Many Canadian founders form a US company to sell to US clients, use Stripe and US payment rails, join US marketplaces, or meet investor expectations. This guide covers what you need to know before you file, and what happens after.
Why Canadian founders form US companies
If you sell software, services, or physical goods to US customers, a US LLC makes invoicing and payments simpler. US clients often prefer paying a US business. Some marketplaces and payment processors work more smoothly with a US entity than a foreign one. If you plan to raise money from US investors later, a US structure, often a Delaware C-Corporation, is usually expected.
None of this requires you to live in the US, visit the US, or hold a US visa. You can form and run a US LLC entirely from Canada.
You do not need a visa or a US visit
This is one of the most common questions from Canadian founders. Forming a US LLC is a paperwork process, not an immigration process. You do not need:
- A US visa
- A trip to the US
- A US address of your own (a registered agent and virtual business address cover this)
- A US Social Security Number
You will need a registered agent in your formation state, which PowerLaunch provides as part of every plan.
Choosing a state: Wyoming or Delaware
Most Canadian founders selling products or services, without a plan to raise venture money, choose Wyoming. It has low state fees, no state income tax on the LLC itself, and fast formation.
If you plan to raise from US venture investors, a Delaware C-Corporation is usually the better fit. Investors are familiar with Delaware corporate law, and most US venture deals are structured around it.
| Factor | Wyoming LLC | Delaware C-Corp |
|---|---|---|
| Best for | Freelancers, agencies, e-commerce, SaaS without VC plans | Startups raising venture funding |
| Formation speed | 1 to 3 business days | Check the state's site for current timelines |
| Ongoing state filing | Annual report | Annual report and franchise tax, check current figures |
| Investor familiarity | Lower, though accepted | High |
If you are unsure which fits your plan, this is a good question to bring to a free consultation.
Getting an EIN without an SSN
Every US LLC needs an Employer Identification Number, or EIN, to open a bank account and file taxes. You do not need an SSN to get one. As a non-resident founder, the IRS processes your EIN application differently than for a US resident, which takes longer.
Typical timeline: 2 to 4 weeks for non-resident owners without an SSN, using standard processing. Expedited processing brings this down to a matter of days. PowerLaunch offers expedited EIN as a $295 add-on on the Launch and Run plans, and it is included by default on Scale.
Opening a US bank account
Once you have your EIN, you can apply for a US business bank account. PowerLaunch makes introductions to Mercury, Wise Business, and Relay, all of which work with non-resident founders. Approval is always the bank's decision, not PowerLaunch's, so have your formation documents and EIN letter ready when you apply.
Having a US bank account matters for Canadian founders specifically, since it lets you invoice US clients in US dollars, connect Stripe, and avoid unnecessary currency conversion on every transaction.
The US filings every year
Owning a US LLC comes with yearly federal and state paperwork, even if the business had a quiet year.
Federal filings. If your LLC is a foreign-owned, single-member LLC, and it is not taxed as a corporation, you generally still need to file Form 5472 along with a pro forma 1120, due by 15 April. This is an informational filing, not necessarily a tax bill, but the penalty for missing it is steep, so do not skip it.
BOI reporting. Under the 2026 interim FinCEN rule, US-formed companies are currently exempt from beneficial ownership information reporting. Rules in this area have shifted before, so confirm your status each year rather than assuming last year's answer still holds.
State filings. Most states require an annual report and a fee to keep your LLC in good standing. Miss it, and your state can administratively dissolve your company. Rules and deadlines vary by state, so check the state's site or keep this on a calendar.
Your Canadian tax picture
Owning a US company does not remove your Canadian tax and reporting obligations. As a Canadian resident, you may need to report your ownership of a foreign company, and your US business income may factor into your Canadian tax return, depending on how the LLC is treated for Canadian purposes. Rules in this area are detailed and change, so this is not something to guess at.
Talk to a Canadian tax adviser familiar with foreign company ownership before you file your first Canadian return after forming a US LLC. PowerLaunch handles your US-side filings, but a local adviser should confirm your Canada-side obligations.
How PowerLaunch works for Canadian founders
PowerLaunch forms US LLCs and C-Corporations for founders anywhere in the world, including Canada, and runs them on the MyCG.AI finance platform.
| Plan | Price | What it covers |
|---|---|---|
| Launch | $295/yr | Formation, EIN, operating agreement or bylaws, registered agent, virtual address, AI assistant, email support |
| Run | $1,995/yr | Everything in Launch, plus annual state report, licensed tax professional consultation, IRS filings, transaction tracking, Stripe invoicing, live financial reports, bank connections |
| Scale | $2,995/yr or $329/mo | Everything in Run, plus expedited EIN, free dissolution, live call scheduling, dedicated bookkeeper |
State filing fees are billed at cost on every plan. If PowerLaunch makes a formation error, it is corrected at PowerLaunch's cost, with that portion of the fee refunded. State fees are never refundable.
What to do next
If you are ready to form your US LLC from Canada, start at powerlaunch.solutions/signup and choose the plan that fits your stage.
If you still have questions about state choice, EIN timing, or your Canadian tax picture, book a free 20-minute consultation at powerlaunch.solutions/book, or email contact@powerlaunch.solutions.
