US Company Formation from Colombia (2026): US LLC or Delaware C-Corp, No Tax Treaty, the ECE Regime, Banco de la República Registration, Costs and Banking
Forming a US LLC or corporation from Colombia: no US tax treaty, the ECE rules for foreign entities, registering the investment with the Banco de la República, foreign asset reporting, costs, documents and banking.
Colombia has become one of Latin America's strongest sources of remote talent for US companies. Developers in Medellín, marketing and design agencies in Bogotá, BPO teams in Barranquilla and Cali, and a growing startup scene all work in time zones that overlap with US clients. Many of them form a US LLC to contract with American clients and get paid in dollars, and startups form a Delaware corporation to raise from US investors.
The US side is fully remote and the same as for anyone else. The Colombian side has three features you need to plan for: there is no income tax treaty between Colombia and the USA, Colombia's ECE regime can tax a foreign entity's income in your hands, and investments abroad by Colombian residents are registered with the Banco de la República. This guide explains how US company formation from Colombia works.
Short answer: a Colombian resident can own 100% of a US LLC or corporation, formed remotely with a passport, without a US visit or SSN. With UCB, a Wyoming LLC with EIN is $249 all-in, or $348 with a US business bank account application; a Delaware corporation with EIN is $308. A single-member LLC run entirely from Colombia usually owes no US federal income tax but files Form 5472 every year ($25,000 penalty if missed). With no US–Colombia tax treaty, US dividends and royalties paid to Colombian residents face the full 30% US withholding. In Colombia, residents are taxed on worldwide income; your *contador* confirms how DIAN treats the US company and whether the ECE rules apply.
Can a Colombian resident own a US company?
Yes. US states do not restrict owners' nationality or residence. A Colombian citizen, resident or SAS can own 100% of a US LLC or corporation, and a Colombian can be its only manager or director, without a US visa, SSN or US address. Every US company needs a registered agent in its state; the first year is included in every UCB formation. See registered agent explained.
Why Colombian founders form a US company
- US clients. American companies hiring Colombian developers and agencies often prefer to contract with a US company and pay by ACH, with no international wire fees or currency surprises. See receiving payments from US clients.
- Stripe and US payment platforms. A US company with a US bank account can apply for a full US Stripe account, with USD payouts to a US account. See Stripe for non-residents.
- Investors. US funds and accelerators invest through Delaware C-Corporations, usually as the parent of the Colombian SAS. See raising US investment as a foreign founder.
- Selling online in the USA through Amazon, Shopify and Etsy. See US LLC for e-commerce sellers.
The tax picture for residents of Colombia
No US–Colombia tax treaty
Colombia and the USA have no comprehensive income tax treaty. That has two practical effects:
- Withholding at the full rate. US-source dividends, interest and royalties paid to Colombian residents are subject to 30% US withholding, with no treaty reduction. This matters most for a C-Corporation paying dividends to Colombian shareholders, and for creators and authors earning US royalties in their own name.
- No permanent-establishment protection. Treaty countries' residents are taxed on US business profits only through a permanent establishment in the USA. Colombians rely on the domestic US rules instead: income is taxable in the USA when it is effectively connected with a US trade or business. For an LLC whose work is all done in Colombia, with no US office, staff or dependent agents, that is usually not the case, but the line is worth understanding. See effectively connected income explained.
LLC or corporation?
| US LLC (single-member) | US C-Corporation | |
|---|---|---|
| US federal tax if all work is done in Colombia | Usually none | 21% of profits |
| US tax when profits reach the owner | None | 30% on dividends (no treaty) |
| Yearly federal filing | Form 5472 + pro forma 1120 | Form 1120 + Form 5472 |
| Suits | Freelancers, agencies, online sellers | Startups raising from investors, subsidiaries of an SAS |
A single-member LLC owned by a non-resident is disregarded for US income tax. With no US activity, it usually owes no US federal income tax and files Form 5472 with a pro forma Form 1120 every year. A C-Corporation pays 21% on its profits, and its dividends to Colombian shareholders face 30% withholding, which is why Colombian founders without investors usually choose an LLC. See Form 5472 explained and LLC vs Inc for non-residents.
The Colombian side
Points for your *contador*:
- Worldwide income. Colombian tax residents are taxed on worldwide income and file a yearly income tax return with DIAN. The US company's profit is generally reported in Colombia; how depends on how DIAN treats the entity.
- The ECE regime. Under the rules on *Entidades Controladas del Exterior*, a foreign entity controlled by Colombian residents can have its passive income (such as interest, dividends, royalties and certain rents) taxed in the residents' hands as it is earned, even if nothing is distributed. Control is presumed for entities in low or no-tax jurisdictions, and DIAN has applied the regime to owners of 10% or more. A US LLC that pays no US tax is the kind of entity your adviser will look at. Active service income is treated differently, so the type of income the LLC earns matters.
- Registering the investment. Investments abroad by Colombian residents, including capital put into a US company, are registered with the Banco de la República under the foreign exchange rules. Investments made in foreign currency through the exchange market are usually registered with the exchange declaration your bank files; other investments have their own procedure and deadlines. Your bank or *contador* handles the filing.
- Foreign assets. Residents with foreign assets above a threshold file a yearly foreign assets declaration, and your interest in the US company and any US bank account you control count. Colombia also has a wealth tax for individuals above a high net-worth threshold.
- Bringing money home. Distributions and payments from the US company arrive through the exchange market; keep invoices and payout statements so your bank can classify them correctly.
We handle the US side; your Colombian adviser confirms the Colombian side.
Which US state?
- Wyoming: for freelancers, agencies and online sellers, with a low yearly cost. See Wyoming LLC for non-residents.
- Delaware: for startups raising from investors and for subsidiaries of an SAS. See Delaware LLC for non-residents and US C-Corporation for non-residents.
- Florida: for companies with real activity in Miami, where many Colombian businesses already have partners and customers. See Florida LLC for non-residents.
- New Mexico: no annual report. See New Mexico LLC for non-residents.
Use 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 a Delaware corporation active each year | $578 |
| US business address add-on (own suite number) | $60 a year |
Formation prices include the state fee and the first-year registered agent. See what a US LLC costs every year and the cost calculator.
Documents you need
| Document | Notes |
|---|---|
| Colombian passport | Valid, clear colour scan; the *cédula* alone is not enough for US banks |
| NIT or RUT | Banks may ask for your Colombian tax number |
| Proof of address | A recent utility bill or bank statement in your name |
| Company name and description | Two or three names; a specific description of the business |
| SAS documents | *Certificado de existencia y representación legal* and RUT, if your Colombian company will own the US company |
No SSN, ITIN or US address is needed to form the company or get its EIN. See EIN for non-residents.
Banking and payments
US banks and fintechs accept applications from Colombian residents. What helps: a precise business description, an English-language website, client contracts or invoices, matching details on every document and a US business address with your own suite number. For a subsidiary, banks also ask for the SAS's documents and an ownership chart. See US business bank accounts for non-residents and why banks reject non-resident applications.
Worked examples
These are illustrative examples, not client cases.
Example 1: the Medellín developer. A senior developer contracts with two US startups. A Wyoming LLC signs the contracts and receives ACH payments. With all work done in Colombia, the LLC usually owes no US income tax and files Form 5472; the developer reports the income in Colombia, and the *contador* confirms the ECE position, since the income is active service income.
Example 2: the Bogotá agency with a team at home. A design agency with fifteen staff in a Colombian SAS forms a US LLC owned by the SAS to sign US retainers. The two companies sign a services agreement, the LLC pays the SAS monthly against invoices, and the investment in the LLC is registered with the Banco de la República. Form 5472 reports the payments.
Example 3: the fintech raising a seed round. A US fund asks for a Delaware parent. Lawyers in both countries plan the share exchange so the Colombian SAS becomes a subsidiary of the Delaware corporation; we form the corporation and keep its US filings current. Dividends to the Colombian founders would face 30% US withholding, so profits usually stay in the company until an exit.
Example 4: the creator. A YouTuber earning US royalties in her own name faces 30% withholding on the US-source part, because there is no treaty. A US LLC does not change that on its own; she discusses with her adviser whether a different structure suits her. See US LLC for content creators.
Common mistakes
- Expecting a treaty rate on a W-8BEN when Colombia has no treaty with the USA.
- Funding the US company without registering the investment with the Banco de la República.
- Leaving the US company and US bank account out of the Colombian return and foreign assets declaration.
- Forgetting Form 5472 because the LLC owes no US tax.
- Giving US clients a W-9 instead of a W-8BEN-E. See W-8BEN-E vs W-8BEN.
Frequently asked questions
Is there a tax treaty between the USA and Colombia? No. US dividends, interest and royalties paid to Colombian residents face 30% withholding unless a domestic exemption applies.
Does a US LLC owned from Colombia pay US tax? Usually not, when all the work is done in Colombia with no US office, staff or agents. It files Form 5472 every year.
Do I need to register my US company with the Banco de la República? Generally the investment is registered, usually through the exchange declaration your bank files when you send the capital. Your *contador* confirms the procedure for your case.
Can I use Stripe with a US company? Yes, a US company with a US bank account can apply for a US Stripe account.
Can I form a US company from Colombia without travelling? Yes. See open a US company without visiting.
How UCB helps founders in Colombia
We form US LLCs and corporations for Colombian residents and companies remotely, all-in: a Wyoming LLC with EIN is $249, a Delaware corporation with EIN is $308, 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, alongside your *contador*. See also Argentina, Mexico, Brazil and forming a US company from abroad: country guide.
Expanding to the USA from Colombia? 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.
