US Company Formation from the Philippines (2026): US LLC for Virtual Assistants, BPO Agencies and Freelancers, the US Treaty, BIR and Banking
Forming a US LLC from the Philippines: costs, the US–Philippines tax treaty, BIR registration and the 8% option, OFWs, BSP rules, banking and getting paid by US clients.
The Philippines is the world's virtual assistant and BPO capital. Millions of Filipinos work for American companies as VAs, customer support agents, developers, bookkeepers, designers and marketers, many of them as freelancers. As they grow from a single contract into a small agency with their own team, a common next step is a US company: US clients sign contracts with it, pay it by ACH, and treat it like any American supplier.
The US side is fully remote and the same for everyone. The Philippine side has its own points: a long-standing income tax treaty with the USA, the BIR taxing resident citizens on worldwide income, and a different rule for overseas Filipino workers. This guide explains how US company formation from the Philippines works.
Short answer: a Philippine 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 whose owner does all the work from the Philippines usually owes no US federal income tax, but it files Form 5472 every year ($25,000 penalty if missed). Resident citizens of the Philippines are taxed by the BIR on worldwide income, so the LLC's profit is reported in the Philippines; your accountant confirms how.
Can a Filipino own a US company?
Yes. No US state restricts the nationality or residence of owners. A Philippine citizen or resident can own 100% of a US LLC or corporation, act as its only manager or director, and form it without a US visa, Social Security number or US address. Every US company needs a registered agent in its state; the first year is included in every UCB formation. See registered agent explained.
Why Filipino freelancers and agencies form a US company
- Bigger US contracts. Many US companies prefer, or require, a US supplier with an EIN, a US bank account and a W-8BEN-E or W-9 on file. A US LLC lets a VA agency move from marketplace gigs to direct retainers.
- Lower payment costs. US clients pay a US account by ACH at little or no cost, instead of international wires or marketplace fees. See receiving payments from US clients.
- Stripe and US payment tools. Stripe does not onboard businesses based in the Philippines, but it accepts a US company with a US bank account. See Stripe for non-residents.
- Selling to US customers through Amazon.com, Shopify and US marketplaces. See US LLC for e-commerce sellers.
The tax picture for residents of the Philippines
The US–Philippines tax treaty
The USA and the Philippines have a comprehensive income tax treaty, in force since 1983. It limits the US tax on dividends from a US corporation to a Philippine resident below the standard 30% where its conditions are met, and says business profits are taxable in the USA only through a permanent establishment there. Freelancers working for US clients give them a W-8BEN (individual) or W-8BEN-E (company), not a W-9. 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 the Philippines | 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 | VAs, agencies, freelancers, online sellers | Startups raising US investment |
For US tax, a single-member LLC owned by a non-resident is a "disregarded entity". When the owner and team work from Manila, Cebu or Davao, with no US office, employees or dependent agents, the income is normally 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 still compulsory. A C-Corporation pays 21% on its profits however little US activity it has, which only makes sense for startups that need US investors. See effectively connected income explained, Form 5472 explained and LLC vs Inc for non-residents.
The Philippine side
Points to confirm with a Philippine accountant:
- Resident citizens are taxed on worldwide income. The BIR taxes a resident Filipino on income from inside and outside the Philippines, so the US LLC's profit is part of your Philippine income. Keep the LLC's books and bank statements; they support your Philippine return.
- Overseas Filipino workers are different. A Filipino who lives and works abroad as a non-resident citizen is generally taxed only on Philippine-source income. If you run your LLC while working in Dubai or Singapore, your residence changes the answer.
- BIR registration and the 8% option. Self-employed individuals and professionals registered with the BIR can usually choose an 8% tax on gross receipts instead of graduated rates while their receipts stay under ₱3 million a year. How your LLC income fits that option is a question for your accountant.
- Foreign tax credit. If US tax is ever paid, for example through a corporation's dividends, the Philippines generally gives a credit for it.
- Bringing money home. Banks in the Philippines receive foreign currency freely; the Bangko Sentral ng Pilipinas sets the rules for buying foreign currency to send abroad, for example to invest capital in your US company.
We handle the US side; your Philippine accountant confirms the Philippine side.
Which US state?
- Wyoming: our usual recommendation for VA and BPO agencies, freelancers and online sellers, with a low yearly cost and owners' names kept off the formation filing. See Wyoming LLC for non-residents.
- New Mexico: no annual report. See New Mexico LLC for non-residents.
- Delaware: for a corporation that will raise from US investors. See Delaware LLC for non-residents.
- Florida or Texas: if you will have staff, an office or a warehouse there. See Florida and Texas.
Not sure? 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 the formation price. See what a US LLC costs every year and the cost calculator.
Documents you need
| Document | Notes |
|---|---|
| Philippine passport | Valid, clear colour scan; the main ID for the EIN and banks |
| Proof of address | A recent utility bill (Meralco, PLDT, water) or bank statement in your name |
| Company name and description | Two or three name options; a specific description, such as "virtual assistant and customer support services for US e-commerce brands" |
| Website or LinkedIn page | Not required to form the company, but banks look for one |
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 Philippine residents. What gets an application approved is the same as anywhere: a precise business description that matches your website, consistent details across the state filing, the EIN letter and the application, and a real US business address with your own suite number, not the registered agent's address. Many Filipino agencies keep a US account to receive client payments and a local account for payroll, moving money home through a transfer provider when needed.
See US business bank accounts for non-residents and why banks reject non-resident applications.
Paying your Filipino team
A VA agency usually has a US LLC that holds the client contracts and a team in the Philippines that does the work. Pay the team as independent contractors with written agreements, or through a Philippine company or an employer-of-record service if they work full time for you; the right choice depends on Philippine labour rules. The LLC does not need US payroll for people who live and work in the Philippines. See hiring as a non-resident company.
Worked examples
These are illustrative examples, not client cases.
Example 1: the Cebu VA agency. A virtual assistant with four US retainer clients has hired five other VAs. A Wyoming LLC with a US bank account lets clients pay by ACH and sign a normal US supplier agreement. All work is done in the Philippines, so the LLC usually owes no US income tax; it files Form 5472 each year, and the owner reports the profit to the BIR.
Example 2: the Manila developer selling a SaaS tool. A developer needs Stripe for subscription billing. A Wyoming LLC with a US bank account lets them apply. See US LLC for SaaS founders.
Example 3: the OFW in Dubai. A Filipino accountant working in Dubai offers bookkeeping to US small businesses on the side. As a non-resident citizen, the Philippine position differs from a resident's, and UAE rules also apply. See US company formation from the UAE.
Common mistakes
- Sending US clients a W-9, which is only for US persons. Use a W-8BEN-E for the LLC.
- Forgetting Form 5472 because the LLC owes no US tax.
- Using the registered agent's address as the business address on bank applications.
- A vague description such as "online services" or "consulting", which banks reject.
- Not keeping records for the BIR, where the LLC's profit is reportable.
Frequently asked questions
Can I form a US LLC from the Philippines without visiting the USA? Yes. Formation, the EIN and the bank application are all done online. See open a US company without visiting.
Does my US LLC pay US tax if I work from the Philippines? Usually not, when all the work is done in the Philippines with no US office, staff or agents. It still files Form 5472 every year.
Do I still pay tax in the Philippines? If you are a resident citizen, yes: the BIR taxes worldwide income. Your accountant confirms whether the graduated rates or the 8% option applies.
Do I need an ITIN? Usually not for a single-member LLC or its EIN. See what is an ITIN and who needs one.
Can I use Stripe with a US LLC? Yes, a US LLC with a US bank account can apply. See Stripe for non-residents.
How UCB helps founders in the Philippines
We form US LLCs and corporations for Philippine residents remotely, all-in: a Wyoming LLC with EIN is $249, and our formation, EIN and bank account package is $348. Every year we keep the company active and file its federal return through our US tax filing service, while your Philippine accountant handles the BIR side. See also forming a US company from abroad: country guide and US LLC for freelancers and consultants.
Running a VA, BPO or freelance business from the Philippines? 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.
