US Company Formation from Sweden (2026): Inc or LLC, Swedish CFC Rules and Classification, the US–Sweden Treaty, Costs and Banking
Forming a US company from Sweden: Inc or LLC, Swedish classification and CFC rules, place of management, the US–Sweden treaty, costs and banking.
Sweden produces a remarkable number of international tech companies, and many of them expand to the USA early, often with a Delaware company above or beside their Swedish AB. Swedish founders also use US companies to sell to American customers, hire US staff and raise from US investors, without leaving Sweden.
Sweden taxes residents on worldwide income, classifies foreign entities under its own rules, and has CFC rules for low-taxed foreign companies. This guide explains how US company formation from Sweden works and what to agree with your Swedish adviser.
Short answer: a resident of Sweden can own 100% of a US corporation or LLC, formed remotely, and a Swedish AB can own a US subsidiary. With UCB, a Delaware corporation with EIN is $308 all-in, and a Wyoming LLC with EIN is $249. The US–Sweden treaty taxes business profits in the USA only through a US permanent establishment and generally limits dividend withholding to 15% for individuals. On the Swedish side, a US LLC is classified under Swedish rules rather than its US election, Swedish CFC rules can apply to low-taxed controlled foreign companies, and a company managed from Sweden needs care. Most Swedish founders use a Delaware C-Corporation; take Swedish advice before choosing an LLC.
Can a resident of Sweden own a US company?
Yes. US states place no restriction on the nationality or residence of owners. Swedish citizens and residents of Sweden 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 Sweden form a US company
- The US market: the largest consumer and business market in the world, with buyers who often prefer a US vendor.
- US investors, who invest in Delaware corporations. See raising US investment as a foreign founder.
- A US entity for US contracts, staff and liability, separating the US business from the home company. See US subsidiary for a foreign company.
- Payments in dollars, through a US bank account and US payment platforms. See Stripe for non-residents.
The tax picture for residents of Sweden
The US–Sweden tax treaty
Sweden has an income tax treaty with the USA. Dividends from a US corporation to a resident of Sweden can be withheld at a reduced treaty rate, generally 15% for an individual shareholder, 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 Sweden | Usually none | 21% of profits |
| US tax when profits are paid to the owner | None (not a dividend) | Treaty rate, generally 15% for an individual owner |
| 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 Sweden, 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 a European resident, the US view is only half the picture. Your home country may classify a US LLC as a company even though the IRS ignores it, a US company managed from your country may be treated as tax resident there, and controlled foreign company rules can tax low-taxed profits at home. That is why many European founders choose a C-Corporation for a trading business, and use an LLC only after a local adviser has confirmed how it will be treated.
The Swedish side
Points for your Swedish adviser:
- Classification. Sweden decides for itself whether a foreign entity is a company; a single-member US LLC that the IRS ignores may be treated as a foreign company.
- CFC rules. Swedish rules can tax Swedish owners on the income of controlled foreign companies that are low-taxed compared with Swedish tax.
- Close company rules. Owners of closely held companies (*fåmansföretag*) have special rules on dividends and salary that your adviser will explain for a foreign company.
- A Swedish AB owning the US company needs transfer pricing.
We handle the US side; your Swedish adviser confirms the Swedish side.
US sales tax is not VAT: there is no national system and no input tax recovery, and each state sets its own rules. A European brand selling goods into the USA should plan for state sales tax separately; it is not a service we provide, but we refer you to a specialist. See state taxes for a foreign-owned LLC.
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 or national ID card | Valid passport (or Swedish national ID card), clear colour scan |
| Proof of address | A recent Swedish utility bill, personbevis or bank statement |
| Company name and business description | Two or three names; a specific description of what the company does |
| Share structure (corporation) | Number of shares and par value; we suggest a structure that keeps Delaware franchise tax at the minimum |
| Home company documents | Only if your company at home will own the US company: register extract and ownership |
No SSN, ITIN or US address is needed to form the company or obtain its EIN. See EIN for non-residents.
Banking and payments
Residents of Sweden are generally well served by US banks and fintechs that accept remote applications, and European identity documents are widely accepted. What still matters: 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 rather than the registered agent's address.
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 Stockholm scale-up. A Swedish AB raising a US round sets up a Delaware parent above it, with lawyers handling the structure; we incorporate and maintain the Delaware company.
Example 2: the AB's US sales arm. A Gothenburg software AB forms a Delaware subsidiary to employ US account executives.
Example 3: the consultant. A Malmö consultant asks about a Wyoming LLC; their adviser explains how Sweden would classify and tax it before we file.
Common mistakes
- Assuming a US LLC is transparent in Sweden.
- Ignoring Swedish CFC rules for a low-taxed US company.
- Running the US company from Sweden without considering Swedish residence.
- 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
Is a Delaware C-Corp the usual choice for Swedish founders? Yes, especially for startups raising from US investors and for subsidiaries.
Can my AB own the US company? Yes. The US company becomes a subsidiary, with transfer pricing between them.
Can I form a US company from Sweden 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 Sweden
We form US LLCs and corporations for residents of Sweden 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 Swedish tax adviser, who confirms the Swedish 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.
Expanding from Sweden 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.
