A U.S. LLC for SaaS founders building from anywhere
Last verified: 4 min read
A U.S. LLC for SaaS founders is the simplest way to sell software to the world as a U.S. company: it signs your customer contracts, holds your Stripe and bank accounts and bills in dollars. You can form your LLC for SaaS in New Mexico (NM), a U.S. state, in about two minutes, for $200 with State fees included. No ID documents are needed.
Why pick an LLC for SaaS instead of selling as yourself?
Because buyers, payment providers and app stores deal more easily with a company than with a person abroad:
- Contracts and invoices. Customers sign with your company and get invoices from a U.S. business.
- Payments. The LLC is the holder of its Stripe, bank and marketplace accounts.
- Limited liability. The company's obligations stay with the company, within the limits of the law.
- Co-founders. Ownership splits between members are written into the Operating Agreement, the internal contract of the LLC.
Where you pay tax depends on where you live and what the LLC does, not on the State where it is formed.
Does a SaaS company need Stripe, and can a U.S. LLC get it?
Most subscription products run on Stripe. Stripe opens accounts by country, and its list doesn't include every market: Argentina, Saudi Arabia and mainland China, for example, aren't on it, and India is still in preview. A U.S. LLC with an EIN and a U.S. bank account lets you apply for a U.S. account. Stripe runs its own checks and decides. The details are in opening a Stripe account as a non-resident, and founders in India have their own walk-through in forming a US LLC from India.
LLC or Delaware C corporation for a SaaS?
It depends on how you plan to grow:
| If you… | Usually |
|---|---|
| bootstrap and sell subscriptions | LLC: low cost, little upkeep |
| want a priced venture round soon | C corporation |
| need one company to bill and hold accounts | LLC |
The trade-offs are laid out in LLC vs corporation for foreigners. If you are building with partners, read single-member vs multi-member LLC before you choose the number of members.
What does the EIN do for a SaaS LLC?
The EIN is your company's tax number with the IRS. Banks, Stripe and most U.S. platforms ask for it before they open an account. You can get one without an SSN: see how to get an EIN without an SSN. With EXNNA, EIN assistance is $50 with your formation, and your LLC documents never wait for it.
How do you form an LLC for your SaaS?
- Enter a company name, two backups, the number of members and an email.
- Sign the service agreement online.
- Pay in U.S. dollars or your local currency, where available, by card, online.
- Follow every stage in your dashboard. The State usually approves in 1–3 business days.
Your Articles of Organization (the State's filing that creates the company) and the Operating Agreement, in PDF and editable DOCX, are ready the moment the LLC is formed. Founders in Japan can follow the same path in forming a US LLC from Japan.
What does the SaaS LLC need after it is formed?
Very little on the State side. A New Mexico LLC files no annual report and pays no annual State fee; it only keeps a registered agent, the company's official contact in the State. Ours is included for 12 months. Federal filings depend on how the LLC is owned and taxed. Compare the options on our pricing, or form your LLC online today.
Start
FAQ
- Is an LLC for SaaS a good fit if I plan to raise venture capital?
- Many funds invest in C corporations, so if a priced round is the plan, compare both first. For a bootstrapped product that sells subscriptions, an LLC is the simpler, cheaper start.
- Do I need to live in the U.S. to form an LLC for my SaaS?
- No. You don't need a visa, a Social Security Number or a U.S. address. The order is online and takes about two minutes.
- Can my co-founder and I own the LLC together?
- Yes. An LLC can have one member or several. You tell us the number of members; their names are optional and stay off the public record.
- What does the SaaS LLC cost each year?
- In New Mexico there is no annual report and no annual State fee. After the first 12 months, our registered agent renews at $99 a year, only if you renew.
Sources
- Stripe: global availability (checked )
General information, not legal or tax advice.