What Foreign Indie Hackers Need to Know Before Forming a U.S. LLC
A U.S. LLC provides founders with a real U.S. entity for Stripe, payment processors, and customers without needing a visa or a Social Security Number. Yet three issues often trip up every non-U.S. founder: obtaining an EIN without an SSN, filing Form 5472 each year even when revenue is zero, and planning for state fees that have increased in 2026. None of these issues are difficult once you are aware of them.
If you are building a SaaS product or selling products from outside the U.S., a Delaware or Wyoming LLC is usually the fastest route to obtain a U.S. bank account, a Stripe or Mercury account, and a business entity that does not require physical presence. The formation of the LLC is truly simple. It is the paperwork that appears six months later that often surprises people.
Here is what truly matters once the LLC exists, not just how to file the formation documents.
You Do Not Need an SSN, Yet the EIN Process Appears Different
Every U.S. LLC requires an EIN (Employer Identification Number) to open a bank account, to use payment processors, and to file taxes. If you possess a Social Security Number or an ITIN, the IRS online tool issues an EIN in fifteen minutes.
Foreign founders without either cannot use that online tool. Instead, you file Form SS-4 by fax or by mail. Write "Foreign" in the SSN field.
The IRS official estimate for fax applications is four business days, but founders on Indie Hackers and elsewhere have reported that it can take several weeks longer in 2026 because IRS staffing is reduced. Mail applications normally take four to six weeks. There is also a phone option for applicants at 267-941-1099, and some founders find this faster than waiting for a fax response.
None of this requires a lawyer. It does require patience. It is wise to start the EIN application the same week you form the LLC rather than waiting until you urgently need a bank account.
The Form You Have Never Heard Of: Form 5472
This is the form that surprises people. If you are the foreign owner of a U.S. single-member LLC, the IRS treats your LLC as a disregarded entity for income tax but as a reporting corporation for information purposes. That means you must file Form 5472 attached to a pro forma Form 1120 each year, even if the LLC made no money and has never had a customer.
The trigger is not revenue. It is any transaction between you and the LLC, and a single capital contribution to open the business counts. Fund your LLC with $500 to open a bank account and do nothing that year, and you still have a reportable transaction.
The deadline is April 15 for calendar-year filers, with an automatic six-month extension available if you file Form 7004 on time. If you miss the filing entirely, the penalty starts at $25,000 per form, per year. There is no cap if it continues. This is not a fee schedule with a small-business exception. A dormant LLC with zero revenue owes the $25,000 penalty if the form is not filed.
This is the most common gap we see in EIN application work with foreign-owned LLCs. Founders get the EIN, open the bank account, and never realize that the 5472 obligation exists separately from any income tax return, because a disregarded entity normally does not file one at all.
The FinCEN Reporting Rule Has Changed, and It Is Good News
During most of 2024 and 2025, foreign founders were told they would need to report ownership information to FinCEN under the Corporate Transparency Act. That requirement has since been rolled back for domestic entities.
As of a rule that took effect on August 14, 2026, U.S.-formed companies, including LLCs owned entirely by foreign persons, are exempt from BOI reporting to FinCEN.
The exemption only applies to entities formed in the U.S. If you are a company registering to do business in a U.S. state (a "foreign reporting company" in FinCEN's terminology, meaning foreign to the U.S., not foreign to you), that separate reporting requirement still applies.
But if you are an indie hacker forming a fresh Delaware or Wyoming LLC to run your product through, you are not on the hook for this filing anymore. It is wise to confirm this directly on FinCEN's site before you act on it, because the rule has changed direction more than once since 2024.
Registered Agents and State Fees Are Not One-Time Costs
Every LLC needs a registered agent, a person or company with an address in the formation state who can receive legal and state mail on the LLC's behalf. This is a requirement, not a one-time formation step, and most founders pay an annual fee for it.
State fees also are not static. Delaware raised its annual LLC tax from $300 to $400 under House Bill 400, signed in May 2026 and applied retroactively to the start of that tax year. The tax is paid a year in arrears. It is due by June 1, so an LLC active in 2026 will see the new $400 figure when that payment comes due in 2027. If you miss the deadline, Delaware adds a $200 penalty plus 1.5% monthly interest.
Wyoming, by comparison, has no state income tax and a lower minimum annual report fee, which explains why it is popular with founders who do not need Delaware's court system or investor familiarity. Neither state charges you anything for being foreign-owned. The fee schedule is the same regardless of where you live.
Common Mistakes Foreign Founders Make
Treating the EIN as the finish line. Getting the EIN feels like the hard part is over. It is actually the starting point for Form 5472, state fees, and (if you sell taxable products) sales tax registration once you cross a state's economic nexus threshold, commonly around $100,000 in sales.
Mixing personal and business funds. Running Stripe payouts into a personal account or paying yourself informally instead of through a documented distribution weakens the liability protection the LLC is supposed to provide and creates a mess when Form 5472 asks you to report contributions and distributions.
Assuming "no revenue" means "no filing." As covered above, this is backwards for Form 5472. Zero income does not equal zero obligation.
Ignoring registered agent renewal notices. A lapsed registered agent can put an LLC out of good standing, which then complicates everything from bank account maintenance to future contracts.
A Practical Checklist
Form the LLC in a state that fits your situation (Delaware for investor familiarity, Wyoming for lower ongoing costs)
Apply for an EIN via Form SS-4 by fax or phone the same week the LLC is approved
Open a business bank account using the EIN, and keep every personal expense out of it
Mark April 15 for Form 5472 and Form 7004 if you need the extension
Confirm your state's annual fee and due date, and budget for it changing year to year
Check FinCEN's BOI page directly rather than relying on outdated advice from 2024 or 2025
The Practical Takeaway
None of these requirements are hard individually. The problem is that they are scattered across the IRS, FinCEN, and whichever state you formed in, and nobody sends you a combined checklist. Treat the EIN, Form 5472, and your state's annual fee as three recurring obligations rather than one formation task, and the actual maintenance burden of a U.S. LLC drops to a few hours a year.
If you are past the formation stage and specifically stuck on the 5472 filing, annual compliance tracking for foreign-owned entities is the part worth automating or delegating because it is the one with the highest penalty for getting wrong.
