Start your EU company from the United States
Access EU markets, hedge USD exposure, and build IP-holding structures, all manageable remotely from the US.
This page provides general information only. Nothing on this page constitutes tax, legal, or financial advice. US founders forming foreign entities face specific filing obligations including Form 5471, FBAR (FinCEN 114), and potential GILTI inclusion. Consult a qualified US international tax adviser before incorporating.
Why US founders choose the EU
Direct access to EU customers
Sell to EU customers without proxy structures. GDPR-native entity, simpler VAT compliance, and no Schrems II data-transfer headaches.
Multi-currency banking beyond US-only
Open EUR accounts with EU banks and neobanks. Diversify beyond US-only banking and serve EU customers in their currency at lower cost.
Tax-treaty-friendly IP holding
The US has tax treaties with most EU jurisdictions. EU holding structures can reduce withholding on royalties and dividends, useful for IP-heavy businesses with EU revenue.
Remote management with e-Residency
Estonia's e-Residency lets US founders form and run an EU company entirely online. No relocation, no flights for paperwork, no proxy directors required.
Top jurisdictions for US founders
Based on US treaty network, GILTI exposure, banking quality, and ease of setup for non-EU residents.
Match score (100 = best fit based on tax, banking, and setup for non-EU residents)
Formation services that work for US founders
These providers support non-EU residents and have helped founders from outside the EU get set up. All accept US-issued ID and US-based shareholders.
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Common questions from US founders
Can a US citizen or resident start an EU company?
Yes. EU jurisdictions like Estonia, Ireland, and the Netherlands have no citizenship requirements for incorporation. US persons can form and own EU companies remotely. The harder questions are usually US-side: reporting obligations to the IRS and FinCEN, and whether the structure makes economic sense after compliance costs. Most US founders should model the full annual cost (formation + accounting + Form 5471 preparer + FBAR + state filings) before committing.
What is Form 5471 and do I have to file it?
Form 5471 reports US persons' interests in foreign corporations. If you own 10% or more of an EU company directly, indirectly, or constructively, you generally must file annually with your US tax return. The form has multiple complex schedules and penalties for non-filing start at $10,000 per missed filing. Most US tax preparers charge $1,500 to $5,000 per Form 5471 depending on complexity. Budget for this recurring cost when modeling whether an EU entity is worth it.
What is GILTI and will it apply to my EU company?
GILTI (Global Intangible Low-Taxed Income) is a US tax regime that applies when US shareholders own more than 50% of a Controlled Foreign Corporation. If your EU company has income taxed below roughly 13.125% effective, the IRS may pull the excess back into your US return. There are exemptions and elections, especially the Section 962 election, which can dramatically change the outcome. GILTI is one of the main reasons US founders should consult a US international tax adviser before forming an EU company. Estonia's 0% retained-profit rate, in particular, almost always triggers GILTI inclusion without planning.
Do I need to file an FBAR for my EU company's bank account?
Yes, if you have signature authority or financial interest in a foreign financial account that exceeded $10,000 at any point in the year. The FBAR (FinCEN Form 114) is filed separately from your tax return, due April 15 with an automatic extension to October 15. Most US founders with an EU company will trigger FBAR through the EU bank account on day one. Penalties for non-filing are severe, including criminal exposure for willful violations. Treat this as non-optional.
Can I manage an EU company remotely from the US?
Yes, especially with Estonia's e-Residency. You can sign documents, manage accounting, and operate online. However, US "management and control" over the company can affect both US tax treatment (GILTI, Subpart F) and the EU country's view of where the company is tax-resident. Most US founders work with a structure that includes some local presence in the EU country, such as a local director, periodic board meetings in-country, or substance staffing, to support both tax positions.
Should I form an EU company instead of a Delaware LLC or C-Corp?
Depends on your business. For US-customer-focused businesses, Delaware is almost always simpler and cheaper. For EU-customer-focused or IP-holding businesses, an EU entity can be structurally cleaner: GDPR-native, EU banking access, and treaty-friendly IP licensing. Many US founders use both: a Delaware parent and an EU subsidiary, or a US LLC owned by an EU holding company. The tradeoff is added compliance complexity and Form 5471 filings. Get a US international tax adviser to model your specific case before forming.
Which EU countries work best for US founders?
Estonia is most popular for digital businesses due to e-Residency and 0% tax on retained profits, but US founders need to model GILTI carefully because Estonia's 0% retained rate triggers GILTI inclusion without planning. Ireland's 12.5% corporate rate sits closer to the GILTI threshold and the US-Ireland treaty network is mature. The Netherlands offers strong banking, IP-holding structures, and treaty access. The right choice depends on business type, IP intensity, and whether you need to defer or distribute profits.