Does Denmark's controlled foreign company rule apply to individuals?

Yes. A Danish tax reference says Section 16 H of the Tax Assessment Act applies to individuals and estates. Control means more than 50 percent of capital or votes, directly, indirectly or jointly with close relatives.

Can I form an LLC in Wyoming if I live in Denmark and have never visited the US?

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

What are the tests under Section 16 H?

CFC income must exceed one half of the company's taxable income, and the foreign income tax must be below three-quarters of the tax at the Danish corporate rate, which is 22 percent, so 16.5 percent. Ask a Danish adviser to apply them to your LLC.

How long does a Wyoming LLC take from Denmark?

For a founder in Denmark, expect a few business days to roughly two weeks for Wyoming 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 ongoing filings does a Danish founder need for a Wyoming LLC?

For a founder in Denmark, the federal Form 5472 and pro forma Form 1120 come due every year, with a $25,000 minimum penalty for a missed filing. On the state side, Wyoming's requirement is $60 minimum, filed in your LLC's anniversary month.

Does the US-Denmark treaty stop the Danish CFC rule?

No. KPMG's Denmark profile says the CFC inclusion applies irrespective of the rules in a double tax treaty.

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

Yes, Denmark appears among the US treaty partners. It changes little for US tax on an LLC earning only non-US-source income and does not switch off the Danish rule.

Form a Wyoming LLC from Denmark: Complete 2026 Guide

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

Start your formation View pricing

$100 · State filing fee

$60 minimum · Annual fee

2-5 business days · Avg. filing time

Wire/ACH via Mercury or Relay · Transfer method

Quick Summary

Country: Denmark
State: Wyoming
Avg. filing time: 2-5 business days
State filing fee: $100 (mail) / $102-104 (online)
Annual report fee: $60 minimum (based on in-state assets, per Wyoming Statute § 17-29-209)
Transfer method: Wire/ACH via Mercury or Relay (not on either prohibited-countries list)

Why Wyoming

Why do Danish founders look at Wyoming? Mostly because the state-level side is predictable. The filing fee is $100 ($102 online), the ongoing requirement is $60 (based on in-state assets, minimum $60, filed on the anniversary month), and the state applies no state income tax and no franchise tax. Wyoming does not publicly list LLC member or manager names in its formation filings. Keep in mind that the state says nothing about how Denmark taxes you; that depends on Denmark law and is covered further down this page. What Wyoming offers is a low, predictable annual cost and strong privacy.

For Danish Founders

Danish 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. Denmark is an EU member and the krone is tied to the euro, and a Danish owner funds the LLC from kroner converted to dollars. Denmark has a controlled-foreign-company rule that applies to individuals, so the Danish tax analysis is the main task.

Is Wyoming Right For You

The case for Wyoming: you want the lowest ongoing annual cost combined with strong privacy and no state income tax, and you don't need a Delaware-specific court system or investor familiarity. 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.

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: your Wyoming annual obligation ($60 minimum, filed in your LLC's anniversary month) 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 Denmark

The IRS international EIN line (267-941-1099) answers from 6 a.m. to 11 p.m. Eastern. Denmark is six hours ahead of Eastern Time for most of the year, so the window runs from noon to 5 a.m. Danish time, with a shorter gap for a few weeks when the US and Europe change clocks on different dates. Call in your afternoon or early evening and plan on 45-60 minutes.

Forming In Wyoming Step By Step

For a Denmark-based owner the order of operations is: registered agent first (you need their Wyoming 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.

Wyoming LLC For Danish Founders

For a Danish owner whose main task is the Section 16 H analysis, Wyoming keeps the US side light: $100 to file, a $60 minimum annual fee and no state income tax.

Five Year State Cost Of A Wyoming LLC

Over five years, the state-level cost of a Wyoming LLC is a $100 filing fee plus $60 a year for five years, so $400 in total, before the registered agent. That makes Wyoming the middle of the five states on this measure. The same arithmetic across the five states runs from $50 to $2,110. For a Danish owner, Section 16 H of the Tax Assessment Act reaches individuals directly, so budget for a Danish adviser's written view alongside the US costs.

What A Wyoming LLC Costs From Denmark

Budgeting for a Wyoming LLC from Denmark? The one-time state fee is $100 ($102 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 $60 (based on in-state assets, minimum $60, filed on the anniversary month). Bundled, EasyBrise Global Launch costs $295 for year one with a registered agent included and $149 a year to renew.

Banking From Denmark Mercury And Relay

Denmark is not on Mercury's prohibited-countries list, which is based on country of residence, and it is not on Relay's list, which looks at the citizenship and residency of the owners. Both banks run their own reviews, so approval is never guaranteed. Neither bank's published rules restrict international wires involving Denmark. Kroner are converted to dollars when you fund the account, so compare the exchange rate and any fee at your Danish bank.

Your Recurring Dates As A Danish Owner

As a Danish owner, your recurring dates look like this. State: Wyoming's annual report and $60 minimum fee fall due in your LLC's anniversary month. 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 noon to 5 a.m. Danish time for most of the year (the gap shrinks to five hours for a few weeks when US and European clock changes fall on different dates). 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.

Section 16 H Reaches Individuals Not Only Companies

The Danish tax reference states that the rule applies to individuals subject to the withholding tax act and to estates. A Danish owner of a US LLC is therefore not outside the rule just because the owner is a person and not a company. Control is tested at more than 50 percent of capital or votes, directly, indirectly or jointly with close relatives, and trusts and foundations linked to the taxpayer can also count.

Danish Controlled Foreign Company Rules For Individuals

A Danish tax reference describes the controlled-foreign-company rule in Section 16 H of the Tax Assessment Act, Ligningsloven, as applying to individuals as well as estates, not only to companies. Control means owning more than 50 percent of the share capital or votes, directly, indirectly or jointly with close relatives. The rule applies where the foreign company's CFC income exceeds half of its taxable income and where the foreign tax is below three-quarters of the tax that would apply at the Danish corporate rate, which is 22 percent. At that rate, three-quarters is 16.5 percent. A single-member LLC bearing little or no US federal income tax is below that line, so the income-composition test matters.

Requirements

Requirement	Needed
US Social Security Number
US visit required
Registered agent with US address
Wyoming annual filing
Federal Form 5472 + pro forma 1120

Costs

Item	Cost
State filing fee	$100 (mail) / $102 (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 Wyoming

Choose Wyoming if

you want the lowest ongoing annual cost combined with strong privacy and no state income tax, and you don't need a Delaware-specific court system or investor familiarity

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-Denmark tax treaty in force since 1999, updated by a 2006 protocol

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 Denmark

Or browse all formation guides by country.

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