Register a company in the USA from South Africa

Who should own the US company?

Decide this first, because it changes how the money leaves South Africa and how profits come back.

Owning it yourself suits a solo founder, say someone selling online. You fund it from your personal allowances, and any dividends come to you as a person. The US takes 15% of each one.

If your South African company owns it, the money goes out through that company's bank as a foreign investment. The US takes only 5% of dividends paid to a South African company with at least 10% of the votes. This route also leaves a US work visa open to you later, as a manager transferred from the South African company.

Either way, South Africa doesn't tax those dividends once the holding is 10% or more.

Which type of company should you pick?

• A limited liability company is the simplest to run and keep. With a single owner from abroad, it pays no US federal tax itself. It still files a yearly ownership report with the US tax office.
• A corporation is what US investors expect. It pays 21% federal tax on its profit. Pick it if you plan to raise money in the US.

A limited liability company you own yourself fits a solo founder. A corporation owned by your South African company fits an established business entering the US.

Which state should you register in?

Most founders from abroad pick Delaware or Wyoming, and you can register in either from South Africa. Delaware suits a corporation that will raise money, because US investors expect it. Wyoming is the low-cost home for a limited liability company.

• Delaware charges $109 to form a corporation and $110 for a limited liability company. A limited liability company then pays $300 a year, rising to $400 from June 2027. A corporation pays a yearly tax from $175, plus $50 for its annual report.
• Wyoming charges $100 to form either one. The yearly fee is $60, or more if the company holds a lot of assets in Wyoming.

If the company later opens an office or hires staff in another state, it registers there as well.

What do you need to get started?

• A copy of each owner's passport.
• A company name, checked to make sure it's free.
• The owners and their share of the company.
• A local agent in your state, who receives legal and official mail for the company. Every US company needs one.
• A US mailing address for your bank and customers, separate from the agent's.

None of the owners, directors or managers has to live in the US, and one person can hold every role. For a limited liability company, write an operating agreement even if you are the only owner. US banks ask for it.

How does it work, step by step?

1. Decide the owner, the type of company and the state.
2. Check the name and appoint the local agent.
3. File the formation papers with the state.
4. Sign the operating agreement or company rules, and issue the shares.
5. Get the company's US tax number. Without a Social Security number, you apply by phone or fax, because the online form is closed to companies with no US base.
6. Open the US business bank account.
7. Send the starting money from South Africa.
8. Register for state taxes and any licenses your business needs.

The first steps take days. The tax number and the bank account take up most of the 2 to 8 weeks.

You don't need a personal US tax number to get the company's one. A foreign owner of 10% or more also files a one-time survey on new foreign investment with the US government. It is due within 45 days of setting up. Many guides still say the company must report its owners to the US Treasury. That rule ended for companies formed in the US in August 2026.

How do you get money to the US company?

South Africa controls how much money leaves the country. Open the US bank account first, then send the money through your South African bank.

• You can send up to R2 million a year with only your bank's normal checks. The limit was R1 million before April 2026.
• You can send up to R10 million more a year once the South African Revenue Service approves the transfer.
• Above that, the Reserve Bank has to approve it, through your bank.
• A South African company invests through its own bank, up to R5 billion a year.

US banks ask for the formation papers, the tax number letter, the operating agreement or company rules, and each owner's passport. Most founders abroad use an online business bank, because traditional banks often want a branch visit.

What tax will you pay?

In the US, a corporation pays 21% federal tax on its profit, plus state tax where it operates. On dividends paid to South Africa, the US takes 30% by default. The tax treaty cuts that to 5% or 15%.

A limited liability company with one foreign owner pays no federal tax itself. You pay US tax only on income earned by running a business in the US. The company still files the yearly ownership report, even with no income. Money you put in or take out goes on it. Missing it costs $25,000.

South Africa taxes its residents on income from everywhere. If South Africans own more than half of the US company, its profit can be taxed in South Africa as if you earned it. A real US office with its own staff, used for at least a year, keeps most active income out of that. If you hold 10% or more, you file an extra form on the US company with your South African return.

Owning the US company doesn't give your South African company a US tax presence by itself. A US office, an agent signing contracts for it, or staff in the US over 183 days a year can.

What if your two companies do business together?

Once your South African business charges the US company anything, the price must match what two unrelated companies would agree on. That goes for management fees, loans, licenses and shared staff.

Both tax offices check this. The US can move income from one company to the other. South Africa can treat any shortfall as a dividend and tax it. Every deal between the two also goes on the yearly ownership report. Sign an agreement between the companies before the first invoice, and write down how you set the price.

Can you work in the US or hire people there?

Owning a US company doesn't give you the right to work in the US. A business visitor visa covers meetings and contract talks, but no work. The investor visa is closed to South Africans, because South Africa isn't on the treaty list it needs.

The usual route is a manager transfer. You need 12 months in a row as an executive or manager at the related South African company, within the last three years.

The US company can hire once it registers for payroll tax in the state where people work. Each new hire fills in a work eligibility form, and you check their documents within three business days of their start. If you aren't ready for payroll, an employer of record can hire for you.

What do you owe every year?

• The state's yearly fee. It is due by March 1 for a Delaware corporation and June 1 for a Delaware limited liability company. In Wyoming it falls on the first day of your anniversary month.
• A late Delaware corporation pays a $200 penalty plus 1.5% a month.
• The US company tax return, or the ownership report for a single-owner limited liability company, by April 15 for a calendar-year company.
• Your South African return, with the form on the US company if you hold 10% or more.
• Fair-price records, once the two companies trade.

How we help South African founders register and run a US company

We register your US company, get its tax number and appoint the local agent. You stay in South Africa, and we handle the filings in the US.

Once it exists, our software tracks every filing the company owes, in the US and in South Africa, on one calendar. Our tax and accounting team files the ownership report and the federal return. We do the same work in 80+ countries, so a second country later runs the same way.

Book a call with us, and we will map every filing your US company owes in its first year, in the US and in South Africa.

Can a South African own a company in the USA?

Yes. A South African can own 100% of a US limited liability company (LLC) or C corporation (C-Corp). You need no US residency, US visa or Social Security number (SSN). No US state requires a US-resident owner, director or manager. You form, own and run the company from South Africa. Owning it does not give you the right to work in the US.

US goods and services trade with South Africa reached an estimated $28.8 billion in 2025, according to the US Trade Representative^[1]. This guide is for South African founders and South African companies setting up a US entity. It does not cover moving to the US.

Should you or your South African company own the US company?

Decide ownership before you file anything. If you own the US company personally, you fund it from your own exchange control allowances and receive dividends as an individual. If your South African company owns it, the company funds it as a foreign direct investment through its bank. It also pays less US tax on dividends and keeps the L-1A visa route open.

A personally owned LLC suits a solo founder selling online. A subsidiary suits an operating South African business entering the US.

Should a South African form an LLC or a C-Corp?

Form a Delaware C-Corp if you plan to raise money from US investors. Form an LLC if you want the simplest company to run and keep. A single-member LLC owned by a foreign person pays no US federal tax itself, but it must still file Form 5472 every year. A C-Corp pays 21% federal tax on its profit.

Our LLC vs C-Corp guide covers the choice in more depth.

Which state should a South African choose, Delaware or Wyoming?

Choose Delaware for a C-Corp that will raise money, because US investors expect it. Choose Wyoming for a low-cost LLC, because its minimum annual tax is $60. You can form in either state from South Africa. If the company later has an office or staff in another state, it registers there too.

Delaware adds a $200 penalty plus 1.5% a month when a corporation pays late. See Wyoming LLC vs Delaware LLC and our Delaware franchise tax guide.

Who does a US company need: members, directors and a registered agent?

A US LLC needs at least one member, and that member can be you or your South African company. A C-Corp needs shareholders, at least one director and officers, and one person can hold every role. Every US company also needs a registered agent with a physical address in its state of formation. None of these people has to live in the US.

Write an operating agreement for an LLC even if you are its only member, because US banks ask for it. The registered agent receives legal and state mail for the company. Its address is not your business address, so keep a separate mailing address for banks and customers.

How do you register a company in the USA from South Africa?

You register a company in the USA from South Africa in ten steps, and the first six usually take days. Decide the owner, then form the company in your chosen state. The Employer Identification Number (EIN) and the bank account take most of the 2 to 8 weeks. Send money from South Africa only after the US account is open.

1. Decide who owns the company: you or your South African company.
2. Choose an LLC or a C-Corp, and the state.
3. Check the name is free with our company name checker.
4. Appoint a registered agent in that state.
5. File a certificate of formation (LLC) or certificate of incorporation (C-Corp).
6. Sign the operating agreement or bylaws, and issue the shares or membership interests.
7. Apply for an EIN from the Internal Revenue Service (IRS).
8. Open a US business bank account.
9. Send the starting capital from South Africa under the right allowance.
10. Register for state taxes and any licenses your business needs.

How do you get an EIN without a Social Security number?

Apply for the EIN by phone or by fax, because the IRS online application is closed to companies with no US principal place of business. Call 267-941-1099, Monday to Friday, 6am to 11pm Eastern time. Or fax Form SS-4 to 304-707-9471 from outside the US. Write "foreign" on line 7b if the responsible party has no SSN.

The responsible party must be an individual who controls the company, and a South African founder qualifies. You do not need an Individual Taxpayer Identification Number (ITIN) to get an EIN. An ITIN is for a person who must file a US tax return or claim a treaty benefit. The Form SS-4 instructions^[3] set out each line.

What must you file before you start trading?

Before trading, the company needs its EIN, any state tax registrations, and any license its activity requires. C-Corp founders who receive shares that vest should file an 83(b) election within 30 days of the grant. In South Africa, the money must clear exchange control before it leaves. You do not file a beneficial ownership information (BOI) report.

The Financial Crimes Enforcement Network (FinCEN) made that exemption permanent in its August 2026 final rule. Companies formed in the US no longer report their owners to FinCEN^[5]. Many guides still say to file within 30 days of formation. That requirement is gone.

How do you open a US bank account and send money from South Africa?

Open the US account in the company's name, then send the capital through your South African bank under the right exchange control allowance. US banks ask for the formation documents, the EIN letter, the operating agreement or bylaws, and each owner's passport. Most non-resident founders use an online business bank, because traditional banks often want a branch visit.

How much you can send depends on who owns the company. The South African Reserve Bank (SARB) sets these limits, and SARB Circular 6/2026^[13] raised the first one on April 8, 2026.

How is a South African-owned US company taxed in the US?

A C-Corp pays 21% US federal tax on its profit, plus state tax where it operates. Its dividends to a South African owner face 30% US withholding, which the tax treaty cuts to 5% or 15%. A single-member LLC pays no federal tax itself. Its owner pays US tax only on income effectively connected with a US trade or business (ECI).

Every foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120, even with no income. It is due with the Form 1120 deadline, which is April 15 for a calendar-year company. Money you put in or take out counts as a reportable transaction. A missed filing costs $25,000, plus $25,000 for each further 30 days after an IRS notice, per the Form 5472 instructions^[4]. Read more in our Form 5472 guide.

What does SARS tax when you own a US company?

The South African Revenue Service (SARS) taxes residents on worldwide income, so a US company stays visible to SARS. If South African residents hold more than 50% of it, it is a controlled foreign company (CFC). Its net income can then be taxed in South Africa as if you earned it. A real US business establishment exempts most of that income.

The tax treaty between the US and South Africa^[9] has been in force since December 28, 1997. Owning a US subsidiary does not, by itself, give your South African company a taxable presence in the US. An office, a dependent agent who signs contracts, or staff working there more than 183 days in a year can.

When do you need transfer pricing between your South African and US companies?

You need transfer pricing as soon as your South African and US companies trade with each other. Management fees, loans, licenses and shared staff must be priced at arm's length, as if the companies were strangers. The IRS can reallocate income under section 482. SARS applies section 31 of the Income Tax Act and treats any shortfall as a deemed dividend.

Every related-party transaction also appears on Form 5472. Sign an intercompany agreement before the first invoice, and record how you set the price. Our transfer pricing software drafts the policy and flags transactions that drift from it.

Can you hire in the US, and which visa lets you work there?

Your US company can hire employees once it registers for payroll tax in the state where they work. Each new hire completes Form I-9, and you verify their documents within 3 business days of their first day. You personally need a work visa to work in the US. For most South African founders the realistic route is an L-1A transfer.

• B-1 lets you visit for meetings and contract negotiations, but not work.
• E-2, the investor visa, needs a treaty country. South Africa is not on the State Department's treaty list.
• L-1A needs 12 continuous months as an executive or manager at the related South African company in the last 3 years. See USCIS on the L-1A^[24].

If you are not ready to run US payroll, an employer of record (EOR) can hire for you first. Our entity vs EOR calculator compares the two routes.

How we help South Africans register and run a US company

We incorporate your US company, get the EIN and appoint the registered agent. Our entity management platform then tracks every filing the company owes, with a compliance calendar for both countries. Our tax and accounting team files Form 5472 and the federal return. Most companies are operational in about 30 days.

Book a demo to get a free map of every filing your US company owes in its first year, in the US and in South Africa.