US LLC for Freelancers & Agencies: Formation, Tax & Getting Paid (2026)

A US LLC gives freelancers and agencies a professional US entity to invoice clients, plus the EIN needed to apply for Stripe, PayPal, and Wise. Popular formation states for service businesses are Wyoming ($100 formation, $60/year annual report, owner privacy) and New Mexico ($50 formation, no annual report). Approval from any payment provider is always that provider’s own decision — never guaranteed.

An LLC is a limited liability company — it separates your personal assets from business liabilities. An EIN is the federal tax ID the IRS issues to your business; payment providers and banks require it before opening a business account.

Why freelancers and agencies form US LLCs

Three reasons drive most of these formations. First, credibility: US and international clients take invoices from a US LLC more seriously than from an individual abroad, and enterprise clients often require a US entity to onboard a vendor. Second, payments: Stripe, PayPal Business, and Wise Business generally require a US business entity plus an EIN — without one, many freelancers are locked out or stuck on personal accounts with higher fees and sudden holds. Third, clean finances: a dedicated business entity keeps client revenue, software costs, and contractor payments in one place, which makes tax filing dramatically simpler.

Which state should a freelancer or agency choose?

For most service businesses with no US office, Wyoming and New Mexico are the two most-picked states. Wyoming costs $100 to form with a $60 annual report each year, and member names stay off the public record — strong privacy at a moderate price. New Mexico costs $50 to form with no annual report at all — the lowest long-term carrying cost of any state. Both work the same way for invoicing clients and applying to payment providers.

Pick based on your priorities: Wyoming if owner privacy matters to you, New Mexico if you want the absolute lowest yearly cost. Avoid high-cost states like California ($800/year franchise tax) unless you actually operate there — you gain nothing for a remote service business.

Getting paid: Stripe, PayPal, and Wise

With a US LLC and EIN, you can apply for Stripe, PayPal Business, or Wise Business to receive client payments in USD and withdraw to your local bank. Many freelancers use Stripe for client card payments and Wise for low-cost international transfers — the combination covers most agency workflows.

Be clear-eyed about one thing: every provider approves applications under its own policies, and approval is never guaranteed. Providers may ask for your EIN letter (IRS Letter 147C if you lost the original), your operating agreement, proof of business address, and details about your clients. Epics Deals will guide and consult you on assembling a strong application — but no formation company can promise a provider’s decision.

Tax basics for foreign-owned freelancer LLCs

A single-member LLC owned by a non-resident is a disregarded entity for US federal tax. That means the LLC itself generally pays no US federal income tax on foreign-source service income, but it must still file every year: a pro-forma Form 1120 with Form 5472, due April 15 — even with $0 income. The penalty for a missing or botched Form 5472 is $25,000, so this is the filing you must never skip.

If your agency has multiple owners, the default is partnership taxation with returns due March 15. Either way: federal returns are due every year even at $0 income — March 15 for multi-member LLCs, April 15 for single-member ones. State obligations depend on where you formed and where you have presence; Wyoming and New Mexico impose no state income tax on LLCs with no in-state activity. Epics Deals’ tax filing starts at $120.

The setup sequence that works

First, form the LLC in Wyoming or New Mexico ($100/$50 state fee plus Epics Deals’ $130 formation service). Second, get your EIN from the IRS — free, though non-residents without a Social Security number apply by fax (typically about 15 days). Third, sign an operating agreement and set up a US business address. Fourth, apply to your payment providers with your EIN letter and company documents. Fifth, calendar your annual filings: the state report (Wyoming $60/year; New Mexico none) and the federal Form 1120 + 5472 by April 15.

Frequently Asked Questions

Can a freelancer get Stripe without a US LLC?

In most cases, no — Stripe requires a US business entity and EIN for a US Stripe account. Some freelancers use Stripe’s availability in their home country instead, but a US LLC is the standard route for those outside Stripe-supported countries.

How much does it cost to run a freelancer LLC per year?

In New Mexico: $0 in state fees after the $50 formation. In Wyoming: $60/year for the annual report. Add your registered agent ($100–$300/year) and the federal 1120 + 5472 filing (Epics Deals from $120). No state income tax in either state for remote service income.

Do I owe US tax on client income earned from abroad?

A single-member foreign-owned LLC is generally not subject to US federal income tax on foreign-source service income with no US presence — but you must still file the pro-forma 1120 + 5472 every year, and your home country will tax the income. Get advice for your specific country; this article is not tax advice.

How long before I can invoice clients?

The LLC itself is formed in days (Wyoming/New Mexico are fast). The EIN is the long pole for non-residents — typically about 15 days by fax. Plan on roughly 4–6 weeks from start to fully operational, then apply to payment providers.

How much does Epics Deals charge to set this up?

Epics Deals forms your LLC for $130 plus the state fee (Wyoming $100 or New Mexico $50), with EIN guidance included. Start at epicsdeals.com or WhatsApp us at wa.link/x6klxo.

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