US LLC for founders in Pakistan

A US LLC is one of the most common structures for Pakistani freelancers, agencies and e-commerce sellers serving US customers. It opens doors that a Pakistani business cannot open directly, but it creates obligations on both sides. This guide covers the US side, the Pakistan side, and the payment practicalities.

By Awais Jameel, Chartered Accountant. Reviewed by Mirza Fahad Baig, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

Founders in Pakistan can form and run a US LLC remotely, usually in Wyoming, New Mexico or Delaware, to reach payment platforms, US banks and marketplaces. A single-member LLC run from Pakistan often owes no US income tax but must file Form 5472 yearly. The profit is generally taxable in Pakistan, and funding it must follow State Bank of Pakistan rules.

At a glance

Common states
Wyoming, New Mexico, Delaware
EIN
By fax, mail or phone, without an SSN or ITIN
Yearly US filing
Form 5472 with a pro forma Form 1120
US income tax
Often none, if no US office, staff or agents
Pakistan tax
Residents are taxed on worldwide income
Exchange control
State Bank of Pakistan rules on funds moving abroad
US LLC for founders in PakistanCommon states: Wyoming, New Mexico, Delaware; EIN: By fax, mail or phone, without an SSN or ITIN; Yearly US filing: Form 5472 with a pro forma Form 1120; US income tax: Often none, if no US office, staff or agents; Pakistan tax: Residents are taxed on worldwide income; Exchange control: State Bank of Pakistan rules on funds moving abroad.KEY FACTS AT A GLANCEUS LLC for founders in PakistanCommon statesWyoming, New Mexico,DelawareEINBy fax, mail or phone,without an SSN or ITINYearly US filingForm 5472 with a proforma Form 1120US income taxOften none, if no USoffice, staff or agentsPakistan taxResidents are taxed onworldwide incomeExchange controlState Bank of Pakistanrules on funds movingabroadChecked against official sourcesTax BakersUS LLC for founders in PakistanCommon states: Wyoming, New Mexico, Delaware; EIN: By fax, mail or phone, without an SSN or ITIN; Yearly US filing: Form 5472 with a pro forma Form 1120; US income tax: Often none, if no US office, staff or agents; Pakistan tax: Residents are taxed on worldwide income; Exchange control: State Bank of Pakistan rules on funds moving abroad.KEY FACTS AT A GLANCEUS LLC for founders in PakistanCommon statesWyoming, New Mexico, DelawareEINBy fax, mail or phone, without an SSN orITINYearly US filingForm 5472 with a pro forma Form 1120US income taxOften none, if no US office, staff or agentsPakistan taxResidents are taxed on worldwide incomeExchange controlState Bank of Pakistan rules on funds movingabroadChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

Why do founders in Pakistan form a US LLC?

  • Payment platforms. Stripe does not serve businesses based in Pakistan, and PayPal does not operate there, but both can serve a US LLC with a US bank account.
  • Marketplaces and clients. Amazon, Shopify and many US clients find it easier to contract with and pay a US company.
  • US banking. Several US banks and financial technology providers open accounts for non-resident-owned LLCs.

See how to open a US LLC from outside the US and Stripe for a US LLC.

How do you set one up from Pakistan?

  1. Choose the state

    Wyoming and New Mexico have low yearly costs; Delaware suits plans to raise investment.

  2. Form the LLC

    Online, through a registered agent in the state.

  3. Get the EIN

    Form SS-4 by fax or mail, or by phone on the IRS international line, without an SSN or ITIN.

  4. Open a US account

    With a bank or provider that onboards non-resident owners.

  5. Set up books and a transfer log

    For Form 5472 and your Pakistan return.

See the best state for a non-resident LLC and EIN without an SSN or ITIN.

What does the US require each year?

A single-member LLC owned by a Pakistani resident is disregarded. If it has no US office, employees or dependent agents, it usually has no income effectively connected with a US business and owes no US income tax. It must still file Form 5472 with a pro forma Form 1120 each year it has transactions with you, by fax or mail; the penalty for each missing form is $25,000. The state's yearly report or tax is separate. See Form 5472 and yearly filings for a foreign-owned LLC.

The US and Pakistan have an income tax treaty dating from 1957. It is older and narrower than most modern treaties, so check its articles before relying on it. See tax treaties and your US LLC.

How is the income taxed in Pakistan?

Pakistan taxes its residents on worldwide income, for a tax year running from July to June. Profit you earn through a US LLC is generally taxable in Pakistan, whether the US taxes it or not. Points to settle with a Pakistani adviser:

  • Whether the LLC's profit is treated as your own business income each year or as income from a foreign company.
  • Whether managing the LLC from Pakistan could make it resident there.
  • Whether income from exporting IT or other services qualifies for any special regime when it is remitted through banking channels.
  • Declaring the LLC, its bank account and balances as foreign assets in your wealth statement.

See US LLC and tax in your home country.

How should money move between Pakistan and the LLC?

Bringing profit home is usually simplest: transfer from the LLC's account to your Pakistani bank account through normal banking channels, and keep the remittance records, which also support your Pakistan return. Sending money from Pakistan to fund the LLC is regulated by the State Bank of Pakistan's foreign exchange rules for residents investing abroad. Check with your bank before funding the LLC from a Pakistani account, and fund start-up costs through the LLC's own revenue where possible. See taking money out of a US LLC.

What are the common mistakes?

  • Not filing Form 5472 because the LLC "had no US income".
  • Treating no US tax as no tax, and leaving the income off the Pakistan return.
  • Using the LLC's account for personal spending with no records.
  • Letting the registered agent lapse, which leads to dissolution.

Running a US LLC from Pakistan?

We form the LLC, get the EIN without an SSN, file Form 5472 every year, and keep records that support your Pakistan return.

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Questions people ask

Can a Pakistani citizen form a US LLC?

Yes. Anyone can form a US LLC remotely, without visiting the US or holding a US visa.

Does a US LLC owned from Pakistan pay US tax?

Often no US income tax if it has no US office, staff or agents, but it must file Form 5472 every year.

Is income from a US LLC taxable in Pakistan?

Generally yes. Pakistan taxes its residents on worldwide income.

Can I use Stripe from Pakistan through a US LLC?

Stripe does not serve Pakistan-based businesses directly, but it can serve a US LLC with a US bank account that meets its requirements.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IRS: United States income tax treaties, A to Z
  2. IRS: Instructions for Form 5472 (Rev. December 2024)
  3. Federal Board of Revenue, Pakistan
  4. State Bank of Pakistan: Foreign Exchange Manual

Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.

Foreign-owned and non-resident companiesHow to open a US LLC from outside the USFederal tax formsForm 5472: who files, what to report and the deadlineForeign-owned and non-resident companiesUS LLC and tax in your home country: why no US tax does not mean no tax

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This guide is general information. It is not tax or legal advice for your situation.