Setting Up a US LLC - Step by Step for Turks

Legal Guide

How to Form an LLC in the US: Step-by-Step Guide for Turkish Entrepreneurs

Written for Turkish entrepreneurs and business owners evaluating LLC formation in the United States.

EchoLegalUpdated: January 25, 2026Reviewed by a licensed attorney

Attorney-ReviewedUnited StatesUpdated February 17, 2026

A Limited Liability Company (LLC) is a US business structure that provides personal liability protection while allowing flexible tax treatment. Turkish entrepreneurs can form a US LLC remotely without visiting the US, typically in states like Wyoming, Delaware, or New Mexico. Formation costs range from $50-$500 depending on the state.

This guide explains the legal steps for forming a Limited Liability Company (LLC) in the United States, with particular attention to considerations for Turkish nationals and residents.

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for your specific situation.

Scope & Method

This entry is structured according to a formal legal authority hierarchy. Binding sources (statutes and regulations) are presented separately from interpretive authorities (judicial decisions and agency interpretations). Ordering reflects relative legal force.

Version: v1.0Last Reviewed: 2026-02-17Foundational

Judicial Deference Framework

Judicial deference describes the weight courts give to an administrative agency's interpretation of a statute or regulation it administers.

Chevron deference: Applies when Congress has delegated authority to an agency and the agency's interpretation is reasonable. Courts defer unless the statute is unambiguous.
Skidmore deference: A lesser standard based on the persuasiveness of the agency's reasoning, consistency of its interpretation, and expertise demonstrated.
Non-binding guidance: Agency materials such as internal manuals (e.g., IRM), FAQs, opinion letters, and informal guidance do not carry the force of law. Courts may consider them but are not bound by them.
Application on this platform: EchoLegal labels content by authority level (statute, regulation, agency guidance, judicial interpretation). Courts may assign different weight to these sources than implied by their presentation order.

This framework is provided for contextual understanding and does not constitute legal advice regarding any specific matter.

1. What is an LLC?

A Limited Liability Company (LLC) is a business structure under U.S. state law that combines the liability protection of a corporation with the tax flexibility of a partnership.

Key characteristics:

Limited liability: Members' personal assets are generally protected from business debts and lawsuits.
Pass-through taxation: By default, a single-member LLC is treated as a "disregarded entity" for federal tax purposes. The LLC itself does not file a separate tax return. Income passes through to the owner.
Flexible management: Unlike corporations, LLCs have fewer formal requirements (no mandatory board meetings, annual minutes, etc.).

LLCs are formed at the state level. Each state has its own formation requirements, fees, and ongoing compliance obligations.

2. Key Realities for Turkish Residents

If you are a Turkish citizen residing in Turkey (or elsewhere outside the US), there are specific considerations:

EIN vs. ITIN vs. SSN

EIN (Employer Identification Number): A tax ID for your LLC. Required for opening a US bank account and filing taxes. Non-residents can obtain an EIN by mail or fax using Form SS-4.
ITIN (Individual Taxpayer Identification Number): A personal tax ID for individuals who cannot obtain an SSN. May be required for certain tax filings.
SSN (Social Security Number): Only available to individuals authorized to work in the US.

US-Source Income

Even without a US visa or physical presence, your LLC may trigger US tax filing obligations if it earns income from US sources (US clients, US-based services). The US-Turkey tax treaty may provide certain benefits but does not eliminate all requirements.

LLC Does Not Grant Immigration Status

A common misconception: forming an LLC does not provide any visa or immigration benefit. You cannot "move to the US" simply by forming an LLC. Immigration requires a separate legal pathway (E-2, L-1, etc.).

Important: Forming an LLC does NOT provide any immigration benefit. Do not rely on advice suggesting otherwise.

3. Step-by-Step Process

Each step below builds on the one before it. The state is selected first because the registered agent must be physically present in that state. Articles of Organization are filed before applying for an EIN, as the IRS requires proof that the entity exists. Banks, in turn, generally require both an EIN and an Operating Agreement before opening an account. This sequence reflects the legal and practical dependencies of the process.

Step 1: Choose Your State

Delaware and Wyoming are popular for their business-friendly laws and privacy protections. However, if you will conduct business primarily in one state, forming there may be simpler. Each state has different fees and requirements.

Delaware: $90 filing fee, $300/year franchise tax (minimum)
Wyoming: $100 filing fee, $60/year annual report
New Mexico: $50 filing fee, no annual report requirement

Step 2: Appoint a Registered Agent

Every LLC must designate a registered agent with a physical address in the formation state. The agent receives legal and official documents on behalf of your LLC. Commercial registered agent services typically cost $50–300 per year.

Step 3: File Articles of Organization

The Articles of Organization is the founding document that formally registers your LLC with the state. Most states accept online filings. Processing times range from same-day (with an expedited fee) to one or two weeks, depending on the state. Once the state approves this filing, your LLC legally exists.

Step 4: Obtain an EIN

An EIN (Employer Identification Number) is a tax identification number for your LLC, issued by the IRS. You need it to open a bank account, file tax returns, and enter into contracts. Non-residents without an SSN cannot apply online. The application must be submitted by mail or fax using Form SS-4, and processing typically takes four to six weeks. Without an EIN, your LLC exists on paper but cannot operate commercially in the United States.

Step 5: Draft an Operating Agreement

An Operating Agreement is the internal governance document of your LLC. It defines ownership percentages, profit distribution, and decision-making procedures. Not every state requires one by law, but in practice it is indispensable. Banks request it when opening an account, and it provides protection in disputes between members.

Most US banks request a copy of the Operating Agreement when opening a business account. Even for single-member LLCs, banks use this document to verify who is authorized to act on behalf of the entity and how it is managed. An LLC without an Operating Agreement may face significant delays or outright rejection during the account opening process.

For related contract templates your LLC may need, see the Service Agreement and Non-Disclosure Agreement template pages.

Step 6: Open a US Bank Account

For non-residents, this is often the most difficult step. Traditional US banks generally require an in-person visit to a branch. A smaller number of banks and fintech platforms accept remote applications from foreign LLC owners, though their requirements and approval rates change frequently. Prepare your EIN confirmation letter, Articles of Organization, and Operating Agreement before applying — having these documents ready streamlines the process.

Step 7: Maintain Compliance

Forming an LLC is not a one-time event. Most states require annual reports and charge ongoing fees or franchise taxes. At the federal level, you may need to file informational tax returns even if your LLC earned no US-source income. The Corporate Transparency Act also requires most LLCs to submit Beneficial Ownership Information (BOI) reports to FinCEN. Failure to meet these obligations can result in penalties or administrative dissolution. Ongoing compliance preserves your LLC's legal standing. Neglecting it directly jeopardizes the limited liability protection that was the reason for forming the entity.

4. Common Mistakes

"LLC means no taxes"

False. An LLC is a legal structure, not a tax exemption. Depending on your circumstances, you may owe US federal taxes, state taxes, and taxes in your country of residence.

"I can use a nominee to hide ownership"

The Corporate Transparency Act now requires disclosure of beneficial owners to FinCEN. Using nominees to conceal true ownership may result in civil and criminal penalties.

"Delaware is always the best choice"

Delaware has advantages for certain situations (venture-backed startups, complex corporate structures). For a simple single-member LLC with no US operations, other states may be more cost-effective.

"I don't need to file anything if I have no income"

Even with zero income, you may have filing obligations (state annual reports, BOI reporting, informational tax returns). Failure to file can result in penalties or administrative dissolution.

Confusing sales tax with income tax

Sales tax is a separate obligation from income tax. If you sell taxable goods or services to customers in certain states, you may need to collect and remit sales tax — even without a physical presence there.

5. Document Checklist

[ ]Passport copy (for identity verification)
[ ]Proof of address (utility bill, bank statement)
[ ]Articles of Organization (filed with state)
[ ]EIN confirmation letter (IRS)
[ ]Operating Agreement
[ ]Registered Agent agreement
[ ]Bank account opening documents
[ ]BOI report confirmation (FinCEN)

6. Timeline & Costs

These are estimates only. Actual costs and timelines vary by state and service provider. Verify current fees with official sources.

Item	Cost Range	Timeline
State filing fee	$50 – $500	1 day – 2 weeks
Registered agent (annual)	$50 – $300	Immediate
EIN application	Free	4 – 6 weeks (by mail)
Operating Agreement (template)	$0 – $200	1 – 3 days
Bank account	$0 – $30/month	1 – 4 weeks
Annual state fees	$0 – $800+	Annual
BOI filing	Free	Must file within 90 days of formation

Total initial setup: approximately $200 – $1,000+ depending on state and services used.

7. Frequently Asked Questions

Can I form an LLC without visiting the US?

Yes. LLC formation can be done entirely remotely. However, opening a bank account may require an in-person visit depending on the bank.

Do I need a US address?

You need a registered agent with a US address in your formation state. You do not need to personally have a US address, though some banks may require one.

Which state should I choose?

It depends on your business activities, where your customers are, and your budget. Wyoming and New Mexico are often cost-effective for non-residents with no US operations. Consult a professional for your specific situation.

Will forming an LLC help me get a visa?

No. LLC formation provides no immigration benefit. Visas require separate applications with specific eligibility requirements.

Do I need to pay US taxes if I have no US income?

You may still have filing obligations even with no income. Additionally, some states charge annual fees or franchise taxes regardless of income.

What is BOI reporting?

Beneficial Ownership Information reporting is a new federal requirement under the Corporate Transparency Act. Most LLCs must report their beneficial owners to FinCEN within 90 days of formation.

Can I use my LLC for Stripe, PayPal, or Amazon?

Generally yes, but each platform has its own verification requirements. Having an EIN and US bank account typically helps with onboarding.

8. Sources & Official Links

•

IRS – EIN Application

Official EIN application information

•

FinCEN – Beneficial Ownership Information

BOI reporting requirements and filing

•

Delaware Division of Corporations

Delaware business formation

•

Wyoming Secretary of State

Wyoming business formation

•

IRS – Tax Treaties

Including US-Turkey tax treaty

References

Applicable state limited liability company statutes (e.g., Delaware LLC Act, Wyoming LLC Act, New Mexico LLC Act)
Internal Revenue Code and Treasury Regulations governing entity classification (commonly referred to as the 'check-the-box' regulations)
IRS authority and guidance on EIN issuance and taxpayer identification
FinCEN Beneficial Ownership Information reporting requirements under the Corporate Transparency Act
Federal immigration law (distinguishing entity formation from immigration status)

Judicial Interpretation Framework

Version: v1.0Last Reviewed: 2026-02-19Foundational

9. Judicial Interpretation (Selected)

The entries below distinguish binding authority from persuasive guidance. Binding authority (statutes, regulations) controls; persuasive authority (agency guidance, IRS publications) informs but does not override higher-tier sources in the event of conflict.

26 C.F.R. §§ 301.7701-1 through 301.7701-3

Binding

The "check-the-box" regulations govern entity classification for federal tax purposes. A single-member LLC defaults to disregarded entity status unless an election is made. Binding regulation with the force of law.

26 U.S.C. § 7701(a)(3)–(4)

Binding

Statutory definitions of "corporation" and "domestic" for federal tax purposes. These definitions determine how state-law entities are treated under the Internal Revenue Code.

31 U.S.C. § 5336 (Corporate Transparency Act)

Binding

Requires most LLCs to report beneficial ownership information to FinCEN. Statutory mandate; FinCEN regulations implement the specifics.

6 Del. C. § 18-101 et seq. (Delaware LLC Act)

Binding

State statute governing LLC formation, governance, and dissolution in Delaware. State law controls entity formation; federal law controls tax treatment.

IRS Rev. Proc. 2023-32

Persuasive

IRS guidance on EIN application procedures for foreign-owned entities. Administrative guidance; helpful but not binding on courts.

How courts treat conflicts between statute, regulation, and guidance

–Entity formation is governed by state law (e.g., Delaware LLC Act). Federal law does not create LLCs but determines how state-law entities are classified and taxed.
–Where state LLC statutes conflict with federal tax classification rules, federal law governs the tax treatment under the Supremacy Clause. However, state law governs liability protection, governance, and dissolution.
–FinCEN beneficial ownership regulations (31 C.F.R. § 1010.380) implement the Corporate Transparency Act. These regulations have the force of law, distinct from voluntary guidance.

What this resolves

✓Whether a non-US person can form an LLC (yes, under state law; no federal prohibition).
✓Default federal tax classification of a single-member LLC (disregarded entity under check-the-box).
✓Obligation to file BOI reports with FinCEN (required for most LLCs under the CTA).

What this does NOT resolve

✗Which state is "best" for a particular business situation (requires analysis of specific facts and objectives).
✗Whether a foreign LLC owner has personal US tax filing obligations (depends on income sources and activities).
✗Immigration implications of LLC ownership (LLC formation confers no immigration benefit).

10. Interpretive Notes

These notes summarise how binding and persuasive authority interact for the topics covered on this page. For the institutional standard governing source precedence, see the references below.

Where a statute and agency guidance conflict, the statute controls. Regulations issued under proper statutory authority have the force of law; informal guidance (revenue rulings, instructions, publications) does not.

→Charter — Authority Precedence →Citation Guide & Contributor Standards

11. Conflict Resolution & Authority Precedence

When multiple legal instruments address the same question, a fixed hierarchy determines which source controls. The following matrix summarises the normative weight of each instrument type, its capacity to override lower-tier sources, and typical judicial treatment.

Instrument Type	Normative Weight	Can Override	Typical Court Treatment
Constitution	Supreme	All subordinate instruments	Controls unconditionally
Federal Statute	Binding	Regulations, guidance, instructions	Applied as enacted; regulations must conform
Treaty	Binding	May modify statutory rates where applicable	Co-equal with statute; later-in-time rule applies
Federal Regulation	Implementing	Guidance and instructions only	Force of law if issued under proper authority
Agency Guidance / Revenue Ruling	Interpretive	Nothing; cannot override higher sources	Considered but not binding on courts
Form Instruction / Publication	Non-binding	Nothing	Informational only; no judicial deference

If conflict arises, courts generally…

apply the higher-ranking source. A statute prevails over a conflicting regulation; a regulation issued under proper delegated authority prevails over informal agency guidance. Where a statute and a treaty conflict, courts apply the "later-in-time" rule: the more recently enacted instrument controls. Regulations that exceed their statutory mandate are struck down as ultra vires. Agency publications and form instructions receive no judicial deference and are treated as informational aids, not as authoritative statements of law.

Not resolved by this hierarchy

–Whether a specific business activity creates "nexus" sufficient to trigger state-level tax or registration obligations.
–Factual determination of whether a foreign owner's involvement constitutes a "trade or business" within the United States.
–Choice-of-entity analysis for specific business models (requires professional assessment of individual circumstances).
–Application of the "economic substance doctrine" to specific LLC structures or transactions.

12. Illustrative Judicial Treatment (Selected)

The following references illustrate how federal courts have applied the precedence principles described above. These are selected for doctrinal relevance; they do not constitute a comprehensive survey of case law.

Littriello v. United States, 484 F.3d 372 (6th Cir. 2007)

State-law entity classification does not control federal tax treatment. The check-the-box regulations provide the exclusive framework for determining how an LLC is taxed at the federal level, regardless of how state law characterises the entity.

McNamee v. Department of the Treasury, 488 F.3d 100 (2d Cir. 2007)

An LLC's limited liability protection under state law does not automatically confer any particular tax status under federal law. Federal tax classification is determined exclusively by the Treasury regulations, not by the state-law characteristics of the entity.

Conflict Resolution Principle

In cases of normative conflict, binding statutory authority prevails over subordinate regulations. Regulations prevail over agency guidance. Judicial interpretation applies where statutory ambiguity exists. On matters governed by federal law, state provisions cannot override federal supremacy.

Sources are presented in normative order. Lower-tier materials do not override higher-tier authority.

–
26 U.S.C. § 7701(a)(3)–(4)— Definitions of "corporation" and "domestic"
–
31 U.S.C. § 5336— Corporate Transparency Act — beneficial ownership reporting
–
26 C.F.R. §§ 301.7701-1 through 301.7701-3— Entity classification regulations (check-the-box)
–
31 C.F.R. § 1010.380— Beneficial ownership information reporting requirements (FinCEN)
–
6 Del. C. § 18-101 et seq.— Delaware Limited Liability Company Act
–
IRS Rev. Proc. 2023-32— EIN application procedures for foreign-owned entities
–
IRS, Instructions for Form SS-4— Application for Employer Identification Number

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Author

EL

EchoLegal

Content reviewed by a New York-licensed attorney

Frequently Asked Questions (for Turkish Nationals)

Do I need to live in the US to form an LLC?

No. US state law does not require LLC owners to be US residents or citizens. Formation can be completed entirely from abroad through a registered agent in the chosen state. However, certain post-formation steps — particularly opening a US bank account — may require physical presence depending on the institution.

Can I form an LLC without opening a US bank account?

Yes. A bank account is not a legal prerequisite for LLC formation. The LLC becomes a legal entity upon state approval of the Articles of Organization. That said, operating without a US bank account limits your ability to receive payments, pay taxes, and use most US-based financial platforms.

ABD Business Starter Legal Kit

Three legal document templates — Operating Agreement, Service Agreement, and NDA — prepared for Turkish entrepreneurs forming a US-based LLC. Each document is drafted in both English and Turkish, reflecting standard US commercial practice.

$49 — one-time purchase

Access the Legal Kit

Cite This Entry

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EchoLegal, “Setting Up a US LLC - Step by Step for Turks,” EchoLegal Legal Encyclopedia, v1.0 (last updated Feb 17, 2026), https://echo-legal.com/en/abd-de-llc-kurmak-turkler-icin-adim-adim.

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Setting Up a US LLC - Step by Step for Turks, EchoLegal Legal Encyclopedia (last updated Feb 17, 2026), https://echo-legal.com/en/abd-de-llc-kurmak-turkler-icin-adim-adim.

Citation ID:ecl-gde-00014

This content is for informational purposes only and does not constitute legal, tax, or immigration advice. Laws and regulations change frequently. Consult qualified professionals for advice specific to your situation. EchoLegal is not a law firm and does not provide legal representation.