Is there a US-Nepal income tax treaty?

The IRS treaty tables list no comprehensive income tax treaty with Nepal.

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

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

Mercury's list is residence-based and includes Nepal, so a Nepal-resident founder cannot open a Mercury account. Relay's prohibited list does not name Nepal, but its wire-restrictions page lists Nepal for beneficial-owner citizenship, so ask Relay about international wires.

How long does a New Mexico LLC take from Nepal?

For a founder in Nepal, 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 Nepali founder need for a New Mexico LLC?

For a founder in Nepal, 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 Nepal?

The IRS international line is open 6 a.m. to 11 p.m. Eastern. Nepal is on UTC+5:45 all year, so the window is 3:45 p.m. to 8:45 a.m. in US daylight time and 4:45 p.m. to 9:45 a.m. in US standard time.

Does Nepal tax residents on foreign income?

The Income Tax Act text we reviewed makes a resident's income assessable irrespective of the place of its source. An individual is resident with a normal abode in Nepal or 183 days or more in a continuous 365-day period.

Form a New Mexico LLC from Nepal: Complete 2026 Guide

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

Start your formation View pricing

$50 · State filing fee

None - New Mexico requires no… · Annual fee

3-7 business days · Avg. filing time

Wire/ACH via Relay · Transfer method

Quick Summary

Country: Nepal
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 Relay (Mercury restricts Nepal)

Why New Mexico

Why do Nepali 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 Nepal taxes you; that depends on Nepal law and is covered further down this page. What New Mexico offers is the least ongoing paperwork of any of the five states.

For Nepali Founders

Nepali freelancers, developers, consultants and online sellers form US LLCs to invoice international clients in dollars, hold a US business account and present a domestic US vendor to American customers. A Nepali resident is taxed on income from any source, and Nepal has rules on investing abroad, so funding and reporting are as important as the US formation. Banking also differs from most countries because of Mercury's country restriction.

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 Nepal

The IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Nepal is on UTC+5:45 all year with no daylight saving. In US daylight time that window is 3:45 p.m. to 8:45 a.m. Nepal time, and in US standard time it is 4:45 p.m. to 9:45 a.m. Call in your evening and plan on 45-60 minutes, and the IRS fax or mail route takes 4-6 weeks.

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 Nepal-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 Nepali Founders

New Mexico suits a Nepali 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 Nepal

Budgeting for a New Mexico LLC from Nepal? 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 a business bank account is usually free at banks that accept your country (check Mercury's and Relay's published lists). 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.

Your Recurring Dates As A Nepali Owner

As a Nepali 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 3:45 p.m. to 8:45 a.m. Nepal time in US daylight time (4:45 p.m. to 9:45 a.m. in US standard 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.

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 Nepali owner, Nepal taxes residents on income from any source and restricts outward investment, so budget for a Nepali adviser's view on funding and reporting.

Nepali Taxation Of Residents And Foreign Income

The Income Tax Act 2058 text we reviewed makes a resident person's income from employment, business or investment assessable irrespective of the place of its source, while a non-resident is taxed only on Nepal-source income. An individual is resident if their normal abode is in Nepal or they have lived there for 183 days or more in a continuous 365-day period. A foreign-source loss may be deducted only against that person's foreign-source income. The excerpt we read contains no controlled-foreign-company rule, but the Act gives the Department general powers to adjust arrangements between associated persons and to disregard tax-avoidance arrangements. Ask a Nepali adviser how an LLC's profit is reported and whether a foreign tax credit applies.

Relay Is The Realistic Bank But Check International Wires

Because Mercury's list is residence-based, a Nepal-resident founder cannot use it, and Relay is the practical choice. Relay's wire-restrictions page lists Nepal for beneficial-owner citizenship, so Relay may be unable to offer international wire services to a Nepali citizen. Ask Relay directly whether the account can send and receive international wires. Cards, ACH and payment processors may still work for US customers.

No CFC Rule In The Text We Reviewed And The Anti Avoidance Powers

The excerpt of the Act we reviewed contains no controlled-foreign-company rule. It does contain general anti-avoidance provisions allowing the Department to adjust arrangements between associated persons, divide income, or disregard tax-avoidance arrangements. The excerpt was incomplete, so ask a Nepali adviser to confirm whether any later rule or directive applies to a foreign LLC owned by a resident.

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 at most US business banks (eligibility varies by country)
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

No comprehensive US-Nepal tax treaty; Nepal Foreign Exchange Regulation Act restricts outward investment, with 2025-2026 liberalization specifically for the IT sector

Banking

Alternative Options
Mercury lists Nepal as a prohibited country, so Mercury is not available. Relay does not restrict Nepal, making it the more realistic option, with Payoneer as a fallback.

Frequently Asked Questions

More guides for founders in Nepal

Or browse all formation guides by country.

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