Foreign founder with a US LLC

1. Know what your LLC is for tax purposes

A US LLC with one owner is disregarded by default. For income tax, the IRS looks through it to you, and the LLC itself pays no federal income tax. With two or more owners, it's a partnership by default and files Form 1065 every year. You can also choose to have it taxed as a corporation (Form 8832), which brings the 21% corporate tax and its own returns. Most solo founders keep the default.

2. Get an EIN

The LLC needs an Employer Identification Number to open a bank account, sign up with Stripe or file anything. Founders without a US Social Security number apply with Form SS-4 by fax, mail or phone, because the online application requires an SSN or ITIN.

3. Work out whether you are a US tax resident

Owning a US company doesn't make you a US resident. Days do. Check the green card test and the day-count formula in § 7701(b). If you're a nonresident, the US only taxes your US-source income.

4. Find out whether the LLC has US-taxable income

As a nonresident, the US taxes you on income effectively connected with a US trade or business at normal rates, and on certain passive US income at a flat 30% (§ 871). If you perform your services while physically outside the US and have no US office, staff or agent, your profit is often foreign-source and not US-taxable. This is the judgment call where professional advice earns its fee.

5. File Form 5472 every year: the $25,000 rule

Even when the LLC owes nothing, a single-member LLC owned by a foreigner must file Form 5472 with a pro forma Form 1120 for every year it has transactions with you, such as money in or money out. It's due April 15 for a calendar-year LLC and goes by fax or mail. The penalty for missing it is $25,000. See § 6038A.

6. Give clients and platforms the right form

US clients and platforms will ask for a tax form. A foreign individual owner of a disregarded LLC generally gives Form W-8BEN in their own name. That's what stops 30% withholding or claims a treaty rate. Never sign a W-9 unless you're actually a US person.

7. If you do have US business income

You may need to file Form 1040-NR personally and pay at the § 1 rates, with no standard deduction (§ 63). If the LLC has two or more foreign owners and US business income, the partnership must withhold tax on their shares (§ 1446).

8. Remember the layers outside Title 26

• State: your state of formation charges annual fees or franchise taxes. A state where you have a real presence or customers may tax income or require sales tax.
• Home country: where you live will usually tax the profit too, under its own rules for how it views a US LLC. A tax treaty decides who gets to tax what.

Your yearly calendar

When	What
April 15	Form 5472 + pro forma 1120 (or Form 7004 to extend)
April 15 / June 15	Form 1040-NR if you have US-taxable income (April 15 with US wages or a US office, otherwise June 15)
Ongoing	Keep records of every transfer between you and the LLC