New Mexico LLC Formation for Ukrainian IT Contractors
Ukrainian IT contractors can form a New Mexico LLC to facilitate B2B contracts with US-based clients. New Mexico does not require annual reports, reducing administrative overhead for remote founders.
Mercury provides banking services for these entities, provided the LLC has a valid EIN and the beneficial owner passes identity verification. You must maintain compliance with both US IRS reporting requirements and Ukrainian tax residency rules.
Model the full outlay, not just the setup fee
- SetupMercury (banking-only) setup$0.00
- AnnualYear 2 renewal$0.00
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).
Diia City tax regime; war-time residency displacement rules
Use New Mexico for low maintenance, but ensure your Diia City tax reporting accurately reflects US-sourced income to avoid double taxation under the US-Ukraine tax treaty.
- 01Form 5472 and 1120 filing requirement for foreign-owned single-member LLCs
- 02Failure to file Form 5472 results in a minimum $25,000 penalty
- 03Diia City tax residency status may be impacted by US-based management activities
From filing to funded bank account
US LLC (New Mexico) vs Estonia OÜ (e-Residency)
FAQ
Start filing with Mercury (banking-only)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.