How to form an LLC in California from abroad
Set up your company in the largest economy in the US. No travel, no SSN. Sell-U walks you through every cost, with no surprises.
Why California for your LLC?
- Access to the largest tech and consumer market in the world.
- A prestigious brand for startups, SaaS and agencies.
- Heads up: minimum $800/year franchise tax even if you have no revenue.
- Best if you actively operate or sell in California.
Why California?
California is the largest economy in the US and a magnet for talent and investment. It is ideal if you actively operate or sell in the state. But let’s be upfront: California charges every LLC a minimum $800 franchise tax per year, revenue or not. If you have no nexus with California, Wyoming or Florida is usually a better fit.
The largest market
California alone would be one of the biggest economies in the world. Access to customers, investment, talent and an unmatched tech ecosystem, ideal for SaaS, startups and agencies.
Brand prestige
A California LLC adds credibility with clients and investors, especially in technology and professional services.
$800/year franchise tax
Every California LLC pays at least $800 a year to the Franchise Tax Board, even with no revenue. Keep it in mind: if you don’t operate in California, another state can be much cheaper.
How to open your California LLC: step by step
You can do the whole process on your own. Steps 2 and 4 are where foreign founders get stuck the most: that is where Sell-U takes over for you.
-
01
Choose your LLC name
It must end in "LLC" or "L.L.C." and be unique in California. Check availability on the California Secretary of State portal.
-
02
Appoint a Registered Agent in California
A person or company with a physical address in California that receives legal mail. It can’t be you if you live outside the US.
Sell-U handles it -
03
File the Articles of Organization
The document that forms your LLC with the California Secretary of State. Filing fee $70. Approval in 3–5 business days (online).
-
04
Get your EIN from the IRS
The Employer Identification Number is the US equivalent of the RFC in Mexico or the NIT in Colombia. Without an SSN you must file Form SS-4 by fax or mail. It takes 4–8 weeks if you do it yourself.
Sell-U handles it -
05
Draft your Operating Agreement
It defines how your LLC runs: members, ownership percentages, decisions, distributions. It is not filed with the state, but banks and partners almost always ask for it.
-
06
Open your bank account and start operating
With your active LLC and your EIN you can apply to fintechs like Mercury, Relay or Wise Business. The process is 100% remote. Keep in mind that approval depends on each financial institution and is not guaranteed. Sell-U can guide you through it.
What you’ll pay for your LLC next year.
No hidden fees. These are the real yearly costs of keeping your LLC in California.
| Item | Details | Amount USD | Frequency |
|---|---|---|---|
| Registered Agent | Mandatory annual service for LLCs without a physical office in California. Cost varies by provider. | $50 – $300 | $50 – $300 |
| Franchise Tax + Statement of Information | California charges every LLC a minimum $800/year franchise tax (Franchise Tax Board). You also file the Statement of Information ($20) every 2 years with the Secretary of State. | $800/year (min.) | Annual |
| Taxes and tax compliance | Tax filings and informational returns with the IRS, depending on structure and activity. | From $150 | Annual |
| Sales Tax California | California charges 7.25% state + local (it can exceed 10%). For non-residents with no physical or economic nexus in California it generally does not apply, but the economic threshold is relatively low. Review it with a CPA. | 7.25% + local | It depends |
Sell-U includes the EIN and Operating Agreement in your formation package. You only pay the mandatory annual renewals.
Why California is tax-friendly.
Three numbers that matter in California. The LLC is pass-through at the federal level, but the state has its own charges you need to know.
Mandatory annual minimum, revenue or not.
Every California LLC pays at least $800/year to the Franchise Tax Board. If your revenue goes over certain thresholds there is an additional fee (LLC fee). It is the main cost to consider.
Base state rate, plus local surcharges.
Applies if you have physical or economic nexus in California. Without a presence in the state it usually does not apply, but the threshold is low. Review each case with a CPA.
Pass-through at the federal level.
As a single-member non-resident with no physical activity in the US there is usually no federal payment, but you must file Form 5472 + pro forma 1120 with the IRS. (*The state does charge the franchise tax.)
This is not tax advice. Each case depends on your residency and income. We work with partner CPAs who know the Latin American founder case.
What’s due every year (and the penalties if you forget).
Forming the LLC is just the beginning. These are the dates you need on your calendar.
| Obligation | Due date | Cost | Penalty for non-compliance |
|---|---|---|---|
| Franchise Tax ($800 min.) | 15th day of the 4th month after formation | $800/year | Interest and penalties; loss of good standing and possible suspension of the LLC. |
| Statement of Information | Every 2 years | $20 | $250 penalty for not filing it. |
| Registered Agent renewal | Your LLC anniversary | $125 | Loss of legal status |
| Federal taxes | April 15 | Depends on structure | $25,000 base IRS penalty for not filing Form 5472 |
Forget the dates. Sell-U tracks them for you.
Annual Report, Registered Agent and tax reminders. We alert you 60 days before every deadline.
What matters, straight up.
Don’t see your question? Message us and a specialist will reply in under 24 hours, in English or Spanish.
Do I need an SSN or to live in the US to open my California LLC?
No. You can form it from any country in Latin America or Spain, with no SSN, no ITIN and no travel. You only need a Registered Agent with a physical address in California (Sell-U provides it), your passport and a mailing address.
Is it true that California charges $800 a year?
Yes. Every California LLC pays a minimum $800 franchise tax per year to the Franchise Tax Board, whether it has revenue or not. It is the most important cost to consider. If you don’t actively operate or sell in California, Wyoming or Florida is usually a better fit.
When does California make sense over another state?
When you have a real presence in the state: an office, a team, customers or significant sales in California, or when you want the prestige of the tech ecosystem to raise capital. If you only need an LLC to run an online business from abroad, another state is cheaper.
Can I open a bank account for my LLC without traveling to the US?
Yes. Digital banks like Mercury, Relay and Wise Business accept founders without an SSN with an active LLC, an EIN and a passport. The process is 100% remote, although approval depends on each institution.
Will I pay taxes in the US and also in my home country?
The LLC is pass-through at the federal level: it pays no federal corporate tax if you don’t physically operate there. But California charges its state franchise tax, and you must report the income in your country of residence. We work with CPAs who know the Latin American founder case.
Your California LLC, ready to operate.
Tell us about your business. A specialist will reach out in under 24 hours with a tailored plan and fixed pricing.
- LLC + EIN + Registered Agent, all included
- No SSN. No travel. 100% remote.
- Support in Spanish or English, Latin American hours
- Secure payment in USD, no hidden fees
Start your California LLC
Takes less than 2 minutes.