India's startup ecosystem is booming, but many Indian entrepreneurs hit a ceiling when trying to scale globally. US payment processors like Stripe reject Indian businesses. International clients prefer working with US entities. Venture capital prefers US companies.
The solution? Form a US LLC.
This comprehensive guide will walk you through exactly how Indian entrepreneurs can form a US LLC, open US bank accounts, accept international payments, and scale globally — all without visiting the United States.
📑 Table of Contents
Why Indian Entrepreneurs Form US LLCs
The Challenges of Running an Indian Business Globally
Indian entrepreneurs face unique obstacles when building global businesses:
- Stripe doesn't support India: No access to the world's best payment processor
- PayPal limitations: High fees, poor exchange rates, frequent account holds
- International client trust: Many US/EU clients prefer working with US entities
- Funding limitations: Indian companies face barriers accessing global VC
- Contract complications: Complex legal frameworks for international agreements
- Currency conversion costs: Lose 3-5% on every international transaction
How a US LLC Solves These Problems
A US LLC gives Indian entrepreneurs:
- ✅ Access to Stripe, PayPal, and all US payment processors
- ✅ Credibility with international clients and partners
- ✅ Easier access to US venture capital
- ✅ Simple contracts under US law
- ✅ US business bank accounts
- ✅ Potential tax advantages (more on this later)
Key Benefits for Indian Founders
1. Access to Global Payment Processors
With a US LLC, you can use:
- Stripe: Accept credit cards globally with 2.9% + $0.30 fees
- PayPal Business: Better rates and fewer restrictions
- Square: Point-of-sale and online payments
- Authorize.net: Enterprise payment processing
2. Higher Client Trust and Conversion
Studies show US entities convert 30-40% better with international clients because:
- Perceived stability and professionalism
- Easier contract enforcement under US law
- Simpler invoicing and payment processes
- Better fraud protection for clients
3. Access to US Banking System
Open US business bank accounts with:
- Mercury (most popular for Indian founders)
- Wise Business (great for international transfers)
- Relay (free multi-account banking)
4. Easier International Expansion
Your US LLC makes it simple to:
- Hire contractors worldwide
- Open accounts with US SaaS tools
- Accept investment from US VCs
- Partner with US companies
Complete Step-by-Step Process
1 Choose Your State
Best Options for Indian Founders:
- Wyoming: Lowest cost ($60/year), best privacy, perfect for bootstrapped businesses
- Delaware: Best for startups raising VC ($300/year), preferred by investors
Recommendation for Indian Founders
Choose Wyoming if you're bootstrapping or running a service/SaaS business. Choose Delaware if you plan to raise venture capital within 2 years.
2 Form Your LLC
What You Need:
- Company name (check availability first)
- Registered agent (required US address for legal documents)
- Your personal details (passport, Indian address)
Two Options:
Option A: DIY (Not Recommended)
- File directly with Wyoming/Delaware
- Cost: $100-150 + registered agent ($50-125/year)
- Time: 5-10 hours of research + paperwork
- Risk: Easy to make mistakes that cost later
Option B: Use Formation Service (Recommended)
- Service handles everything: state filing, registered agent, EIN, operating agreement
- Cost: $199-399 all-inclusive
- Time: 30 minutes to complete application
- Benefit: Expert guidance, no mistakes
3 Get Your EIN (Tax ID Number)
The EIN (Employer Identification Number) is like a PAN card for your US business. You need it for banking and taxes.
How to Get Your EIN from India:
- Call IRS International line: +1-267-941-1099
- Call hours: Monday-Friday, 6am-11pm EST (3:30pm-8:30am IST)
- Have your formation documents ready
- Answer questions about your LLC
- Receive EIN immediately on the call (15-20 minutes)
Cost: Free
Note: You do NOT need an SSN or ITIN. The IRS agent will issue an EIN using your foreign ID.
4 Prepare Your Operating Agreement
An operating agreement is an internal document that outlines:
- Ownership structure
- Member roles and responsibilities
- Profit distribution
- Decision-making processes
5 Open a US Bank Account
Best Banks for Indian Founders:
Mercury (Most Popular)
- Pros: $0 fees, accepts Indian founders, fast approval (48-72 hours)
- Requirements: LLC documents, EIN, passport, Indian address proof
- Process: 100% online, no US visit needed
Wise Business (Best for INR Transfers)
- Pros: Multi-currency, cheapest USD→INR transfers, easy approval
- Cons: Limited US banking features
- Best For: Transferring money back to India frequently
Relay (Free Alternative)
- Pros: Completely free, up to 20 accounts, good Mercury alternative
- Cons: Slightly slower approval
6 Set Up Payment Processing
Stripe Setup Process:
- Go to stripe.com
- Sign up with your US LLC details
- Enter EIN (not SSN)
- Link your US bank account (Mercury/Wise)
- Verify your identity (Indian passport is fine)
- Complete business verification
- Start accepting payments!
Approval: Usually 1-2 days for Indian founders with proper documentation
Opening US Bank Accounts from India
What You'll Need
- For Your LLC: Formation certificate, EIN letter, operating agreement
- For Yourself: Passport, Aadhaar card, proof of address, PAN card (optional)
Mercury Application Process
- Go to mercury.com and click "Get Started"
- Fill out business information
- Upload LLC documents
- Upload Indian passport for identity verification
- Upload Indian address proof (utility bill, Aadhaar)
- Answer questions about your business
- Submit application
- Wait 48-72 hours for approval
Approval Tips for Indian Founders
- Have a professional website (even a simple one)
- Clearly explain your business model
- Use your real Indian address (don't use fake US addresses)
- Be honest about being India-based
Setting Up Stripe from India
Requirements
- US LLC formation documents
- EIN number
- US bank account (Mercury/Wise)
- Valid passport
- Website/app for your business
Step-by-Step Stripe Setup
- Create Stripe Account: Use your US LLC name and details
- Business Type: Select "LLC"
- Tax ID: Enter your EIN (not SSN)
- Bank Account: Link your Mercury or Wise account
- Identity Verification: Upload Indian passport
- Business Verification: Provide website URL, describe business
- Wait for Approval: Usually 1-3 business days
What If Stripe Asks for SSN?
Select "I don't have an SSN" and provide:
- Your EIN instead
- Foreign passport details
- Indian address
Tax Implications for Indian Residents
US Tax Obligations
Good News: If you're not a US resident and your income is not US-sourced, you typically pay $0 US federal income tax.
However, you MUST file:
- Form 5472: Annual information return (even with $0 income)
- Deadline: April 15 (or October 15 with extension)
- Penalty for Not Filing: $25,000 per year
Indian Tax Obligations
As an Indian tax resident, you must:
- Report global income in India (including US LLC income)
- Pay Indian income tax on worldwide earnings
- File ITR (Income Tax Return) with all foreign income disclosed
- Consider India-US tax treaty benefits
Tax Strategy Recommendation
Hire a CA (Chartered Accountant) in India familiar with US LLC structures and a CPA in the US for Form 5472. Total cost: ₹50,000-100,000/year. This prevents costly mistakes.
Common Questions from Indian Entrepreneurs
Do I need to visit the US?
No. Everything can be done remotely from India — formation, EIN, banking, and Stripe setup.
How do I transfer money from US bank to India?
Best Methods:
- Wise: Cheapest (0.5-1% fees), transfer USD to INR directly
- Bank Wire: More expensive ($25-45 fee + poor exchange rates)
- Payoneer: Good if receiving marketplace payments
Can I use my US LLC for Indian clients?
Yes, but consider:
- Indian clients may prefer local invoices
- You'll need to handle GST considerations
- Currency conversion costs
Many Indian founders use their US LLC for international clients and a separate Indian entity for local business.
What if I move to the US later?
If you become a US tax resident (H1B, green card, etc.), your tax situation changes completely. Consult a tax professional before moving.
Can I have partners/cofounders?
Yes. Your LLC can have multiple members:
- Indian co-founders (most common)
- US co-founders
- Mix of both
Timeline and Costs
Formation Timeline
- LLC Formation: 1-3 business days
- EIN Application: Same day (phone call)
- US Bank Account: 2-7 days
- Stripe Activation: 1-3 days
- Total Time: 1-2 weeks to be fully operational
Cost Breakdown
Initial Formation Costs:
Formation costs vary depending on whether you handle it yourself or use a professional service. At I Love LLC, we can handle services like that.
Annual Costs:
- Wyoming LLC: $60 annual report + $50-100 registered agent = $110-160/year
- Delaware LLC: $300 franchise tax + $50-125 registered agent = $350-425/year
- US Tax Filing (CPA): $500-1,000/year
- Indian CA for Tax Filing: ₹30,000-50,000/year
Success Stories: Indian Founders with US LLCs
SaaS Founder from Bangalore
Challenge: Couldn't access Stripe for his B2B SaaS product
Solution: Formed Wyoming LLC, opened Mercury account
Result: Went from $5K to $50K MRR in 8 months with international customers
E-commerce Entrepreneur from Delhi
Challenge: High PayPal fees, account freezes
Solution: US LLC + Stripe + Shopify
Result: Reduced payment processing from 6% to 2.9%, doubled profits
The Bottom Line
Forming a US LLC as an Indian entrepreneur is one of the smartest moves you can make for global business growth. It opens doors to:
- ✅ Stripe and global payment processors
- ✅ US banking system
- ✅ International client trust
- ✅ Venture capital access
- ✅ Global scalability
The process takes 1-2 weeks, costs under ₹30,000 to start, and can transform your business trajectory.
Ready to Form Your US LLC from India?
We've helped 300+ Indian entrepreneurs form their US LLCs. Our service includes everything: state filing, registered agent, EIN guidance, banking support, and India-specific tax guidance.
Special Support for Indian Founders: IST-friendly customer service, Rupee pricing available, India-specific documentation help.