US Company Formation from Bolivia (2026): US LLC or C-Corp After the End of the Dollar Peg, RC-IVA, IUE and the Great Fortunes Tax

For two and a half years, Bolivians who earned dollars faced a strange problem: the official rate said Bs 6.96 to the dollar, but banks could not supply dollars at that rate, transfers abroad were rationed, and the street rate drifted far higher. Freelancers waited weeks for payments. Importers paid premiums to get dollars out. Many people asked whether a US company with a US bank account could keep their dollars safe.

In June 2026 the government ended the peg. The Ministry of Economy (Resolution 245) and the Banco Central de Bolivia (Board Resolution 088/2026) moved the boliviano to a managed float, and the official rate moved to around Bs 10 within a week and Bs 11–12 by August. That changes the arithmetic for every Bolivian with US income, and it is why the questions in this guide are less about tax rates and more about money flows, documentation and timing.

In short: Bolivians can own 100% of a US LLC or C-Corporation, formed remotely. Bolivian income taxes work largely on a source basis: work you do in Bolivia is Bolivian income, whichever company invoices it. Individuals pay RC-IVA at 13% on many kinds of income, companies pay IUE at 25%, and payments from Bolivia to foreign beneficiaries carry 12.5% withholding. Residents with net wealth above Bs 30 million pay the Impuesto a las Grandes Fortunas on worldwide assets, including shares in a US company. There is no US–Bolivia treaty, so dividends from a US corporation carry 30% US withholding. With UCB, a Wyoming LLC with EIN is $249 and a Delaware corporation with EIN is $358, all-in.

The exchange rate change and what it means for a US company

Since the June 2026 reform, the official rate is published daily by the BCB and is meant to follow the market, with the central bank intervening less. Four practical consequences for Bolivians with US income:

1. The gap between official and parallel rates has narrowed. A US client's payment converted in a Bolivian bank now buys far more bolivianos than it did at 6.96.
2. Invoices and tax records must use the official rate of the day. From 15 July 2026, fiscal documents in foreign currency must record the BCB's official rate. Keep a note of the rate used for each conversion.
3. Money held in a US bank account is a foreign asset. It is not frozen by Bolivian bank restrictions, but it is still yours to declare where Bolivian law requires, including for the Great Fortunes tax if your wealth reaches that level.
4. A US company is not a currency hedge by itself. Holding dollars in the USA is legal for a Bolivian resident, but the income still has to be reported where it is taxable. The US company is a business tool, not a way around Bolivian tax.

Because the new regime is young, Bolivian banks are still adjusting their rules on transfers abroad and on dollar withdrawals. Ask your bank what it currently requires before planning to move money in either direction.

How Bolivia taxes the people and companies involved

Bolivia's income taxes come from Law 843 and are built mostly around Bolivian-source income:

• RC-IVA (Régimen Complementario al IVA) is charged at 13% on employment income and on many other kinds of income received by individuals, including income from independent work that is not taxed as a business. Purchase invoices from Bolivian suppliers can be credited against it.
• IUE (Impuesto sobre las Utilidades de las Empresas) is charged at 25% on company profits, and on professionals who are registered as such. Bolivian companies also pay IT (Impuesto a las Transacciones) at 3% of gross income.
• IUE-BE, a withholding of 12.5%, applies when a Bolivian payer sends Bolivian-source income to a beneficiary abroad. If a Bolivian company pays a US LLC for services used in Bolivia, the company must withhold it.
• The Impuesto a las Grandes Fortunas (IGF), introduced in 2020 by Law 1357, is an annual tax on residents with net wealth above Bs 30 million, at rates from 1.4% to 2.4%. For residents it covers worldwide assets. Shares in a US company and money in US bank accounts count.

So the key questions are where the work is done and who pays whom:

• Work done in Bolivia for foreign clients is Bolivian-source income in substance. A Bolivian freelancer who invoices through a US LLC is still earning from work done in Bolivia and should report it under the regime they are registered for.
• Income earned in the USA by people working there, such as a US rental or a US shop run by staff, is foreign-source.
• Dividends from a US corporation are foreign income, and the US withholds 30% before they leave.

Bolivia's tax and exchange framework has changed quickly since 2025, and further reforms have been announced. Confirm the current treatment of your income with a Bolivian contador before you file.

No US–Bolivia treaty

There is no income tax treaty between the USA and Bolivia, so US domestic withholding applies to payments from a US company:

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

There is also no treaty to stop the 12.5% IUE-BE when a Bolivian company pays a US company. A Bolivian group that pays its own US company for services will have Bolivian withholding on the way out, and if the US company is a corporation that pays dividends back, US withholding on the way in. That double cost makes round-tripping between a Bolivian company and its own US company expensive.

US LLC formation from Bolivia

US tax position

A single-member LLC owned by a non-resident is disregarded for US income tax. Its income is the owner's, and the owner is taxed in the USA only on income connected with a US trade or business. If you work from Cochabamba or Santa Cruz and the LLC has no US office, staff or agents, there is generally no US income tax (see effectively connected income explained). Distributions are not dividends and are not withheld.

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: a designer in Santa Cruz

These are illustrative figures, not a client case, at an official rate of Bs 11.5 to the dollar.

Valeria designs packaging for US food brands from Santa Cruz de la Sierra. Before 2026 her clients paid her through a platform into a Bolivian dollar account, and getting access to the dollars was slow. She forms a Wyoming LLC with a US business bank account, and the LLC bills US$40,000 a year.

• USA: no US income tax, because the work is done in Bolivia. The LLC files Form 5472 and a pro forma 1120.
• Bolivia: the income is from her work in Bolivia. She reports it under the regime she is registered in, converting at the official rate on each date. She brings money home as she needs it, at around Bs 460,000 a year at that rate.
• What changed: her clients now pay a US vendor by ACH, she holds working capital in dollars in the USA, and she converts when she chooses.

Example: a quinoa exporter's US sales LLC

An exporter in La Paz forms a Delaware LLC to sell quinoa and chia directly to US health-food distributors. Goods are shipped from Bolivia and sold by the exporter's own team in Bolivia, with no US warehouse. As long as there is no US office, staff or agent, the LLC's sales may not be connected with a US trade or business. Once the exporter rents US warehouse space or hires a US salesperson, the profits become US business income. At that point a corporation is usually the better structure.

US C-Corp formation from Bolivia

US tax position

A US corporation pays 21% federal tax on its own 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 Bolivia are withheld at 30%, with no treaty reduction.

When it fits

• Exporters with US inventory or staff. Lithium-adjacent services, Brazil-nut, quinoa, coffee and textile exporters selling to US buyers often need a US importer of record with a warehouse and a sales team. A US corporation contains the US tax inside a company, and reinvesting avoids the dividend withholding.
• Software and services companies with US enterprise clients that require a US contracting party, US insurance and US staff (see US subsidiary for a foreign company).
• Start-ups raising money from US or regional investors, who expect a Delaware C-Corporation (see raising US investment as a foreign founder).

A C-Corporation also keeps a Bolivian founder's personal exposure separate from the US business. For someone near the Bs 30 million IGF threshold, the corporation's shares are an asset to value each year, so keep its accounts current.

Bolivians in the USA

The Bolivian community in the USA is concentrated around Washington, DC (northern Virginia especially), Miami, New York and Los Angeles. Many run construction, cleaning and restaurant businesses with family in Bolivia. When some owners live in the USA:

• a multi-member LLC is a partnership and files Form 1065;
• US-resident owners pay US tax on their shares;
• a Bolivian partner's share of US business income is subject to partnership withholding;
• the business must be registered in the state where it operates, which is often Virginia.

See single-member vs multi-member LLC.

Which state

• Wyoming or New Mexico for a services or online LLC run from Bolivia.
• Delaware for a corporation, an investor-backed start-up or an exporter's US company.
• Virginia, Florida or the state where a diaspora business operates.

See 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:

• Wyoming LLC with EIN: $249, or $348 with a US bank account application.
• Delaware LLC with EIN: $309.
• Delaware corporation with EIN: $358.

A Wyoming LLC costs $121 a year to keep active, or $421 including the annual federal return. 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 Bolivian passport for identity; US banks do not accept the carnet de identidad on its own. For proof of address, a DELAPAZ, CRE or ELFEC electricity bill, a water bill or a bank statement, translated into English.

US banks and fintechs accept Bolivian owners, with more questions than for some other countries. They want to see a real business with real US clients:

• a clear description of what the company sells;
• an English website and invoices;
• contracts or correspondence with US customers;
• a US business address with your own suite number.

When money moves to a Bolivian bank such as BNB, Mercantil Santa Cruz, BCP or Banco Unión, the bank will ask for the source of funds. Keep the LLC's invoices and US bank statements ready. Ask your bank how it currently handles incoming dollar transfers, because practice has changed since the float. See US business bank accounts for non-residents, why banks reject non-resident applications and Stripe for non-residents.

Mistakes to avoid

• Treating a US LLC as a way to keep Bolivian work income out of Bolivian tax. The income comes from work done in Bolivia.
• Paying a Bolivian company's own US company for services without allowing for the 12.5% IUE-BE.
• Paying dividends from a US corporation to Bolivia at 30% with no treaty.
• Forgetting the IGF when your worldwide net wealth, including US companies and accounts, nears Bs 30 million.
• Converting at the wrong rate. Use the BCB official rate of the day in your records.
• Missing Form 5472 in a year when no US tax was due.

Frequently asked questions

Can a Bolivian own 100% of a US company? Yes, without visiting the USA or holding a US visa.

Can I keep dollars in a US bank account while living in Bolivia? Yes. The account belongs to your US company. Income still has to be reported where it is taxable, and the account is part of your worldwide wealth for the IGF.

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

How did the end of the peg change things? Dollar income now converts at a market-based official rate published daily by the BCB, instead of the fixed Bs 6.96. Records must use the official rate of the day.

Does my US LLC pay US tax? Not if it has no US office, staff or agents. It files Form 5472 and a pro forma 1120 every year.

How UCB can help

We set up US companies for Bolivian owners remotely: the state filing, EIN, registered agent, US business address and bank application, in Spanish or English. Each year we file the US return through our US tax filing service. Your contador handles SIN declarations in Bolivia, and we give them the US records they need. See our formation, EIN and bank account package, and the Paraguay and Ecuador guides for neighbouring rules.

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