US Company Formation from Pakistan (2026): Wyoming LLC for Freelancers and Agencies, Costs, Banking, the US Treaty and SBP Rules
Forming a US LLC from Pakistan: costs, documents, banking and Stripe, Form 5472, the old US–Pakistan treaty, and State Bank of Pakistan rules on money abroad.
Pakistan has one of the world's largest freelance workforces. Developers in Lahore, designers in Karachi, agencies in Islamabad and e-commerce sellers across the country serve clients in the USA every day. Because Stripe does not accept businesses in Pakistan directly, and US clients often prefer to pay a US company, a US LLC has become the standard tool for Pakistani freelancers and agencies that want to grow.
The US side is fully remote and the same as for anyone. The Pakistani side needs more care: Pakistan has an old income tax treaty with the USA, taxes its residents on worldwide income, and the State Bank of Pakistan controls money leaving the country. This guide explains how US company formation from Pakistan works and what to discuss with a Pakistani adviser.
Short answer: a Pakistani 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, and approval takes about 3 business days. A single-member LLC run entirely from Pakistan usually owes no US federal income tax but files Form 5472 every year (penalty $25,000 if missed). The US–Pakistan treaty dates from 1957. On the Pakistani side, residents are taxed on worldwide income, and sending money abroad to invest in a foreign company is regulated by the State Bank of Pakistan, so plan how the company is funded with a Pakistani adviser; many freelancers start the LLC with client revenue rather than money sent from Pakistan.
Can a resident of Pakistan own a US company?
Yes. US states place no restriction on the nationality or residence of owners. Pakistani citizens and residents of Pakistan 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 Pakistan form a US company
- Getting paid by US clients in dollars, by ACH or wire, into a US account. See receiving payments from US clients.
- US payment platforms with their full features, such as Stripe. See Stripe for non-residents.
- Amazon.com and US marketplaces. See US LLC for e-commerce sellers.
- US investors, who invest in Delaware corporations. See raising US investment as a foreign founder.
- Stripe. Stripe does not currently onboard businesses based in Pakistan, but it accepts a US company with a US bank account.
The tax picture for residents of Pakistan
The US–Pakistan tax treaty
Pakistan has an income tax treaty with the USA. Dividends from a US corporation to a resident of Pakistan can be withheld at a reduced rate where the treaty's conditions are met, 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 Pakistan | Usually none | 21% of profits |
| US tax when profits are paid to the owner | None (not a dividend) | Treaty rate where its conditions are met |
| 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 Pakistan, 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 most freelancers, agencies, developers and online sellers who take profits out, a US LLC is simpler on the US side; startups raising from US investors use a Delaware C-Corporation.
The Pakistani side
Points for your Pakistani tax adviser:
- Worldwide income. Pakistani residents are taxed on worldwide income. How Pakistan treats the US LLC's profits, and how they are reported, needs your adviser's view.
- Funding the company. Remitting money from Pakistan to invest in a company abroad is governed by the State Bank of Pakistan's foreign exchange rules, which allow some categories of investment abroad and restrict others. Many freelancers start the LLC with no capital and let client payments fund it. Do not send investment money abroad without checking the current rules with your bank and adviser.
- Bringing money home. IT and freelance export earnings brought into Pakistan through banking channels have their own tax and documentation rules; keep invoices and contracts ready for your bank.
- The US–Pakistan treaty is old (1957); we confirm whether any treaty rate applies when a US corporation pays dividends.
We handle the US side; your Pakistani adviser confirms the Pakistani side.
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 | Valid passport, clear colour scan |
| CNIC | Sometimes requested by banks |
| Proof of address | A recent utility bill or bank statement in your name |
| Company name and business description | Two or three names; a specific description of what the company does |
| Home company documents | Only if your company at home will own the US company |
No SSN, ITIN or US address is needed to form the company or obtain its EIN. See EIN for non-residents.
Banking and payments
US banks and fintechs accept applications from residents of Pakistan, but review them carefully. 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 all help. Banks may ask for your CNIC and a recent proof of address. Some US fintechs restrict applicants from certain countries; we tell you which providers currently accept Pakistani residents when we prepare your application.
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 Lahore developer. A freelance developer earning through marketplaces wants direct US clients and Stripe. A Wyoming LLC with a US bank account lets them invoice in dollars and use Stripe. With all work done in Pakistan, the LLC usually owes no US income tax and files Form 5472 each year.
Example 2: the Karachi agency. A digital agency with US clients forms a Wyoming LLC, with the Pakistani team doing the work. The agency's adviser handles how the profits are taxed and brought home.
Example 3: the e-commerce seller. A Sialkot sports goods maker sells on Amazon.com through a US LLC, holding stock in US warehouses; US state sales tax rules can apply, and we refer that to a specialist.
Common mistakes
- Sending investment money abroad without checking State Bank of Pakistan rules.
- Using a friend's US address or details on applications.
- Giving US clients a W-9 instead of a 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
Can I use Stripe from Pakistan? Not as a Pakistan-based business, but a US LLC with a US bank account can apply. See Stripe for non-residents.
Does a US LLC owned from Pakistan pay US tax? Usually not, if all the work is done from Pakistan with no US office, staff or agents. It files Form 5472 every year.
Can I form a US company from Pakistan 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 Pakistan
We form US LLCs and corporations for residents of Pakistan 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 Pakistani tax adviser, who confirms the Pakistani 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.
Freelancing or running an agency from Pakistan and need a US company? 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.
