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

Living in Paraguay does not change this: 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.

Can a Paraguayan resident open Mercury or Relay accounts?

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

How long does a New Mexico LLC take from Paraguay?

Living in Paraguay does not change this: 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.

What time can I phone the IRS from Paraguay?

The IRS international line is open 6 a.m. to 11 p.m. Eastern. Paraguay stays on UTC-3, so that is 7 a.m. to midnight in US daylight time and 8 a.m. to 1 a.m. in US standard time.

What still has to be filed if Paraguay taxes foreign income at 0%?

The US filings: Form 5472 with a pro forma Form 1120 each year, with a $25,000 minimum penalty if missed or incomplete, and the state obligation for the state you chose. The 0% home rate does not remove them.

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

Living in Paraguay does not change this: 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 Paraguay tax income earned through a US LLC?

Paraguay taxes on a purely territorial basis. Foreign-source income is taxed at 0%, so an LLC's income from clients outside Paraguay generally does not create Paraguayan income tax. Paraguayan-source income remains taxable.

Form a New Mexico LLC from Paraguay: Complete 2026 Guide

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

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$50 · State filing fee

None - New Mexico requires no an… · Annual fee

3-7 business days · Avg. filing time

Quick Summary

Country: Paraguay
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

The cost side of a New Mexico LLC: $50 state fee ($50 online), a registered agent at typically $100-150 per year, a free IRS EIN, and a bank account that is usually free. Annual state requirement in New Mexico: $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs. If you use EasyBrise, Global Launch is $295 for year one (registered agent included) and $149 per year after, and for a founder in Paraguay the whole first year typically comes in well under $500.

Why New Mexico

New Mexico in one paragraph: $50 to file ($50 online), then $0 ever — New Mexico is one of the only states with no ongoing annual report or annual fee for LLCs each year. The state imposes 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. For a Paraguay-based owner the state choice mainly decides cost, privacy and paperwork, not your home-country tax result. If the least ongoing paperwork of any of the five states is what you are optimizing for, New Mexico deserves a close look.

Who This State Is For

New Mexico fits 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. Check the comparison table above before you commit, as switching later is not a simple amendment: the New Mexico LLC would be dissolved and a new one formed elsewhere.

For Paraguayan Founders

Paraguay is among the simplest home countries for a US LLC owner from a tax point of view. It taxes on a purely territorial basis, so income earned outside Paraguay is not taxed there, and the rate on foreign income is 0%. Freelancers, developers and online sellers in Paraguay form US LLCs to invoice in dollars through a US business bank account and to look like a domestic supplier to American clients, and the tax result is largely settled on the US side. The remaining work is mostly American: choosing the state, appointing a registered agent, getting the EIN and keeping up the annual filings.

Post Formation Checklist

Your New Mexico LLC exists once the state accepts the filing, but it is only ready to trade after these steps: sign the Operating Agreement; get the bank account open; apply for payment processors; calendar there is no New Mexico annual filing to calendar and the federal Form 5472 and pro forma 1120. On BOI: FinCEN's rule in force since August 14, 2026 permanently exempts all US-formed LLCs, so there is nothing to file there.

How The Formation Process Works

Here is how New Mexico formation works for someone in Paraguay. File the Articles of Organization with the New Mexico Secretary of State, using a registered agent's physical New Mexico address. Request your EIN from the IRS, writing "Foreign" or "N/A" in place of an SSN (phone: 267-941-1099, about 45-60 minutes; fax or mail: 4-6 weeks). Then apply for Mercury or Relay online. Every step can be done remotely.

What Makes Paraguay The Cleanest Case

Of the home countries we cover, Paraguay has one of the simplest answers: territorial taxation, 0% on foreign income and no CFC rules. That does not remove the need to keep records. Show that the income is foreign-source, keep the LLC's US filings current, and revisit the position if Paraguayan law changes, because territorial rules can be amended.

New Mexico LLC For Paraguayan Founders

New Mexico pairs naturally with Paraguay's territorial system: a $50 filing fee, no annual state report and no annual fee, and no home-country tax on foreign income, leaving only the federal Form 5472 and pro forma 1120.

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 Paraguayan owner, Paraguay adds no tax on foreign-source income, so these US costs and the federal filings are the main recurring items.

Your Recurring Dates As A Paraguayan Owner

As a Paraguayan 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 7 a.m. to midnight Paraguayan time in US daylight time (8 a.m. to 1 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.

Dual Citizenship And The Mercury Relay Rules

Mercury and Relay test eligibility in different ways. 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 looks at the citizenship or residency of the business owners. Paraguay is on neither list. If you hold a second passport or live in another country, check that country against both lists before you apply.

Paraguay Pure Territorial Taxation And US Compliance

Paraguay applies 100% territorial taxation: foreign-source income is taxed at 0%, and the country has no controlled-foreign-company regime to attribute an LLC's profit to you. For an owner resident in Paraguay, the LLC's non-Paraguayan business income therefore generally does not create Paraguayan income tax. The point to keep clean is the source of the income, since income that is Paraguayan-source stays taxable at home. The compliance work that remains is American: the LLC files Form 5472 and a pro forma Form 1120 every year, with a $25,000 minimum penalty for a missed or incomplete filing.

Paraguay Compared With The Other Countries In This Series

It helps to see how simple the Paraguayan position is beside its neighbours and peers. An Israeli owner has to think about Section 75B and the Circular 05/2004 election. A Chinese owner faces individual controlled-foreign-company rules from 2018 and a grey-area whitelist. A Colombian owner is inside the ECE regime with accrual taxation, and a Uruguayan owner has the 12% rate introduced in 2026. A Paraguayan owner has territorial taxation, 0% on foreign income and no CFC rules.

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 Paraguay

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