Why web developers need a Wyoming LLC
US startups using Rippling, Deel, or Justworks for contractor onboarding require an EIN before they can pay you. Without an LLC, you cannot get an EIN, and the startup either pays you through international wire (slow, expensive) or rejects you in favor of a US-based contractor.
A Wyoming LLC plus EIN gets you onboarded through standard US contractor flows. Rippling, Deel, and Gusto all accept LLCs cleanly. You receive ACH payouts to Mercury. Tax forms (W-9 or W-8BEN-E equivalent) get filed cleanly.
Plus the LLC opens up the secondary revenue stream most successful devs eventually build: themes, plugins, courses, and dev tools. All flow through the same entity.
The web developer stack after formation
- Wyoming LLC formed under Title 17, Chapter 29 ($397, 24 hours)
- EIN via IRS Form SS-4 (8 to 10 business days)
- Mercury business bank for client deposits
- Stripe US for one-time invoices and theme/plugin sales
- Hosting and dev tools (Vercel, AWS, GitHub, Linear, Figma) paid via LLC card
- Optional: Gumroad or Lemon Squeezy for theme/plugin distribution
- Project management (Linear, GitHub Issues, Notion)
- Form 5472 + pro forma 1120 filed annually ($99 add-on)
Web dev pricing models
| Engagement type | Pricing model | Typical range |
|---|---|---|
| Hourly client work | Per hour | $50-$200/hour |
| Project-based build | Lump sum | $5K-$100K |
| Monthly retainer (ongoing dev) | Monthly | $3K-$25K/month |
| Staff augmentation (full-time equivalent) | Monthly | $5K-$15K/month per dev |
| WordPress theme sales | Per license | $29-$199 |
| WordPress plugin licenses | Annual | $49-$499/year |
| React/Next.js component library | Per license | $99-$499 |
| Saas product (your own) | Recurring subscription | $10-$200/month |
How US tax works on web dev revenue
Web development services delivered remotely from outside the US are generally not Effectively Connected Income for a non-resident pass-through LLC. So US federal income tax owed is typically zero.
Form 5472 + pro forma 1120 is mandatory annually regardless. Total dev revenue minus expenses (hosting, software, contractor pay if you have subcontractors) equals net business income.
Theme and plugin sales also follow the pass-through model. Digital product revenue from outside the US typically does not create ECI. Sales tax may apply in some US states for digital products (Texas, Pennsylvania). Use TaxJar to monitor if US digital product sales scale.
Banking notes for web developers
Mercury approves web developers at roughly 80% in our intake. Clean business category, low chargeback risk, easy-to-explain revenue model. Approval typically within 1 to 5 business days after EIN.
Wise Business is the alternative for developers with international client mix. Wise handles multi-currency cleaner than Mercury for EU or UK clients paying in EUR/GBP.
Relay works if you want to separate client work revenue from product sales (themes, plugins). Up to 20 sub-accounts under one LLC.
Common web developer mistakes with Wyoming LLCs
- Accepting client contracts via personal name instead of LLC
- Mixing client work revenue with personal expenses (kills liability shield)
- Skipping Form 5472 because dev work feels like consulting ($25K penalty applies)
- Not deducting hosting, software, conference attendance, and learning resources
- Selling themes/plugins through personal Gumroad instead of LLC-linked
- Forgetting to issue 1099-NEC to US-based subcontractors paid over $600/year
- Not separating client work IP (work-for-hire) from product IP (owned by LLC) in operating agreement
What is included for web developers at $397
- Wyoming LLC formation under Title 17, Chapter 29 within 24 hours
- Wyoming registered agent for year 1
- Custom operating agreement for solo or partner web dev operations
- EIN via IRS Form SS-4 (no SSN required)
- Direct introductions to Mercury, Relay, and Wise Business
- Document delivery as searchable PDFs
- WhatsApp and email support across NYC and Dhaka time zones
- Stripe US setup guidance for client invoicing and product sales