A US LLC for Sri Lankan freelancers
A US LLC helps if you invoice clients directly, want them to pay by card or US bank transfer, or need Stripe. If all your income comes through Upwork or Fiverr and their payout options already work for you, you may not need one. Either way, income from clients abroad is taxed in Sri Lanka at up to 15%.
Written by Kaveesha Mallawaarachchi, founder of Entryly. Facts checked .
On this page
Do you actually need one?
Many Sri Lankan freelancers don’t. If your work comes through Upwork or Fiverr and you’re happy withdrawing through Payoneer or PayPal, a US company adds cost without much benefit.
A US LLC starts to pay off when:
- you have direct clients who want to pay by card or by US bank transfer (ACH) rather than PayPal;
- you want Stripe, for invoices clients can pay by card, or for selling your own products or courses;
- your clients prefer US vendors, for example agencies that only pay US companies with a W-9;
- you want to keep earnings in dollars in a business account before bringing them home.
How it changes how you get paid
| As an individual in Sri Lanka | With a US LLC | |
|---|---|---|
| Direct clients pay by | PayPal, Payoneer or a SWIFT wire | Card through Stripe, or free ACH to Mercury |
| What clients see | A foreign individual | A US company with an EIN |
| Card invoices | Not available through Stripe | Stripe invoices and payment links |
| Getting rupees | Depends on the platform | Mercury to Wise to your bank |
For a US client, paying a US company by ACH is free and familiar. That alone can make you easier to hire.
Using the LLC on freelance platforms
On platforms that let you work as a business, you can register your US company as the account holder, provide its EIN on the tax form, and add Mercury as the payout account. Each platform has its own rules about switching an existing personal account to a business, so check its help centre before you change anything on a profile with reviews you want to keep.
Getting the money home
Payments land in Mercury in US dollars. Move them to your LLC’s Wise Business account by ACH (free), then send them to your Sri Lankan bank account. Wise charges about 0.46% plus $1.36 per transfer and can send up to LKR 4.98 million per transfer.
| Stop | What happens | Amount |
|---|---|---|
| Your client | Pays your invoice by US card | $1,500.00 |
| Stripe | Card fee, 2.9% + 30¢ | −$43.80 |
| Mercury | Receives the payout, sends it to Wise by ACH for free | $1,456.20 |
| Wise | Converts to rupees and sends (0.46% + $1.36) | −$8.06 |
| Your Sri Lankan bank | At 1 USD = 332.55 LKR | LKR 481,579 |
Fees checked 2026-11-04. International cards add 1.5% and currency conversion adds 1% at Stripe. Sri Lankan income tax isn’t included.
Tax
Freelance income from clients abroad is taxable in Sri Lanka whether you’re paid as an individual or through an LLC. Since 1 April 2025, it’s capped at 15% for individuals when it comes in through a Sri Lankan bank, and the first LKR 1.8 million a year is tax-free. The IRD has said freelancers must declare this income in their self-assessment returns.
Try the tax estimator to see what you’d owe.
Want us to set this up for you?
We file your US LLC, get your EIN and help you apply for Mercury and Stripe. From $160, paid in rupees with Dialog Genie or a bank transfer. Your price is locked when you pay.
Sources
- Mercury: pricing
- Wise: guide to LKR transfers
- Lanka News Web: IRD on 15% tax for exported services (17 Aug 2026)
Published . This guide is general information, not legal or tax advice.