New Mexico LLC via doola — German Indie Developers
German indie developers who want minimum US-side friction pick New Mexico for the lack of annual state report and franchise tax. Wyoming adds $60/year for slightly stronger brand; NM saves that cost with functionally identical operation.
US tax: LLC pays $0 federal tax when non-ETBUS with no effectively connected income. Form 5472 + pro-forma 1120 mandatory yearly under IRC §6038A; $25,000 penalty. Germany side: AO §138 Anzeigepflicht requires Finanzamt notification within one month using form BZSt-2; non-notification is up to EUR 25,000 under §379 AO.
AStG CFC rules apply to passive income; active SaaS or consulting typically escapes attribution.
Model the full outlay, not just the setup fee
- Setupdoola setup$297.00
- AnnualYear 2 renewal$297.00
What the tax authority sees
A New Mexico LLC held by a German resident owes no US federal tax when non-ETBUS with no effectively connected income; Form 5472 (IRC §6038A) mandatory yearly; AO §138 Anzeigepflicht requires Finanzamt notification within one month.
AO §138 Anzeigepflicht (foreign entity disclosure); CFC rules
New Mexico LLC is the cheapest US state to maintain; AO §138 filing and AStG CFC evaluation are identical across states.
- 01Form 5472 penalty $25,000 per year (IRC §6038A)
- 02AO §138 non-notification up to EUR 25,000 (§379 AO)
- 03AStG CFC attribution risk for passive LLC income
- 04Gewerbesteuer risk if Finanzamt deems the LLC to have Betriebsstätte in Germany
From filing to funded bank account
US LLC (New Mexico) vs Estonia OÜ (e-Residency)
FAQ
No. Abgabenordnung §138 Anzeigepflicht applies to any foreign entity ownership regardless of US state. Notify your local Finanzamt within one month of formation using form BZSt-2 or Finanzamt letter. Same $25,000 penalty exposure under §379 AO for non-notification.
Start filing with doola
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.