Forming a New Mexico LLC for Indian SaaS Founders
Indian SaaS founders can incorporate a US LLC in New Mexico to access global payment gateways and international markets. This jurisdiction is chosen for its minimal administrative burden and lack of state-level annual reporting requirements.
The process requires navigating both US federal tax reporting obligations and Indian Reserve Bank (RBI) Overseas Direct Investment (ODI) regulations. Proper documentation is essential to maintain compliance in both jurisdictions.
Model the full outlay, not just the setup fee
- Setupdoola setup$297.00
- AnnualYear 2 renewal$297.00
What the tax authority sees
New Mexico LLCs are treated as pass-through entities for US federal tax purposes, meaning non-US owners are only subject to US federal income tax on income effectively connected with a US trade or business (ETBUS).
ODI (Overseas Direct Investment) RBI approval required for equity
New Mexico is ideal for privacy-focused SaaS founders due to the lack of annual reporting requirements, but ensure you comply with RBI ODI guidelines before transferring equity.
- 01Form 5472 and 1120 filing mandatory for foreign-owned single-member LLCs
- 02Failure to file Form 5472 results in a minimum $25,000 penalty
- 03RBI ODI compliance required for Indian residents holding foreign equity
- 04Potential double taxation if tax residency is not managed correctly
From filing to funded bank account
US LLC (New Mexico) vs Estonia OÜ (e-Residency)
FAQ
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.