Guide to Getting Paid with a US LLC
Solve Your International Payment Nightmares: The Non-Resident’s Guide to Getting Paid with a US LLC (2025 Update)
Are you a talented freelancer, consultant, or entrepreneur living outside the United States? Do you love working with US clients but dread the process of actually getting paid? You’re not alone. The frustration is real: sky-high PayPal fees eating into your earnings, slow and expensive wire transfers, the confusing limitations on accessing efficient platforms like Stripe… it often feels like you’re penalized just for being international.
What if there was a straightforward, legitimate way to bypass these headaches? A way to get paid like a US-based business, access better payment tools, keep more of your hard-earned money, and appear more professional to your clients?
There is. It’s called forming a US Limited Liability Company (LLC), and it’s more accessible than you might think. This guide will show you exactly why a US LLC is the non-resident’s secret weapon for solving payment nightmares and how choosing a business-friendly state like Texas can make it surprisingly affordable.
The Global Payment Problem: Why Getting Paid Sucks for Non-Residents
Let’s be blunt about the challenges you likely face:
The PayPal Pinch: While widely used, PayPal can be painful for international receivers. You’re often hit with high transaction fees (think 4.4% or more), plus steep currency conversion markups. Account holds and limitations specific to non-US users add another layer of stress and uncertainty. That’s easily 5-7% (or more!) of your invoice gone before the money even lands.
Wire Transfer Woes: The traditional bank wire seems simple, but the costs add up fast. Sender fees, receiver fees, intermediary bank fees… plus, the exchange rates offered are rarely favourable. Add the slow processing times, and it’s an inefficient, expensive option.
The Stripe Wall: Stripe is fantastic – often cheaper than PayPal, powerful, and preferred by many tech-savvy clients. But for full access, especially to receive direct US bank transfers (ACH), Stripe generally requires a US entity (like an LLC) and a US bank account. This effectively locks out many non-resident freelancers.
ACH Access Denied: Automated Clearing House (ACH) payments are the standard for low-cost direct bank deposits within the US. Many US clients prefer this method. Without a US bank account, accepting ACH payments is virtually impossible.
Credibility & Professionalism: Some US clients feel more comfortable, or find it administratively easier, paying a registered US entity rather than wiring money internationally to an individual.
These aren’t just inconveniences; they directly impact your bottom line and cash flow.
The Game Changer: Your US LLC + US Bank Account = Payment Power
Here’s how forming a US LLC flips the script:
- Form Your LLC: You legally establish your business entity in a US state.
- Obtain Your EIN: With your LLC formed, you can apply for an Employer Identification Number (EIN) from the IRS – even as a non-resident. This is your business’s federal tax ID.
- Open a US Business Bank Account: Your LLC formation documents and EIN are the keys needed to apply for a US business bank account (we discuss how in our dedicated [link to future banking blog post or relevant section]).
- Unlock Better Payment Gateways: With a US bank account and EIN, you can now apply for a full US Stripe account!
- Receive Payments Like a Local:
- Accept Stripe Payments: Benefit from potentially lower fees than PayPal for card payments.
- Accept ACH Direct Deposits: Offer US clients the ability to pay you directly into your US bank account via ACH – often with zero or very low fees!
- Hold USD: Keep funds in US Dollars in your US bank account, giving you control over when and how you convert currency, potentially saving significantly on exchange rate losses.
- Enhanced Professionalism: Send invoices from your US LLC and provide US bank details for easy payment.
Making it Affordable & Smart: Choosing Your State (Hello, Texas!)
Okay, forming an LLC sounds great, but isn’t it expensive and complicated? Not necessarily! The costs and requirements vary significantly by state. While states like Delaware and Wyoming are popular choices often cited online, Texas offers a compelling blend of benefits and remarkable cost-effectiveness, especially for non-resident service businesses.
Let’s compare the estimated costs over 5 years for forming and maintaining an LLC in these three popular states:
LLC Cost Comparison (Estimated 5-Year Total)
| State | Initial Filing Fee (One-Time) | Annual State Fee/Tax (Typical LLC below threshold)* | Est. Annual Registered Agent Fee** | Est. 5-Year Total State & RA Cost*** | Key Tax Benefit for Non-Residents |
|---|---|---|---|---|---|
| Texas | ~$300 | ~$0 (Likely “No Tax Due Report” Filing Only) | ~$125 | ~$925 | No State Income Tax |
| Delaware | ~$110 | ~$375 ($300 Flat Tax + $75 License) | ~$125 | ~$2610 | No State Income Tax |
| Wyoming | ~$100 | ~$62 (Annual Report License Tax <=$300k assets) | ~$125 | ~$1035 | No State Income Tax |
*Notes:
- Annual State Fee/Tax: Texas has a franchise tax, but businesses under a high revenue threshold (approx. $2.47M for 2024 reports) typically owe $0 tax and just file a “No Tax Due Report” (often just the Public Information Report, which has no fee itself). Delaware has a mandatory $300 annual LLC tax + $75 Business License. Wyoming has an annual license tax based on assets located in WY (typically low/minimum for non-resident service businesses).
- Est. Annual Registered Agent Fee: This is an estimate for a required third-party service providing a physical address in the state. Costs can vary.
- Est. 5-Year Total Cost: Calculated as (Initial Filing Fee) + (5 * Annual State Fee/Tax) + (5 * Est. Annual RA Fee). Does not include any one-time setup assistance fees or federal taxes.
Fees are based on currently available information for 2025 and are subject to change. Always verify current fees with official state sources
Why Texas Shines for Non-Residents
Look at that table again. While Wyoming has a slightly lower initial filing fee, the ongoing costs make Texas significantly more affordable over the long term compared to Delaware, thanks primarily to the likelihood of owing $0 annual state franchise tax. Both Texas and Wyoming easily beat Delaware’s mandatory $375 annual burden.
Key Texas Advantages:
- Massive Annual Savings: Potentially $0 in annual state fees vs. $375 in DE or $62 in WY saves you significant money year after year.
- No State Income Tax: Like DE and WY, Texas does not levy state income tax on LLC profits (you’ll still have US federal tax obligations).
- Business-Friendly Environment: Texas has a robust economy, a strong international business community (especially in cities like Houston, where Bluez Innovations LLC is based), and a reputable image.
- Credibility: A Texas LLC carries weight and recognition globally.
How to Get Started (The Simplified Path)
While every situation is unique, the basic steps to forming your Texas LLC generally involve:
- Choosing a Unique Name: Ensure it’s available in Texas. i.e. Texas Business Entity Search
- Appointing a Registered Agent: You’ll need a service with a physical Texas address (Bluez Global can assist with this).
- Filing the Certificate of Formation: Submit the official document to the Texas Secretary of State ($300 fee).
- Obtaining Your EIN: Apply online with the IRS (this is free).
- Opening Your US Business Bank Account: Research non-resident friendly banks or fintech platforms.
Is the Investment Worth It?
Consider the estimated 5-year state and registered agent cost for a Texas LLC (~$925). Now, think about how much you might be losing annually on payment processing fees (e.g., 5-7% on $30k income is $1500-$2100) and currency conversion.
The relatively low cost of forming and maintaining a Texas LLC can quickly pay for itself, often within the first year, just through savings on payment fees. Add the professionalism, easier client payments, and liability protection, and the return on investment becomes clear.
Conclusion
Stop letting frustrating and expensive payment systems dictate your freelance or business income. Forming a US LLC, particularly in a cost-effective and business-friendly state like Texas, is a powerful, accessible strategy for non-residents to take control. It unlocks efficient payment methods like Stripe and ACH, reduces costs, enhances professionalism, and positions you for smoother growth in the lucrative US market.
Contact Bluez to get started with your US LLC Formation
Tired of payment headaches shrinking your earnings? Ready to unlock seamless US payments and project a more professional image? Let Bluez Global expertly guide you through setting up your Texas LLC. We understand the process from a non-resident perspective.
Schedule your free consultation today and take the first step towards solving your international payment nightmares!
Disclaimer: This blog post provides general information for educational purposes only and does not constitute legal, financial, or tax advice. LLC formation, banking, tax laws, and state fees are complex and subject to change. You should consult with qualified legal, financial, and tax professionals familiar with both US regulations and your home country’s laws before making any business decisions.