How to pay a US company legally from Chile — and whether a US LLC makes sense for you
Chile boasts one of Latin America's most stable economies and a rapidly growing ecosystem of tech startups, freelancers, and e-commerce entrepreneurs. The country's foreign exchange framework — overseen by the Central Bank of Chile (Banco Central de Chile) — is highly liberalized for current-account transactions, making outward payments to US companies relatively straightforward compared to neighboring countries. A US LLC can access additional payment infrastructure for Chilean founders and freelancers looking to scale globally.
This guide covers: how to make a legitimate outward payment from Chile to a US company; what documentation your bank needs; the withholding-tax position; and whether forming a US LLC via FilingExpress is the right move for your business profile.
Who this is for
| Profile | Typical need |
|---|---|
| Freelancer / remote worker | Receiving USD from US clients via Payoneer, Wise, or direct ACH |
| Tech startup / SaaS founder | Paying US suppliers, SaaS tools, or cloud hosting platforms |
| E-commerce seller | Running a Shopify store with a US LLC as the merchant entity |
| Service provider | Operating a business with USD earnings from abroad |
| Local-currency earner | Converting CLP to USD at a bank to pay a US invoice |
Making a legitimate outward payment from Chile
The Central Bank regulatory framework
The Central Bank of Chile (Banco Central de Chile) regulates foreign exchange operations. Chile operates a floating exchange rate system with a Formal Exchange Market (Mercado Cambiario Formal or MCF), which includes commercial banks and authorized exchange houses. Outward remittances for routine business expenses — including payments for software, SaaS subscriptions, advertising, professional services, and business formation costs — are freely permitted through the MCF without prior Central Bank approval.
While there are no restrictions on the purchase of foreign currency for these payments, transactions above USD 10,000 must be reported to the Central Bank for statistical purposes. Your bank handles this reporting automatically when processing the wire.
The SWIFT process
All major Chilean commercial banks operate within the Formal Exchange Market. The most commonly used for business payments are Banco Santander Chile, Banco de Chile, BCI (Banco de Crédito e Inversiones), and BancoEstado.
What your bank will ask for:
- Invoice from the US company, with a clear description of the service or product
- Your RUT (Rol Único Tributario) if paying as a registered business or individual
- For amounts above USD 10,000: a contract or service agreement to support the Central Bank reporting
- A purpose-of-payment declaration (usually handled via the bank's online portal or a standard form)
- Proof of withholding tax payment or exemption (discussed below)
Typical processing time: 2–5 business days for SWIFT transfers to the US. Santander and Banco de Chile generally offer reliable corporate portals for initiating these transfers.
Fees: Chilean banks charge a SWIFT fee of approximately USD 20–40 plus correspondent bank deductions of USD 10–25 at the US end. Budget for USD 30–65 total friction per wire.
Alternatives to SWIFT wire
Wise: Available to Chilean residents for personal and business transfers. Supports CLP-to-USD at competitive rates. Useful for amounts under USD 5,000 and for freelance payments. Wise is widely used by Chilean freelancers for paying US subscriptions and receiving client payments.
Payoneer: Widely used by Chilean freelancers on Upwork, Fiverr, and direct client arrangements. Payoneer issues a USD receiving account that US clients can pay via ACH. Withdrawals to Chilean bank accounts are in CLP at the prevailing rate.
Global66: A Latin American fintech headquartered in Chile that offers international money transfers. It is a viable alternative for sending funds abroad, often with lower fees than traditional bank SWIFT transfers, though it is more commonly used for personal remittances or smaller business payments.
Withholding tax position
Chile imposes withholding tax (Impuesto Adicional) on payments to non-residents under the Income Tax Law, administered by the Servicio de Impuestos Internos (SII). The standard rate for payments to non-resident foreign corporations for technical assistance, engineering, or professional services is 15%. For royalties, the rate is generally 30%, though software payments have specific rules.
Chile and the United States have a Tax Treaty that entered into force recently (effective for withholding taxes on February 1, 2024). Under the treaty, business profits of a US company are generally not taxable in Chile unless the company has a permanent establishment (PE) in Chile. For routine payments to US companies for software, SaaS, advertising, and formation services, the PE test is not met, and no Chilean withholding tax should apply to those payments under the treaty.
The SII has issued specific rulings (such as Ruling No. 578/2026) confirming that payments for software distribution rights to a US supplier are treated as business profits under the treaty and are not subject to withholding tax. However, because these are not treated as royalties, they may be subject to Chilean VAT unless an exemption applies (such as for exported services).
In practice, your bank may require you to demonstrate that the payment falls under the treaty's business profits article to process the wire without deducting the 15% or 30% tax. If you are paying for royalties or technical fees that do not qualify as business profits, the treaty may still reduce the rate (e.g., to 10% or 2% for certain royalties). You should confirm the exact classification with a Chilean tax adviser.
| Payment Type | Standard WHT Rate | US Treaty Rate |
|---|---|---|
| Technical/Professional Services | 15% | 0% (Business Profits, if no PE) |
| Software/SaaS | 15% or 30% | 0% (Business Profits, if no PE) |
| Royalties (General) | 30% | 10% |
| Royalties (Industrial/Equipment) | 15% | 2% |
Does a US LLC make sense for you?
The case for a US LLC from Chile
Chile has a strong entrepreneurial culture, but integrating with global payment systems from a Chilean entity can still present hurdles. A US LLC addresses several specific friction points:
Payment acceptance. Stripe is available in Chile, but a US LLC with a US bank account provides the most reliable access to the full suite of Stripe features, PayPal Business, Shopify Payments, and Amazon Seller Central — all of which work more smoothly with a US entity.
Shopify store operations. If you are running a Shopify store targeting US or global consumers, a US LLC as the merchant entity enables Shopify Payments, improves checkout trust, and simplifies US sales tax compliance.
US banking. A US LLC can open a Mercury, Relay, or Bluevine business account online. This gives you a US ACH-receiving account, a US debit card, and the ability to hold USD without converting to CLP, shielding you from currency volatility.
For a detailed comparison, see our full Bluevine vs US Bank comparison.
Venture Capital. If you are a Chilean startup looking to raise funds from US investors, a US entity (often a Delaware C-Corp, but sometimes an LLC depending on the structure) is usually a prerequisite.
Who should form a US LLC
- Freelancers and remote workers earning USD 500+/month from US or global clients who want cleaner payment infrastructure
- Shopify and e-commerce sellers targeting US consumers
- Tech startups and SaaS founders building for US or global markets
Who probably does not need one yet
- Businesses with purely CLP revenue and no US clients
- Founders at the idea stage with no revenue
- Businesses that can already collect USD cleanly through Payoneer without friction
Formation via FilingExpress
FilingExpress handles the full formation remotely — no US travel required. For a Chilean founder, the typical path is:
- Wyoming LLC formation — the standard choice for non-residents. Approximately USD 150–200 all-in for the first year including registered agent.
- EIN (Employer Identification Number) — obtained from the IRS by fax or mail. No SSN required for non-residents. FilingExpress handles this as part of the formation package.
- US bank account — Mercury or Relay, applied for online after formation. Approval rates for Chilean founders are reasonable with a clean application and clear business description.
- ITIN (Individual Taxpayer Identification Number) — required if you want to file a US personal tax return. Not required for the LLC itself if taxed as a disregarded entity.
For a detailed comparison, see our full Mercury vs Relay comparison.
Annual compliance: Wyoming LLCs require an annual report (approximately USD 60) and a registered agent (approximately USD 50–100/year). No state income tax in Wyoming.
US federal tax: A single-member LLC owned by a non-resident alien is a disregarded entity. It files Form 5472 and a pro-forma Form 1120 annually. No US federal income tax is owed on income not effectively connected with a US trade or business.
Practical steps to get started
- Assess your payment friction. If you are already collecting USD cleanly via Payoneer and have no US clients requiring a US entity, a US LLC may not be urgent. If you want Stripe, Shopify Payments, form the LLC now.
- Form the LLC. Use FilingExpress for a fully remote formation. Budget USD 200–300 for year one.
- Get your EIN. FilingExpress includes this. Takes 4–8 weeks by fax.
- Open a US bank account. Mercury is the most accessible for Chilean founders. Apply online with your formation documents and EIN.
- Set up your payment stack. Stripe (once your LLC is approved) for client payments; Wise or Payoneer for moving USD back to CLP when needed.
- File annually. Form 5472 + pro-forma 1120 by April 15. A US CPA charges approximately USD 300–600 for this filing.
For a detailed comparison, see our full Payoneer vs Wise comparison.
Summary
The Central Bank of Chile's liberalized framework makes outward payments to US companies straightforward for Chilean residents — SWIFT from Banco Santander Chile, Banco de Chile, or BCI, or Wise/Payoneer for smaller amounts. Here's what most guides won't tell you: the real hurdle isn't the Central Bank, it's convincing your local bank teller that your SaaS payment qualifies as business profits under the US treaty so they don't automatically withhold 15%. A US LLC is worth forming if you want reliable Stripe access, Shopify Payments. Formation is fully remote via FilingExpress, and the annual compliance burden is manageable.
For the broader picture on this topic, see our guide on how to pay a US company from your country.
See also
- Best Payment Processors for Non-Residents — Full Comparison For more context, see LLC vs C-Corp for Chile founders.