At Wallbit we’re committed to the financial wellbeing of our clients. That’s why we’re thrilled when they reach new levels of growth. Still, growth brings new challenges to overcome.

For example, when a professional practice scales enough to benefit from tax optimization, you may be thinking about giving your practice legal personhood in the U.S. through an LLC (the equivalent of a Sociedad de Responsabilidad Limitada, or limited liability company).

You’re in luck! We’re pleased to announce our new partnership with Defentux, an expert partner in forming U.S. LLCs that provides fully personalized advice to professionals whose growth calls for stronger tax planning.

With this partnership, Wallbit clients who want to optimize their U.S. tax planning can access specialized guidance to set up an LLC in the United States, while we continue helping them improve their financial performance anywhere in the world.

But first things first: what exactly is an LLC and why is forming one so important? Below we cover everything you need to know.

LLC: What is it?

LLC stands for Limited Liability Company. It’s a kind of company formed from capital contributed by its members.

The LLC is the structure most entrepreneurs worldwide choose to operate in the United States because it provides asset protection for its founders: in the event of bankruptcy, they are not personally liable with their own assets. Hence the name “limited liability.”

That’s not its only advantage: an LLC also offers a flexible structure that adapts to different business models and requires relatively little bureaucracy.

Why do so many Latin Americans use them to set up companies in the United States?

The reasons are many. First, the U.S. is a business-friendly country, especially for entrepreneurs from Latin America and the Caribbean. Legal protections and regulatory stability are two key factors when operating as a company.

Additionally, the U.S. banking system provides access to the rest of the world through global platforms and international banking agreements.

This ensures future scalability and credibility with clients worldwide—not to mention the advantages of operating within such a strong economy as the U.S.

Finally, many U.S. states make it easy for nonresidents to operate LLCs registered in their jurisdiction without needing to be citizens, hold a green card, or have a permanent address.

Which type of LLC is right for me?

When choosing the type of LLC that best fits your needs, several factors must be considered.

What taxes must an LLC pay in the United States?

The main factor to consider is the tax treatment before the IRS (Internal Revenue Service). An LLC in the U.S. can choose how it wants to be taxed:

  • it can elect to be treated as a disregarded entity (single-member LLC), 
    • as a partnership,
    • as a traditional C-Corporation using Form 8832,
  • or it can elect S-Corp taxation using Form 2553, if the owners are U.S. residents or citizens.

Each election changes how taxes are calculated and paid: it can affect distributed profits, the owner’s tax obligations, and the overall tax burden.

For that reason, the decision should be clearly reflected in the Operating Agreement, the internal document that governs the formed LLC. These are precisely the situations where fully personalized advice for each specific case matters most to get the most out of the company structure.

Double taxation: do I have to pay taxes in my country and in the U.S.?

Tax planning is crucial when forming an LLC in the U.S. If the necessary measures aren’t taken, the company could end up paying taxes both in the U.S. and in the founders’ country of residence.

To avoid double taxation, it’s key to correctly define how and when LLC profits will be distributed. This requires analyzing the tax consequences in advance, coordinating accounting criteria, and complying with the legal rules of both countries.

In short, profit distribution should be planned to prevent duplicate taxation.

How to form an LLC in the United States with Defentux

Forming an LLC in the U.S. is a viable, legal, and—above all—accessible option for citizens of Latin America. However, the process can be cumbersome and complex for those without experience.

Having knowledge of the applicable regulations is essential to assess the particularities of each project individually. That’s why the best option is to seek legal and accounting advice like the services Defentux provides.

Below is a guide on how to form an LLC in the U.S.

1. Choose a state based on the advantages it offers

The state where you register an LLC determines the legal framework: associated taxes and costs, and privacy requirements.

Therefore, it’s necessary to compare filing and maintenance fees, reporting obligations, and levels of owner protection:

  • Delaware is attractive for raising investment.
  • Wyoming offers low costs and greater privacy.
  • Florida has strong cultural proximity to Latin America.

Decide based on your growth strategy, whether your operation is digital or physical, and whether you plan to attract investors or partners.

2. Register the LLC

Once you’ve chosen a state, you must register the company by filing Articles of Organization with the state authority. You’ll need to set and verify the name according to local rules (it must include the required legal designation and cannot match another entity).

You can appoint a registered agent with a physical address in the chosen state—if you’re not a resident, it’s wise to hire a professional service to receive legal notices. Make sure all information in the Articles is complete to avoid rejections or delays.

3. Obtain an Employer Identification Number (EIN)

Next, apply for an EIN from the IRS, since it’s necessary to open bank accounts, file taxes, hire employees, and operate legally. If any member has an SSN or ITIN, the online route is usually immediate; without those numbers, there are alternatives by fax or mail that take longer, or the option to use a specialized provider.

The EIN is free if obtained directly from the IRS; request it as soon as your LLC is registered.

4. Open a U.S. business bank account

You’ll then need to open a U.S. business bank account to manage dollar operations and facilitate relationships with clients, suppliers, and international platforms. Bring official ID, proof of address, and any other documents the bank requires.

It’s best to evaluate several options: digital banks and neobanks that make account opening easier for nonresidents, and traditional banks with broader infrastructure. Compare conditions and benefits—transfer fees, maintenance charges, minimum balance requirements, and availability of Spanish-language support.

With Wallbit you can request a tailored business account for your company by contacting us directly (at the moment, this option is not available in the App).

5. Regulatory compliance

Forming an LLC in the U.S., as in any country, also requires regulatory compliance: filing state reports, paying administrative fees, and meeting tax obligations. Keep updated records: tax address, member identities, and any changes in activity or name.

This will depend on the applicable tax regime (many LLCs are “pass-through,” passing profits to members), and each regime has specific deadlines depending on entity type and number of members. The best way to maintain rigorous control is to set reminders and retain documentation for the recommended periods to avoid fines, suspension, or loss of protections.

Wallbit–Defentux partnership: how can it help Latam professionals?

If this whole process feels overwhelming, the best move is to consult professionals specialized in U.S. structures and international taxation to reduce risks, avoid common mistakes, and speed up procedures.

For professionals outside the U.S., this guidance saves time and indirect costs in tax planning while ensuring decisions align with the growth strategy of their business. Forming an LLC can help optimize tax burden, improve overseas performance, and give your business greater recognition.

That’s why at Wallbit we view Defentux as a partner that can help our clients take the next step with their professional practices. Their track record and expertise in forming and managing LLCs are top-tier.

Defentux offers fully personalized advisory services tailored to each business and client, which helps improve the fiscal and accounting performance of a U.S. LLC.

For this reason, we offer exclusive benefits to Defentux clients who want to use a Wallbit account to receive their business proceeds from the U.S.

Open a U.S. account to receive your business earnings

Once you’ve taken the step of forming your LLC in the U.S., you’ll need to receive and manage the income your company generates efficiently and cost-effectively in Latin America. This is where the Defentux–Wallbit partnership becomes your most effective solution.

Until recently, receiving funds from the U.S. often meant a cumbersome process: slow international transfers, high fees, and poor exchange rates from traditional banks or payment processors.

Wallbit removes these barriers: by using our platform, you gain instant access to a U.S. bank account with your own routing number (ABA) and account number. This lets you invoice clients and receive USD payments by bank transfer or through platforms like PayPal quickly and at no cost.

But the real optimization happens when you decide to use those funds in Latam. Wallbit lets you hold your earnings in dollars. When you need the money, you can:

  • Pay suppliers or employees anywhere in the world.
  • Transfer funds to your local bank account with conversion rates that are significantly better than traditional market rates.
  • Use the Wallbit card for daily and business expenses internationally while keeping control of your USD.

In short, Defentux helps you create the legal structure that lets you bill globally (the LLC), and Wallbit provides the financial infrastructure to receive, custody, and use those earnings in the most efficient, economical, and versatile way possible.

It’s the ultimate bridge to scale your business in Latam with a U.S. base.

Interview with Manuel Crespo, cofounder of Defentux

We now share an interview we conducted with Manuel Crespo, Co-Founder & COO at Defentux. Manuel is a lawyer specialized in Corporate Law from the University of Buenos Aires and a member of the Global Shapers community, an initiative promoted by the World Economic Forum.

The interview focuses on best practices for freelancers and professionals when operating with a U.S. LLC.

What are the main mistakes Argentine freelancers or entrepreneurs make when using an LLC to receive dollars, especially when they don’t distinguish between personal and business income?

The most common mistake is treating the LLC like a personal account. Many freelancers create it to receive foreign payments but then mix company income with personal expenses or make withdrawals without records. That accounting disorder undermines the LLC’s purpose and can complicate tax treatment both in the U.S. and in other countries.

An LLC is a separate legal entity. Even if its owner is a single person, funds should be managed with business standards: the LLC invoices, collects, and manages its resources within its account, and then distributes profits to the owner. That distinction preserves the member’s liability protection and keeps the tax position coherent.

In practice, this structure also allows an Argentine professional to receive payments in dollars without going through the MLC (Mercado Libre de Cambios), as long as funds are collected in a corporate foreign account and documentary traceability is maintained. It’s perfectly legal if it’s properly reported and the owner’s tax residency is respected.

In short, an LLC is not an alternative personal account: it’s an international company that brings order and support to income. The difference is conceptual, but it determines the success or risk of the whole arrangement.

When an LLC starts billing significant amounts, what legal or tax adjustments are usually necessary to scale properly without exposing oneself to IRS or ARCA risks?

When an LLC begins to scale, the first step is to review its tax classification. A single-member LLC is, by default, considered a “disregarded entity,” meaning its income flows directly to the owner. But if amounts are substantial—for example, more than $80,000 per year in distributed profits—it may be worthwhile to choose a different tax classification, such as via Form 8832 or Form 2553, to be taxed as a corporation and optimize the tax burden.

It’s also important to implement a more robust annual compliance system with accounting reports, registration of deductible expenses, and informative filings (Form 5472 if the owner is foreign). At Defentux we help clients define this point: when it makes sense to remain a simple LLC and when to move to a corporate model.

The most common risk isn’t overpaying, but failing to report correctly. The IRS doesn’t penalize growth — it penalizes omissions. Locally, agencies like AFIP or ARCA may require documentation proving that funds come from a legitimate foreign company. That’s why, as billing grows, it becomes increasingly important to have structure and traceability.

How should owners of a U.S. LLC who are tax residents outside the U.S. file their taxes?

A foreigner who owns a U.S. LLC does not automatically owe U.S. taxes simply by owning the company. The key issue is whether the LLC generates “effectively connected income” in the United States. If the owner works from their home country and has no physical presence or employees in the U.S., the IRS may consider that the company’s income is not subject to direct U.S. taxation, but it will still require an annual information filing (Form 5472 and 1120, depending on the case) and a U.S. personal filing by the owner for the earnings that the company generated on their behalf, on which (ideally) they would pay personal taxes.

That doesn’t mean there aren’t taxes in the owner’s country of residence. In Argentina, for instance, the LLC owner must declare worldwide income on the income tax return or report it as a foreign company participation. At Defentux we emphasize this point: the goal is not “evasion,” but aligning the structure with actual tax residency.

Dual compliance—in the U.S. and the country of origin—isn’t an obstacle but a practice for asset protection. Having everything in order allows you to operate smoothly with banks, platforms, and tax authorities.

How can I form an LLC in the U.S. without my name appearing in state records? How can I prove my ownership of that LLC in my home country?

This surprises many people. In several U.S. states, especially Delaware, Wyoming, and New Mexico, the owner’s name is not required to be published in public records. That’s a commercial privacy policy, not opacity. The state registers managers or resident agents, but not necessarily the beneficial owner.

For residents of Latam, it’s hard to understand that an owner’s name might not appear on a company’s formation certificate. That said, it doesn’t mean the company is anonymous. The owner appears in the LLC’s internal documentation—the Operating Agreement, the IRS EIN confirmation, and bank records. Those documents are what prove ownership in any country.

For example, an Argentine professional who needs to justify their LLC before AFIP or a bank can present their signed Operating Agreement and the EIN assignment letter (either CP575 or 147C). At Defentux we provide these documents complete and translated if the client requires it.

Sometimes private entities won’t accept these documents as proof of ownership because they don’t understand how things work in those U.S. states and may demand a document issued by the state of formation that lists the partners, the company name, and bears an official seal.

In those cases, don’t panic. The solution is simple: add an extra clause to the Articles of Organization identifying the members. This is done via an administrative filing called an “Amendment,” and Defentux can help you with this process.

In short, privacy is not a lack of transparency: it’s a way to protect the entrepreneur’s identity while complying with all rules. What matters is that the documentation is correctly issued and backed by U.S. authorities.