US Company Formation from Andorra (2026): Creators and Streamers, 10% Tax at Home, No US Treaty and 30% Withholding, Your Andorran Company and Residence, Spain's Scrutiny, and the US LLC vs C-Corp Choice

Andorra has attracted entrepreneurs, consultants and, famously, content creators and streamers from Spain and France, drawn by personal income tax that tops out at 10%. Many of them earn heavily from the USA: platform payouts from YouTube and Twitch, sponsorships from US brands, software and e-commerce sales to American customers, or consulting for US companies.

A US company can help some of that business, but less than many people expect, and Andorra's position raises particular issues:

• there is no US–Andorra tax treaty, so US withholding on royalties and dividends is 30%, and a US LLC doesn't change that for platform income;
• active residence in Andorra usually depends on an Andorran company or employment, so a US company sits alongside your Andorran business, not instead of it;
• Spain looks closely at people who moved to Andorra, and a US company with Spanish clients or managers can draw attention.

This guide covers each of these, then compares US LLC formation with US C-Corp formation. Everything can be done without visiting the USA.

In short: An Andorran resident can form a US LLC or C-Corporation without visiting, get an EIN without an SSN or ITIN, and apply for a US business bank account remotely. A single-member LLC run from Andorra with no US office or staff usually owes no US income tax on service and sales income. But US-source royalties (including the US share of platform income) are withheld at 30% whatever entity you use, because there is no treaty. Andorra taxes residents at up to 10% personally and 10% on company profits. Keep your Andorran company and residence in order, and be ready to show Spain that you really live in Andorra.

Andorra's tax position

• Personal income tax (IRPF): 0% on the first €24,000, 5% up to €40,000, and 10% above, with allowances.
• Corporate tax (IS): 10% on company profits.
• IGI (Andorra's VAT): 4.5% general rate.
• Treaties: Andorra has tax treaties with Spain, France, Portugal, Luxembourg and others, but not with the USA.

Andorra taxes residents on worldwide income. A US LLC that the USA disregards is usually reported in Andorra as your own business or investment income; a US corporation is a separate company whose dividends you report when paid. Confirm the treatment with your Andorran gestor or accountant.

Platform income and the 30% problem

US platforms withhold US tax on payments they treat as US-source royalties:

• YouTube (through AdSense) withholds on earnings from US viewers: 30% for countries with no treaty, including Andorra.
• Twitch, Amazon and other platforms apply similar rules to royalty-type payments.

Forming a US LLC does not fix this. A single-member LLC is disregarded, so the platform looks through it to you, the foreign owner, and withholds at 30%. A US corporation receives the income without withholding, but then pays 21% US tax on its profit, and its dividends to you are withheld at 30%.

Earnings from services you perform in Andorra, such as sponsorship content made there or consulting, are generally not US-source and not subject to withholding. That's where a US company helps most: invoicing US brands and clients, giving them a Form W-9, receiving ACH payments and using Stripe. See US LLC for content creators and authors and W-8BEN-E vs W-8BEN.

Your Andorran company and residence

Most people who move to Andorra to work hold active residence, which requires working in Andorra, either employed or through a registered Andorran business, usually an Andorran company in which you hold a substantial stake and take an active role. Active residents must live in Andorra for at least 183 days a year. Rules on quotas, deposits and investment were tightened by Law 2/2026.

A US company cannot replace that Andorran business. Common set-ups:

• Andorran company as the main business, invoicing most clients, with a US LLC owned by the Andorran company for US card payments and US clients;
• Andorran company plus a separately owned US LLC for a distinct US business line;
• Delaware corporation for a start-up raising money, with the Andorran company providing services to it.

Each has different tax results in Andorra. Keep real substance in Andorra: an office, staff where relevant, and decisions made there.

Spain is watching

Spain treats a person as Spanish tax resident if they spend more than 183 days in Spain, or if their main business or economic interests are there, or their spouse and minor children live there. The Spain–Andorra treaty resolves dual residence, but Spain's tax agency audits people who moved to Andorra. A US company is evidence in such an audit: who manages it, where clients are, where the bank login happens. If your clients are mostly Spanish, or you run the company from Barcelona, a US LLC can point to Spain rather than Andorra. See the Spain guide and the France guide.

No US–Andorra tax treaty

• 30% US withholding on dividends from a US corporation;
• 30% on US-source royalties;
• 30% on related-party interest.

US LLC formation from Andorra

US tax position

The IRS disregards a single-member LLC owned by a non-resident. If you run the business from Andorra, and the LLC has no US office, staff or dependent agents, its business income is generally not taxed in the USA (see effectively connected income explained). The LLC files Form 5472 with a pro forma Form 1120 every year, with a $25,000 penalty for missing it (see Form 5472 explained).

If the LLC is owned by your Andorran company rather than you personally, it is still disregarded by default, and the Andorran company is the owner for US purposes.

Example: a streamer in Escaldes-Engordany

These figures are illustrative.

Pablo moved from Madrid to Andorra and streams gaming content. Income comes from YouTube and Twitch, and increasingly from US game publishers paying for sponsored streams. Pablo's Andorran company owns a Wyoming LLC, which signs the US sponsorship deals, gives publishers a Form W-9 and receives ACH payments.

• Sponsorships (US$120,000): content made in Andorra, so not US-source; no US tax. Reported in Andorra.
• YouTube US-viewer revenue: still withheld at 30% by Google, because the owner is in a non-treaty country.
• Spain: Pablo keeps records of days in Andorra and the Andorran company's activity.

US C-Corp formation from Andorra

US tax position

A US corporation pays 21% federal tax plus state tax, files Form 1120 and Form 5472, and its dividends to Andorra are withheld at 30% (see the 21% corporate tax explained).

Example: a SaaS founder raising money

Take an illustrative case: a French founder living in Andorra builds hotel-booking software and wants US venture funding. The investors require a Delaware corporation. The Andorran company employs the development team and invoices the corporation for services at arm's-length prices, taxed at 10% in Andorra. The corporation sells subscriptions to US hotels, collects sales tax where SaaS is taxable, and reinvests its profit. See raising investment as a foreign founder, US LLC for SaaS founders and LLC vs Inc.

Example: e-commerce with US stock

An Andorran online brand that holds inventory in a US warehouse and employs a US operations manager is running a US business. A US corporation (or an LLC electing corporate tax) keeps that US tax inside the US entity. See US LLC for e-commerce sellers and importer of record.

Which state

• Wyoming or New Mexico for a creator's, consultant's or online LLC.
• Delaware for a start-up or corporation.

See best state for non-residents.

What it costs

UCB's prices include state fees and the first year of registered agent service:

• Wyoming LLC with EIN: $249, or $348 with a US bank account application.
• Delaware corporation with EIN: $358.

A Wyoming LLC costs $121 a year to keep active, or $421 with the annual federal return. See what a US LLC costs every year.

Documents

• Passport and Andorran residence permit.
• Proof of address: a FEDA or local electricity distributor bill, an Andorra Telecom bill or a bank statement.
• For a company owner: the Andorran company's registration and a resolution.

Transfers to Andbank, Creand or MoraBanc arrive as US-dollar or euro payments. See US business bank accounts for non-residents and Stripe for non-residents.

Mistakes to avoid

• Expecting a US LLC to stop YouTube's 30% withholding.
• Using the US company instead of an Andorran business for residence.
• Running the company from Spain while claiming Andorran residence.
• Paying dividends from a US corporation at 30%.
• Forgetting Form 5472 because the LLC owes no US tax.

Frequently asked questions

Can an Andorran resident form a US company without visiting? Yes. Formation, the EIN and the bank application are all remote.

Do I need an SSN or ITIN? No. The EIN is issued on Form SS-4 without either.

Is there a US–Andorra tax treaty? No. US withholding on dividends and royalties is 30%.

Will a US LLC reduce YouTube withholding? No. A single-member LLC is disregarded, so Google withholds based on you as the owner.

Does my US LLC pay US tax? Not on services or sales run from Andorra, if it has no US office, staff or agents. It files Form 5472 every year.

How UCB can help

We form US companies for Andorran residents and Andorran companies remotely: the state filing, EIN, registered agent, US business address and bank application, through our formation, EIN and bank account package. Each year we file the federal return through our US tax filing service. We do not advise on Andorran residence, Andorran tax or Spanish tax.

Setting up a US company from Andorra? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.