US Company Formation from Latin America (2026): Argentina, Colombia, Chile and Peru, Tax Treaties, Foreign Company Rules, Currency and Banking

Latin America has become one of the world's biggest sources of remote talent for US companies. Developers in Buenos Aires, Medellín and Santiago, designers and marketers in Lima, and startups across the region work in the same time zones as their American clients. Many of them form a US LLC to contract and get paid as a US business, and startups form a Delaware corporation to raise from US investors.

The US side is identical for every country and fully remote. The home-country side is not: Chile now has an income tax treaty with the USA, while Argentina, Colombia and Peru do not, and each country has its own rules on foreign companies and on moving money. This guide covers the four together. Separate guides cover Brazil and Mexico.

Short answer: residents of Argentina, Colombia, Chile and Peru 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 US LLC run entirely from Latin America usually owes no US federal income tax but files Form 5472 every year ($25,000 penalty if missed). At home, all four countries tax residents on worldwide income and have rules that can tax a controlled foreign company's income before it is distributed, so plan with a local *contador*.

Treaty status at a glance

Without a treaty, a C-Corporation's profits pay 21% US corporate tax and then 30% when paid out as dividends, which is expensive for a service business. That is why most freelancers and agencies in the region use an LLC. See W-8BEN-E vs W-8BEN explained.

The US side: the same for all four

A single-member LLC owned by a non-resident is disregarded for US income tax. When the work is done in Latin America, with no US office, employees or dependent agents, its income is usually not effectively connected with a US trade or business, and no US federal income tax is due. It still files Form 5472 with a pro forma Form 1120 every year. A C-Corporation pays 21% on its profits and is the standard for startups raising US investment. See effectively connected income explained, Form 5472 explained and LLC vs Inc for non-residents.

Argentina

Argentina is home to some of the region's best-known tech companies and a very large community of developers working for US clients, often paid in dollars.

• Tax. Argentine residents are taxed on worldwide income (*impuesto a las ganancias*), and foreign assets, including shares or interests in a US company, count for the personal assets tax (*bienes personales*). Argentina has rules attributing certain foreign entities' income to resident owners; a US LLC that pays no US tax is the kind of entity those rules look at. Your *contador* confirms how ARCA treats it.
• Currency. In April 2025, Argentina lifted most currency restrictions for individuals, who can again buy foreign currency through the official market; restrictions on companies were eased more slowly. This makes it easier to fund a US company, but check the current rules with your bank before moving capital.
• No treaty. US corporate dividends to Argentine residents face 30%.

Colombia

Medellín and Bogotá have strong startup and outsourcing scenes, and many Colombian developers and agencies serve US clients.

• Tax. Colombian residents are taxed on worldwide income. Under the ECE regime (*Entidades Controladas del Exterior*), passive income of a controlled foreign entity is taxed in the hands of Colombian residents who control it, as it is earned. Active service income earned by an LLC is treated differently; your *contador* confirms which applies and how DIAN treats a transparent US LLC.
• Foreign investment registration. Investments by Colombian residents abroad are registered with the Banco de la República through the foreign exchange system; your bank or *contador* handles the filing.
• No treaty. US corporate dividends to Colombian residents face 30%.

Chile

Santiago is one of the region's most established startup hubs, and Chilean founders often raise from US investors.

• The new treaty. The US–Chile income tax treaty entered into force on 19 December 2023, applying to withholding taxes from 1 February 2024 and to other taxes from 1 January 2024. It reduces US withholding on dividends, interest and royalties where its conditions are met, and limits US tax on business profits to a US permanent establishment.
• Tax. Chilean residents are taxed on worldwide income. Chile's rules on passive income of controlled foreign entities can attribute that income to Chilean owners each year; active service income is generally taxed when received. Your *contador* confirms the treatment of a US LLC.
• Startups. A Delaware C-Corporation above the Chilean SpA is the usual structure for founders raising from US funds.

Peru

Lima has a growing tech and services sector, and Peruvian freelancers increasingly sell to US companies.

• Tax. Peruvian residents are taxed on worldwide income. Peru's international fiscal transparency rules attribute passive income of controlled foreign entities, especially in low- or no-tax regimes, to Peruvian owners each year. A US LLC that pays no US tax deserves a careful look; your *contador* confirms.
• Currency. Peru does not restrict moving money in and out, but banks ask for documents on larger transfers.
• No treaty. US corporate dividends to Peruvian residents face 30%.

Which US state?

• Wyoming: our usual recommendation for freelancers, agencies and online businesses, with a low yearly cost. See Wyoming LLC for non-residents.
• Delaware: for startups raising from US investors. See Delaware LLC for non-residents and US C-Corporation for non-residents.
• Florida: for businesses with an office, staff or property there, especially in Miami. See Florida LLC for non-residents.

Use our state selector or read best state for non-residents.

What it costs

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

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 residents of all four countries. A precise business description, an English-language website, matching details on every document and a US business address with your own suite number help. Stripe's local availability varies across the region; a US company with a US bank account can apply for a US Stripe account that settles in dollars. 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 Buenos Aires developer. A senior developer contracting with a US startup forms a Wyoming LLC so the client can pay by ACH into a US account. All work is done in Argentina, so the LLC usually owes no US income tax; the developer's *contador* handles *ganancias* and *bienes personales*.

Example 2: the Medellín agency. A marketing agency with ten US clients forms a Wyoming LLC that holds the contracts and pays the Colombian company for the work under a written agreement. Form 5472 reports the payments, and the Colombian side is handled by the agency's *contador*.

Example 3: the Santiago startup. A Chilean SaaS startup raising from a US fund forms a Delaware C-Corporation above its SpA. With the new treaty, dividends paid to Chilean shareholders in future can benefit from reduced US withholding.

Common mistakes

• Choosing a C-Corporation for a service business in a non-treaty country and paying 21% plus 30%.
• Assuming the LLC's profit is untaxed at home because it pays no US tax.
• Forgetting Form 5472 because the LLC owes no US tax.
• Giving US clients a W-9 instead of a W-8BEN-E.
• Using the registered agent's address as the business address on bank applications.

Frequently asked questions

Which Latin American countries have a tax treaty with the USA? Of the four in this guide, only Chile, since December 2023. Mexico and Venezuela also have treaties; Argentina, Colombia, Peru and Brazil do not.

Does a US LLC owned from Latin America pay US tax? Usually not, when all the work is done outside the USA with no US office, staff or agents. It files Form 5472 every year.

Can I form a US company without travelling to the USA? Yes. 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 Latin America

We form US LLCs and corporations for residents of Argentina, Colombia, Chile, Peru and the rest of the region 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, working alongside your *contador*. See also Brazil, Mexico and forming a US company from abroad: country guide.

Working with US clients from Latin America? WhatsApp us at +91 8105 199 399 or email enquiries@ucbsolutions.com, and we will recommend the right structure and state for you.