US Company Formation from Australia (2026): C-Corp or LLC, Australia's Foreign Hybrid Rules, the Treaty, Costs and Banking
Forming a US company from Australia: C-Corp or LLC, Australia's foreign hybrid rules for US LLCs, CFC rules, the Australia–US treaty, costs and banking.
Australian founders expand to the USA early. Sydney and Melbourne startups raise from US investors, Australian software and e-commerce companies sell to American customers, and many Australians plan to spend time in the USA building their business. A US company makes all of that easier, and it can be formed from Australia without travelling.
Australia has its own way of looking at a US LLC: in general it is a company for Australian tax, but the foreign hybrid rules can treat it as a partnership where the USA taxes it as one. This guide explains what that means and how to choose a structure.
Short answer: an Australian resident can own 100% of a US corporation or LLC, formed remotely, and an Australian company can own a US subsidiary. With UCB, a Delaware corporation with EIN is $308 all-in, and a Wyoming LLC with EIN is $249. The Australia–US treaty taxes business profits in the USA only through a US permanent establishment and generally limits dividend withholding to 15% for individuals. In Australia, a US LLC is treated as a company unless the foreign hybrid rules (Division 830) apply, which can treat it as a partnership where the USA taxes it as one; how a single-member LLC fits depends on the facts. Startups use a Delaware C-Corporation; agree any LLC with an Australian adviser first.
Can a resident of Australia own a US company?
Yes. US states place no restriction on the nationality or residence of owners. Australian citizens and residents of Australia can own 100% of a US LLC or corporation, be its only manager or director, and form it entirely remotely, with no US visa, Social Security number or US address. Every US company needs a registered agent in its state, included for the first year in every UCB formation. See registered agent explained.
Why founders in Australia form a US company
- US investors, who expect a Delaware C-Corporation, often above the Australian company. See raising US investment as a foreign founder.
- US customers and staff, through a US subsidiary. See US subsidiary for a foreign company.
- Dollar revenue and US payment platforms. See Stripe for non-residents.
- Amazon.com and US e-commerce. See US LLC for e-commerce sellers.
The tax picture for residents of Australia
The US–Australia tax treaty
Australia has an income tax treaty with the USA. Dividends from a US corporation to a resident of Australia can be withheld at a reduced treaty rate, generally 15% for an individual shareholder, instead of the standard 30%, if the owner gives the payer a valid W-8BEN claiming the treaty. The treaty also says business profits are taxable in the USA only through a permanent establishment there. See W-8BEN-E vs W-8BEN explained.
On the US side: LLC or corporation?
| US LLC (single-member) | US C-Corporation | |
|---|---|---|
| US federal tax if all work is done from Australia | Usually none | 21% of profits |
| US tax when profits are paid to the owner | None (not a dividend) | Treaty rate, generally 15% for an individual owner |
| Yearly federal filing | Form 5472 + pro forma 1120 | Form 1120 + Form 5472 |
| Investors | Most will not invest | Standard (Delaware) |
A single-member US LLC owned by a non-resident is ignored for US income tax. If you do all the work from Australia, with no US office, employees or dependent agents, the income is usually not effectively connected with a US trade or business, and no US federal income tax is due. The LLC still files Form 5472 with a pro forma Form 1120 every year, and missing it costs $25,000. A C-Corporation pays 21% on its profits wherever its people work, which suits startups raising US investment and businesses reinvesting in the USA. See effectively connected income explained, Form 5472 explained and LLC vs Inc for non-residents.
For Australians, the US view is only half the picture: how Australia classifies the LLC under its foreign hybrid rules decides whether its profits are taxed in your hands as a partner or as a company's profits, and Australia's CFC rules apply to controlled foreign companies. A C-Corporation is treated as a company in both countries, which keeps planning simpler.
The Australian side
Points for your Australian adviser:
- Foreign hybrid rules. The ATO describes US LLCs as entities Australia generally treats as companies, but which can be taxed as partnerships in Australia under Division 830 where the USA taxes the members rather than the entity and the conditions are met. The outcome for a single-member LLC needs checking.
- CFC rules apply to controlled foreign companies, mainly taxing passive income as it is earned.
- An Australian company owning the US company needs transfer pricing.
- Where the company is managed. A foreign company whose central management and control is in Australia can be an Australian resident.
We handle the US side; your Australian adviser confirms the Australian side.
Which US state?
- Wyoming: the usual choice for freelancers, agencies and online businesses run from abroad, with low yearly costs and owners' names kept off the formation filing. See Wyoming LLC for non-residents.
- New Mexico: no annual report at all. See New Mexico LLC for non-residents.
- Delaware: for a corporation that will raise from US investors. See Delaware LLC for non-residents.
- Florida, Texas or New York: when the business will have an office, warehouse, staff or property there. See Florida, Texas and New York.
Try our state selector or read best state for non-residents.
What it costs
| With UCB | |
|---|---|
| Wyoming LLC with EIN, all-in | $249 |
| Wyoming LLC with EIN and US bank account application | $348 |
| Delaware corporation with EIN, all-in | $308 |
| Keeping a Wyoming LLC active each year | $121 |
| Keeping it active plus the yearly federal return | $421 |
| US business address add-on (own suite number) | $60 a year |
State fees and the first-year registered agent are included in our formation prices, with nothing added for the state. See what a US LLC costs every year and the cost calculator.
Documents you need
| Document | Notes |
|---|---|
| Passport | Valid passport, clear colour scan |
| Australian driver's licence | Sometimes requested by banks |
| Proof of address | A recent utility bill or bank statement |
| Company name and business description | Two or three names; a specific description of what the company does |
| Home company documents | Only if your company at home will own the US company |
No SSN, ITIN or US address is needed to form the company or obtain its EIN. See EIN for non-residents.
Banking and payments
Australian residents are generally well served by US banks and fintechs that accept remote applications. Consistent details, a clear description and a US business address with your own suite number help.
See US business bank accounts for non-residents, why banks reject non-resident applications and Stripe for non-residents.
Worked examples
These are illustrative examples, not client cases.
Example 1: the Sydney startup. Founders raising a US seed round form a Delaware C-Corporation above their Australian Pty Ltd, with lawyers in both countries handling the structure.
Example 2: the Melbourne e-commerce brand. An Australian company forms a US subsidiary to hold US stock and sell on Amazon.com; US sales tax is planned with a specialist.
Example 3: the Brisbane consultant. A consultant asks about a Wyoming LLC; their adviser checks how the foreign hybrid rules would apply before we file.
Common mistakes
- Assuming a US LLC is transparent in Australia without checking the foreign hybrid rules.
- Ignoring Australian CFC rules on passive income.
- Running a US company from Australia without considering Australian residence.
- Ignoring Form 5472 because the LLC owes no US tax.
- Using the registered agent's address as the business address on bank applications.
Frequently asked questions
How does Australia treat a US LLC? Generally as a company, but the foreign hybrid rules can treat it as a partnership where the USA taxes it as one. Ask your adviser how this applies to you.
Can my Australian company own the US company? Yes. The US company becomes a subsidiary, with transfer pricing between them.
Can I form a US company from Australia without visiting the USA? Yes. Formation, the EIN and bank applications are all done remotely. See open a US company without visiting.
Do I need an ITIN? Usually not for a single-member LLC or its EIN. See what is an ITIN and who needs one.
How UCB helps founders in Australia
We form US LLCs and corporations for residents of Australia remotely, all-in: a Wyoming LLC with EIN is $249, and our formation, EIN and bank account package is $348. Each year we keep the company active and file its federal return through our US tax filing service, working alongside your Australian tax adviser, who confirms the Australian side. If an LLC or a corporation clearly suits your plans better, we will tell you which and why. See also forming a US company from abroad: country guide.
Expanding from Australia to the USA? WhatsApp us at +91 8105 199 399 or email enquiries@ucbsolutions.com, and we will recommend the right structure and state for you.
Let our experts handle it for you
Every business is different. Message us with your country, business type and goals, and we will recommend the right structure, state and package. We do the work; you focus on your business.
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.
