Around 12,000 Senegalese are officially declared in the US, and likely triple that with dual nationals and second generation. Many want to launch a Dakar project while staying employed in New York, Houston or Atlanta. The puzzle: marrying IRS, ITIN, EIN, FATCA and Senegalese tax without triggering an audit. Here is the full playbook.
TL;DR
- Remote Senegal SUARL via APIX: XOF 25,000, 72 hours
- ITIN mandatory for US-resident non-citizens reporting Senegal income
- EIN required for the US holding LLC above the SUARL
- FATCA: Senegalese banks have reported US-person accounts since 2017
- No active US-Senegal tax treaty — double taxation must be managed actively
The standard structure: US LLC + Senegal SUARL
Most US-diaspora founders adopt a two-tier setup:
- Delaware or Wyoming LLC as the US holding (USD 300 setup + USD 100/year)
- Senegal SUARL as the operating entity, 100% owned by the LLC
This isolates risk, lets you raise USD via Stripe/Mercury, and stays compatible with US visa sponsors (H1B employer, green card, citizen).
Why not just a direct SUARL?
Three reasons:
- US banks (Chase, Bank of America) block transfers to Senegal accounts without a US-side entity.
- Stripe, Mercury, Wise Business refuse non-OECD-backed companies.
- Selling the business in five years is 10x easier through a US LLC than a Dakar SUARL.
Getting an ITIN from the IRS
The ITIN (Individual Taxpayer Identification Number) is the tax number for non-resident, non-citizen aliens who must report income to the IRS.
- Step 1 — Fill out Form W-7 (irs.gov/forms-pubs/about-form-w-7).
- Step 2 — Attach a passport certified true by a Certifying Acceptance Agent (CAA).
- Step 3 — Attach justification: US income (1099), LLC partnership, Stripe dividends.
- Step 4 — Mail to the Texas Service Center, Austin, TX 73301.
- Step 5 — Lead time 7 to 11 weeks, ITIN delivered as a paper card.
EIN for the Delaware LLC
The EIN (Employer Identification Number) is free, requested online at irs.gov/businesses, delivered in 10 minutes for a US citizen, in 4 weeks by fax (Form SS-4) for a non-resident without SSN.
FATCA and CRS compliance
FATCA (Foreign Account Tax Compliance Act) requires foreign banks to disclose to the IRS the accounts held by US persons (citizens, green-card holders, ITIN holders with US ties).
What this means in practice
| Item | US diaspora impact |
|---|---|
| SUARL account at SGBS | Reported to IRS if manager is US person |
| Balance > USD 10,000 | FBAR filing required with FinCEN yearly |
| Balance > USD 50,000 | Form 8938 attached to your 1040 |
| Hidden account | Penalty up to 50% of balance + prosecution |
Senegalese banks (SGBS, Ecobank, Orabank, BOA) are all FATCA-enrolled since 2017. You cannot hide a business account from the IRS — own the transparency.
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The double-taxation trap
Unlike France (1974 treaty), there is no active bilateral tax treaty between the US and Senegal in 2026. Consequence: the same dollar of profit can be taxed 30% in Senegal, distributed as dividend, then taxed 23.8% in the US (qualified dividend rate + NIIT).
Mitigation strategies
- Foreign Tax Credit (Form 1116): credit the Senegalese tax already paid against US tax due.
- Reinvest in Senegal: do not distribute dividends as long as possible.
- Section 962 election: for CFCs, pay at the US corporate rate (21%) instead of 37% individual.
- GILTI tax: watch the 10% return-on-tangibles threshold hitting cash-rich SUARLs.
- Reasonable salary: pull cash via salary (deductible) rather than dividend.
US banks compatible with Senegal diaspora
| Bank | Non-resident business account | SWIFT to Senegal | Fees |
|---|---|---|---|
| Mercury | Yes via LLC + ITIN | Yes via Wise | USD 0 setup |
| Relay Financial | Yes | Yes | USD 0 setup |
| Wise Business | Yes | Yes native XOF | USD 65/year |
| Chase Business | No without SSN | Yes | Variable |
| Bank of America | No without SSN | Yes | Variable |
Mercury and Relay are diaspora favourites for their 100% online onboarding without SSN if you supply ITIN + EIN + LLC.
FAQ
Q: Is the Delaware LLC really mandatory?
A: No, but strongly recommended. Without an LLC, you operate in your own name from the US, which complicates Stripe, Mercury and exposes your personal US assets. The Delaware LLC costs USD 300 setup + USD 100/year agent — immediate ROI.
Q: Will the IRS tax my SUARL even without dividends?
A: Potentially yes, through CFC (Controlled Foreign Corporation) and GILTI rules. If your SUARL profits exceed USD 100,000 yearly, talk to an international-tax CPA before reinvesting.
Q: What does the full US + Senegal setup cost?
A: Plan USD 2,500 to 4,000: ITIN via CAA USD 400, Delaware LLC USD 300 setup + USD 100/year agent, free EIN, Senegal SUARL XOF 800,000 (USD 1,300), international US CPA USD 1,200 first year.
Q: Can I keep my H1B visa and own a SUARL?
A: Yes, the H1B status allows passive investment and foreign companies. But you cannot perform operational work for the SUARL from the US during your H1B hours. Consult an immigration lawyer first.
Conclusion
Spinning up a Senegal SUARL from Brooklyn is no harder than from Paris — just different. The real challenge is tax: without a US-Senegal treaty, every dollar of profit must be tracked to avoid double taxation. Kolonell partners with diaspora-focused US CPAs to deliver a turnkey setup + compliance offer. Request a free quote or message WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
