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

Yes, a US-Japan income tax treaty is in force. For an LLC earning only non-US-source income it changes little, although entity classification can affect treaty benefits.

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

For a founder in Japan, yes. US LLC formation does not require US residency, a US visit or a Social Security Number. Founders based in Japan 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 Japanese resident open a Mercury or Relay account?

Yes in principle. Japan 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 Japan?

For a founder in Japan, 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 Japanese founder need for a New Mexico LLC?

For a founder in Japan, 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 Japan?

The IRS international line is open 6 a.m. to 11 p.m. Eastern. Japan stays on UTC+9 all year, so the window is 8 p.m. to 1 p.m. in US standard time and 7 p.m. to noon in US daylight time.

Do Japan's controlled foreign company rules count individuals?

As described by the Tax Foundation, individuals count toward the ownership tests: a company is a CFC where Japanese shareholders own 50 percent or more in total and each counted holder has at least 10 percent. How an individual owner is taxed should be confirmed with a Japanese adviser.

Form a New Mexico LLC from Japan: Complete 2026 Guide

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

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: Japan
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 Japanese 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 Japan taxes you; that depends on Japan law and is covered further down this page. What New Mexico offers is the least ongoing paperwork of any of the five states.

For Japanese Founders

Japanese 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. A founder in Japan funds the LLC from yen converted to dollars. Japan has controlled-foreign-company rules that count individual shareholders toward their ownership tests, and the way Japan classifies a foreign entity such as a US LLC is itself a question, so the Japanese 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.

Calling The IRS From Japan

The IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Japan stays on UTC+9 all year, so the window runs from 8 p.m. to 1 p.m. Japanese time in US standard time and from 7 p.m. to noon in US daylight time. Call from your evening or early morning and plan on 45-60 minutes.

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.

Forming In New Mexico Step By Step

For a Japan-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 Japanese Founders

New Mexico suits a Japanese 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.

What A New Mexico LLC Costs From Japan

Budgeting for a New Mexico LLC from Japan? 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.

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 Japanese owner, the classification of the LLC and Japan's controlled-foreign-company tests decide the home-country result, so budget for a Japanese tax adviser's written view alongside the US costs.

Your Recurring Dates As A Japanese Owner

As a Japanese 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 8 p.m. to 1 p.m. Japanese time in US standard time (7 p.m. to noon in US daylight time). 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.

The United States Japan Income Tax Treaty

The United States and Japan have an income tax treaty in force. 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 in practice because there is usually no US federal income tax for it to reduce, although entity classification can decide whether treaty benefits are available.

How Japan Classifies A United States LLC Is Not Settled Here

In 2015 the Japanese Supreme Court treated a Delaware limited partnership as an opaque entity for Japanese tax, and the National Tax Agency later issued a note on US limited partnerships for treaty purposes. The sources we found address limited partnerships and do not mention LLCs, so we cannot say how Japan treats a US LLC. This is the first question to put to a Japanese tax adviser, because it decides whether the LLC's profit is taxed to you as it arises or as a dividend.

Japanese Controlled Foreign Company Rules And LLC Classification

As described by the Tax Foundation, Japan's controlled-foreign-company rules treat a foreign company as a CFC where Japanese shareholders own 50 percent or more in aggregate, and each Japanese shareholder counted must hold at least 10 percent. Individuals count toward these tests, although the description we found speaks of the income being taxed to a Japanese parent corporation, so how an individual owner is taxed needs a Japanese adviser's confirmation. Income from an active business with a fixed place of business abroad is generally exempt, while passive income such as dividends, interest, royalties and capital gains is generally taxable. Separately, how Japan classifies a US LLC for tax is not settled by the sources we found.

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-Japan tax treaty in force, updated by 2013 protocol; does not override CFC paper-company classification for a US LLC

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 Japan

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