Uruguay is one of the best-positioned countries in the region to operate internationally. It has solid financial infrastructure, a competitive services export regime and favorable tax treatment for recent residents. Even so, for many Uruguayan freelancers, agencies and digital entrepreneurs, opening an LLC in the United States is still a decision that organizes international operations better than any local structure.
Without a doubt, you can open an LLC in the United States from Uruguay without traveling, without a visa and without being a U.S. resident. But before forming it, it's worth asking a prior question: is the LLC the right vehicle for your case?
What is an LLC and why would a Uruguayan consider one?
An LLC (Limited Liability Company) is a U.S. business entity that combines limited liability with tax transparency (pass-through taxation). Put simply: personal assets are protected, and when the owner is a non-resident who doesn't physically operate in the U.S., the LLC pays no federal income tax.
For a Uruguayan who exports digital services or sells abroad, the real appeal of the LLC is not tax-related in itself. It is operational and financial. These are the three concrete drivers that lead people to consider it:
Full access to global payment gateways. Stripe, PayPal Business, Shopify Payments and other platforms apply blocks and strict controls to accounts operated in a personal capacity from outside the U.S. With a U.S. LLC and its EIN, the connection is native: international credit card payments, disputes handled in dollars and no geographic restrictions.
Business accounts in dollars at U.S. digital banks. Mercury, Relay and Wise Business accept LLCs owned by Uruguayans with 100% remote onboarding. Balances at Mercury are covered by FDIC insurance of up to USD 5 million through Sweep Programs, with no maintenance fees or fees for internal U.S. ACH transfers.
Removing the local banking bottleneck. Receiving SWIFT transfers into Uruguayan accounts usually involves fixed fees, intermediary bank fees and delays. Getting paid into a U.S. account and then transferring to Uruguay (when appropriate) reduces friction and fees.
However, despite what many websites claim (and sell as a cure-all), having an LLC in the United States doesn't change your tax situation in Uruguay. If you are a Uruguayan tax resident, the DGI retains jurisdiction depending on the type of income you receive. The LLC organizes your international operations; it doesn't replace your local tax planning.
Who benefits from an LLC from Uruguay?
These are the profiles where an LLC usually makes economic and operational sense, based on what we see in practice:
Digital freelancers billing more than USD 2,500 – 3,000 per month abroad. Below that threshold, the LLC's annual maintenance costs (USD 600 – 1,500) can dilute the benefit.
Digital agencies with clients in the U.S., Europe or Latin America. When the client requires invoicing from a U.S. entity or when payments go through multiple platforms.
E-commerce entrepreneurs on Amazon FBA (with nuances we'll see below), Shopify or international marketplaces.
SaaS and app startups with global clients that need to receive recurring card payments.
Content creators who monetize through global platforms (YouTube AdSense, TikTok Creativity Program, Patreon, Twitch, Substack).
New Uruguayan residents covered by the tax holiday regime, who want to structure their international operations without generating taxable income in Uruguay during the exemption period.
Digital nomads with Uruguayan tax residence who bill clients in multiple countries.
When an LLC probably doesn't make sense:
Low revenue (less than USD 2,000/month) with no prospects of scaling.
Exclusively Uruguayan clients.
Need to issue Uruguayan tax invoices (some local clients only accept invoices from Uruguayan taxpayers).
Activities regulated in Uruguay that require local registration and licensing.
LLC vs. Uruguayan alternatives: quick comparison
Uruguay has several structures that can compete with the LLC depending on the profile. Here's the summary:
Structure | Setup | Annual costs | Stripe/PayPal access | Relevant taxation | Complexity |
|---|---|---|---|---|---|
U.S. LLC (Wyoming/NM) | ~USD 300 – 900 | USD 600 – 1,500 | Native | 0% U.S. federal if no ETBUS + IRPF/IRAE in Uruguay depending on qualification | Medium |
Sole proprietorship + Software export regime | Low | Low | Limited, in a personal capacity | IRAE exemption under the specific conditions of article 163 bis of Decree 150/007 | Low |
Uruguayan SAS | ~USD 500 – 1,000 | USD 1,500 – 3,000 | Possible | 25% IRAE + IRPF on dividends | Medium |
Free Trade Zone | High | High (fee + structure) | Yes | Full IRAE exemption, with demanding operational requirements | High |
Quick takeaways:
If you are a pure software developer and qualify under the Uruguayan export regime, a sole proprietorship may be enough up to a certain volume; the problem arises when you need to accept international credit card payments in a personal capacity.
The Uruguayan SAS works well for local operations with formal clients, but is taxed at 25% IRAE.
The Free Trade Zone only makes sense at high volumes because of the infrastructure it requires.
The LLC is especially efficient when the business is 100% digital, with no physical presence in the U.S. and no need to issue formal Uruguayan invoices.
Requirements to open an LLC from Uruguay
If you've already decided to open an LLC in the United States, you need to know the requirements. Spoiler: they are very simple. You only need:
A valid Uruguayan passport or ID card.
A personal address (it can be in Uruguay).
Email and phone number.
And regarding the business, what is usually requested:
An available name in the state of formation.
A Registered Agent with a physical address in that state.
A definition of the main business activity.
How do you open an LLC from Uruguay?
On our blog we have a very complete LLC guide for non-residents where you'll find a breakdown of every step. Still, here's a summary of the main steps:
Choose the state: For digital businesses with no physical presence in the U.S., the most recommended states are Wyoming and New Mexico, due to their low costs and lack of state income tax.
Appoint a Registered Agent at an annual cost of USD 50 – 150.
File the Articles of Organization with the Secretary of State. Timeframe: 1 – 15 business days depending on the state and filing method.
Get the EIN. It is requested from the IRS with Form SS-4. Without an SSN, the route is fax or mail. By fax it can be issued within business days; by mail it can take several weeks.
Draft the Operating Agreement, which serves as the LLC's internal bylaws. Banks require it for onboarding.
Open a U.S. business bank account. Mercury, Relay or Wise Business are the options most used by Uruguayans. Your business profile (active website, consistent LinkedIn, current contracts) makes the difference between approval and rejection.
Meet annual obligations: State annual report, Registered Agent maintenance and tax filings with the IRS.
Taxes: the IRS – DGI interaction for a Uruguayan owner
There are several elements to consider here, depending on the size of your company and its activity.
Single-member LLC
If your LLC has a single foreign member (single-member foreign-owned LLC), the IRS classifies it by default as a disregarded entity: tax-transparent. If, in addition, your services are digital and you have no physical presence in the U.S. (no offices, no employees, no dependent agents, and you provide the service from Uruguay), your income is considered foreign-source and you don't qualify as ETBUS (Engaged in Trade or Business in the US). Result: a 0% federal income tax rate.
This is the typical case of an exporter of purely digital services. However, there are important exceptions worth keeping in mind:
Amazon FBA: holding physical inventory in fulfillment centers in the U.S. can generate ECI (Effectively Connected Income) and trigger U.S. taxation.
Employees or dependent agents in the U.S.: automatically triggers ETBUS.
Services physically provided in the U.S.: if you travel and provide the service while in the U.S. (even temporarily), the analysis may change.
We recommend reading more about what taxes an LLC pays to see each scenario.
Another point is that, even if you don't pay income tax in the U.S., a foreign-owned single-member LLC must file every year:
Form 5472 (report of the beneficial owner and transactions with related parties).
Pro forma Form 1120 (the formal wrapper for Form 5472).
The penalty for non-compliance can reach USD 25,000 per year, applicable even if the LLC had no activity. It is the most underestimated obligation and the one that causes the most expensive problems. That's why Start Companies plans include the annual filing of Form 5472 and the rest of the tax compliance as part of the LLC management service.
Change of tax regime if you have multiple members
If your LLC has two or more members, the IRS classifies it by default as a Partnership, and the compliance mechanics change:
Annual Form 1065 + a Schedule K-1 for each partner.
Each foreign partner needs their own ITIN.
If there is ECI, withholding under section 1446 with Forms 8813, 8804 and 8805.
This change of regime affects costs and complexity. If your project involves partners, plan for it from the start.
With the DGI: modified territorial regime + IRPF
Uruguay operates under a principle of territorial taxation with exceptions. For the Uruguayan owner of an LLC, these are the points that frame the analysis:
Employment/service income provided from Uruguay: income from services provided from Uruguayan territory to clients abroad is, in principle, outside the scope of IRPF. This applies with nuances depending on how the income is classified.
Foreign investment income: since 2011 (Law 18,718), it has been taxed under IRPF category II at a 12% rate. Dividends or profit distributions from your LLC fall into this category.
Software export regime: if your activity qualifies under article 163 bis of Decree 150/007 (software development with specific origin and substance requirements), there may be an IRAE exemption under certain conditions. The LLC can coexist with this regime, but it requires analysis.
Permanent establishment: if the LLC operates in a way that creates a fixed place of business in Uruguay, the DGI may consider that a permanent establishment exists and tax the income under IRAE at 25%. This is a real risk and should be avoided with proper structuring.
The right strategy is to coordinate the LLC's operations with a Uruguayan accountant from the start. Not afterwards.
The tax holiday for new residents
This is one of the most relevant regimes for anyone considering moving to Uruguay or who has recently done so. New Uruguayan tax residents can choose between:
An 11-year exemption (the year residence is established + the following 10) on foreign investment income (IRPF category II).
A reduced rate of 7% permanently on that same income.
The general requirements include not having been a Uruguayan tax resident in the previous five years and making the express election at the appropriate time. For those settling in Uruguay with an international structure, this regime makes the LLC a very efficient tax combination. But the choice between the two options is irreversible and depends on the expected volume of investment income.
Exchange of information: Law 20,351 and CRS
This point is often sold with more drama than it deserves. The reality, laid out clearly:
Uruguay has been an active member of the CRS (Common Reporting Standard) since 2018, and since January 1, 2026 it applies CRS 2.0, which extends reporting to digital wallets, electronic money and crypto assets.
The United States does not participate in the CRS. Not with Uruguay, not with any country. It is a unilateral U.S. policy.
Uruguay and the U.S. signed a Tax Information Exchange Agreement (TIEA) in October 2023, approved by the Uruguayan Parliament through Law 20,351 of September 2024. The agreement provides for several forms of cooperation, but the mechanism currently in operation is exchange on request: the DGI can request specific information about a taxpayer as part of a specific investigation.
In practical terms: the balances and transactions of your U.S. bank account in your LLC's name are not sent automatically to the DGI, but the DGI can request them as part of a specific investigation. This is not a shield, and it doesn't change your obligation to report whatever applies to the DGI depending on the type of income.
How much does it cost to open and maintain an LLC from Uruguay?
Costs are divided into initial and annual expenses:
Item | Cost (USD) | Frequency |
|---|---|---|
State formation fee | 50 – 130 | One-time |
Registered Agent | 50 – 150 | Annual |
EIN application | Free with the IRS | One-time |
Professional formation service | 300 – 900 | One-time |
Franchise tax / annual report | 0 – 300 | Annual |
Tax filings (Form 5472 + 1120) | 300 – 800 | Annual |
Accounting and international compliance | 400 – 1,200 | Annual |
First year with delegated management: USD 400 – 1,000. Annual maintenance: USD 600 – 1,500. If you want a granular breakdown, in this article we break down the costs of creating an LLC.
Despite all the steps mentioned, the reality is that opening an LLC from Uruguay is not difficult. However, as you can see, deciding when to form it, in which state, with what member structure and how to coordinate it with your situation before the DGI requires a certain analysis that only experience provides.
At Start Companies we support Uruguayan entrepreneurs, freelancers, agencies and new residents with the formation and maintenance of LLCs in the United States: company formation, obtaining the EIN, opening a business bank account and the annual filing of informational obligations with the IRS.
Find out whether an LLC is the right vehicle for your case! Book a free consultation today.
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.
