Start an Engineering Design or CAD Company for US Clients

US construction and manufacturing run on drawings, and a great many of them are produced outside the USA. Steel detailers in Pune and Chennai prepare shop drawings for US fabricators. BIM teams in Monterrey and Ho Chi Minh City model mechanical, electrical and plumbing systems for US contractors. Engineers in Vadodara prepare residential solar permit packages for US installers by the hundred each week. Mechanical designers in Poland and Türkiye model products for US manufacturers.

These businesses can be run entirely from abroad, and a US company makes it far easier to contract with US clients. What you need to understand is the line between design support, which anyone can provide, and the practice of engineering, which in the USA belongs to licensed Professional Engineers.

In short: A non-resident can form a US LLC or C-Corporation without visiting, get an EIN without an SSN or ITIN, and open a US business bank account remotely. Offshore teams can do drafting, modelling, detailing, calculations and design work under the responsible charge of a US-licensed Professional Engineer (PE), who reviews and seals the documents filed for permits. Offering "engineering services" to the public, or using "engineering" in your company name, can require state firm registration with a PE in charge. Defence and some aerospace or dual-use work is subject to ITAR and EAR export controls. With the work done abroad, a foreign-owned single-member LLC usually owes no US federal income tax but files Form 5472 every year.

What offshore engineering firms do for US clients

Service	Typical client	Needs a US PE's seal?
CAD drafting and redlines	Engineers, architects	No; the engineer or architect of record seals
Steel and rebar detailing (shop drawings)	Fabricators, contractors	Usually no; reviewed by the engineer of record, though connection design may need a PE
BIM modelling and coordination (Revit, Navisworks)	MEP contractors, general contractors	No, as a production service
MEP design support	MEP engineering firms	Sealed by the US firm's PE
Structural calculations support	Structural engineering firms	Sealed by the US firm's PE
Solar permit plan sets	Solar installers	Plan sets often need a PE structural or electrical letter or seal in the project's state
Product design and mechanical CAD	Manufacturers	Generally no
Estimating and quantity takeoff	Contractors	No

Most offshore firms start with production work for US firms whose own PEs take responsibility. Some later hire or partner with US PEs to offer sealed work directly.

Can you set up the company without visiting the USA?

Yes:

Form the LLC or corporation online through a registered agent
EIN without an SSN or ITIN: a foreign owner files Form SS-4, processed manually by the IRS
US business bank account without visiting, at a bank or fintech that accepts foreign-owned companies
Client contracts and NDAs, signed electronically
State firm registrations, where needed, are filed by post or online

Expect four to eight weeks for the company, EIN and bank account. See opening a US company without visiting and EIN for non-residents. Design firms with a portfolio and named clients are straightforward to bank; see the US business bank account guide.

US LLC or C-Corp?

US LLC formation for a design firm

A single-member LLC owned by a non-resident is disregarded for US tax. When the design work is done outside the USA, with no US office or staff, the fees are generally foreign-source, and the LLC usually owes no US federal income tax. It files Form 5472 with a pro forma 1120 every year ($25,000 penalty if missed). See Form 5472 explained.

A Wyoming LLC with EIN is $249, or $348 with a bank account, then $121 a year.

US C-Corp formation for an engineering firm

A C-Corporation (21% federal tax) suits a firm that will hire US PEs, offer sealed engineering, send staff to US sites, or sell to large clients and investors. Some states' engineering firm rules are also simpler for corporations. A Delaware corporation with EIN is $358, then $578 a year. See LLC vs Inc.

Note that some states require firms offering engineering to be organised as, or registered as, a professional entity, or to have a PE among their officers. Check before forming if you plan to offer sealed work.

The PE licence and the seal

In the USA, engineering is regulated by each state. To practise engineering for the public in a state, a person must hold that state's Professional Engineer (PE) licence. Engineers licensed in one state get licences in others by comity, usually through an NCEES Record.

Sealing. Engineering documents submitted for building permits and public approval must carry the seal and signature of a PE licensed in the project's state, who takes legal responsibility for them.

Responsible charge. A PE may seal only work prepared under their responsible charge: direct control and personal supervision. Boards have disciplined engineers for "plan stamping", meaning sealing work they did not supervise. If a US PE seals work your team produces, the PE must genuinely direct and review it: defined procedures, review records, mark-ups, and the authority to change anything.

Offshore engineers. Foreign engineers can obtain US PE licences, though it usually means passing NCEES exams and meeting each state's education and experience rules. Some offshore firms have staff who hold US licences; most work under their clients' PEs.

State firm registration and your company name

Many states require a firm offering or practising engineering to register (often called a certificate of authorisation or firm licence), and to have a PE licensed in that state in responsible charge of its engineering.

Many states also restrict who can use words like "engineering", "engineers" or "engineered" in a company name or in advertising. Texas, for example, prohibits a business from representing itself as offering engineering unless it is registered with the state board.

For an offshore production firm, the safe approach is:

name and describe the business as design support, drafting, BIM or detailing services unless you are registered
market to US engineers, architects and contractors, who remain responsible for the engineering
register as an engineering firm in a state only when you have a PE licensed there in responsible charge

Steel detailing

Steel detailers prepare shop drawings and erection drawings for fabricators from the engineer of record's design. In the USA:

shop drawings are submitted to the engineer of record for review, but the fabricator and detailer remain responsible for their accuracy
connection design delegated to the fabricator often must be done or sealed by a PE licensed in the project state
detailers work to the AISC specification and Code of Standard Practice; many clients prefer detailers who are members of recognised detailing associations or follow their quality standards

Solar plan sets

US residential solar installers need a permit plan set for every system: site plan, electrical single-line diagram, structural attachment details and equipment specifications, to the local jurisdiction's requirements and the National Electrical Code.

Many jurisdictions require a PE letter or seal for the structural roof assessment, and some for the electrical design.
Offshore firms produce the plan sets and partner with US PEs licensed in many states to review and seal.
The PE must truly review each design, under the responsible charge rules above.
Turnaround of 24 to 48 hours is standard, and accuracy against each authority's checklist decides whether installers keep using you.

US codes and units

US clients expect work to US codes and standards: the International Building Code as adopted by each state, ASCE 7 loads, ACI concrete, AISC steel, NEC electrical, ASHRAE and the International Mechanical and Plumbing Codes, plus local amendments. Work in US customary units unless told otherwise. Training your team on code versions as adopted in the project's state is what separates good vendors from cheap ones.

Software licences

CAD and BIM software licences have territory limits. Autodesk's licences, for example, may only be used in the country or region where they were bought. If your team works in India, buy the licences for India, even if your US company pays for them. Clients sometimes provide licences; check that their terms allow use by your offshore staff.

Export controls: ITAR and EAR

Sending technical data to people outside the USA can be an export under US law:

ITAR (International Traffic in Arms Regulations) covers defence articles and their technical data. Sharing ITAR drawings with foreign persons, even your own staff abroad, needs US government authorisation. Most offshore firms simply decline ITAR work.
EAR (Export Administration Regulations) covers dual-use items. Most commercial building and product data is EAR99 or not controlled, but some aerospace, semiconductor, encryption and high-performance technology is controlled for certain countries.

Ask clients in aerospace, defence, semiconductors and advanced manufacturing for the export classification of the data they send. The client is responsible for exporting lawfully, but you should not accept controlled data you are not authorised to receive.

Contracts, liability and insurance

Scope. State that you provide drafting and design support and that the client's engineer of record is responsible for the engineering, unless you are licensed and contracted to provide it.
Limitation of liability to your fees or insurance limits.
Indemnity. Many states limit broad indemnity and "duty to defend" clauses in design contracts, but US contractors still propose them. Negotiate them down.
Professional liability (E&O) insurance, which many clients require on your certificate of insurance.
Ownership. Drawings and models are assigned to the client on payment; make sure your staff and freelancers assign their work to you. See the IP section of our IT services guide.

Site visits and US tax

Design done abroad is foreign-source income. Site visits change that for the work done in the USA:

short visits for meetings and inspections are usually fine on a B-1 visa or ESTA
extended on-site work (surveys, commissioning, construction administration) is US-source, can create a US trade or business, and needs the right visa

If you will regularly send staff to US sites, a C-Corporation keeps the US tax in the company. See effectively connected income.

Getting paid and paying the team

Invoice per sheet, per project, per hour or per plan set. Clients pay by ACH. See receiving payments from US clients.
Give clients a W-8BEN or W-8BEN-E for a foreign-owned single-member LLC, or a W-9 from a corporation. See W-8BEN-E vs W-8BEN.
Your home-country design company can deliver the work under an intercompany agreement; record related-party payments for Form 5472. Indian residents follow the ODI rules; see ODI and FEMA.
If you pay US PEs to review and seal, collect a W-9 and file Form 1099-NEC for those paid $2,000 or more from 2026. Freelancers abroad give a W-8BEN. See paying contractors abroad.

Sales tax

Engineering and design services are not taxable in most states. A few states tax some services broadly, and selling software or prewritten digital products can be taxable. See state taxes for foreign-owned companies.

Worked examples

These are illustrative examples, not client stories.

A solar plan set firm in Vadodara. Dhruv's company prepares 400 residential solar plan sets a month for installers in California, Texas and Florida. It forms a Wyoming LLC under the ODI route, with an EIN and US bank account, and contracts with three US PEs licensed in those states, who review every set and seal the structural letters. Each PE keeps a review log. The LLC files 1099-NECs for the PEs and Form 5472 for itself; all design work is done in India.

A steel detailing company in Pune. A 60-person detailing firm works for fabricators in the Midwest. It forms a Delaware C-Corp and names its services "steel detailing and connection modelling", not engineering. Connection design delegated to fabricators is done by a US PE partner who seals the calculations. The company carries E&O insurance and caps liability at its fees.

An MEP BIM team in Monterrey. Carlos's Mexican company models ductwork, piping and electrical systems for US mechanical contractors. It forms a US LLC to sign subcontracts and receive payment in dollars. The contractors' engineers of record remain responsible for design. Licences for the team's software are bought for Mexico.

Common mistakes

Calling the company "engineering" without state firm registration.
US PEs sealing work they did not supervise.
Offering sealed designs directly to US homeowners or owners without licensed engineers.
Accepting ITAR or controlled technical data without authorisation.
Using software licences bought for one country in another.
Unlimited indemnity in contractor subcontracts.
Forgetting Form 1099-NEC for US PEs paid to review.
Forgetting Form 5472 because the LLC had no US income.

Frequently asked questions

Can I start an engineering design company for US clients from India without visiting? Yes. The company, EIN and US bank account are all set up remotely.

Do I need an SSN or ITIN for the EIN? No. Foreign owners apply on Form SS-4.

Do I need a US PE licence to do CAD drafting or BIM for US firms? No, if you work under the client's engineer or architect of record, who takes responsibility and seals the documents.

Can an offshore firm provide stamped drawings? Only through PEs licensed in the project's state who are in responsible charge of the work, and, where required, with state firm registration.

Will my US LLC pay US tax on design fees? Usually not, if the work is done abroad and there is no US office or staff. It still files Form 5472.

How UCB can help

We form US LLCs and C-Corporations for engineering design, CAD and BIM firms outside the USA, get the EIN without an SSN, and help open a US business bank account without visiting, through our formation, EIN and bank account package. Each year we prepare Form 5472 with the pro forma 1120, Form 1120 or Form 1065, and the information returns foreign-owned companies need, through our US tax filing service. We do not provide engineering licensing, export control or legal advice.

Starting a design or drafting business for US clients? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.

This article is general information for non-resident business owners and is not legal or tax advice. Rules and fees change; contact us to confirm what applies to your situation.

How to Start an Engineering Design, CAD Drafting or BIM Company for US Clients from Abroad (2026), Without Visiting: US LLC or C-Corp, EIN Without an SSN, Bank Account, PE Licensing and Stamps, Firm Registration, Steel Detailing, Solar Plan Sets and Export Controls