Question 1

Do I need RBI approval to open a Wyoming LLC from India?

Accepted Answer

No prior approval needed if your total capital contribution stays under USD 250,000 in a financial year — this fits under the Liberalised Remittance Scheme (LRS). Above that, you must file the ODI (Overseas Direct Investment) form via your AD Bank before wiring funds. Most bootstrapped SaaS founders never hit the threshold.

Question 2

Can my US LLC invoice Indian clients from India?

Accepted Answer

Yes, but with GST implications: if you invoice an Indian client from your US LLC, the client treats it as an import of service and must pay IGST under reverse charge. This makes your service ~18% more expensive to Indian customers. For India-heavy revenue, keep an Indian entity in parallel; the US LLC serves international clients.

Question 3

Which state — Wyoming or Delaware — for an Indian SaaS founder?

Accepted Answer

Wyoming: $60/yr, no franchise tax, no member disclosure. Delaware: $300/yr franchise tax but preferred by US VCs for future fundraising. If you plan to raise from Sequoia India → US bridge investors, Delaware C-Corp (not LLC) is the actual target. For pure ARR SaaS without VC plans, Wyoming.

Question 4

How do I file Form 5472 as an Indian resident?

Accepted Answer

Form 5472 must be paper-filed (no e-file). Prepare a pro-forma Form 1120 with only your LLC's name, address, EIN, and "Foreign-owned US DE" written across the top. Attach Form 5472 detailing the reportable transaction (usually your initial capital contribution). Mail to IRS Ogden, UT. Deadline: April 15 with automatic extension to October 15 via Form 7004. Firstbase's tax add-on handles this for $549/yr.

Question 5

Is a US LLC better than opening a Singapore Pte for an Indian SaaS?

Accepted Answer

US LLC: $500 setup, $60/yr, best for USD banking + Stripe. Singapore Pte: SGD 1,650 setup, SGD 1,080/yr, mandatory local director, but respected globally and 17% flat corporate tax (vs 0% federal on the LLC for non-ETBUS income). Choose Singapore if you plan to hire international employees or expand into Asia; Wyoming for pure US customer access.

Question 6

Does the US LLC affect my Indian income tax return?

Accepted Answer

Yes. You must disclose the LLC as a foreign entity on Schedule FA of your ITR-2/ITR-3, including balance sheet snapshot and any distributions received. Non-disclosure penalty is INR 10 lakh under the Black Money Act 2015. Any distribution from LLC to you personally is taxable in India at slab rates.

Wyoming LLC via Firstbase — for Indian SaaS Founders

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What the tax authority sees

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

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