Is there an income tax treaty between Denmark and the United States?

Yes, Denmark appears among the US treaty partners. It changes little for US tax on an LLC earning only non-US-source income and does not switch off the Danish rule.

Can I form an LLC in New Mexico if I live in Denmark and have never visited the US?

For a founder in Denmark, yes. US LLC formation does not require US residency, a US visit or a Social Security Number. Founders based in Denmark form New Mexico LLCs remotely using a registered agent for the required US address, and they apply for an EIN with "Foreign" or "N/A" in place of an SSN.

Can a Danish resident open a Mercury or Relay account?

Yes in principle. Denmark is not on Mercury's prohibited list (residence-based) or on Relay's list (owners' citizenship or residency), subject to each bank's own review.

How long does a New Mexico LLC take from Denmark?

For a founder in Denmark, state approval in New Mexico typically takes a few business days to about two weeks depending on filing volume, and the EIN can often be obtained the same week by phone. Most founders have the LLC, the EIN and a bank application in 2-4 weeks.

What ongoing filings does a Danish founder need for a New Mexico LLC?

For a founder in Denmark, only the federal one: Form 5472 with a pro forma Form 1120, due every year for a foreign-owned single-member LLC, with a $25,000 minimum penalty if missed. New Mexico has no annual report or fee to add.

What time can I phone the IRS from Denmark?

The IRS international line is open 6 a.m. to 11 p.m. Eastern. Denmark is six hours ahead of Eastern Time for most of the year, so the window is noon to 5 a.m. Danish time, with a shorter gap on the few weeks when US and European clock changes differ.

Does Denmark's controlled foreign company rule apply to individuals?

Yes. A Danish tax reference says Section 16 H of the Tax Assessment Act applies to individuals and estates. Control means more than 50 percent of capital or votes, directly, indirectly or jointly with close relatives.

Form a New Mexico LLC from Denmark: Complete 2026 Guide

Everything a Denmark-based founder needs to form, bank, and run a New Mexico LLC — costs, EIN process, and tax angles specific to Denmark.

Start your formation View pricing

$50 · State filing fee

None - New Mexico requires no an… · Annual fee

3-7 business days · Avg. filing time

Wire/ACH via Mercury or Relay · Transfer method

Quick Summary

Country: Denmark
State: New Mexico
Avg. filing time: 3-7 business days
State filing fee: $50
Annual report fee: None - New Mexico requires no annual report and no franchise tax of any kind for a standard LLC (the only US state offering true zero ongoing state-level filing)
Transfer method: Wire/ACH via Mercury or Relay (not on either prohibited-countries list)

Why New Mexico

Why do Danish founders look at New Mexico? Mostly because the state-level side is predictable. The filing fee is $50 ($50 online), the ongoing requirement is $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs, and the state applies no tax on LLC income earned outside the state for non-resident owners. New Mexico does not publicly disclose member or manager names in its formation records. Keep in mind that the state says nothing about how Denmark taxes you; that depends on Denmark law and is covered further down this page. What New Mexico offers is the least ongoing paperwork of any of the five states.

For Danish Founders

Danish freelancers, developers, consultants and online sellers form US LLCs to invoice international clients in dollars, hold a US business bank account and present a domestic US vendor to American customers. Denmark is an EU member and the krone is tied to the euro, and a Danish owner funds the LLC from kroner converted to dollars. Denmark has a controlled-foreign-company rule that applies to individuals, so the Danish tax analysis is the main task.

After Formation Checklist

Three things to do straight after formation. First, the paperwork: an Operating Agreement, and a note of the EIN letter's location (if it is lost, ask the IRS for Form 147C). Second, the money side: bank account, then Stripe or PayPal subject to their review. Third, the calendar: there is no New Mexico annual filing to calendar and the federal Form 5472 and pro forma 1120. Federal Beneficial Ownership Information reporting is not something you need to do: FinCEN's rule in force since August 14, 2026 permanently exempts all US-formed LLCs.

Is New Mexico Right For You

The case for New Mexico: minimizing ongoing paperwork is the top priority — no annual report, ever, is unique among these five states — and strict privacy matters more to you than name recognition. The case against is simply that another state may suit your priorities better, and changing states after formation means closing the LLC and starting a new one.

Calling The IRS From Denmark

The IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Denmark is six hours ahead of Eastern Time for most of the year, so the window runs from noon to 5 a.m. Danish time, with a shorter gap for a few weeks when the US and Europe change clocks on different dates. Call in your afternoon or early evening and plan on 45-60 minutes.

Forming In New Mexico Step By Step

For a Denmark-based owner the order of operations is: registered agent first (you need their New Mexico address for the filing), then the Articles of Organization, then the EIN, then the bank account. The EIN application is Form SS-4; leave the SSN field as "Foreign" or "N/A". Calling the IRS international line (267-941-1099) is the fast route at about 45-60 minutes; faxing or mailing the form takes 4-6 weeks. Once you hold the EIN letter, bank and payment applications can begin.

New Mexico LLC For Danish Founders

New Mexico suits a Danish founder who wants the lightest US paperwork: a $50 filing fee, no annual state report and no annual fee, leaving only the federal Form 5472 and pro forma 1120.

Your Recurring Dates As A Danish Owner

As a Danish owner, your recurring dates look like this. State: New Mexico adds no state annual filing at all. Federal: Form 5472 with the pro forma Form 1120 is due on the return due date, April 15 for a calendar-year LLC, extendable with Form 7004. For the one-off EIN call, the IRS line (6 a.m. to 11 p.m. Eastern) is open noon to 5 a.m. Danish time for most of the year (the gap shrinks to five hours for a few weeks when US and European clock changes fall on different dates). Put the state date and the federal date in your calendar when the EIN arrives, because a missed Form 5472 carries a $25,000 minimum penalty.

Five Year State Cost Of A New Mexico LLC

Over five years, the state-level cost of a New Mexico LLC is a $50 filing fee and nothing recurring, so $50 in total, before the registered agent. That makes New Mexico the cheapest of the five states on this measure. The same arithmetic across the five states runs from $50 to $2,110. For a Danish owner, Section 16 H of the Tax Assessment Act reaches individuals directly, so budget for a Danish adviser's written view alongside the US costs.

What A New Mexico LLC Costs From Denmark

Budgeting for a New Mexico LLC from Denmark? The one-time state fee is $50 ($50 online). Every LLC then needs a registered agent (typically $100-150 a year); the EIN itself costs nothing when you apply to the IRS directly; and Mercury or Relay accounts are usually free. The yearly state-side item is $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs. Bundled, EasyBrise Global Launch costs $295 for year one with a registered agent included and $149 a year to renew.

Why A Treaty Does Not Switch The Rule Off

KPMG's Denmark profile says the CFC inclusion applies irrespective of the rules in a double tax treaty, so the US-Denmark treaty does not by itself take the LLC outside the Danish rule. The tax reference lists the circumstances in which the rule can apply, including an agreement with foreign tax authorities on the rate or tax base. Treat the treaty as background and get the Danish analysis done directly.

The United States Denmark Income Tax Treaty

Denmark appears among the partners with a US income tax treaty. It covers dividends, interest, royalties and tie-breaker rules for residency, and you can confirm the details in the IRS treaty tables. For a typical founder whose LLC earns only non-US-source income, the treaty changes little for US tax because there is usually no US federal income tax for it to reduce, and as noted it does not switch off Danish CFC taxation.

Danish Controlled Foreign Company Rules For Individuals

A Danish tax reference describes the controlled-foreign-company rule in Section 16 H of the Tax Assessment Act, Ligningsloven, as applying to individuals as well as estates, not only to companies. Control means owning more than 50 percent of the share capital or votes, directly, indirectly or jointly with close relatives. The rule applies where the foreign company's CFC income exceeds half of its taxable income and where the foreign tax is below three-quarters of the tax that would apply at the Danish corporate rate, which is 22 percent. At that rate, three-quarters is 16.5 percent. A single-member LLC bearing little or no US federal income tax is below that line, so the income-composition test matters.

Requirements

Requirement	Needed
US Social Security Number
US visit required
Registered agent with US address
New Mexico annual filing
Federal Form 5472 + pro forma 1120

Costs

Item	Cost
State filing fee	$50 (mail) / $50 (online)
Registered agent (annual)	$100-150/yr (or included in EasyBrise Global Launch)
EIN application	Free via IRS (or via a paid service)
US business bank account	Free (Mercury / Relay)
EasyBrise Global Launch (year 1, incl. registered agent)	$295
EasyBrise renewal (year 2+)	$149/yr

Who Should Choose New Mexico

Choose New Mexico if

minimizing ongoing paperwork is the top priority — no annual report, ever, is unique among these five states — and strict privacy matters more to you than name recognition

Consider another state if

your priorities (fundraising plans, revenue level, or reporting tolerance) point more strongly to one of the other four states in the comparison table above.

Comparison

State	Filing Fee	Annual Requirement	State Income Tax	Privacy
Wyoming	$100 mail / $102 online	$60	None	No public member names
Delaware	$110	$400 flat annual franchise tax	None	No public member names
Texas	$300	$0 franchise tax for LLCs with revenue below the no-tax-due threshold	None	No public member names
New Mexico	$50	$0 ever	None	No public member names
Florida	$125	$138.75 mandatory annual report fee, due every year	None	Member names public

Taxes

Comprehensive US-Denmark tax treaty in force since 1999, updated by a 2006 protocol

Banking

Mercury
Popular with non-resident founders; requires US LLC + EIN; no US visit needed
Relay
Remote-friendly for non-residents; requires formed US entity

Frequently Asked Questions

More guides for founders in Denmark

Or browse all formation guides by country.

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