From Medellín to the US Market: How a Colombian Founder Sets Up a US LLC + EIN (Walkthrough)

Meet "Camila." She's a composite — a hypothetical founder assembled from patterns we see constantly, not a real client — but her path is the realistic one, week by week, including the waits nobody advertises.

Camila runs a small design studio in Medellín. Her best clients are US startups. Two problems keep recurring: US companies hesitate to wire money to a Colombian personal account, and the platforms where her clients want to pay — Stripe invoicing, US marketplaces — need a US entity. She has no SSN, no ITIN, no US visa, and no plans to move. None of that is a blocker.

Educational illustration, not advice — a Colombian founder's specifics (treaty position, Colombian tax residency, exchange regulations) belong in a real consultation, in Spanish if she prefers.

Week 1 — Decisions and formation

State: Camila isn't raising venture capital, so Wyoming over Delaware — $100 to file, $60/yr report, no franchise tax (the full comparison).

Name and agent: name search on Wyoming's site, registered agent engaged (~$125/yr) for the required in-state address. Her Medellín apartment is the LLC's principal address — completely fine.

Filing: Articles of Organization filed online; Wyoming processes quickly. "Camila Studio LLC" exists by Friday.

Operating agreement: single-member, but she signs one anyway — the bank will ask, and it's the document that says she owns 100%.

One thing she does right that most founders don't: spelling. Passport name, Articles, everything — character for character identical. That discipline pays off twice later.

Weeks 2–5 — The EIN (the honest middle of the story)

Online EIN? Not available without an SSN or ITIN. Camila's application is a paper Form SS-4 with "foreign" written on line 7b, faxed to the IRS international unit (the exact process and current fax numbers).

The IRS's stated fax turnaround is about four business days. Reality: her confirmation — the CP-575 letter — arrives in week 5. That's normal, and this is the point of the walkthrough where DIY founders panic, refile, and accidentally create duplicate EINs. The right move is patient follow-up on the IRS international phone line — which is exactly what she'd pay a professional to be doing on her behalf.

While waiting, she preps the bank paperwork. No lost time.

Week 5 — Bank, then Stripe (in that order)

With Articles + CP-575 + passport + operating agreement, Camila applies to a fintech business account that onboards Colombian-resident owners remotely. Her consistent paperwork clears verification in days.

Then Stripe: EIN and entity name exactly as on the CP-575, the new US account for payouts, her passport as beneficial owner, her real website. Approved. Her US clients now pay a US company in USD — no more wire-transfer friction (what banks and Stripe actually check).

When a client platform asks for "a W-9," she knows better — as a foreign owner she provides the appropriate W-8 instead, so she isn't hit with backup withholding meant for US payees.

Month 2 and beyond — The part that protects everything

Here's where Camila differs from the horror stories. She knows three dates before she earns her first dollar:

1. Form 5472 + pro-forma 1120, every April. Her LLC is a foreign-owned disregarded entity; even the money she deposited to start it is a reportable transaction. Penalty for skipping: $25,000 (the full explanation).

2. Wyoming annual report, on her formation anniversary, $60.

3. W-8 refresh when platforms re-request it.

Does she owe US income tax? On her facts — she works from Medellín, no US office, no US employees — her service income generally isn't effectively connected to a US trade or business, so likely no US income tax, while Colombia taxes her normally as a Colombian resident. The filings still happen every year regardless. And her facts are exactly what gets re-checked annually, because one US hire would change the answer.

Current bonus answer (mid-2026): federal BOI reporting doesn't apply to her US-formed LLC under FinCEN's interim rule — foreign-owned or not. Rules evolve; date-check before relying on it.

Camila's timeline, compressed

• Week 1: LLC formed, agreement signed.

• Weeks 2–5: EIN by fax (the wait is the process).

• Week 5: bank + Stripe live.

• April, every year: 5472 filed. Sleep maintained.

Total state cost year one: about $225 (filing + agent). The expensive part of this journey is never the fees — it's the mistakes: a botched SS-4 costing six weeks, or an unfiled 5472 costing $25,000.

FAQ

Is this different for founders from Mexico, DR, or Thailand?

The US-side mechanics are identical — the differences are treaty terms and your home country's taxation of you. The path itself (WY LLC → SS-4 by fax → bank → Stripe → 5472) is the same one in the complete guide.

Does the LLC affect her Colombian taxes?

Colombia taxes its residents on worldwide income, and a US LLC is typically transparent for that purpose. Her Colombian accountant handles that side; the US side is US-practitioner work. You want both, talking to each other.

Could she have done this 100% herself?

Legally yes, and this walkthrough shows why most founders choose not to: the two failure points (SS-4, 5472) are invisible until they're expensive.

En español?

Sí — todo el proceso, incluida la llamada guiada de banco y Stripe, está disponible en español.

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All State Tax Resolution, Inc. — IRS-authorized Enrolled Agent. "Camila" is a hypothetical composite for education; no client information is used. Not legal advice — consult an attorney for legal questions.