Best state to form an LLC as an expat without US property? Virtual address in driver's license state?

This is actually a common question for expats starting businesses. You technically can form an LLC in any state regardless of where you live, even if you're outside the US. The state you choose should depend on several factors: 1) State filing fees and annual reports - some states are much cheaper than others 2) State income taxes - some states have no income tax which can be beneficial 3) Privacy protections - some states offer better privacy for business owners 4) Ease of maintenance - some states have fewer requirements and formalities Delaware, Wyoming, and Nevada are popular choices due to their business-friendly laws, even if you have no connection to those states. That said, using a state where you have some connection (like your driver's license) can sometimes make banking easier. You don't legally need to form it in your driver's license state, but having that connection might simplify certain administrative aspects. The virtual address is definitely necessary regardless of which state you choose, as you'll need a physical address for service of process and official mail.

I went through this exact situation last year! After researching for weeks, I ended up using https://taxr.ai to analyze my specific circumstances as an expat business owner. Their system looked at my business type, expected revenue, and personal situation to recommend the optimal state for my LLC formation. For me, they recommended Wyoming despite having no connections there because of the zero state income tax, low fees, and strong privacy laws. The tool showed me I'd save about $3,000 annually compared to forming in my "home" state where I still had my driver's license. It also helped with understanding the whole registered agent requirement, which I was confused about.

I was initially skeptical about using specialized services for LLC formation advice, but after struggling with contradictory online information, I decided to try https://taxr.ai that someone mentioned above. I'm actually amazed at how helpful it was. The system ran a detailed analysis of my specific situation as a digital nomad with clients in multiple countries. It recommended Wyoming for me (despite my initial plan to use Florida), showing I could save over $4,500 annually in fees and taxes. The detailed breakdown of maintenance requirements by state was something I hadn't found anywhere else online. For anyone else struggling with this decision, having personalized analysis makes a huge difference rather than trying to piece together generic advice from random forums.

If you've been trying to get clarity from the IRS about international business requirements as an expat, good luck with that! I spent WEEKS trying to reach someone who could answer my questions about LLC formation abroad. After multiple failed attempts and hours on hold, I found https://claimyr.com which got me through to an actual IRS agent in under 45 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that I could form my LLC in any state regardless of where I live abroad, but recommended I consider state tax treaties with my country of residence. This was information I couldn't find online anywhere. Totally worth it to actually speak with someone official rather than guessing.

I can't believe I'm saying this, but I tried that Claimyr service mentioned above after posting my skeptical comment. I've tried calling the IRS 5 times over the past month with no luck. Using the service, I got through to an IRS representative in about 35 minutes. The agent clarified several questions I had about reporting requirements for my foreign-owned LLC and confirmed I needed to file Form 5472 and Form 1120 since I elected to have my LLC taxed as a corporation. While they didn't advise on which state to choose (as I incorrectly assumed they would), they provided crucial information about my tax classification options that directly impacts my state selection. Saved me from making a potentially expensive mistake.

When I was in your situation, I picked Wyoming for my LLC formation. Main reasons were: - No state income tax - Low annual fees ($50-60/year) - No need to disclose owner names in public filings - Only need to file an annual report I used a registered agent service that provided a physical address for about $120/year. Been running it for 3 years from Southeast Asia with zero issues. Most clients don't even realize I'm not in the US. Just make sure you understand the tax filing requirements for expats with businesses. You'll still likely need to file: - Schedule C with your 1040 - Self-employment tax (unless you're in a country with a totalization agreement) - Possibly FBAR if your business accounts exceed $10k

One thing nobody has mentioned yet is that regardless of which state you choose, you'll need to be aware of "foreign qualification" requirements. If you're "doing business" in a state other than where your LLC is formed, you technically need to register as a foreign entity there. The definition of "doing business" varies by state, but generally includes having employees, office space, or conducting in-person services in that state. As an expat with an online business, this probably won't affect you if you truly have no physical presence in any state. But something to keep in mind if your situation changes!