how to get an EIN and a D-U-N-S number, and what it all costs.
A US LLC owned by a non-resident with no office or staff in the United States usually pays no federal income tax at all. But miss one annual filing, Form 5472 with a pro forma cover page of Form 1120, and the IRS penalty is $25,000. It is the most expensive mistake in this whole topic.
For an app developer, a US company means the company name, not your personal name, appears as the seller on the App Store, and Google Play categories closed to individuals open up. For a consultant, it means contracts signed by a legal entity and a dollar account. Below: which entity to choose, what taxes actually arise, which state to pick, the route to your first Apple payout and the all-in cost.
One uncomfortable rule comes first. If you are physically in Russia, a US formation service may not set up a company for you. Since 7 June 2022, OFAC (the Office of Foreign Assets Control, the US Treasury's sanctions office) has barred US persons from providing corporate formation, accounting and management consulting services to anyone located in Russia. The test is where you are, not which passport you hold.
Do you need an LLC for an app or a consulting business, and when you don't
Apple accepts both individuals and organizations into the Apple Developer Program. For organizations, Apple states plainly that the organization's name is displayed as the seller name on the App Store. Individuals must use their legal first and last name in their Apple Account, and for sales in the EU under the Digital Services Act (DSA, the EU regulation on online platforms) Apple publishes a developer's address or P.O. box, phone number and email on the product page.
On Google Play the gap is wider. A personal account created after 13 November 2023 must run a closed test before publishing: 12 testers for 14 consecutive days, and only then does Google review the application for production access. For financial, health, VPN and government apps, Google explicitly tells developers to choose an organization account. Note that Google needs an organization, not necessarily an American one.
A consultant needs the company so that clients pay a legal entity, money lands in a corporate dollar account and contractual liability is kept away from personal assets. An LLC does not solve tax problems by itself: you usually pay tax on its profit wherever you live.
| Your situation | US company | Why |
|---|---|---|
| One free app, a side project | Not needed | Personal accounts are enough: Apple $99 a year, Google $25 once |
| Paid apps and subscriptions, sales in the EU | Makes sense | The company is the seller, and the EU listing shows the address tied to its D-U-N-S number (an identifier in the Dun & Bradstreet database, see below), not your home address |
| Fintech, health or VPN apps on Google Play | An organization from any country is required | Google's rule for these categories |
| Consulting for clients in the US and Europe | Makes sense | Invoices from a legal entity, a dollar account |
| Management or IT consulting for clients in Russia | Does not work | OFAC sanctions rules bar US persons, including LLCs, from these services to persons in Russia |
| You need venture investors and stock options | A Delaware C-Corp | Funds generally do not invest in LLCs |
If you are still choosing a country for your company, start with our comparison of jurisdictions in where to open a company in 2026. For a country overview, see USA: citizenship, residence, taxes and visas.
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LLC or C-Corp: which company should a non-resident open
For a solo founder without investors, an LLC (Limited Liability Company) almost always wins. By default the IRS (Internal Revenue Service, the US federal tax agency) treats a single-member LLC as a disregarded entity: the company has no income tax of its own and its income is treated as the owner's. An LLC with two or more members is taxed as a partnership by default. With Form 8832 an LLC can elect to be taxed as a corporation.
A C-Corp is a standard US corporation. It pays 21% federal income tax itself, plus state tax: in 2026 from 2% in North Carolina to 11.5% in New Jersey, while South Dakota and Wyoming levy no corporate income tax at all. When it pays dividends to a foreign shareholder, the US withholds another 30%, or less under a tax treaty. The result is double taxation, so a corporation makes sense only for a specific purpose: venture money, employee stock options, SAFEs (Simple Agreement for Future Equity, an investor's right to future shares) and the 83(b) election (a filing with the IRS that fixes the tax on founder shares at their value on the grant date).
C-Corps are preferred by institutional investors: many of them are barred by their own rules from investing in LLCs.
The third US option, the S-Corp (a corporation with pass-through taxation), is closed to non-residents: the law bars non-resident alien shareholders, partnerships and corporations as shareholders and caps the number of shareholders at 100.
| Feature | Single-member LLC | Multi-member LLC | C-Corp |
|---|---|---|---|
| Income tax at company level | None, income is the owner's | None, income is allocated to partners | 21% federal plus state tax |
| Annual IRS filings | Pro forma 1120 and Form 5472 | Form 1065 if there is income or expenses | Form 1120, plus 5472 with a 25% or larger foreign shareholder |
| US tax on foreign owners | Only if there is a US business | On the partners' share of US business income the company withholds 37% for individuals and 21% for corporations (Forms 8804, 8805, 8813) | 30% or the treaty rate withheld on dividends |
| Investors and stock options | Awkward | Awkward | Market standard |
| Usual state | Wyoming, New Mexico | Wyoming, New Mexico | Delaware |
| Best for | Solo developer, consultant | Two or more partners | A startup that will raise money |
Withholding under section 1446 of the Internal Revenue Code (the US federal tax code) applies only to income from a US business. No such income, nothing to withhold, but Form 1065 is still due if the LLC had income or expenses.
US LLC for non-residents: what tax do the company and its owner pay
US tax depends not on the state of formation but on whether you run a business in the United States itself. The IRS calls this a US trade or business, and income from it is ECI (effectively connected income). ECI is taxed at graduated rates. Without a US trade or business, only certain passive US-source income is taxed: FDAP (fixed, determinable, annual, periodical income such as dividends, interest and royalties), at 30% or a lower treaty rate.
In practice: if the owner and all the work are outside the US, with no US office, staff or dependent agents, there is usually no US trade or business, and a disregarded LLC pays no federal income tax. This is a conclusion from general IRS rules, not a written exemption, so Murblz specialists will check your contracts once.
Zero tax does not mean zero paperwork. Every single-member LLC with a foreign owner that had transactions with that owner during the year files Form 5472 (information on transactions with related parties), attached to a pro forma Form 1120. There are almost always such transactions: the IRS counts even paying the formation costs from personal funds. The pro forma 1120 is a formal cover page of the corporate return. Only the name, address and two items are completed, and Foreign-owned U.S. DE (disregarded entity) is written across the top. Form 5472 covers your contributions to the company and your distributions from it.
These forms cannot be e-filed: only by fax to 855-887-7737 or by mail to the IRS in Ogden, Utah. The deadline is the 15th day of the fourth month after year end, which is 15 April for a calendar year. Form 7004 gives a six-month extension. The penalty for failing to file, filing a substantially incomplete form or failing to keep records is $25,000. If the failure continues more than 90 days after IRS notice, another $25,000 applies for each 30-day period.
| Tax or filing | Who | How much | Deadline |
|---|---|---|---|
| Federal income tax | Single-member LLC with a foreign owner and no US business | Usually zero | - |
| Pro forma 1120 and Form 5472 | The same LLC | No tax, $25,000 penalty for not filing | 15 April, 15 October with Form 7004 |
| Dividend withholding | C-Corp paying a foreign shareholder | 30% or the treaty rate, reported on Form 1042-S | On payment |
| State income tax | C-Corp; for a disregarded LLC it depends on the state | Wyoming 0, Florida 5.5%, New Mexico 5.9%, Delaware 8.7%, Texas taxes revenue instead | State rules |
| Sales tax on digital goods | Buyers on the App Store and Google Play | Apple and Google collect and remit it themselves | - |
| BOI report to FinCEN (a US Treasury bureau) | Companies formed in the US | Not required | - |
The last row is the good news of the year. On 11 August 2026 FinCEN (the Financial Crimes Enforcement Network, the Treasury bureau fighting financial crime) issued its final rule exempting companies formed in the US from BOI reporting (beneficial ownership information, details of ultimate owners). Only companies formed abroad and registered to do business in a US state must report.
How much the US withholds from C-Corp dividends
The rate depends on the shareholder's tax residence; treaty relief is claimed on Form W-8BEN (individuals) or W-8BEN-E (entities). Figures come from IRS Table 1.
| Shareholder's residence | General rate | Reduced rate for direct investment |
|---|---|---|
| Kazakhstan, Ukraine | 15% | 5% |
| Cyprus, Estonia, United Kingdom | 15% | 5% |
| Belarus, Armenia, Georgia, Kyrgyzstan and other countries under the USSR treaty | 30% | 30% |
| Russia | 30% | 30% |
The 5% rate is usually available to a corporate shareholder with a substantial stake, not to an individual. With Russia, the US suspended articles 5 to 21 and 23 of the treaty from 16 August 2024; the dividend article falls in that range, so the rate is 30%.
Worked example: an app developer
Assumptions for this example: a Wyoming LLC with one owner who lives and works outside the US. The app sells subscriptions on the App Store, with $60,000 of annual revenue excluding sales tax and VAT, which Apple collects itself. The developer is enrolled in the Apple Small Business Program, a reduced-commission program for small developers, so the commission is 15%.
| Item | Amount, $ | Comment |
|---|---|---|
| App Store revenue | 60,000 | Assumption |
| Apple commission 15% | -9,000 | Small Business Program, up to $1 million in proceeds (after Apple's commission) in the prior year |
| Paid to the LLC | 51,000 | Within 45 days of the end of Apple's fiscal month |
| US federal tax | 0 | If there is no US business (our reading of IRS rules) |
| Form 5472 and pro forma 1120 | No tax | Mandatory, or a $25,000 penalty |
| Tax in the owner's country | Under local rules | On the LLC's profit after expenses |
The US side costs tens of dollars in state fees plus an agent and filings; the main tax is paid at home. For a Russian tax resident, the LLC's profit will almost certainly fall under the controlled foreign company (CFC) rules covered below.
Worked example: a consultant
Assumptions: a consultant lives in Europe, and her Wyoming LLC earns $80,000 a year from EU clients, all work done remotely. Income from services is sourced where the services are performed, so this is foreign-source income and usually attracts no US federal tax.
Now she spends three weeks in the US at a client's site. The fee for those days becomes US-source income and most likely income from a US business: a return and tax at graduated rates are due. The exception in IRS Publication 519 (up to 90 days, up to $3,000, a foreign employer) is designed for employees of foreign firms, not for the owner of a US LLC.
A separate risk is becoming a US tax resident under the substantial presence test: at least 31 days in the current year and 183 days over three years, counting all days this year, one third of last year's days and one sixth of the days the year before. After that the US taxes your worldwide income. More on counting days in tax residency and the 183-day rule.
Worked example: a C-Corp owned by a Russian resident
Assumptions: a corporation in a state with no income tax, $100 of profit, the owner is a Russian tax resident and all profit is paid out as a dividend.
| Step | Tax | Remaining, $ |
|---|---|---|
| Corporate profit | - | 100 |
| Federal income tax 21% | 21 | 79 |
| US withholding on the dividend 30% | 23.7 | 55.3 |
| Russian personal income tax 13% on the 79 dividend, no credit for US tax | 10.3 | 45 |
The total burden is about 55% before any state tax. There is no credit: Article 232 of the Russian Tax Code allows one only under a tax treaty, and the US treaty is suspended. Without investors, a corporation makes no sense for a Russian resident. For the broader picture of US taxes for people moving there, see taxes in the USA.
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Best state to form an LLC for non-residents: Wyoming, Delaware, Florida, New Mexico or Texas
For a non-resident, states differ in annual fees and in what the public register shows about the owners. The annual state charge for an LLC is $60 in Wyoming and $400 in Delaware. Every state requires a registered agent: a paid representative with an address in the state who receives official mail.
| State | LLC formation | Annual for an LLC | State income tax | What the public record shows |
|---|---|---|---|---|
| Wyoming | $100, plus $4 for card payment online | Annual report license tax of $60 or 0.02% of assets in the state, whichever is greater | No corporate income tax | Members and managers are not listed |
| Delaware | $110 | $400 tax by 1 June; late payment costs a $200 penalty plus 1.5% a month | 8.7% | Only the name and the agent |
| Florida | $125, including $25 to designate the agent | Annual report $138.75 by 1 May, then a $400 late fee | 5.5% on profit above $50,000 | At least one person with management authority in the annual report |
| New Mexico | $50 | No annual report for LLCs | 5.9% | Filing details become public |
| Texas | $300 (Form 205) | No tax below $2,650,000 of revenue, but a report is due by 15 May | None, but there is a franchise tax (a tax for the privilege of doing business) of 0.75%, 0.375% for retail and wholesale | Names and addresses of the initial managers or members |
A Delaware corporation also pays franchise tax: from $175 under the Authorized Shares method or from $400 under the Assumed Par Value method, capped at $200,000, plus a $50 annual report due by 1 March.
Delaware does not prorate: an LLC formed in December pays the full $400 for that year. In Wyoming an online filing creates the LLC immediately. Paper documents sent by mail are reviewed within up to 15 business days, and expedited review costs $700 for the next business day or $1,400 for the same day.
When another state can reach you
Tax follows not only the state of formation but also any state where the company has a sufficient connection, known as nexus. Texas charges an out-of-state company that does business in Texas for more than 90 days without registering a late filing fee: the $750 registration fee multiplied by the number of years it operated unregistered. New Mexico levies its GRT (gross receipts tax) even on services performed outside the state if their product is initially used in New Mexico; for sellers without a physical presence the threshold is $100,000 of receipts in the prior year.
The short verdict
- Wyoming is the default without a US presence: cheap, and owners do not appear in formation documents.
- New Mexico is the cheapest to maintain: LLCs file no annual report. But if your clients are in New Mexico, the state may claim its gross receipts tax (GRT).
- Delaware is for a C-Corp raising venture money. For an LLC without investors it costs about $340 a year more than Wyoming.
- Florida and Texas make sense when you actually live or work there, for example after moving to Miami. From abroad they bring only costs and publicity.
US LLC formation for non-residents: steps and timelines
The whole process can be done without travelling to the US. The least predictable links are the tax number for an owner without a US Social Security number (SSN) and the bank's review.
- State filing. The LLC's formation document, the Articles of Organization, is filed with the state, naming a registered agent.
- Operating Agreement. The LLC's internal charter: who owns it and how profit is shared. It is not filed with the state; formation services include it in their packages.
- EIN. The EIN (Employer Identification Number) is the company's IRS tax number, and you cannot open an account without it. It cannot be obtained online without an SSN or ITIN (the taxpayer number for foreigners). A foreign applicant has the phone line 267-941-1099 (weekdays 6 a.m. to 11 p.m. Eastern time), fax 304-707-9471 and mail. Line 7b of Form SS-4 reads foreign or N/A. The EIN is free.
- Address. The registered agent's address cannot serve as the principal business address: Mercury, a fintech business account provider, accepts your foreign address, for example, but not an agent's address or a P.O. box.
- A bank account in the LLC's name, then a D-U-N-S number and developer accounts with Apple and Google, including tax forms and banking details.
| Step | Cost | Timeline per agencies |
|---|---|---|
| Wyoming LLC filing | $100 state fee, plus $4 for card payment online | Online immediately; by mail up to 15 business days, expedited for $700 or $1,400 |
| EIN by fax | 0 | Generally within 4 business days |
| EIN by mail | 0 | About 4 weeks |
| D-U-N-S via Apple's form | 0 | Up to 5 business days, plus up to 2 business days for the data to reach Apple |
| D-U-N-S directly from D&B | 0, or a fee to expedite | Up to 30 business days, 8 business days expedited |
| Apple Developer Program | $99 a year | After the organization is verified; Apple may ask for extra documents |
| Google Play Console | $25 once | After identity and organization checks |
| Bank account | Depends on the bank | Depends on the bank's review |
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What is a D-U-N-S number and how to get one
D-U-N-S (Data Universal Numbering System) is a nine-digit number that the commercial company Dun & Bradstreet (D&B) assigns to organizations in its database. It is not a government registration or a tax number: Apple and Google use it to verify that a company exists, its legal status and its address.
The number is free. Through the form on Apple's site, D&B issues it within up to 5 business days, and the data takes up to 2 more days to reach Apple. Directly from D&B, a free request takes up to 30 business days and an expedited one 8 business days for a fee D&B does not specify.
Three rules people trip over:
- The name at D&B must match the LLC's legal name exactly; Apple does not accept trade names (DBA, doing business as).
- D&B must list the company as a legal entity, not a sole proprietorship.
- Apple shows the D-U-N-S address to buyers in the EU, so choose it in advance.
The number belongs to a specific legal entity: if you already have a company in another country, the new LLC needs its own D-U-N-S.
How to create an Apple developer account for an LLC
An organization pays Apple the same $99 a year as an individual, but is checked more strictly. You need a legal entity able to enter into contracts: corporations, partnerships and LLCs qualify, trade names and branches do not.
What you need:
- a D-U-N-S number registered to that legal entity;
- the legal authority to bind the company to agreements;
- a work email on the company's domain, not Gmail;
- a working public website on the company's domain: social media pages and placeholder pages will not do;
- an Apple Account with two-factor authentication turned on.
Apple may ask for additional documents, including notarized ones, and warns that enrollment may not be available in some regions because of sanctions. In section 14.8 of the Apple Developer Program License Agreement (DPLA) you represent that neither you nor those who control you are on sanctions lists or do business in countries under US embargo.
Taxes, bank details and payouts in App Store Connect
To sell in App Store Connect (the developer dashboard) you complete three steps in order: the Paid Apps Agreement, tax forms, then banking details. The account must belong to the registered legal entity, and payment arrives within 45 days of the end of Apple's fiscal month.
Under IRS rules a foreigner does not file Form W-9 (for US taxpayers): for a disregarded LLC the owner files Form W-8BEN (individual) or W-8BEN-E (entity). Apple's tax interview offers W-9 to developers based in the US, and its documentation does not describe how it handles a foreign-owned disregarded LLC. Murblz specialists will check your answers before you submit.
EU rules: trader status
For sales in the 27 EU countries, Apple verifies and publishes trader contact details under the DSA: for an organization this is the address tied to the D-U-N-S number, plus a phone number and email verified with codes and a document showing the company's name and address.
How to open a Google Play developer account as a company
Google charges a one-time $25 registration fee and may ask for an ID document and a payment card in your own name. An organization account needs a D-U-N-S number, a phone number and a website. Google shows the developer's email and phone number to users publicly.
An organization account unlocks financial, health and VPN apps and avoids the closed test imposed on personal accounts. From 30 September 2026 Android developer verification becomes mandatory in Brazil, Indonesia, Singapore and Thailand, and it goes global from 2027.
Google calculates and remits sales tax in the US states it lists, including Florida, New Mexico, Texas and Wyoming. With an alternative billing system, that duty shifts to you.
How much the app stores take
| Store and sale type | Fee | Condition |
|---|---|---|
| Apple, Small Business Program | 15% | Up to $1 million in proceeds (after Apple's commission) in the prior calendar year, associated accounts counted together |
| Apple, standard rate | On subscriptions the developer receives 70% of the price in a subscriber's first year and 85% after a year of paid service | Outside the Small Business Program or after passing $1 million in the current year |
| Google, users in the US, EEA and UK: first $1 million a year and subscriptions | 15% including the billing fee | under the new fee structure |
| Google, same markets: other purchases above the first $1 million, new installs | 25% including the billing fee | Installed on or after 30 June 2026 |
| Google, same markets: other purchases above the first $1 million, existing installs | 30% including the billing fee, or 20% for external web links | Installed before 30 June 2026 |
| Google, all other countries | 15% on the first $1 million, 30% above; subscriptions 15% | Until the new fees roll out globally |
The billing fee is Google's charge for processing a payment through Google Play Billing, its built-in payment system, or for the initial purchase of a paid app. The EEA is the European Economic Area: the EU plus Iceland, Liechtenstein and Norway.
Consulting through a US LLC: contracts, invoices and where services are performed
For a consultant, the key IRS rule is short: compensation for personal services is sourced where the services are performed. Not where the LLC is registered, and not where the client sits. Work from Belgrade and the income is foreign; fly to New York for a week and the fee for those days is US-source.
Hence the rules: the LLC signs the contract and issues the invoice, money goes to the LLC's account, and the contract states where the work is done. Count your days in the US: they affect both the source of income and the presence test. What a business visa allows is a separate question, see US visa. To move and work in the US itself you need a status rather than an LLC, for example the US startup visa.
The most uncomfortable restriction concerns clients in Russia. Under the sanctions rules a US LLC is itself a US person. Since 7 June 2022 US persons have been barred from providing management consulting, accounting and corporate formation services to anyone located in Russia, and since 12 September 2024 IT consultancy and design services as well. The exceptions are narrow, for example for Russian companies controlled by US persons. A US company does not work for a consultant with Russian clients.
Bank accounts for a non-resident's US LLC, and what Russian and Belarusian citizens face
Apple pays only to an account of the legal entity enrolled in the program, so an LLC without an account is useless. Non-residents usually open accounts remotely with fintech providers, and each has its own rules.
| Provider | What its own documents say | Russia, Belarus, Ukraine, Kazakhstan |
|---|---|---|
| Mercury | Requires US formation, existing or planned operations in the US, an EIN document and ID for owners of 25% or more | Does not open accounts for founders living in Russia, Belarus, Ukraine, Kyrgyzstan, Uzbekistan or the Russian-occupied regions of Ukraine. The test is country of residence, not citizenship. Kazakhstan is not on the list |
| Wise | Multi-currency account and payments | Cannot be used from Russia, Belarus, Crimea or the Donetsk, Luhansk, Kherson and Zaporizhzhia regions of Ukraine. Kazakhstan is not mentioned |
For Russian and Belarusian citizens the restrictions come in three layers. Sanctions: US formation agents, accountants and consultants cannot serve a person located in Russia. Provider rules: Wise is unavailable in Russia and Belarus, and Mercury does not open accounts for people living in Russia, Belarus or Ukraine. App stores: Google's list opens developer registration to Russia, Belarus and Kazakhstan with payouts in US dollars, and to Ukraine with payouts in hryvnia. Apple requires a representation that you have no sanctions ties.
A Russian citizen living in, say, Serbia or the UAE is formally outside the OFAC location-based ban, but banks check passports, addresses and source of funds under their own rules. We have covered what they ask in source of funds and how to open a bank account abroad. For help with a US corporate account see business accounts in the USA, and for a personal one personal accounts in the USA. If banks do not fit, there are accounts with payment institutions (EMIs, electronic money institutions).
How much does a US LLC cost: the first year and every year after
Mandatory payments to the state and the app stores in the first year come to $176-424 for an LLC: the state fee plus $99 for Apple and $25 for Google. Each later year costs $99 to $499 depending on the state. Beyond the fees, the company needs a registered agent, a mailing address and Form 5472 every year. We quote the cost of our support after reviewing your documents.
How we counted: state fees come from state documents; EIN and D-U-N-S are free; Apple is $99 a year, Google $25 once.
| Option | State filing fee | First year: fee + Apple and Google | Each later year: state + Apple |
|---|---|---|---|
| New Mexico LLC | $50 plus $2 for online payment | 52 + 124 = $176 | 0 + 99 = $99 |
| Wyoming LLC | $100 plus $4 for card payment online | 104 + 124 = $228 | 60 + 99 = $159 |
| Delaware LLC | $110 | 110 + 124 = $234 | 400 + 99 = $499 |
| Florida LLC | $125 | 125 + 124 = $249 | 138.75 + 99 = ~$240 |
| Texas LLC | $300 | 300 + 124 = $424 | 0 + 99 = $99 plus the mandatory report by 15 May |
A Delaware corporation pays franchise tax of at least $175 and $50 for the annual report every year, and for its first year in full by 1 March of the following year, and it needs a full Form 1120, not a cover page.
Fees start at $176 for the first year, a missed Form 5472 costs $25,000
The law does not prevent forming a US LLC on your own. But mistakes cost more than the fees: without a US Social Security number the EIN comes only by phone, fax or mail, Form 5472 cannot be filed online, and missing it costs a $25,000 penalty even with zero sales. A name mismatch in D-U-N-S stops an Apple application, and the wrong W-8 or W-9 form means excess withholding. Murblz support removes these risks: we choose the state and entity, obtain the EIN and D-U-N-S, prepare the bank file and track annual filings. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
The support fee depends on the state, the entity type and whether Apple and Google accounts are needed; a manager will calculate it in the chat.
What you owe at home: CFC rules, notifications and tax returns
Zero US tax does not mean zero tax. Your country of residence sees the LLC as your company or your business and wants tax on the profit either way, and penalties for missed filings there can rival the US ones.
For Russian tax residents the rules are the strictest. Russia treats an LLC as a foreign organization, and with a controlling stake it becomes a CFC. The law does not say how the Federal Tax Service classifies an LLC that is disregarded in the US, so plan for the worst case.
| Russian resident's obligation | When it arises | Deadline | Penalty |
|---|---|---|---|
| Notice of participation in a foreign company | Stake above 10% | 3 months from acquiring or changing the stake | ~$585 |
| CFC notice | Stake above 25%, or above 10% if Russian residents together hold more than 50% | By 30 April of the year after the year in which the CFC profit is recognized: for the LLC's 2026 financial year, by 30 April 2028 | ~$5,900 per CFC |
| Tax on CFC profit | Profit above $120,000 a year | With the 3-NDFL personal income tax return | General rules |
| Personal income tax on dividends | When profit is paid to the owner | With the 3-NDFL return | General rules |
CFC profit is taxed at the personal income tax scale of 13% to 22%, dividends at 13% up to $29,000 a year and 15% above. Article 25.13-1 of the Russian Tax Code exempts profit of a CFC from the Eurasian Economic Union, of a CFC with an effective tax rate of at least 75% of the Russian weighted average, and of an active CFC with no more than 20% passive income. A disregarded LLC has a zero effective rate at company level, so the second ground does not work. That leaves the active company exemption: app sales and consulting are active income, but the conditions are tested against the accounts.
There is no credit for US tax in Russia. Russia suspended most of its treaty with the US by Presidential Decree No. 585 of 8 August 2023 and Federal Law No. 598-FZ of 19 December 2023. The same decree suspended the treaties with the United Kingdom and Cyprus. Murblz specialists help with the notices and the tax calculation, see CFC notifications.
Residents of other countries must also declare LLC income under local rules; check the Kazakh and Ukrainian controlled company rules separately. You can compare tax regimes in taxes and tax residency.
FATCA, CRS and why this is not a loophole
The US is the only major financial jurisdiction outside CRS (the Common Reporting Standard, the OECD standard for the annual automatic exchange of bank account data). Instead it relies on its own FATCA law (Foreign Account Tax Compliance Act): since 2015 the US has received data from foreign banks on accounts held by US taxpayers. The flow in the other direction is thinner: under reciprocal Model 1A agreements the US sends partners limited information, mostly on deposit interest earned by their residents, and many countries get nothing at all.
Automatic exchange is not the only channel. Your country of residence can ask the US about a specific person under a tax treaty or an information exchange agreement. Above all, the duty to declare foreign accounts and income under the laws of your country of tax residence stays in place whatever the exchange status: for a Russian resident this means, besides the CFC rules, notices of personal foreign accounts and reports on the flow of funds through them. A detailed review is in accounts without CRS in 2026.
Alternatives to a US company: Estonia, Cyprus, the UK, the UAE, Hong Kong
An LLC wins on zero company-level tax and low fees, but loses where the owner needs a tax treaty or wants to live in the same country. Apple and Google accept organizations from any country.
| Option | Corporate income tax | Registration and upkeep | For Russian and Belarusian citizens and residents |
|---|---|---|---|
| Individual developer account | Tax in your country of residence; Form W-8BEN for Apple | Apple $99 a year, Google $25; closed test with 12 testers | For Russian residents the US treaty does not apply |
| Estonia | 22% only on distributed profit (22/78 of the payout) | e-Residency (a digital ID card for running a company remotely) ~$170, state fee for the company ~$300, plus a legal address and contact person | e-Residency is open to all countries except Russia and Belarus |
| Cyprus | 15% from 1 January 2026, previously 12.5% | A company secretary and an annual audit of the accounts are mandatory | Russia's treaty with Cyprus is suspended |
| United Kingdom | 25%; 19% on profit up to $67,000 | ~$140 to register, ~$70 for the annual confirmation statement | Russia's treaty with the UK is suspended |
| UAE | 9% on profit above $110,000; 0% on qualifying income of free zone companies | Fees depend on the emirate and the free zone | Russia's double tax treaty with the UAE is not suspended |
| Hong Kong | 8.25% on the first HKD 2 million (~$260,000), 16.5% above; only Hong Kong-source profit is taxed | ~$200 to register when filed electronically | Russia's double tax agreement with Hong Kong is not suspended |
Estonia's 22/78 formula means the tax is calculated on what you receive: out of a $78 dividend, $22 goes to the budget, $100 of profit in total. Details are on taxes in Estonia, taxes in Cyprus and taxes in the UAE. We also register companies there: Estonia, Cyprus, the UK, the UAE, Hong Kong.
Pitfalls of a US LLC for non-residents
- Form 5472. Due every year, even without sales, if you made contributions or took distributions. Fax or mail only, with a $25,000 penalty.
- No proration in Delaware. The $400 LLC tax is due for the whole year even if the company existed for a week of it.
- The D-U-N-S name. Any mismatch with the legal name, and Apple will reject the enrollment.
- Publicity. EU buyers see the company's address, phone and email, Google shows email and phone to everyone, and Texas puts managers' names on the record.
- Working in the US. A business trip with on-site work turns part of the income into US-source income, and 183 days by the formula make you a US tax resident.
- Other states. Texas charges a late fee for doing business there for more than 90 days without registering, and New Mexico taxes services whose product is used in the state.
- Sanctions. For persons in Russia, formation through US intermediaries and consulting by a US LLC are closed, Wise does not serve Russia or Belarus, and Mercury does not open accounts for their residents.
- Apple's tax interview. Choosing W-9 instead of W-8 for a foreign-owned disregarded LLC leads to wrong withholding.
If an LLC still looks like the best option after this list, you are going in with your eyes open. Other countries are covered in company registration abroad.
Our services for US companies
We help you choose the entity and state, prepare documents, open an account and keep up with annual filings. Legal and tax services are provided by partners licensed in their jurisdiction.
Company registration
Choosing the country and entity for your goals, a comparison with the US and registration.
Learn more →Business account in the USA
Choosing a bank or fintech provider and preparing the company file for review.
Learn more →Taxes in the USA
Residency, sources of income and what a move or a business trip to the US changes.
Learn more →CFC notifications
Filings on a US LLC for Russian tax residents.
Learn more →Accounting and reporting
Bookkeeping, annual forms and deadline tracking for the company.
Learn more →Payment system accounts
A fallback if a bank refuses or its terms do not fit.
Learn more →All business account options are collected under business accounts, and legal support by country on legal support.
We will review your situation for free. Tell us what you sell, where your clients are and where you are tax resident. We will tell you honestly whether you need a US company, which state to choose and what it will cost to run, including filings at home.
FAQ
Can a non-resident open a US LLC remotely?
Can a Russian citizen open a US company?
What is a D-U-N-S number and how do I get one?
Do you need an LLC for an app on the App Store?
What US tax does an LLC pay if the owner is a non-resident?
Which is the best state to form an LLC for non-residents, Wyoming or Delaware?
How much does it cost to open a US company?
Do I need to file a BOI report with FinCEN in 2026?
Want to register a US company remotely?
We pick the state and entity type, register the company, obtain the tax ID and flag the filings you need to avoid penalties. The catalogue covers companies in every country.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
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