Taxes for foreign-owned US LLCs
A US LLC has to file with the IRS every year, even with no revenue and even if its owner lives abroad. We take care of that for you.
Which return your company needs
Form 5472 + pro forma 1120
Single-member LLC with a foreign owner
Required for every year with reportable transactions between the LLC and its owner, including contributions, distributions and the formation itself. Failing to file risks a USD 25,000 penalty per form and year.
Form 1065 + Schedule K-1
LLC with two or more members
The LLC is taxed as a partnership. Each member receives a K-1 showing their share of profit. US income of foreign members adds withholding forms (Form 8804/8805).
Form 1120
C corporation, or LLC that elected corporate status
The company pays 21 % federal tax on its own profit. Dividends to foreign shareholders are subject to withholding.
Form 1120-S
S corporation
Only available if every shareholder is a US person. Foreign owners cannot use an S corporation.
Form 1040-NR
The foreign owner personally
If the LLC earns income from a US trade or business, the owner usually has to report it on their own US return.
What we take care of
- Apply for an EIN, even without a US Social Security number (Form SS-4)
- Annual company return: 5472, 1120, 1065 or 1120-S
- The owner’s personal return (1040-NR) and ITIN application (Form W-7)
- Check the tax position: does your LLC have income from a US trade or business?
- Extensions (Form 7004) and replies to IRS letters
- State annual reports and franchise taxes, e.g. Wyoming, Delaware or Florida
- Catching up on missed years, including requests for penalty relief
What we need from you
- Formation documents (Articles of Organization, Operating Agreement) and EIN letter (CP 575)
- Statements of all business accounts for the tax year
- A list of payments between you and the LLC (contributions, distributions, loans)
- A copy of your passport and your tax ID in your country of residence
- Any letters from the IRS or the state
You get the exact list with our quote.
Common questions
My LLC had no revenue. Do I still need to file?
Usually yes. The Form 5472 requirement depends on transactions between you and the LLC, not on revenue. Paying formation costs or the registered agent fee already counts as such a transaction.
Does my LLC pay US tax?
A single-member LLC pays no federal tax as a company. The owner is taxed if the LLC has income from a US trade or business. Many online businesses with customers worldwide have no such income. We check this case by case.
I haven’t filed for several years. What now?
Catch up before the IRS contacts you. We prepare the missing years and explain why the filing was late. This often leads to penalty relief, but there is no guarantee.
Do you advise on taxes in my home country?
No. We handle the US side. For your country of residence you need a local tax adviser. We are happy to provide them with all US documents.
What will your case cost?
Tell us briefly about your situation. You get a fixed-price quote before any work starts.