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

For owners in Israel: yes, entirely remotely. New Mexico does not ask for residency or a trip to the US, and no SSN is required. A registered agent provides the New Mexico address, and the EIN application uses "Foreign" or "N/A" where an SSN would go.

Why does Relay's wire restriction matter to an Israeli founder?

Relay's published rule says it cannot process international wires, sending or receiving, involving Israel, and that the list can change without notice. If you want to move money between a Relay account and an Israeli bank by wire, confirm the current position with Relay first.

How long does a New Mexico LLC take from Israel?

For owners in Israel: expect a few business days to roughly two weeks for New Mexico to approve the filing, depending on volume. The EIN by phone is usually same-week, so formation, EIN and a submitted bank application commonly take 2-4 weeks in total.

Is there a US-Israel tax treaty?

Yes, an income tax treaty has been in force since 1975. Whether it relieves tax on an LLC's profit depends on the income type and on how Israel classifies the LLC, so take advice on your specific numbers.

What time can I phone the IRS from Israel?

The IRS international line takes calls 6 a.m. to 11 p.m. Eastern. With Israel about seven hours ahead for most of the year, that is roughly 1 p.m. to 6 a.m. Israeli time. Plan for 45-60 minutes.

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

For owners in Israel: the federal Form 5472 and pro forma Form 1120 are due every year ($25,000 minimum penalty if missed). On the state side, New Mexico requires nothing recurring: no annual report and no annual fee, ever.

Does Israel tax the income of my US LLC?

Israel taxes its tax residents on worldwide income, so LLC profit generally falls within the Israeli tax net no matter which US state you form in. How and when it is taxed depends on whether Israel treats the LLC as transparent or as a company, which is why the classification question comes first.

Form a New Mexico LLC from Israel: Complete 2026 Guide

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

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$50 · State filing fee

None - New Mexico requires no an… · Annual fee

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Quick Summary

Country: Israel
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)

What It Costs

Forming in New Mexico costs $50 in state fees ($50 online where available). Add a registered agent, which every state requires and which typically runs $100-150 a year, a free IRS EIN application, and a US business bank account that is usually free with Mercury or Relay. Ongoing state cost: $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs. EasyBrise's Global Launch plan is $295 for year one including a registered agent, then $149 a year to renew, so most founders in Israel budget well under $500 for the first year, state fee included.

Why New Mexico

New Mexico is a common choice for Israeli founders who want a US LLC without moving to the US. Filing costs $50 by mail ($50 online where available), and the yearly state obligation is $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs. New Mexico has no tax on LLC income earned outside the state for non-resident owners, which keeps state-level compliance simple, although what Israel does with the LLC's profits is a separate question. On privacy: New Mexico does not publicly disclose member or manager names in its formation records. In short, New Mexico is the only one of the five with no annual filing at all.

For Israeli Founders

Israeli freelancers, software developers and online sellers usually form a US LLC to invoice clients in dollars through a US business bank account and to look like a domestic vendor to American customers. Israel taxes its residents on worldwide income, so the LLC does not move your income outside the Israeli tax system. What it changes is the paperwork: you will deal with two tax systems, and the questions that matter are how Israel classifies the LLC, whether Israeli controlled-foreign-company rules apply, and how the 1975 US-Israel tax treaty relieves double taxation.

Who This State Is For

New Mexico tends to be the right fit 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. Compare it with the other four states on cost, privacy and reporting before filing; switching states later means dissolving and re-forming rather than a simple amendment.

Post Formation Checklist

After your New Mexico LLC and EIN are in place: sign an Operating Agreement (banks and payment processors ask for it even where the state doesn't), skip BOI reporting because FinCEN's rule in force since August 14, 2026 permanently exempts all US-formed LLCs, open the bank account, apply to Stripe or PayPal (each runs its own eligibility review), and put there is no New Mexico annual filing to calendar plus the federal Form 5472 and pro forma 1120 deadline in your calendar.

How The Formation Process Works

The steps are the same for any Israel-based founder: pick a name, file Articles of Organization with the New Mexico Secretary of State (yourself or through your registered agent), appoint a registered agent with a physical New Mexico address, then apply for an EIN. You have no US Social Security Number, so on Form SS-4 you enter "Foreign" or "N/A" in that field. The phone route (267-941-1099, international callers) usually takes 45-60 minutes on the line; fax or mail takes 4-6 weeks. With the EIN in hand you apply for a US business bank account remotely.

New Mexico LLC For Israeli Founders

New Mexico is attractive to an Israeli owner who wants the least US paperwork: no state annual report at all, so the only recurring US filing is the federal Form 5472 and pro forma 1120. The Israeli-side questions around Section 75B and Circular 05/2004 are unaffected by this state choice.

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 an Israeli owner, the bigger variable is not this US state cost but how Israel classifies the LLC under Section 75B and Circular 05/2004.

Your Recurring Dates As An Israeli Owner

As an Israeli 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 roughly 1 p.m. to 6 a.m. Israeli time for most of the year. 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.

Questions To Put To Your Israeli Accountant

Before you form, ask your Israeli accountant four things. Will Israel treat the LLC as transparent or as a company? Does Section 75B reach you given your ownership share and the type of income? Is a Circular 05/2004 election available and advisable in your case? And how will US tax paid on the LLC's income be credited under the 1975 treaty?

Dual Citizenship And The Mercury Relay Rules

Mercury and Relay test eligibility differently, and it matters if you hold more than one passport. Mercury's prohibited-countries list is based on country of residence, not citizenship, and a citizen of a listed country who lives elsewhere may still be eligible after review. Relay's list looks at the citizenship or residency of the business owners. Israel is on neither list, so an Israeli resident with only Israeli citizenship is not excluded by country. If you also hold citizenship in, or live in, a country that either list names, check that bank's current page before applying.

Israel CFC Rules And The Foreign Entity Election

Two Israeli concepts get mixed up here, so keep them apart. Section 75B of the Israeli Income Tax Ordinance is the controlled-foreign-company regime: it can attribute certain undistributed passive income of a foreign company controlled by Israeli residents to those residents. The election is a different instrument: Israel Tax Authority Circular 05/2004 sets out a route for choosing how a foreign entity is classified for Israeli purposes. Both depend on the facts, so model them with an Israeli accountant before you form. On the US side the LLC still files Form 5472 with a pro forma Form 1120 every year; a missed or incomplete filing carries a $25,000 minimum penalty.

CFC Rules Versus The Foreign Entity Election In Plain Terms

A simple way to hold the two ideas apart: Section 75B asks whether income of a controlled foreign company is attributed to you as an Israeli resident, regardless of what you do. Circular 05/2004 deals with how the foreign entity is classified, which is a choice with consequences you model in advance. Mixing them up leads to the wrong question being put to an accountant.

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

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 Israel

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