Introduction
It's only natural that an Indian founder would want to start a US LLC to gain entry into international markets, integrate Stripe & PayPal, and have access to US investors. Yet a misstep can cause unwanted delay, penalties, or even run-ins with the law.
Mistake #1: Choosing the Wrong US State for Registration
Most individuals quickly sign up in well-known states such as Delaware or Wyoming without considering their individual requirements.
Why it's a mistake:
Every state has varied expenses, compliance on an annual basis, and taxation regulations. An incorrect state choice may result in additional expenditure or added legal complications in the future.
Pro Tip:
Delaware is ideal for new companies willing to raise capital.
Wyoming or New Mexico are appropriate for lone entrepreneurs as well as low-budget ventures.
Mistake #2: Using Incomplete or Incorrect Documents
Incorrect spelling, absent apostrophes, or incorrect passport information at registration can slow down EIN (Employer Identification Number) or bank account approval.
Why it hurts:
Your US LLC filing may be rejected or remain in limbo at the IRS.
Mistake #3: Not Appointing a Reliable Registered Agent
A registered agent is a requirement to receive formal documents in the US. A low-cost or untrustworthy agent can lead to missed notices and fines.
Why it matters:
If you forget any compliance or legal document filing deadline, your LLC can be flagged as inactive or non-compliant.
Error #4: Skipping the EIN Application or Doing it Incorrectly
An EIN (such as a business PAN) is needed to acquire a US bank account or pay taxes. Non-residents often don't apply in the right way or use representatives who are not familiar with IRS regulations for foreign nationals.
Why this is serious:
Without an EIN, you can't run your business efficiently, nor can you link Stripe, PayPal, or Amazon.
Mistake #5: Not Opening a Proper US Business Bank Account
Certain founders open an LLC but don't open an actual US bank account, which impacts credibility, funding, and payment gateway integration.
Why it hurts growth:
You could experience payment rejections, legal trouble, or issues scaling your business globally.
Bonus Tip: Stay Compliant Post-Formation
Creating the LLC is only the first step. You need to submit annual reports, tax returns, and renew your Registered Agent every year to maintain the LLC's status.
Conclusion
Registering a US LLC in India is easier than ever before, but only if you do it correctly. By sidestepping these five most common pitfalls, you can save time, penalties, and start your international business with confidence.
Regardless of being a freelancer, SaaS entrepreneur, e-commerce merchant, or investor—a US LLC provides you with international credibility and access to high-end payment options.
E-Startup India Offers End-to-End US Company Registration Services
At E-Startup India, we assist Indian entrepreneurs to register US companies without having to physically travel to the US. From choosing the most suitable state to obtaining your EIN, opening a bank account, and maintaining compliance—we take care of it all.
