US Company Formation from the Bahamas (2026): US LLC or C-Corp When Home Has No Income Tax, Exchange Control Approval and the Florida Day Count

Bahamians have a closer relationship with the US economy than almost anyone outside the USA. Nassau is 180 miles from Miami, US dollars circulate alongside Bahamian dollars at one to one, most imported goods come from Florida, and US preclearance at Nassau and Freeport airports makes a trip to the mainland feel domestic. Many Bahamian businesses buy, sell, bank and travel in the USA every month.

A US company is a natural tool for that. It also raises three questions that are specific to the Bahamas: who taxes the income, when the Bahamas taxes no income at all; whether the Central Bank must approve an investment abroad; and whether frequent trips to Florida make the owner a US tax resident. This guide answers each one, then compares US LLC formation with US C-Corp formation for Bahamian owners.

In short: Bahamians and Bahamian residents can own 100% of a US LLC or C-Corporation, formed remotely. The Bahamas has no personal or corporate income tax, so any US tax is the only income tax on the profits, and there is no home tax to credit it against. Bahamian residents generally need Exchange Control approval from the Central Bank of The Bahamas for direct investment abroad, which includes putting money into a US company. Owners who spend a lot of time in the USA should watch the substantial presence test, which can make them US tax residents. There is no US–Bahamas income tax treaty, so US corporate dividends carry 30% withholding. With UCB, a Florida LLC with EIN is $299, a Wyoming LLC with EIN is $249 and a Delaware corporation with EIN is $358, all-in.

When home taxes nothing, the US is the only tax

The Bahamas raises its revenue from VAT (10% since 2022), customs duties, business licence fees, real property tax and stamp duty. There is no income tax, no capital gains tax, no tax on dividends and no withholding tax. Large multinational groups now face a domestic minimum top-up tax under the global minimum tax rules, but that does not touch an ordinary Bahamian business or individual.

That changes the usual planning logic. In most countries, US tax paid by a US company is credited against home tax, so the question is which country gets the tax, not how much. For a Bahamian owner, every dollar of US tax is a real extra cost. So the questions that matter most are:

• Does the US company have income connected with a US trade or business? If it does not, a single-member LLC owes no US income tax at all.
• If it does, can the structure keep US tax to the US profit only? A corporation pays 21% on US profits. An LLC passes them to the owner at US individual rates.
• Will money come back as dividends? If so, 30% is withheld, with no treaty to reduce it and no Bahamian credit to recover it.

Exchange control: approval before you invest

The Bahamas still has exchange control. The Bahamian dollar is pegged to the US dollar, and the Central Bank of The Bahamas manages the reserves that support it. Under its rules:

• Outward direct investment by residents needs the prior approval of the Central Bank's Exchange Control Department. Putting capital into a US company you own and control is direct investment.
• Foreign portfolio investment has been liberalised in stages since 2019, including changes effective June 2024, and residents can now buy some foreign investments within limits. The investment currency market, which charges a premium on foreign currency bought for investment abroad, still exists for some transactions.
• Business earnings received in foreign currency must be handled under the Central Bank's rules for resident foreign currency accounts. The Central Bank has warned residents against misusing those accounts.

What this means in practice:

1. Apply for approval before funding the US company with money from Bahamian dollar accounts. Your commercial bank, as an authorised dealer, submits the application or tells you how.
2. Keep the US company's earnings documented. If US revenue is kept in the USA and never converted from Bahamian dollars, your position is simpler. If the business is funded from the Bahamas, approval is the safe route.
3. Ask before you assume. Exchange control rules in the Bahamas have changed several times in recent years, and the details depend on the size and type of investment.

Your Bahamian bank or attorney can confirm the current requirements for your case.

The Florida day count

Many Bahamian business owners spend a lot of time in the USA: buying stock in Miami, seeing doctors in Fort Lauderdale, visiting children at college, or keeping a second home in Florida. The IRS uses the substantial presence test to decide whether a non-citizen is a US tax resident. You meet it if you are in the USA for at least 31 days this year and the total of:

• all days this year,
• one third of days last year, and
• one sixth of days the year before

reaches 183. For example, 120 days a year for three years counts as 120 + 40 + 20 = 180 days, just below the line. At 125 days a year it is 187.5, which crosses it.

A US tax resident is taxed on worldwide income, including the profits of a Bahamian business. That is the opposite of what a Bahamian owner wants. Two points help:

• The closer connection exception lets someone who meets the test but was in the USA for fewer than 183 days in the current year, keeps a tax home in the Bahamas and has a closer connection to the Bahamas, file Form 8840 and stay non-resident.
• Days in transit, and some medical days, do not count. Keep a travel log.

If you meet the test and do not qualify for the exception, take US tax advice before the year ends, not after.

No US–Bahamas income tax treaty

The USA and the Bahamas have a tax information exchange agreement and a FATCA agreement, but no income tax treaty. US withholding is at domestic rates:

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

US LLC formation from the Bahamas

US tax position

A single-member LLC with a non-resident owner is disregarded for US income tax. If the owner runs the business from the Bahamas and the LLC has no US office, employees or dependent agents, its income is generally not connected with a US trade or business and is not taxed in the USA (see effectively connected income explained). Because the Bahamas does not tax it either, the profit is untaxed in both places. That is legitimate, but it depends on the facts staying true. Regular selling trips, a US warehouse run by staff, or a US employee can change the answer.

The LLC files Form 5472 with a pro forma Form 1120 every year. The penalty for missing it is $25,000 (see Form 5472 explained).

Example: an online shop in Nassau

These are illustrative figures, not a client case.

Kendra runs a Bahamian skincare brand from Nassau. Most of her online customers are in the USA and Canada, and she wants to accept cards through mainstream US processors, which do not onboard Bahamian businesses directly. She forms a Wyoming LLC, opens a US business account and connects a payment processor and a US third-party logistics warehouse that ships orders.

• The 3PL is an independent contractor, not the LLC's employee or agent, so on these facts her online sales are generally not US business income. She should keep the arrangement independent and not hire US staff.
• Sales tax is a separate question. If her US sales into a state pass that state's economic nexus threshold, she must register for that state's sales tax (see state taxes for a foreign-owned LLC).
• In the Bahamas, her Nassau business pays its business licence fee and VAT on its local supplies as before. Her investment in the LLC goes through Exchange Control approval.

See LLC for e-commerce sellers and Stripe for non-residents.

Example: a Florida rental

A Freeport family buys a condominium in Fort Lauderdale through a Florida LLC. Rental income from US property is US-source income. The owner usually elects to be taxed on net income, after depreciation and expenses, and files a US non-resident return. Without the election, 30% would be withheld from gross rent. The US tax is the only income tax on this rent. See real estate investment LLC for foreigners.

US C-Corp formation from the Bahamas

US tax position

A US corporation pays 21% federal tax on its profits plus any state tax, and files Form 1120 and Form 5472 every year (see the 21% corporate tax explained and the C-Corp guide for non-residents). Dividends to the Bahamas are withheld at 30%. Together, that is about 44.7% on profits that are paid out. Profits that stay in the corporation carry only the 21%.

When it fits

• A Bahamian business with real US operations, such as a Miami buying office with staff, a US warehouse run by employees, or a US branch of a Bahamian tourism business. That business owes US tax anyway, and a corporation keeps it to 21% on the US profit instead of passing it to the owner at up to 37%.
• A start-up raising US investment, where investors require a Delaware C-Corporation (see raising US investment as a foreign founder).
• Owners who expect to reinvest in the USA, for example to build a US property portfolio or a US-based business over years.

Because there is no Bahamian tax to credit against, a corporation that pays regular dividends to the Bahamas is expensive. Plan to reinvest or to pay out through arm's-length service fees to the Bahamian business, which are deductible in the USA, rather than through dividends.

Which state

• Florida for businesses that will actually operate in Florida, such as a buying office, shop or property, because you would have to register there anyway.
• Wyoming or New Mexico for an online or holding LLC with no US operations.
• Delaware for a corporation raising investment.

See Florida LLC for non-residents, best state for non-residents and the state selector.

What it costs

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

• Florida LLC with EIN: $299.
• 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. A Florida LLC costs $236 a year. A US business address with your own suite number is $60 a year. See what a US LLC costs every year.

Banking and documents

Use your Bahamian passport for identity. For proof of address, a BPL (Bahamas Power and Light) bill, a Water and Sewerage bill, a BTC or Aliv bill, or a bank statement.

US banks and fintechs generally accept Bahamian owners. Because the Bahamas is a financial centre, they look closely at what the business really does. Applications that succeed show:

• a specific business with real customers and a website;
• the owner's own role in running it;
• where the money will come from, with Exchange Control approval if it comes from the Bahamas;
• a US business address with your own suite number.

Many Bahamians already bank in Florida in their own names. A personal account is not the company's account. Open a separate business account for the LLC and keep personal and business money apart. See US business bank accounts for non-residents and why banks reject non-resident applications.

Mistakes to avoid

• Funding the US company without Exchange Control approval.
• Spending too many days in Florida and becoming a US tax resident without noticing.
• Paying dividends from a US corporation to the Bahamas at 30% with no credit at home.
• Hiring US staff through a single-member LLC, which turns the LLC's profits into US-taxed income of its Bahamian owner.
• Forgetting state sales tax on US online sales.
• Missing Form 5472 in a year when no US tax was due.

Frequently asked questions

Can a Bahamian own 100% of a US company? Yes. No US visa, Social Security number or visit is required.

Does the Bahamas tax income from my US company? No. The Bahamas has no income tax. Any tax on the profits is US tax.

Do I need Central Bank approval? Residents generally need Exchange Control approval for direct investment abroad, including funding a US company. Ask your bank or attorney about your case.

Can I become a US tax resident by visiting often? Yes, through the substantial presence test. Keep a travel log, and look at Form 8840 if you are close to the line.

Is there a US–Bahamas tax treaty? No. US dividends, royalties and related-party interest paid to the Bahamas are withheld at 30%.

How UCB can help

We form US companies for Bahamian owners remotely: the state filing, EIN, registered agent, US business address and bank application. Each year we file the federal return through our US tax filing service, including non-resident returns for rental owners. See our formation, EIN and bank account package, and the Jamaica and Trinidad and Tobago guides for other Caribbean rules.

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