A US LLC for non-residents solves two problems at once: access to US banking and Stripe, and — combined with Georgian tax residency — a legally clean path to 0% tax on distributions. Under Article 82.2.u of the Georgian Tax Code, distributions from a foreign entity to a Georgian tax resident individual are foreign-source income and exempt from Georgian tax. Here is how the structure works as of July 2026 — and the caveat that decides whether it holds.
The US side: Wyoming single-member LLC as a disregarded entity
A single-member LLC owned by a foreign individual is treated by the IRS as a disregarded entity by default (Reg. §301.7701-3): the LLC is fiscally transparent — the owner, not the company, is the taxpayer. For a non-US person this means no US income tax, as long as there is no “US Trade or Business” generating Effectively Connected Income:
- no employees in the United States
- no office or fixed place of business in the US
- no dependent agents acting for the LLC in the US
- no inventory stored in the US
- services performed from outside the US
A SaaS founder or freelancer operating from Tbilisi and using the LLC purely as a legal and billing vehicle typically meets these conditions. US customers are fine — what matters is where the work is performed.
Mandatory compliance: Form 5472 is not optional
“No US tax” does not mean “no US obligations”. A foreign-owned disregarded entity must file every year:
| Obligation | Details |
|---|---|
| EIN (Employer Identification Number) | One-time IRS application; required for banking and payment processors |
| Form 5472 + pro-forma Form 1120 | Annually, deadline April 15; extension via Form 7004; filing only by fax or mail to IRS Ogden |
| W-8BEN-E | For payment processors and platforms |
| Wyoming Annual Report | Annually, approx. $62–150 |
| BOI/FinCEN | Currently no filing required (as of July 2026) — since the FinCEN Interim Final Rule of March 2025, domestic US entities are exempt from BOI reporting |
Banking and payments
With an EIN and clean documentation, US business accounts can be opened remotely at Mercury, Relay and Wise. Stripe and PayPal work via the EIN — for many online businesses the real reason to form the LLC. A personal account in Georgia for receiving distributions can also be opened remotely — see Bank account in Georgia.
Two practical points: notarisations for the US structure run fully online via our contracted remote online notarization (RON) service, with no local notary appointment (for an additional fee). And originals and apostilles ship exclusively by express courier (UPS, FedEx or DHL Express), never by regular mail — see Apostille & remote notary.
The Georgian side: distributions as tax-free foreign income
Georgia taxes resident individuals on a territorial basis: income without a Georgian source is exempt (Article 82.2.u GTC). Distributions from a US LLC to a Georgian tax resident individual are foreign-source income — Georgian tax rate: 0%. BAUER GROUP Georgia holds an official written Revenue Service ruling confirming this principle.
Tax residency comes via 183 days of presence in any 12-month period or the HNWI programme — Georgia tax residency. The principle in detail: Tax-free foreign income.
BGGE implements this structurally: management/director agreement, documented decision-making (board minutes, substance evidence) and, on request, a binding advance tax ruling (Article 47 GTC). Services you perform yourself from within Georgia are taxed separately — for example via the individual entrepreneur status with 1% tax.
Worked example: SaaS founder with USD 200,000 profit
Customers in the US and EU, services performed without US presence, an employed manager outside Georgia runs operations:
This result assumes correct substance planning and full compliance. One honest note: the US does not participate in CRS (FATCA only), while Georgia has exchanged account data automatically since 2024. The structure works through legal exemption, not opacity — anyone still tax-resident at home must declare the LLC and its income there in full.
FAQ
FAQ
Does a foreign-owned disregarded entity really pay no US tax?
Correct, provided there is no US Trade or Business: no US employees, office, dependent agents or inventory, and services performed from outside the US.
What happens if I miss the Form 5472 deadline?
The IRS charges $25,000 per form per year, plus another $25,000 after 90 days — regardless of whether any US tax is due. Deadline: April 15, extendable via Form 7004.
Are LLC distributions really tax-free in Georgia?
Yes — as foreign-source income of a resident individual under Article 82.2.u GTC. BGGE holds an official Revenue Service ruling on this principle. Caveat: managing the LLC from Georgia can create a permanent establishment, so substance planning is essential.
Can I run the LLC entirely from Georgia?
Not without structuring: full operational management from Georgia risks a PE under Article 29. The clean setup is the director solution — an employed manager outside Georgia runs operations. A binding advance ruling under Article 47 can additionally secure individual cases.
Do I have to report this structure in my home country?
As long as you remain tax-resident there: yes, in full. The structure only delivers its result after a genuine relocation of tax residency — including exit tax and treaty analysis with a qualified adviser at home.
This article is general information, not legal or tax advice. If you are tax-resident in Germany, Austria, Switzerland or any other country, you must declare foreign companies, accounts and income there under the applicable rules. Have your individual situation reviewed by qualified advisers in your home country and in Georgia before implementing anything. Last updated July 2026; rules may change.