Form a Wyoming LLC via Firstbase — Indian Freelance Developers
Indian freelance developers use a Wyoming LLC to invoice US and European clients in USD, get paid via Stripe or Wise, and avoid the FX slippage of receiving INR wires. Firstbase handles Wyoming formation, EIN, and Mercury banking in 14-24 days for $399.
The tax setup: your Wyoming LLC pays $0 US federal tax so long as you have no US employees, no US inventory, and no effectively connected income under ETBUS rules. The catch is Form 5472 — a pro-forma Form 1120 attaching Form 5472 is mandatory annually, even at zero revenue, with a $25,000 penalty per missed year.
On the Indian side, Section 44ADA presumptive taxation still applies to your personal freelancer income, but LLC distributions get taxed at slab rates and require Schedule FA disclosure on your ITR-2.
Model the full outlay, not just the setup fee
- SetupFirstbase.io setup$399.00
- PromoPromo · SMARTPROMO50−$50.00
- AnnualYear 2 renewal$150.00
What the tax authority sees
A Wyoming LLC owned by an Indian freelancer pays no US federal tax if not ETBUS and reports no effectively connected income, but Form 5472 with a pro-forma 1120 (IRC §6038A) is mandatory even at zero revenue.
Section 44ADA presumptive taxation; foreign-source income rules
Wyoming LLC lets Indian freelancers keep Section 44ADA presumptive taxation in India while invoicing US clients in USD via Mercury; stay under LRS $250k/year.
- 01Form 5472 penalty $25,000 per year per missed filing (IRC §6038A(d))
- 02Section 44ADA cap of INR 75 lakh — LLC distributions may push you over presumptive threshold
- 03Schedule FA disclosure on ITR-2 mandatory; Black Money Act penalty INR 10 lakh for omission
- 04LRS aggregate USD 250,000 per financial year outbound cap
From filing to funded bank account
US LLC (Wyoming) vs Estonia OÜ (e-Residency)
FAQ
Yes — 44ADA applies to your Indian personal freelance income up to INR 75 lakh. The US LLC is a separate entity: its retained earnings sit outside Indian tax until distributed. But once you take money out of Mercury and remit to your Indian bank, that amount adds to your personal income and can push you over the 44ADA ceiling.
Start filing with Firstbase.io · save $50.00
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.