If you are in Paraguay and get paid from abroad in dollars, you have probably run into the same problems again and again: high fees, limitations on using Stripe or PayPal Business, difficulty accessing multi-currency accounts and a local financial infrastructure that doesn't always keep up with international operations. Opening an LLC in the United States has become, in recent years, one of the most widely used alternatives for sorting out that situation.
The short answer is yes: you can open an LLC in the United States from Paraguay without traveling, without a visa and without being a US resident. The process is done 100% online and, if you have your documents ready, it can be completed in a matter of days.
In this guide you will find the requirements, the step-by-step process, approximate costs, the tax obligations that come afterwards and the most common mistakes to avoid. The goal is for you to finish reading with a clear picture of what opening and maintaining an LLC from Paraguay involves, with no promises of anonymity or automatic tax exemptions.
What is an LLC and why open one from Paraguay?
An LLC (Limited Liability Company) is a business structure created under the laws of a US state. In Spanish it is often translated as "sociedad de responsabilidad limitada". Its two core features are the limited liability of its members and tax transparency (pass-through taxation): the LLC itself generally does not pay federal income tax; its results flow through to the owner's personal return.
For an entrepreneur, freelancer or digital business owner in Paraguay, this translates into concrete advantages:
Asset separation. Personal assets are protected from the business's debts and obligations.
Access to global financial infrastructure. With an LLC you can operate with Stripe, PayPal Business, Wise Business, Mercury or Relay, platforms that are often not available to companies or individuals resident in Paraguay.
Frictionless payments in dollars. International invoicing in USD, receiving global transfers and working directly with clients in any country.
Credibility with international clients. A US company makes contracts, purchase orders and business relationships easier with markets such as the United States, the European Union and Asia.
No residency or visa requirement. You don't need to travel to the United States or live there to own an LLC.
That said, it's worth clarifying from the start: having an LLC in the United States does not automatically change your tax residency. If you live in Paraguay, you remain a Paraguayan tax resident and your local obligations remain in force. The LLC organizes your international operations; it does not replace your tax planning.
Who can open an LLC from Paraguay?
Any adult with a valid ID can form an LLC in the United States as a non-resident. There are no restrictions based on nationality. The most common profiles that open an LLC from Paraguay are:
Freelancers and service exporters (developers, designers, marketers, consultants).
Digital agencies that work with international clients.
E-commerce entrepreneurs who sell to markets outside Paraguay.
Content creators who monetize through international platforms.
SaaS and app startups that need to invoice global clients.
If your business is exclusively local (Paraguayan clients, payments in guaraníes), a US LLC probably won't offer advantages over a local structure. An LLC makes sense when your business already has, or is seeking, international reach.
Requirements to open an LLC from Paraguay
The requirements are simple, and they don't include an SSN or ITIN at the outset. The basics:
From the owner:
Valid passport.
Personal address (it can be in Paraguay).
Email address and phone number.
For the business:
An available name in the state where you will form the LLC.
A Registered Agent with a physical address in that state (we explain what it is below).
A definition of the business's main activity.
What you don't need:
SSN (Social Security Number).
ITIN at the time of forming the LLC (it can be obtained later if applicable).
A US work visa or residency.
To travel to the United States.
Apostille procedures or physical documents.
Step by step to open your LLC from Paraguay
The process of opening an LLC in the United States is not linear, nor is it the same for every business or person. Each case requires a personalized assessment, but in general terms, these are the steps to follow.
1. Choose the state of formation
Each state has its own rules, costs and obligations. The four most popular among Latin American entrepreneurs are:
State | Formation cost | Annual cost | Main advantage |
|---|---|---|---|
Wyoming | ~$100 | ~$60 | Low costs, no state income tax, beneficial owner kept off the public registry. |
New Mexico | ~$50 | No annual report | The cheapest to maintain, with no mandatory annual report. |
Delaware | ~$110 | $300 (franchise tax) | Legal prestige, ideal if you are seeking institutional investment. |
Florida | ~$125 | $138.75 | Recommended if you have physical operations or clients in Florida. |
For digital businesses with no physical presence in the United States, Wyoming and New Mexico are usually the most efficient options in terms of cost and simplicity.
2. Appoint a Registered Agent
The Registered Agent (registered agent) is a person or company with a physical address in the state of formation, responsible for receiving official notices and legal communications on behalf of your LLC. It is a mandatory requirement: without a Registered Agent, the state will not approve your formation.
You can't be your own Registered Agent if you live outside the United States. The usual approach is to hire a Registered Agent service that provides the address and handles notices. The annual cost ranges between $50 and $150.
3. File the Articles of Organization
The Articles of Organization are the LLC's founding document. They are filed with the Secretary of State of the chosen state and include basic information: company name, address, Registered Agent details, management type (member-managed or manager-managed) and, in some states, the members.
Approval times vary: from 1 to 15 business days depending on the state and the type of processing (standard or expedited, the latter at an extra cost).
4. Get the EIN
The EIN (Employer Identification Number) is the tax identification number the IRS assigns to your LLC. You will need it for everything: opening a bank account, hiring services, invoicing and meeting your tax obligations.
If you are a foreigner without an SSN, the EIN is requested using Form SS-4, sent to the IRS by fax or mail. Actual turnaround times vary: between 4 and 8 weeks by fax, longer if sent by mail. Some specialized services can speed up the process.
5. Draft the Operating Agreement
The Operating Agreement (operating agreement) is the LLC's internal contract. It defines who the members are, how profits are distributed, how decisions are made and what happens if a member leaves.
Not every state requires it, but it is recommended in all cases, even for single-member LLCs. Banks usually ask for it when you open an account, and it helps support the structure before the IRS and in any potential disputes. You can put together a basic template or adapt a standard one; in this guide we explain what an Operating Agreement should include.
6. Open a US business bank account
Once your LLC is formed and your EIN has been issued, you can open a business bank account. There are digital banks that accept LLCs owned by non-residents 100% remotely: Mercury, Relay and Wise Business are the most used today by Latin American entrepreneurs.
Typical documents you will need:
Approved Articles of Organization.
EIN Confirmation Letter (IRS document).
Operating Agreement.
The owner's passport.
Proof of personal address.
Bank approval times depend on the bank and the business profile. They can range from 24 hours to 2 weeks. If you need support, at Start Companies we offer bank account opening assistance with our partner banks.
7. Meet your annual obligations
Forming the LLC is just the beginning. To keep it active and avoid penalties, you need to comply every year with:
Annual report or franchise tax, depending on the state (for example, Delaware requires $300 per year).
Registered Agent maintenance (annual service renewal).
Tax filings with the IRS (we detail which ones below).
Renewal of licenses or permits, if they apply to your activity.
How much does it cost to open and maintain an LLC from Paraguay?
Costs are split between formation expenses (one time) and maintenance expenses (annual). An approximate breakdown:
Item | Approximate cost (USD) | Frequency |
|---|---|---|
State formation fee | 50 – 130 depending on the state | One time |
Registered Agent | 50 – 150 | Annual |
EIN application | Free (IRS) | One time |
Professional formation service | 300 – 900 | One time |
Franchise tax / annual report | 0 – 300 depending on the state | Annual |
Tax filings (Form 5472 + 1120) | 300 – 800 | Annual |
Bookkeeping and compliance | 400 – 1,200 | Annual |
In total, the costs of opening an LLC from Paraguay can range between $400 and $1,000 in the first year if you delegate the entire process, and keeping it active runs around $600 to $1,500 per year depending on the state and the level of professional support you hire.
Taxes: How is an LLC owned by a Paraguayan taxed?
This is where there is usually the most confusion, so let's take it step by step.
An LLC is not a single tax regime
An LLC is a legal structure. For the IRS, a foreign-owned single-member LLC is, by default, a disregarded entity: its results are reflected in the owner's tax position, not in the company as such.
ETBUS and ECI: when federal income tax applies
The key concepts are ETBUS (Engaged in Trade or Business in the US) and ECI (Effectively Connected Income). In simple terms: if your LLC has no physical presence in the United States, has no employees or dependent agents in the country, and all services are provided from Paraguay, the income is generally not considered ECI and there is no obligation to pay federal income tax in the United States.
Broadly speaking, the taxes an LLC pays can vary depending on the activity, the type of client and the specific operation. It is not a universal or automatic rule.
Form 5472: a mandatory information return
Even if your LLC doesn't pay income tax in the United States, it does have an essential reporting obligation: filing Form 5472 together with a pro forma Form 1120 every year.
Who files it? Every single-member foreign-owned LLC.
What does it report? The beneficial owner and transactions with related parties.
When is it due? April 15 each year (with a possible extension to October).
What happens if you don't file it? The penalty is $25,000 per year not filed.
It is the most underestimated obligation and the one that causes the most expensive problems. If you'd rather not handle it yourself, at Start Companies we include the annual filing of Form 5472 and the rest of your tax compliance.
Obligations in Paraguay
Paraguay has a territorial tax system: in general, foreign-source income is not taxed under the Personal Income Tax (IRP). However, there are important nuances:
Whether income is foreign-source depends on where it is generated, not just where it is collected.
Certain activities may be subject to VAT (IVA) or to the IRE regime (Corporate Income Tax), depending on how the operation is structured.
If you are registered in the RUC, you have filing obligations even if the final result is zero.
Before assuming your LLC leaves you tax-free in Paraguay, consult a local accountant who understands how digital businesses with a foreign structure operate.
In any case, having an LLC does not exempt you from your tax obligations in your country of residence. The structure organizes your international operations, but your local obligations remain in force.
Common mistakes when opening an LLC from Paraguay
The most common mistakes we see in practice:
Choosing Delaware by default. Delaware has prestige, but for digital businesses not seeking institutional investment, Wyoming or New Mexico are usually more cost-efficient.
Not filing Form 5472. The $25,000 penalty applies automatically, even if your LLC had no activity. It is the most frequently overlooked obligation.
Confusing "not paying taxes in the US" with "not filing in Paraguay". They are two different jurisdictions with independent obligations.
Mixing your personal account with the LLC account. It undermines limited liability protection and complicates bookkeeping.
Letting the Registered Agent lapse. If you don't renew it, the state can administratively dissolve your LLC.
Selling the LLC as an "anonymous" structure. Keeping the beneficial owner off the state public registry is not the same as being invisible to the IRS or to foreign tax authorities.
As you can see, opening an LLC from Paraguay is an accessible process, but each step has details that, if done wrong, can cost time and money. At Start Companies we support Latin American entrepreneurs, freelancers and agencies with the formation and maintenance of LLCs in the United States: forming the company, obtaining the EIN, opening the bank account and filing the annual information returns with the IRS. All in Spanish, 100% online and with no hidden costs.
If you want to assess whether an LLC fits your current operations, book a free consultation and we'll map out together the right path for your case.
Frequently asked questions
Can I open an LLC in the United States from Paraguay without traveling?
Yes. The process is 100% online. You don't need a visa or an SSN, or to travel to the United States. You can do it yourself or delegate it to a specialized service.
How long does it take to open an LLC from Paraguay?
It depends on the state and the type of processing. In general, formation takes between 1 and 15 business days. The EIN can take between 4 and 8 weeks if requested by fax. Opening the bank account usually adds another 24 hours to 2 weeks.
What taxes does an LLC owned by a Paraguayan pay?
If the LLC has no physical presence or employees in the United States and operates from Paraguay, it generally does not pay federal income tax in the US. It does have the annual obligation to file Form 5472 + pro forma Form 1120 with the IRS. In Paraguay, the treatment depends on the local territorial system and how the operation is structured, so it's best to consult a Paraguayan accountant.
Can I open a bank account in the United States without traveling?
Yes. Digital banks such as Mercury, Relay and Wise Business accept LLCs owned by non-residents and let you open an account 100% remotely. You will need the formed LLC, the issued EIN, the Operating Agreement and the owner's passport.
Does the LLC exempt me from filing in Paraguay?
No. No foreign corporate structure exempts its owner from their tax obligations in their country of residence. The LLC organizes your international operations and separates your assets, but the obligation to report income in Paraguay, where applicable, remains in force.
Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, founder of Start Companies and a specialist in U.S. companies for entrepreneurs, freelancers and digital businesses in Latin America. With training in international taxation and studies at UCEMA, he advises non-resident clients on forming and maintaining LLCs, opening bank accounts, invoicing, accounting and taxes. His experience combines tax strategy, compliance and practical vision for operating in the U.S. in a simple, organized and professional way.
