A US LLC for freelancers and small agencies

• Independent designers, developers, translators and marketers who work for companies abroad.
• Small agencies and studios that want to contract with clients through a company.
• Consultants who want to be paid in dollars by card, wire or ACH.

US clients most often pay by ACH or wire transfer; some pay by card or through a payment platform. Each route needs a bank account or payment account in the company’s name. The bank and the payment provider decide whether to open those accounts; LaunchUS does not open accounts.

How ACH works is in getting paid by US clients over ACH; what banks ask for is in US bank account for a non-resident LLC; card payments are covered in a US company for Stripe.

Before paying, a US client usually asks for an IRS form: Form W-9 from US persons, or a form from the W-8 series from foreign persons. The IRS says a foreign person may not provide a Form W-9. Which form fits you or your company depends on how the company is classified for tax, so settle it with a tax professional.

A single-member LLC is often disregarded as separate from its owner for US tax; the right form then usually follows from the owner’s status. This is not tax advice.

IRS: www.irs.gov/forms-pubs/about-form-w-9 · www.irs.gov/forms-pubs/about-form-w-8-ben · www.irs.gov/forms-pubs/about-form-w-8-ben-e · www.irs.gov/instructions/iw9

For the difference between a personal ITIN and the company’s EIN, read ITIN vs EIN.

Clients expect the company details on an invoice to match the contract and the account that receives the money. Using the company’s legal name exactly as it appears on the formation document, and keeping addresses consistent, helps a payment go through without questions. The list below is a starting point; your accountant may ask for more.

• The company’s full legal name as on the formation document, and its business address.
• The client’s company name and address, an invoice number and a date.
• A short description of the work, the amount and the currency.
• Payment details: the account in the company’s name and the payment terms.

Both states are used for LLCs that sell services; the difference is mostly the yearly state task and any plan to raise money. Wyoming has an annual report with a license tax, while Delaware has an annual LLC tax. If you do not plan to raise, compare the criteria on the comparison page; you decide.

The criteria are on Wyoming vs Delaware; what to do every year is in the yearly obligations checklist.

Formation details are on US LLC formation; for the EIN see EIN without an SSN.

You

Enters the details, signs the SS-4 and completes the bank, payment provider and client forms.

LaunchUS

Checks the details, shows the process in the panel and adds documents to your vault.

LaunchUS Registered Agent

Files the formation with the state, prepares the SS-4 and sends it to the IRS.

State

Reviews the formation and issues the formation document.

IRS

Issues the EIN.

Client and payment provider

The client decides which form it needs; the bank or payment provider decides whether to open an account.

On the LaunchUS side you pay the service fee; the state fee is shown as a separate line. Banks and payment providers publish their own account and transaction fees on their pages.

All plans and annual services: Pricing and annual state fees.

• We make no promise that a bank or payment account will be opened; the bank and the payment provider decide.
• We do not fill in W-9 or W-8 forms for you or tell you which one applies.
• We give no tax, accounting or contract advice.