How to Start a US LLC from Iceland (2026 Complete Guide)

An EIN is the US tax ID that banks and payment platforms require. Icelandic founders without an SSN or ITIN can still get one through IRS Form SS-4, filed by phone, fax, mail, or a third-party designee like EasyBrise.

Once the EIN is issued, Mercury or Relay let founders open a US business account fully online. Mercury is free with FDIC-backed sweep coverage up to five million dollars and free international wires; Relay is free on its Starter plan with native QuickBooks/Xero sync.

Every state requires some annual filing -- a flat fee in Wyoming and Delaware, a free Public Information Report in Texas, nothing in New Mexico, a mandatory report in Florida. Federally, Form 5472 plus Form 1120 is due April 15. Since a FinCEN rule effective August 14, 2026, US-formed LLCs are permanently exempt from BOI reporting.

Formation is a five-step process most founders complete in two to four weeks: pick a state, file with a passport, get an EIN without an SSN, open a US bank account remotely, then keep up with one annual state filing and Form 5472. EasyBrise handles the first four steps directly.

Iceland's small population has produced an outsized creative and tech scene relative to its size -- game studios, design agencies, and renewable-energy and fisheries-tech consultants among them. A US LLC fits founders in any of these who are already, or plan to be, selling primarily to a US or international audience rather than the domestic Icelandic market.

Wyoming suits most founders for cost and privacy. Delaware fits those planning to raise US venture funding. Texas suits revenue-generating businesses. New Mexico offers the lowest lifetime cost. Florida gives a Miami-based presence for LatAm-facing trade, though it publicly discloses member names. Full comparison below.

Some founders assume a US-Iceland tax treaty exists given how closely Iceland works with the US and EU -- it does not, though a properly structured LLC with no US-source income generally still owes no US tax. Skipping Form 5472 because no US tax is owed is a common, costly mistake -- the 25,000 dollar penalty applies regardless of tax owed.

With an EIN and US bank account, Stripe treats the LLC like any other US business -- useful for Icelandic game studios, design agencies, and SaaS founders who bill US customers directly and want to avoid friction on the payment side.

Iceland's domestic market is under 400,000 people -- too small for most software, creative, or export-facing businesses to build around alone. That makes a US LLC less of an optional add-on and more of a default step for Icelandic founders who plan to sell internationally from day one, giving them a US bank account, US invoicing, and a US-registered vendor identity without relocating.

There is currently no comprehensive US-Iceland income tax treaty. A single-member LLC owned by a non-resident is a disregarded entity for US tax purposes, owing no US corporate tax on income not effectively connected with a US trade or business, but it must still file an informational Form 5472 with a pro-forma Form 1120 by April 15. Iceland has no exchange controls -- the krona is freely convertible with no fixed cap on funding a US LLC.