What is the impact of SAFE Circular 37 on my LLC?

SAFE Circular 37 governs outbound investment by Chinese residents. If you establish a US entity, you are generally required to register your investment with the State Administration of Foreign Exchange to ensure future capital repatriation and dividend payments are compliant.

Is a Wyoming LLC subject to US federal income tax?

If your LLC is not ETBUS (Engaged in Trade or Business in the US) and has no US-sourced income, it may not be subject to US federal income tax. However, you must still file Form 5472 and Form 1120 to report the entity's existence to the IRS.

US LLC (Wyoming) · via Mercury (banking-only)·🌐Founder profile

Forming a Wyoming LLC for Chinese Founders

Name: Mercury (banking-only) — US LLC (Wyoming) for Chinese Cross-Border Founders
Brand: Mercury (banking-only)
Availability: InStock

VerifiedJul 2026

EligibilityEligible

Setup timeline21–45days

Year-1 total$0.00

A Wyoming LLC provides a legal structure for non-US residents to operate businesses with limited liability. This entity type is frequently used by Chinese cross-border founders to access the US financial ecosystem via platforms like Mercury.

Founders must manage dual compliance requirements: US federal tax reporting for foreign-owned entities and Chinese regulatory obligations, including SAFE Circular 37 filings.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.

Currency · USD (live FX)

2-year cost of ownership

$0.00

≈ $0.00/month amortized·USD @ live FX

Time horizon

Line items

Amount

SetupMercury (banking-only) setup
$0.00
AnnualYear 2 renewal
$0.00

Total$0.00

§ 02Tax residency · Chinese Cross-Border Founders

What the tax authority sees

US federal / local status

Wyoming LLCs are treated as pass-through entities for US federal tax purposes, meaning income is only taxed if the entity is Engaged in Trade or Business in the US (ETBUS).

Home-country rule

PRC individual foreign income tax (Bulletin 3, 2020) applies to worldwide income for tax residents; SAFE Circular 37 must be filed for outbound investment structures.

Editorial verdict

Use a Wyoming LLC for liability protection and US banking access via Mercury, but ensure you consult a tax advisor regarding PRC Bulletin 3/2020 and SAFE Circular 37 compliance.

Key compliance risks

01Form 5472 and 5476 filing required for foreign-owned US LLCs; $25,000 penalty for non-compliance.
02PRC tax residency requires reporting worldwide income under Bulletin 3.
03Failure to file SAFE Circular 37 for outbound investment can lead to personal capital account restrictions in China.

§ 03Setup timeline

From filing to funded bank account

Setup timeline

21–45days total, 3 phases

Milestone check

Filing · Tax ID · Banking

d0

d11

d23

d34

d45

01FilingMercury (banking-only) submits formation docs

d0–d16

02Tax ID / EINIRS EIN issuance

d14–d34

03BankingBusiness account approved & funded

d27–d45

§ 04Head-to-head

US LLC (Wyoming) vs Estonia OÜ (e-Residency)

Full comparison →

US LLC (Wyoming)

LLC

Estonia OÜ (e-Residency)

OÜ

Entity

LLC

OÜ

Setup cost

$102.00

$205.20

Annual

$60.00

$129.60

Local director

Remote OK

Physical presence

Remote OK

Tax regime

0% state tax; federal only on US-source income

20% only on distributed profit; 0% on retained earnings

§ 05Questions founders actually ask

FAQ

No. Wyoming LLC formation is entirely remote. You can appoint a registered agent to handle filings, and Mercury banking can be opened online if you provide the necessary documentation.

More profiles for US LLC (Wyoming)

Chinese Cross-Border Founders — other jurisdictions

Next step

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.

Claim on Mercury (banking-only)