US Company Formation from Mexico (2026): US LLC or Corporation, the US–Mexico Treaty, REFIPRE Rules, Cross-Border Work and Banking
Forming a US company from Mexico: the US–Mexico tax treaty, how SAT taxes a US LLC under the REFIPRE rules, working across the border, Texas and Delaware options, costs and banking.
Mexico and the USA are each other's largest trading partners, and nearshoring has brought even more business across the border. Mexican software companies serve US clients from Guadalajara and Monterrey, manufacturers and distributors sell into Texas and California, Mexico City startups raise from US funds, and freelancers across the country work for American companies every day.
The US side is fully remote and quick. On the Mexican side, two points matter most: the US–Mexico income tax treaty, and Mexico's REFIPRE rules (*regímenes fiscales preferentes*), which can tax a US LLC's profits in Mexico every year. And because Mexico shares a border with the USA, where the work is physically done needs more attention than for most countries. This guide explains how US company formation from Mexico works.
Short answer: a Mexican 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 Texas LLC with EIN is $504. A US LLC run entirely from Mexico usually owes no US federal income tax but files Form 5472 every year. In Mexico, income earned through a foreign entity that pays little or no tax is generally taxed under the REFIPRE rules as it is earned, with an annual information return, so plan with your *contador*. Work done inside the USA can make the LLC taxable in the USA.
Can a Mexican resident own a US company?
Yes. US states do not restrict owners' nationality or residence. A Mexican citizen or resident, or a Mexican company, can own all of a US LLC or corporation, and a Mexican resident can be its only manager or director, without a US visa, SSN or US address. Owning and managing a US company from Mexico does not need a visa; working in the USA for it does. Every US company needs a registered agent in its state; the first year is included in every UCB formation. See registered agent explained.
Why Mexican founders form a US company
- Selling to US customers and distributors as a US company, with US invoices, a US bank account and US payment terms.
- US clients for software and services, who prefer a US supplier and pay by ACH. See receiving payments from US clients.
- US investors, who invest in Delaware corporations. See raising US investment as a foreign founder.
- Amazon.com and US marketplaces. See US LLC for e-commerce sellers.
The tax picture for residents of Mexico
The US–Mexico tax treaty
The USA and Mexico have a comprehensive income tax treaty, in force since 1994. Business profits are taxable in the USA only through a permanent establishment there, and US corporate dividends to a Mexican resident can be withheld at a reduced treaty rate where its conditions are met, instead of 30%. The owner claims it with a W-8BEN, and a Mexican company with a W-8BEN-E. See W-8BEN-E vs W-8BEN explained.
LLC or corporation?
| US LLC (single-member) | US C-Corporation | |
|---|---|---|
| US federal tax if all work is done in Mexico | Usually none | 21% of profits |
| US tax when profits reach the owner | None | Treaty-reduced dividend withholding |
| Yearly federal filing | Form 5472 + pro forma 1120 | Form 1120 + Form 5472 |
| Suits | Services and online businesses run from Mexico | Startups, US operations, US staff |
For US tax, a single-member LLC owned by a non-resident is disregarded. When the work is done in Mexico, 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; the yearly Form 5472 with a pro forma Form 1120 is compulsory. A business with a US warehouse, US staff or a sales team in the USA has US-taxable income either way, and a corporation is often the cleaner structure. See effectively connected income explained, Form 5472 explained and LLC vs Inc for non-residents.
Working across the border
Many Mexican owners live near the border or travel to the USA often. Meeting clients and attending trade shows is normal business travel. But if you, or people working for the company, regularly do the company's work inside the USA, or keep a US office or warehouse, the LLC can have a US trade or business and owe US tax on that income, and immigration rules for working in the USA apply. Tell us how much time is spent in the USA, and we will plan the structure around it.
The Mexican side: REFIPRE
Points for your Mexican *contador*:
- Worldwide income. Mexican residents are taxed on worldwide income.
- REFIPRE. Income earned through a foreign entity is in a preferential tax regime when it is not taxed abroad, or taxed at less than 75% of the Mexican income tax that would apply. A US LLC that pays no US tax falls in this category, so its income is generally taxed in Mexico as it is earned, not when distributed.
- Transparent foreign entities. Mexico has specific rules for foreign entities that are transparent for tax purposes, which include most single-member US LLCs. Your *contador* applies them.
- Annual information return. Residents with REFIPRE income or transparent foreign entities file an information return with the SAT each year; penalties apply if it is missed.
- Foreign tax credit. Where US tax is paid, Mexico generally gives a credit under its law and the treaty.
We handle the US side; your *contador* confirms the Mexican side.
Which US state?
- Wyoming: for services, software and online businesses run from Mexico, with a low yearly cost. See Wyoming LLC for non-residents.
- Texas: when you will have a warehouse, office, staff or customers' pick-ups there, as many cross-border businesses do. Texas has no personal income tax but has a franchise tax report. See Texas LLC for non-residents.
- Delaware: for startups raising from US investors. See Delaware LLC for non-residents.
- California or Arizona: for businesses operating in those border states. See California and Arizona.
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 |
| Texas LLC with EIN, all-in | $504 |
| Delaware corporation with EIN, all-in | $308 |
| Keeping a Wyoming LLC active each year | $121 |
| Keeping a Texas LLC active each year | $83 |
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 |
|---|---|
| Mexican passport | Valid, clear colour scan; the INE card alone is not enough for US banks |
| RFC | Banks may ask for it as your home tax number |
| Proof of address | A recent CFE, Telmex or water bill, or bank statement, in your name |
| Company name and description | Two or three names; a specific description of the business |
| Mexican company documents | *Acta constitutiva* and powers of attorney, if your Mexican 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 Mexican residents, and some banks in border states also open accounts in person for owners who visit. A specific business description, a working website, matching details on every document and a US business address with your own suite number all help. Stripe operates in Mexico, but a US company can open a US Stripe account that settles in dollars. 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 Guadalajara software company. A 20-person development company forms a Wyoming LLC to contract with US clients, and subcontracts the work to the Mexican company under a written agreement. Form 5472 reports the payments, and the owners' *contador* handles the REFIPRE and transfer pricing side.
Example 2: the Monterrey distributor. A distributor sells to Texas retailers and keeps stock in a Laredo warehouse. It forms a Texas company; with US inventory and staff, it files US returns and handles Texas sales tax with a specialist.
Example 3: the Mexico City freelancer. A UX designer forms a Wyoming LLC so US agencies can pay by ACH. All work is done in Mexico, so the LLC usually owes no US income tax; the designer reports the income in Mexico.
Common mistakes
- Working regularly inside the USA for the company and assuming it still owes no US tax.
- Missing the annual SAT information return for REFIPRE income or transparent entities.
- 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
Is there a tax treaty between the USA and Mexico? Yes, in force since 1994. It limits US tax on dividends and on business profits without a US permanent establishment.
Does a US LLC owned from Mexico pay US tax? Usually not, when all the work is done in Mexico with no US office, staff or agents. It files Form 5472 every year.
Do I need a US visa to own a US company? No. You need the right visa only to work in the USA, not to own or manage the company from Mexico.
Can I form a US company from Mexico without travelling? 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 Mexico
We form US LLCs and corporations for Mexican residents and companies remotely, all-in: a Wyoming LLC with EIN is $249, a Texas LLC with EIN is $504, 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, and give your *contador* what they need for the SAT. See also US company formation from Latin America and forming a US company from abroad: country guide.
Selling to the USA from Mexico? 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.
