US Company Formation from France (2026): LLC or C-Corp, How France Taxes a US Company, the US–France Treaty, Costs and Banking
Forming a US company from France: LLC or C-Corp, French classification and place of management, the US–France treaty, anti-avoidance rules, costs and banking.
French founders are among the most active in the US startup scene, and French SAS companies regularly open US subsidiaries to sell, hire and raise money in the USA. Freelancers and e-commerce brands also form US companies to reach American customers and get paid in dollars. All of it can be done from France without travelling.
France taxes its residents on worldwide income and looks closely at foreign entities controlled from France. The US–France treaty also contains specific rules for income earned through entities that are transparent in one country but not the other. This guide explains how US company formation from France works and what to agree with your French adviser first.
Short answer: a resident of France can own 100% of a US corporation or LLC, formed remotely, and a French 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 US–France treaty taxes business profits in the USA only through a US permanent establishment and generally limits dividend withholding to 15% for individuals. On the French side, how France classifies a US LLC, whether a US company managed from France is taxable in France, and France's anti-avoidance rules for low-taxed foreign entities all need checking. Most French startups and subsidiaries use a Delaware C-Corporation; agree any LLC with your expert-comptable first.
Can a resident of France own a US company?
Yes. US states place no restriction on the nationality or residence of owners. French citizens and residents of France 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 France form a US company
- The US market: the largest consumer and business market in the world, with buyers who often prefer a US vendor.
- US investors, who invest in Delaware corporations. See raising US investment as a foreign founder.
- A US entity for US contracts, staff and liability, separating the US business from the home company. See US subsidiary for a foreign company.
- Payments in dollars, through a US bank account and US payment platforms. See Stripe for non-residents.
The tax picture for residents of France
The US–France tax treaty
France has an income tax treaty with the USA. Dividends from a US corporation to a resident of France 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 France | 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 France, 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 a European resident, the US view is only half the picture. Your home country may classify a US LLC as a company even though the IRS ignores it, a US company managed from your country may be treated as tax resident there, and controlled foreign company rules can tax low-taxed profits at home. That is why many European founders choose a C-Corporation for a trading business, and use an LLC only after a local adviser has confirmed how it will be treated.
The French side
Points for your expert-comptable or avocat fiscaliste:
- Classification. France decides for itself whether a foreign entity is a company or a transparent entity, by looking at its legal features. A US LLC that the IRS ignores is not automatically transparent in France.
- Place of management. A company whose effective management is in France can be taxable in France, and its US activity can be analysed as a French business.
- Low-taxed foreign entities. French rules (including article 123 bis of the tax code for individuals, and article 209 B for companies) can tax French residents on income of controlled foreign entities benefiting from a privileged tax regime, in particular where their assets or income are mainly financial.
- A French company owning the US company needs transfer pricing between the two.
We handle the US side; your French adviser confirms the French side.
US sales tax is not VAT: there is no national system and no input tax recovery, and each state sets its own rules. A European brand selling goods into the USA should plan for state sales tax separately; it is not a service we provide, but we refer you to a specialist. See state taxes for a foreign-owned LLC.
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 or national ID card | Valid passport (or French carte nationale d'identité), clear colour scan |
| Proof of address | A recent justificatif de domicile (utility bill, tax notice or bank statement) |
| Company name and business description | Two or three names; a specific description of what the company does |
| Share structure (corporation) | Number of shares and par value; we suggest a structure that keeps Delaware franchise tax at the minimum |
| Home company documents | Only if your company at home will own the US company: register extract and ownership |
No SSN, ITIN or US address is needed to form the company or obtain its EIN. See EIN for non-residents.
Banking and payments
Residents of France are generally well served by US banks and fintechs that accept remote applications, and European identity documents are widely accepted. What still matters: a specific business description, a working website, consistent details across the state record, EIN letter and application, and a US business address with your own suite number rather than the registered agent's address.
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 SAS subsidiary. A Lyon SaaS company forms a Delaware corporation to sign US customers and hire a US account executive. The subsidiary pays US tax on its profits; the French parent documents transfer pricing.
Example 2: the e-commerce brand. A Paris cosmetics brand sells to US customers from US warehouses. It forms a US company for US sales, and plans US state sales tax separately with a specialist.
Example 3: the freelancer. A Marseille designer with US clients asks about a Wyoming LLC. Their adviser explains how France would classify it and tax the profits, and they decide on the structure before we file.
Common mistakes
- Assuming a US LLC is transparent in France.
- Running a low-taxed US entity from France without checking French anti-avoidance rules.
- Not claiming the treaty rate on dividends with a valid W-8BEN.
- 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
Is a Delaware C-Corp the usual choice for French founders? Yes, for startups and subsidiaries. An LLC can suit a small business after French advice.
Can my French SAS own the US company? Yes. The US company becomes a subsidiary, with transfer pricing between them.
Can I form a US company from France 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 France
We form US LLCs and corporations for residents of France 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 French tax adviser, who confirms the French 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 France 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.
