Can a Brazilian citizen form a US LLC without visiting the United States?
Yes. A Brazilian citizen can form a Delaware, Wyoming, or other US LLC entirely remotely from Brazil. No US visit, US address, or Social Security Number is required. Mercury, Relay Financial, Wise Business and Stripe Atlas bundled banking complete the remote setup. Traditional US banks typically require in-person visits and decline Brazilian remote applications.
One of the largest Latin American founder groups establishing US LLCs comes from Brazilian entrepreneurs, attracted by real/dollar volatility, Brazilian capital controls through BACEN that restrict outbound investment, the necessity for Stripe and international payment processor presence, and the robust commercial and cultural links between Brazil and the US.
Fully accessible to Brazilian citizens, Delaware or Wyoming LLCs permit remote formation with no US residency requirement and no Social Security Number needed. Brazilian founders grapple with Receita Federal reporting requirements, the lack of a US-Brazil income tax treaty and fulfillment obligations under BACEN’s DCBE (Declaracao de Capitais Brasileiros no Exterior) regime.
This guide walks a Brazilian citizen through forming and operating a US LLC in 2026: Delaware versus Wyoming selection, the Receita Federal’s CPF and reporting requirements, BACEN DCBE and outbound capital framework, banking at Mercury and Relay, Stripe access and costs in USD from formation through year two.
Why US Entities Work for Brazilian Founders
The Brazilian real has experienced repeated devaluations and volatility against the dollar, creating a structural incentive for any Brazilian entrepreneur with international revenue to accumulate dollars offshore rather than repatriate. A US LLC with a US bank account gives Brazilian founders:
- Dollar-denominated invoicing and revenue collection
- Access to Stripe US, PayPal US and payment processors that do not serve Brazilian-resident businesses on equal terms
- Wise Business and fintech rails that settle USD, EUR, GBP, AUD and dozens of currencies
- International credibility with US and European B2B customers who prefer contracting with US entities
- A holding structure for US-traded securities, digital assets, or international investments
The Brazilian reality for international service businesses, creator businesses, e-commerce, SaaS and consulting is that the LLC solves a payment infrastructure problem as much as a tax planning problem.
Brazilian personal taxation reaches up to 27.5 percent on declared worldwide income, and Brazil does not have a tax treaty with the United States, so careful planning is required to avoid double taxation on US LLC income.
The US LLC for a Brazilian founder is a dollar banking, payment processing and credibility vehicle. Brazilian tax on the LLC’s income is mostly unavoidable without personal relocation, given the absence of a US-Brazil tax treaty. Founders who understand this going in structure the LLC properly, founders who expect tax savings without relocation are often disappointed.
Review the Delaware Division of Corporations portal and the Receita Federal international taxation guidance before filing.
For a comparison of Delaware versus Wyoming for bootstrap founders, the Delaware vs Wyoming vs Nevada LLC comparison covers the trade-offs.
LLC vs C-Corp for a Brazilian Founder
When a solo-member LLC backed by a Brazilian citizen with no US ECI comes to tax time, the entity itself incurs no US federal income tax. Form 5472 and pro-forma 1120 go out annually. Distributions come through as business income, not dividends, which means no US withholding is required.
A C-Corporation is a separate US taxpayer at 21 percent federal. Dividends to Brazilian shareholders face 30 percent US statutory withholding, not reduced by treaty because the US and Brazil do not have an income tax treaty in force. This is a material disadvantage for Brazilian founders choosing the C-Corp route.
International-focused Brazilian startups founded by bootstrappers favor the LLC across all strategies. Founders bringing in US venture capital as Brazilians are the only group that chooses the C-Corp structure regularly, and even then, the 30 percent dividend withholding requirement becomes an important planning factor.
| Factor | Delaware LLC | Delaware C-Corp |
|---|---|---|
| US federal tax | 0 percent if no ECI | 21 percent |
| Withholding to Brazil | 0 percent | 30 percent (no treaty relief) |
| Brazilian tax on income | Personal income tax up to 27.5 percent | Dividend income taxable on receipt |
| Setup cost year 1 | 300 to 800 USD | 500 to 1,500 USD |
No US-Brazil Tax Treaty: Implications
The US and Brazil do not have an income tax treaty in force. This has three consequences:
First, US withholding on outbound dividends from a C-Corp is the statutory 30 percent with no treaty reduction. This is one of the strongest arguments for pass-through LLC over C-Corp.
There is no treaty-based mutual agreement procedure between Brazilian tax authorities and the US IRS for double taxation disputes. Brazilian residents paying tax in Brazil on LLC income must rely on unilateral foreign tax credit provisions available under Brazilian law.
Third, information exchange between the countries occurs through IGA-1 FATCA (US-Brazil IGA signed 2014) which provides US financial institution data on Brazilian beneficial owners to Receita Federal, plus CRS-adjacent information flows. Receita Federal has visibility into US bank accounts of Brazilian residents.
Brazilian founders managing US LLCs must accept that Receita Federal will become aware of the entity. On an annual basis, the DIRPF (Declaracao de Imposto de Renda Pessoa Fisica) requires declaration of this information, as do DCBE forms for qualifying threshold purposes and foreign tax credit mechanisms where applicable.
BACEN DCBE and Outbound Capital
Holding assets worth USD 1 million or more outside Brazil, Brazilian residents living abroad must submit the DCBE (Declaracao de Capitais Brasileiros no Exterior) annually to BACEN (Brazil’s Central Bank). This declaration covers foreign bank accounts, overseas company ownership, international real estate and investment holdings abroad.
Rules and thresholds for CADBRO real-time reporting of transactions have strengthened over time for amounts exceeding certain limits.
Brazilian law mandates that outbound capital to fund a US LLC move through authorized foreign exchange desks at Brazilian banks. Documented, legitimate and routine though the process is, it leaves a paper trail Receita Federal can access. Contributions of 1,000 to 50,000 USD are straightforward small-capital cases, larger ongoing capital movements require proper documentation.
Following the 2016 RERCT amnesty and ensuing reporting enhancements, BACEN and Receita Federal have stepped up examination of undeclared foreign assets. Holders of US LLCs residing in Brazil need to file DIRPF forms and DCBE submissions where applicable. Non-disclosure risks have expanded through FATCA and CRS data sharing.
Visit the BACEN foreign capital declarations portal and work with a Brazilian tax advisor.
Formation Step by Step
Establishing a Delaware LLC when a Brazilian citizen is involved:
- Choose state and name (Delaware default for Stripe and fintech acceptance).
- Appoint a Delaware registered agent costs 50 to 200 USD annually.
- File Certificate of Formation costs 110 USD in Delaware.
- Get an EIN from the IRS using Form SS-4 by fax (4 to 8 weeks processing) or paid expediting services that deliver in 1 to 3 weeks.
- File FinCEN BOI report when mandated (the March 2025 FinCEN rule exempted US-formed entities and US persons from this requirement, but now foreign-formed entities registered to do business in the US must file when mandated).
- Open a US bank account through Mercury, Relay, Wise Business or the Stripe Atlas bundle.
- Set up Stripe for payment processing.
- Register for state tax when applicable (a Delaware LLC with no Delaware operations pays only 300 USD annually for franchise tax).
End-to-end: 6 to 12 weeks.
Operational infrastructure, not tax vehicles, is how Brazilian founders who succeed with US LLCs think of them. Dollar banking, Stripe access and international payment credibility drive the value. Any tax savings that materialize come from personal relocation rather than LLC ownership by itself. Declaration mechanics for foreign assets appear in Receita Federal DIRPF guidance.
Banking Reality
Mercury Bank is the most reliable option for Brazilian-owned Delaware LLCs. Acceptance is high with proper documentation (passport, CPF, proof of Brazilian address, LLC formation documents, clear business description). Relay Financial and Wise Business also accept Brazilian founders. Stripe Atlas bundles formation plus Mercury banking plus Stripe activation at 500 USD, the lowest-friction option.
| Banking Option | Brazilian Founder Acceptance | Onboarding Time |
|---|---|---|
| Mercury | Generally accepted | 2 to 3 weeks |
| Relay Financial | Accepted | 2 to 3 weeks |
| Wise Business | Accepted | 1 to 2 weeks |
| Stripe Atlas bundled | Accepted | Concurrent |
| Chase, BofA traditional | Declined remote | Not recommended |
US Visa and Physical Presence
A Delaware LLC does not grant US residency or right to work. Brazil does not have a qualifying Treaty of Commerce and Navigation with the United States, so Brazilian citizens are not eligible for the E-2 Treaty Investor visa based on Brazilian nationality alone (Brazil is grouped with China, India, and Russia as major economies excluded from the E-2 treaty country list).
The only workaround is holding dual citizenship in a qualifying treaty country.
Brazilian founders have other options open to them: L-1 intracompany transferee requires a qualifying Brazilian parent company established 1+ years prior, EB-5 immigrant investor requires an 800,000 to 1,050,000 USD investment, O-1 extraordinary ability, EB-2 National Interest Waiver or H-1B specialty occupation (subject to the annual lottery).
Brazilian Tax Reality
Brazilian tax residents must report worldwide income on DIRPF. US LLC income is taxable in Brazil at progressive rates up to 27.5 percent, with foreign tax credit for US tax paid where applicable. CFC-type rules under Law 12973⁄2014 can attribute foreign subsidiary profits to Brazilian controlling shareholders in specific circumstances.
For a Brazilian citizen who has relocated to the US (or elsewhere) and broken Brazilian tax residency, the LLC’s income is no longer Brazilian-taxed. Brazilian tax residency depends on specific tests (departure declaration, continued center of vital interests).
Costs in USD
| Item | Year 1 | Year 2 |
|---|---|---|
| Delaware filing | 110 | 0 |
| Registered agent | 50 to 200 | 50 to 200 |
| Formation service | 100 to 500 | 0 |
| EIN expediting | 0 to 500 | 0 |
| Stripe Atlas (if used) | 500 | 0 |
| Delaware franchise tax | 300 | 300 |
| US tax return | 400 to 1,500 | 400 to 1,500 |
| Brazil return adjustment | 100 to 500 | 100 to 500 |
Year 1: 1,560 to 4,110 USD. Year 2: 850 to 2,500 USD.
Operating From Sao Paulo, Rio, or Anywhere in Brazil
Operation on a daily basis is simple. Bill in USD through the LLC, collect in Mercury or Stripe, hold dollar balances and transfer to Brazilian accounts as needed. Numerous Brazilian founders retain the LLC’s dollar balance as protection against real volatility.
Many use this framework: an LLC as the primary international structure, Brazilian sole proprietorships (MEI or ME, or Simples Nacional) for work confined to the Brazilian market. Intercompany service agreements formalize the relationship between these entities.
Common Mistakes
Five patterns surface repeatedly. Filing skips at DCBE when the foreign asset threshold is hit occur first. LLC omission from the annual DIRPF creates exposure as FATCA data streams next. EIN timeline miscalculation without expediting comes third. Discrepancies across the company name in the EIN letter, Mercury application and Stripe business profile trigger KYC flags fourth.
Assuming the LLC delivers tax savings without Brazilian side planning results in surprise Brazilian personal tax on LLC income fifth.
When to Add Complementary Structures
Scaling beyond 500,000 USD annual revenue, Brazilian founders occasionally bring in:
- UAE free zone company for personal residency and tax optimization
- UK Limited works for building B2B credibility in the UK and EU markets.
- Portuguese Limitada for Portuguese-language EU market with D8 or D2 visa path
Timeline
- Week 1 focuses on path selection and document preparation.
- Week 1 to 2: Certificate of Formation
- Week 2 to 8: EIN issuance
- Week 3 to 6: Bank account setup
- Weeks 4 through 8 focus on activating Stripe.
- Week 6 to 12: Fully operational
Brazilian Tax Reform and CFC Interactions
Brazil has been undergoing substantial tax reform with the consumption-tax restructuring (CBS and IBS replacing PIS, Cofins, ICMS and ISS progressively through 2033) approved in 2023 and being implemented through 2024 to 2033. The income tax side is also under reform discussion. Brazilian founders with US LLCs should monitor the reform trajectory and its CFC and international-taxation aspects.
Brazil’s current CFC-type rules under Law 12973⁄2014 attribute controlled foreign company profits to Brazilian resident shareholders on a current basis in specified circumstances, particularly for passive-income structures.
A single-member US LLC treated as disregarded for US purposes can create complex characterization issues in Brazil, where the LLC may be treated as a partnership, a corporation, or a transparent entity depending on specific facts. Professional Brazilian international tax advice is recommended for founders with substantial LLC activity.
Stripe Brasil and Payment Processing Evolution
Stripe has progressively expanded its Brazilian presence through Stripe Brasil, which serves Brazilian-domiciled businesses directly with integration to PIX (the Brazilian instant payment system), Boleto and credit card rails. For some Brazilian founders, Stripe Brasil has removed the historical need for a US LLC to access Stripe.
However, US Stripe (through a US LLC) still delivers specific advantages that Stripe Brasil does not match:
- Access to the full Stripe Atlas ecosystem and faster feature rollouts
- Revenue collection is in USD denominations and Mercury accounts accumulate accordingly.
- US-resident billing profile preferred by some enterprise US clients
- Compatibility with US-based marketplaces and platforms
Brazilian e-commerce and services firms targeting mainly Brazilian customers find that Stripe Brasil along with a Brazilian company works well. International services, content and SaaS businesses, however, continue to value the US LLC paired with US Stripe.
Digital Nomad Visas and Tax Residency Options
Brazilian founders considering personal tax residency alternatives have several options that pair well with a US LLC:
- Grandfathering under Portuguese NHR (grandfathered for pre-2024 registrants) or transition to new IFICI regime for eligible cases.
- UAE Golden Visa and tax residency for eligible founders
- Estonian Digital Nomad Visa opens to qualifying remote workers.
- Various Latin American options (Uruguay, Panama, Paraguay) with specific tax benefits
Using a US LLC as the business structure combined with personal relocation to a tax-favorable residency jurisdiction delivers results better than either strategy alone. Without a US-Brazil tax treaty to bridge cross-border optimization gaps, the synergies between these approaches become even more valuable.
E-commerce, Marketplaces, and Platform Payout Considerations
International e-commerce founders in Brazil working through US LLC structures face platform-specific requirements across major marketplaces. Amazon US permits Brazilian-owned Delaware LLCs to sell via Amazon Seller Central using standard US seller criteria (a US bank account, EIN and business documentation).
Shopify accepts Brazilian-owned Delaware LLCs with US Stripe or Shopify Payments integrated through Mercury. Both eBay, Etsy and Walmart Marketplace generally allow US LLCs owned by Brazilian citizens following standard onboarding protocols.
Creator platforms (YouTube AdSense, Patreon, Substack, Twitch, TikTok Creator Fund) accept US LLCs for payout purposes, often with better payment timing and lower currency conversion friction than direct-to-Brazil payouts. Brazilian content creators commonly route earnings through a US LLC to accumulate USD reserves before converting to BRL for local spending.
Timing Strategy for LLC Distributions
Unlike dividends from a C-Corp (which face immediate US withholding), distributions from a single-member LLC to the Brazilian owner have no US entity-level withholding. The Brazilian founder can time distributions based on:
- Personal cash needs in Brazil
- Handling BRL-USD exchange by retaining USD during BRL weakness and converting during BRL strength.
- Brazilian tax year planning (staging distributions to smooth marginal rate impact)
- DCBE threshold considerations (keeping aggregate foreign assets under USD 1 million if close to threshold)
Timing flexibility represents one structural advantage that the pass-through LLC offers Brazilian founders compared to a C-Corp, since distributions in a C-Corp trigger immediate US withholding.
How can a foreigner start a business in the USA?
Anyone building a US business - whether from Brazil or elsewhere - can establish an LLC or C-Corp without requirements for US citizenship, residency, SSN or visa.
The standard approach for Brazilian founders begins by selecting a state (Delaware costs $110 to form plus $300 annual franchise tax, Wyoming $100 upfront plus $60 yearly), filing the Certificate of Formation, hiring a registered agent costing $50 to $150 per year, getting an EIN by faxing Form SS-4 to the IRS (no cost, 4 to 8 weeks processing), and opening a Mercury, Relay, or Wise Business account.
Self-directed startup expenses come to $500 to $1,500, or $500 through Stripe Atlas as a flat fee. No US physical presence is needed, but income from US sources requires federal tax filing, including Form 5472 for sole-member foreign-owned LLCs.
How can I start a business in USA?
Launching a US business requires five main steps. Select your structure first - an LLC offers simple pass-through taxation, a C-Corp is better if you intend to attract venture funding. Choose your state next: Delaware costs $110 to start plus $300 annually, Wyoming is $100 to found plus $60 yearly, or use your home state if your business operates locally.
File your formation documents and appoint a registered agent costing $50 to $150 per year. Get a free EIN from the IRS (apply online with an SSN, use Form SS-4 by fax without one - allow 4 to 8 weeks). Open a business bank account with Mercury, Relay, or a traditional bank of your choice.
Brazilian founders spend $500 to $1,500 self-directed for the full package, or go through Stripe Atlas for a flat $500 fee that includes automated EIN and banking.
How do I start a business in the USA?
Establish a US company by creating an LLC or C-Corp in your selected state, hiring a registered agent, getting an EIN and opening a business bank account. Delaware works as the default for Brazilian founders: it costs $110 to form, $300 annually in franchise tax and registered agent fees of $50 to $150 per year.
Wyoming is cheaper at $100 to form and $60 annually, though you save nothing if your business needs Delaware’s legal standing. Obtain an EIN gratis, and fax Form SS-4 to get results in 4 to 8 weeks from non-US addresses (no SSN needed). Mercury and Relay accept Brazilian founders remotely, completing setups in 5 to 10 business days.
Setup takes 6 to 12 weeks from start to finish, or bundle options through Stripe Atlas can move it as fast as 2 to 3 weeks. You never need to visit the US.