US Company Formation from Türkiye (Turkey) 2026: LLC or Corporation, the US–Türkiye Tax Treaty, Turkish CFC Rules, Costs and Banking
Forming a US LLC or corporation from Türkiye: the US–Türkiye tax treaty, dividend withholding, Turkish worldwide tax and CFC rules, costs and banking.
Istanbul, Ankara and İzmir are home to a large community of software developers, game studios, e-commerce brands and exporters who sell to customers abroad. For many of them, a US company is the most practical way to receive dollar payments, use US payment platforms, sell on Amazon.com or raise from US investors, especially when currency movements make dollar revenue valuable.
Türkiye has an income tax treaty with the USA, and it taxes its residents on their worldwide income, with controlled foreign company (CFC) rules that can reach a foreign company's undistributed profits. This guide explains how US company formation from Türkiye works, which structure usually suits Turkish founders, and what to discuss with a Turkish adviser.
Short answer: a resident of Türkiye can own 100% of a US LLC or corporation, formed remotely 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. The US–Türkiye treaty generally limits US withholding on dividends to 20% for individual shareholders (15% for qualifying companies), and taxes business profits in the USA only through a US permanent establishment. A single-member LLC run entirely from Türkiye often owes no US income tax but files Form 5472 every year. Türkiye taxes residents on worldwide income, and its CFC rules can attribute certain undistributed profits of a controlled foreign company, mainly where the income is largely passive and lightly taxed. An active services or e-commerce business is usually outside them, but confirm with a Turkish adviser.
Can a resident of Türkiye own a US company?
Yes. US states place no restriction on the nationality or residence of owners. Turkish citizens and residents of Türkiye 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 Türkiye form a US company
- Dollar revenue in a US bank account, without conversion on every payment.
- US payment platforms with their full feature set. See Stripe for non-residents.
- Amazon.com and US e-commerce, popular with Turkish textile, home goods and cosmetics brands. See US LLC for e-commerce sellers.
- Games and apps sold through US platforms. See US LLC for app developers.
- US investors for startups. See raising US investment as a foreign founder.
The tax picture for residents of Türkiye
The US–Türkiye tax treaty
Türkiye has an income tax treaty with the USA. Dividends from a US corporation to a resident of Türkiye can be withheld at a reduced treaty rate, generally 20% 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 Türkiye | Usually none | 21% of profits |
| US tax when profits are paid to the owner | None (not a dividend) | Treaty rate, generally 20% 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 Türkiye, 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.
With the treaty, a C-Corporation's dividends are taxed less heavily than for owners in non-treaty countries, but the 21% corporate tax still applies first. For most freelancers, agencies and sellers taking profits out, an LLC remains simpler on the US side; how Türkiye classifies the LLC is the question to settle locally.
The Turkish side
Türkiye taxes individuals resident there, broadly those living in Türkiye for more than six months in a calendar year, on their worldwide income, at progressive rates. Points to settle with a Turkish adviser:
- How Türkiye classifies the US company, and whether profits are taxed as they arise or when distributed to you.
- CFC rules. Turkish rules can attribute the undistributed profits of a foreign company controlled by Turkish residents, broadly where most of its income is passive and it pays little tax abroad. Active trading or services businesses usually fall outside them, but the tests are technical.
- Dividends received from a US corporation are taxable in Türkiye, with credit for US tax withheld under the treaty.
- Your Turkish business, if you also have one, and the pricing of anything it does for the US company.
We handle the US side; your Turkish adviser confirms the Turkish 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 |
| Turkish ID card (T.C. Kimlik) | Sometimes requested by banks |
| Proof of address in Türkiye | A recent utility bill, e-Devlet residence document or bank statement |
| Company name and business description | Two or three names; a specific description |
| Turkish company documents | Only if a Turkish company 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 Türkiye, 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 Turkish ID and a recent proof of address, and for your nationality as well as your country of residence.
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 İstanbul game studio. A two-person studio publishes mobile games and wants to receive store payouts in dollars. A Wyoming LLC with a US bank account receives them. With all work done in Türkiye, the LLC usually owes no US income tax and files Form 5472 each year; their Turkish adviser confirms the Turkish treatment.
Example 2: the textile brand on Amazon. A Bursa textile brand forms a US LLC to sell on Amazon.com, holding stock in US warehouses. US state sales tax rules may apply because of the stock; we refer sales tax to a specialist.
Example 3: the funded startup. An Ankara SaaS startup raising from US investors forms a Delaware C-Corporation, accepting 21% corporate tax because profits will be reinvested.
Common mistakes
- Not checking Turkish CFC rules for a company with mostly passive income.
- Assuming the US view of an LLC also applies in Türkiye.
- Not claiming the treaty rate on dividends with a valid 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
What is the US withholding on dividends to a Turkish resident? Under the treaty, generally 20% for individual shareholders and 15% for companies holding at least 10%, with a valid W-8BEN or W-8BEN-E.
Does a US LLC owned from Türkiye pay US tax? Usually not, if all the work is done from Türkiye with no US office, staff or agents. It files Form 5472 every year.
Can I form a US company from Türkiye 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 Türkiye
We form US LLCs and corporations for residents of Türkiye 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 Turkish tax adviser, who confirms the Turkish 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.
Running a business from Türkiye 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.
