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Why Colombian Business Owners Open a US LLC
Short answer: All State Tax Resolution, led by Sabih Shafi, an IRS Enrolled Agent, helps business owners outside the United States form and keep a US LLC. For a Colombian owner who is not a US citizen or resident, the LLC is a US company that payment platforms and business credit files can be built around. Each platform and lender decides for itself, and the LLC comes with IRS filings of its own.
Key takeaways
A US LLC is a separate legal entity with its own tax number, the EIN. Payment platforms and credit files are set up around that company.
Colombia is not on Stripe's supported-country list as of October 6, 2026. Stripe says a registered business must be registered in the US.
PayPal lists Colombia and also has separate terms for US accounts, which are open to businesses organized in the US.
A business credit file can start with a free D-U-N-S number. It belongs to the company, not to you, and lenders decide for themselves.
A foreign-owned LLC files Form 5472 with a pro forma Form 1120 when it has a reportable transaction. The IRS sets a $25,000 penalty for failing to file Form 5472.
Facts on this page were checked against the primary sources named in the text on October 6, 2026.
Who this guide is for
This guide is for business owners in Colombia who are not US citizens or US residents. The IRS defines a foreign person as, among others, an individual who is not a citizen or resident of the United States. If you are a US citizen or a green card holder, the foreign-owner rules here do not fit you. Start with our US expat tax services page.
We often see Colombian owners who sell to US customers ask how to get paid, how to build credit and what the LLC asks of them. This page does not teach the formation steps. Our Spanish guide on creating an LLC in the US from Colombia does.
What a US LLC is
The IRS describes an LLC as a business structure allowed by state statute. It says most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. A blog post from the US Small Business Administration (SBA) adds that a registered LLC becomes a separate legal entity. For income tax, the IRS treats an LLC with one member as disregarded from its owner unless it elects to be taxed as a corporation. When that owner is a foreign person, the IRS instructions for Form 5472 call it a foreign-owned U.S. disregarded entity.
The LLC gets its own tax number, the EIN. The IRS online EIN tool needs the SSN or ITIN of the responsible party, and the IRS says it cannot be used if the principal place of business is outside the US. You apply by phone, fax or mail instead. We fax Form SS-4 to the IRS. The IRS says an EIN by fax generally arrives within 4 business days, and a responsible party with no SSN or ITIN enters "foreign" or N/A on line 7b. Real timing can be longer. Our guide to getting an EIN without an SSN is in Spanish.
Payments and US customers
Stripe publishes a global availability page. On October 6, 2026 it listed the countries where Stripe is supported, and Colombia was not one of them. The same page says that once Stripe is supported where your business is, you can sell to customers anywhere in the world, and the United States is on the list. Stripe's help page on US accounts adds that a registered business must be registered in the US, even if you operate in another country. For a US account, Stripe's payouts page shows US dollars as the settlement currency.
PayPal works differently. Its country list includes Colombia, and it has separate terms for US accounts. For an individual, those terms require US residence. For a business, they say it must be organized in, operating in, or a resident of the United States. PayPal says a Business account can issue online invoices that customers can pay even without a PayPal account.
Approval is never promised. Stripe, PayPal and banks decide for themselves, and we cannot promise a result. Our guide Stripe and PayPal From Colombia With a US LLC goes through what each platform asks for.
A business identity and credit file separate from you
The same SBA post says that whether you run an LLC or a corporation, your business can establish a credit file separate from you as an individual. Dun & Bradstreet (D&B) says its D-U-N-S Number, a nine-digit business identifier, is entirely separate from a personal identity and costs nothing to request and receive. It is not required, but the SBA calls it one of the first steps.
Limits matter. The SBA also says loan eligibility for a new business is typically based on its owner's personal credit score, and that lenders and loan programs each have their own eligibility requirements. Our guide US Business Credit for Foreign LLC Owners explains what a business credit file is and what it is not.
What the LLC asks of you
The IRS says a foreign-owned U.S. disregarded entity has no income tax return filing requirement. It must still file a pro forma Form 1120 with Form 5472 attached, by the due date of that Form 1120. Generally, Form 5472 is required when the entity had a reportable transaction, including contributions to the entity and distributions from it. The IRS sets a penalty of $25,000 for failing to file Form 5472 when due and in the manner prescribed.
Colombia is a separate question
This page does not cover Colombian rules. What you report in Colombia is a question for a professional in Colombia. Our Spanish guides explain the main questions to bring to them: US taxes for Colombians with an LLC, assets held abroad and your LLC and LLC vs SAS and the DIAN.
How we help
I am Sabih Shafi, an IRS Enrolled Agent, federally licensed to represent taxpayers before the IRS in all 50 states. I work with business owners in other countries by phone and video, in English or Spanish.
My wife is Venezuelan, so I know firsthand what it takes to build a business from Latin America.
I form your LLC in Wyoming, our standard. Delaware or another state is available on request, and the price may vary.
I fax Form SS-4 to the IRS, so you can get your EIN without an SSN or ITIN.
I file your Form 5472 and pro forma Form 1120 every year.
Home-country reporting is handled by a local professional, and I coordinate with them.
The fee is flat and put in writing before we start: $795 for formation, $695 a year for annual compliance, or $1,395 for both. See US LLC for Non-Residents.
Call or text (323) 900-0305, or book your free 20-minute tax review.
Frequently Asked Questions
Can a Colombian who is not a US citizen or resident own a US LLC?
Generally, yes. The IRS says most states do not restrict ownership of an LLC, and it publishes specific rules for an LLC wholly owned by a foreign person.
Can I use Stripe from Colombia with a US LLC?
Colombia is not on Stripe's supported-country list as of October 6, 2026. Stripe says a registered business must be registered in the US. Stripe decides whether to approve your account, and we cannot promise a result.
Can I use PayPal with a US LLC?
PayPal lists Colombia, and its US terms say a business organized in the United States can open a US PayPal account. PayPal decides, and its checks include owner identity and tax status.
Does a US LLC give me US business credit?
Not by itself. An SBA blog post says a business credit rating is generated once several trade lines are reporting. A free D-U-N-S number is a common first step, and lenders decide for themselves.
What do I have to file with the IRS?
A foreign-owned LLC files Form 5472 with a pro forma Form 1120 when it has a reportable transaction. We file both for you.
Do I still have obligations in Colombia?
That depends on your situation, and a professional in Colombia should answer it.
General information, not tax advice for your situation.
Related Reading
Talk to an Enrolled Agent
This article is general information, not individual tax advice. If you want to talk through your own IRS or state balance, book a free 20-minute review or call or text us directly.
