The complete nomad setup guide
Most people get stuck trying to optimise step seven before step one is done. This guide covers the five things that actually need to happen — in the right order — before you can operate cleanly as a location-independent professional.
Key takeaways
You need a legal entity to invoice through. A US LLC (Wyoming or Delaware) is the most common choice for non-US nomads.
Your company structure and your personal tax residency are two separate problems. You still owe tax somewhere personally.
Your home country health insurance doesn't travel with you. Sort international coverage before your first trip.
Being a nomad doesn't mean paying tax nowhere. Your home country may still claim you unless you formally exit.
The five-part nomad setup
Most nomad setup confusion comes from tackling things in the wrong order — or trying to optimise step five before step one is sorted. Here is the sequence that actually matters.
Business structure — how you invoice
You need a legal entity. Most clients, especially in the US and EU, prefer invoicing a company rather than an individual. A US LLC (Wyoming or Delaware) is the most common choice for non-US nomads — it's cheap to form (~$50–200/year), gives you US business banking access, and is simple to maintain.
Alternatives: an Estonian OÜ via e-Residency (EU company, 0% corporate tax on retained profits), or a company in your home country. The right choice depends on where your clients are and your personal tax situation.
What a US LLC does NOT do: it doesn't solve your personal tax residency, and it doesn't mean you pay no tax. Those are separate problems.
Business banking — where the money lands
A business bank account in the name of your LLC is essential for keeping business and personal money separate — which matters for taxes, credibility, and compliance. Mercury is the most popular choice for US LLC owners: free, fully online, and accepts international founders.
For day-to-day spending as an individual, you need a card with no foreign transaction fees. Wise (mid-market exchange rate, 50+ currencies) or Revolut (more features, watch the weekend markup) are the standard choices. US residents: add Charles Schwab for unlimited free ATM withdrawals worldwide.
Health insurance — before you leave
Your home country's public health system does not cover you abroad. Travel insurance covers emergencies but not ongoing medical care. You need international health insurance — and you need it before your first trip, not after.
SafetyWing Nomad Insurance (~$45–100/month depending on age and region) is the most popular nomad option — monthly subscription, cancel anytime, accepted for most digital nomad visa applications. For comprehensive coverage (maternity, serious illness, evacuation), Cigna Global or Allianz Care are the premium options.
Tax residency — where you actually owe tax
This is the part most people skip until it's expensive. Your personal income tax is determined by your tax residency — not where your company is registered, not where your clients are, and not where your bank account is. It's where you live.
The standard rule: spend 183+ days in a country and you're a tax resident there. But many countries (Germany, Netherlands, UK) have additional rules — you can trigger tax residency through ties like a registered address, a spouse, or a property you own. Simply leaving is not enough: you typically need to formally deregister.
Popular tax-efficient residency options: Georgia (1% flat tax under the Small Business regime, 1-year visa-free for most Western passports), Paraguay (0% on foreign income, easy residency), UAE (0% personal income tax, high cost of living), Portugal NHR 2.0 (20% flat rate for 10 years, EU access).
Connectivity — actually working remotely
Two things you need before every trip: a way to get data (eSIM or local SIM) and a VPN for public WiFi security and bank app access.
eSIM: Airalo for most trips (190+ countries, pay per GB, good speeds). Holafly for unlimited data when on heavy video calls. For stays over 4 weeks in one country, a local SIM is cheaper. Keep your home number active — you need it for bank 2FA SMS codes.
VPN: Non-optional on public WiFi. Also fixes bank app blocks when your bank flags a foreign IP. NordVPN (best overall) or Surfshark (cheaper, unlimited devices).
US LLC terminology — the key terms
If you're forming a US LLC for the first time, these are the only terms you need to understand before you start.
| Term | What it means | Why it matters |
|---|---|---|
| LLC | Limited Liability Company — a US business entity | The legal vehicle you invoice through and hold bank accounts in |
| EIN | Employer Identification Number — the LLC's US tax ID | Required to open a US business bank account (Mercury, Relay) |
| Registered agent | A physical address in your LLC's state for receiving official mail | Legally required — adds $50–150/year to your ongoing costs |
| Disregarded entity | Single-member LLC treated as a pass-through — profits go directly to the owner | Means the LLC itself pays no US corporate tax (owner's personal tax applies) |
| Form 5472 | Annual IRS filing required for foreign-owned US LLCs | $25,000 penalty for non-filing — even with zero income. Not optional. |
| Operating agreement | Internal document defining ownership and rules of the LLC | Banks often require it to open accounts — get it when you form |
Common first mistakes
Forming a US LLC and thinking the tax problem is solved. Your LLC is your business structure. Your personal tax residency is a separate question — determined by where you live, not where your company is registered. A Wyoming LLC owned by someone who lives in Germany is taxed in Germany on their personal income.
Not getting health insurance before the first trip. "I'll sort it when I arrive" is how people end up paying $8,000 out of pocket for a hospital visit in the US or $15,000 for emergency evacuation from Southeast Asia. Sort insurance before you leave.
Using a home bank card for everything abroad. Foreign transaction fees of 1–3% on every purchase add up to hundreds per year. A Wise or Revolut card costs nothing and eliminates this entirely.
Trying to optimise too early. Tax efficiency, residency planning, and business structure optimisation matter — but they matter at step four, not step zero. Sort banking and insurance first. You can always refine the structure later.
Where to go next
If you know what you need, the guides below go deep on each area. If you're not sure where to start, the nomad setup tool walks you through a few questions and gives you a personalised plan.