In short: an LLC's taxes depend on the number of owners, the type of business and the state. A non-resident's LLC with no US business activity often owes no federal income tax — but it still has to report to the IRS. And remember your taxes in the country where you live.
How an LLC is taxed
- Single-member LLC (one owner) — by default a disregarded entity: profit is treated as the owner's income. If the income is not connected with a US trade or business, there may be no federal income tax. But Form 5472 with a pro forma 1120 must be filed every year.
- Multi-member LLC (several owners) — by default taxed as a partnership: Form 1065 is filed and owners receive K-1s. Withholding rules may apply to foreign partners.
- State taxes — some states charge an annual franchise tax or a minimum tax on LLCs. See the state pages.
- Sales tax — tax on sales, if you sell goods or services to buyers in states where you have a collection obligation.
- Taxes at home — income from the LLC is usually taxed in your country of residence.
How we help
- Consultation — we review your business and company structure.
- We identify obligations — federal, state and sales tax.
- We prepare filings — Form 5472, 1120, 1065 and others.
- We remind you about deadlines — so there are no penalties.
- Lawyers step in — when your situation is not standard.
What we need from you
- LLC documents and EIN.
- Account statements for the year.
- A description of the business: what you sell, to whom and from where.
Timing
Deadlines depend on the form and the state. For most federal filings of a calendar-year LLC the deadline falls in the spring of the following year; we remind you in advance.
Price
- Tax consultation — included in all LLC packages (from $100 + state fee).
- Form 5472 and other filings — on request.
- Accounting — from $150 per month.
FAQ
Is it true that a non-resident's LLC pays no US taxes?
Not always. It depends on the activity, the owners and the state. Reporting is required either way.
What happens if I do not file Form 5472?
The IRS can impose a $25,000 penalty for each unfiled form.
Do I also pay taxes in my home country?
Usually income is taxed in your country of residence. The details depend on your situation — check with a local tax advisor.
Do I need to register for sales tax?
It depends on what you sell and to whom. We will check during the consultation.