US Company Formation from Denmark, Norway, Finland and Iceland (2026): Inc or LLC, Nordic Tax Rules, US Treaties, Costs and Banking
Forming a US company from the Nordic countries: Inc or LLC, how Denmark, Norway, Finland and Iceland tax a US company, the US treaties, costs and banking.
Nordic founders build global companies early. Startups from Copenhagen, Oslo, Helsinki and Reykjavík often sell to US customers within their first year, and many raise from US investors through a Delaware company. Established Nordic companies open US subsidiaries to sell, hire and support customers. Freelancers and agencies use US companies to work with American clients and get paid in dollars.
The US side is the same for everyone and fully remote. What Nordic residents need to understand is the home side: all four countries tax residents on worldwide income, classify foreign entities under their own rules, and have rules for low-taxed foreign companies controlled by residents. This guide covers Denmark, Norway, Finland and Iceland together, because the US-side choices are the same and the home-country questions are similar, and points out where they differ. For Sweden, see our Sweden guide.
Short answer: residents of Denmark, Norway, Finland and Iceland can own 100% of a US corporation or LLC, formed remotely, and a Nordic 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. All four countries have income tax treaties with the USA, which tax business profits in the USA only through a US permanent establishment and generally limit US withholding on dividends to 15% for individuals. At home, a single-member US LLC that the IRS ignores is usually not treated as transparent automatically, a company managed from a Nordic country can be taxed there, and CFC rules can reach low-taxed foreign companies. Most Nordic founders therefore use a Delaware C-Corporation; agree any LLC with a local adviser first.
Can Nordic residents own a US company?
Yes. US states place no restriction on nationality or residence. Residents of Denmark, Norway, Finland and Iceland can own 100% of a US LLC or corporation, be its only director or manager, and form it entirely remotely, with no US visa, Social Security number or US address. Every company has a registered agent in its US state, included for the first year in every UCB formation. See registered agent explained and open a US company without visiting.
Why Nordic founders form a US company
- US investors. Venture investors expect a Delaware C-Corporation, often as the parent of the Nordic company. See raising US investment as a foreign founder.
- US customers and contracts. A US subsidiary signs US contracts, employs US staff and keeps US liability separate. See US subsidiary for a foreign company.
- Dollar revenue through a US bank account and US payment platforms. See Stripe for non-residents.
- Games and apps, a Nordic speciality, sold through US platforms. See US LLC for app developers.
The US side: treaties and structure
Denmark, Norway, Finland and Iceland all have comprehensive income tax treaties with the USA. In outline:
- Business profits of a Nordic resident are taxable in the USA only if attributable to a US permanent establishment, such as a US office or a dependent agent who concludes contracts.
- Dividends from a US corporation to an individual resident are generally withheld at 15% instead of 30%, with lower rates for qualifying company shareholders, if a valid W-8BEN or W-8BEN-E is given. See W-8BEN-E vs W-8BEN explained.
| US LLC (single-member) | US C-Corporation | |
|---|---|---|
| US federal tax if all work is done from home | Usually none | 21% of profits |
| US tax on profits paid to the owner | None (not a dividend) | Generally 15% for an individual |
| Yearly federal filing | Form 5472 + pro forma 1120 | Form 1120 + Form 5472 |
| How it is usually seen at home | Often as a foreign company, not transparent | A foreign company |
| Investors | Most will not invest | Standard (Delaware) |
A single-member LLC run entirely from abroad usually owes no US federal income tax, but files Form 5472 with a pro forma Form 1120 every year, with a $25,000 penalty if missed. A corporation pays 21% on its profits. See effectively connected income explained, Form 5472 explained and LLC vs Inc for non-residents.
The home side, country by country
The points below are what to raise with a local adviser. We handle the US side.
Denmark
Denmark taxes residents on worldwide income and classifies foreign entities under Danish rules, comparing them with Danish company and partnership forms; a US LLC is not automatically transparent. A company whose management is in Denmark can be Danish tax resident. Danish CFC rules apply to controlled foreign companies with mainly financial income. A Danish ApS or A/S owning a US subsidiary needs transfer pricing documentation.
Norway
Norway taxes residents on worldwide income and has NOKUS rules, under which Norwegian owners of controlled companies in low-tax countries can be taxed on their share of the profits as they arise. Norway classifies foreign entities under its own rules. Norway also has an exit tax on unrealised gains in shares for individuals who leave Norway, which matters to founders planning to move to the USA with their company. A Norwegian AS owning a US subsidiary needs transfer pricing.
Finland
Finland taxes residents on worldwide income, classifies foreign entities by comparison with Finnish forms, and applies CFC rules to low-taxed controlled foreign companies. A company effectively managed from Finland can be Finnish tax resident. A Finnish Oy owning a US subsidiary needs transfer pricing.
Iceland
Iceland taxes residents on worldwide income, has CFC rules for low-taxed foreign entities, and classifies foreign entities under Icelandic rules. An Icelandic ehf. or hf. owning a US subsidiary needs transfer pricing.
What is common to all four
- Do not assume the US view of an LLC applies at home. It usually does not.
- Where the company is managed matters. A US company run entirely from your kitchen table in Aarhus, Bergen, Tampere or Akureyri may be taxed at home.
- Low-taxed companies attract CFC rules. A US C-Corporation paying 21% US tax is usually outside them; a single-member LLC paying no US tax may not be.
Which US state?
- Delaware: the standard for startups and subsidiaries. See Delaware company registration and the US C-Corporation guide.
- Wyoming: a simpler corporation or LLC at a lower yearly cost, when investors are not involved. See Wyoming LLC for non-residents.
- New York, California or Texas: when the company will have an office or staff there.
What it costs
| With UCB | |
|---|---|
| Delaware corporation with EIN, all-in | $308 |
| Keeping a Delaware corporation active each year | $578 (franchise tax at the minimum) |
| Wyoming LLC with EIN, all-in | $249 |
| Wyoming LLC with EIN and US bank account application | $348 |
| Keeping a Wyoming LLC active plus the federal return | $421 |
State fees and the first-year registered agent are included. See the cost calculator.
Documents and banking
You need a passport or national ID card, proof of address, two or three company names, a short business description and, for a corporation, the share structure. If your Nordic company will own the US company, add its register extract. No SSN, ITIN or US address is needed. Nordic residents are generally well served by US fintech banks that accept remote applications; consistent details and a US business address with your own suite number help. See US business bank accounts for non-residents.
Worked examples
These are illustrative examples, not client cases.
Example 1: the Copenhagen SaaS company. A Danish ApS raising from US investors places a Delaware corporation above it, with lawyers in both countries handling the structure. We incorporate the Delaware company and file its March 1 franchise tax at the minimum.
Example 2: the Helsinki game studio. A Finnish Oy forms a Delaware subsidiary to employ US community and publishing staff. The subsidiary pays US tax on its profits; the Oy documents transfer pricing.
Example 3: the Oslo consultant. A Norwegian consultant asks about a Wyoming LLC. Their adviser explains NOKUS and Norwegian classification, and they choose to invoice from their Norwegian company instead.
Common mistakes
- Assuming a US LLC is transparent in the Nordic countries.
- Running a low-taxed US entity from home and triggering CFC or NOKUS rules.
- Forgetting Norway's exit tax when moving to the USA with company shares.
- Not claiming treaty rates on dividends with a valid W-8BEN.
- Ignoring Form 5472.
How UCB helps Nordic founders
We form US corporations and LLCs for Nordic residents remotely, all-in, keep them active each year and file the federal return through our US tax filing service, working alongside your local adviser. See also our guides for Sweden, Germany and the Netherlands, and the country guide.
Expanding from the Nordics 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.
