New Mexico LLC Formation for Korean E-commerce Sellers
Korean e-commerce entrepreneurs can incorporate a New Mexico LLC to access the US market without the burden of state-level annual reporting requirements. This structure allows for pass-through taxation, provided the business does not maintain a physical presence that constitutes a US trade or business.
Founders must comply with both US IRS reporting requirements and the South Korean National Tax Service regulations regarding foreign-source income. Proper tax treaty application is necessary to manage royalty and dividend withholding rates.
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).
National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).
Use doola to form in New Mexico to avoid annual report fees, but ensure you maintain strict records for Korean National Tax Service reporting under the Income Tax Act.
- 01Form 5472 and 1120 penalty of $25,000 for non-filing
- 02Korean NTS audit risk on foreign-source income
- 03Potential US withholding tax on US-sourced dividends
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.