Whether you owe US income tax depends on your activity, not the formation certificate. Many non-residents running a US LLC remotely owe no US income tax, but a foreign-owned LLC commonly still must file Form 5472 with a pro forma Form 1120 - and the failure-to-file penalty starts at $25,000. Your home country can tax it too.
Reporting can be required even at zero tax
A foreign-owned US disregarded entity with reportable transactions usually files Form 5472 with a pro forma Form 1120, even when no US income tax is due, and even when the company is dormant.
"0% US tax" is an unsafe universal promise. State taxes, information returns and tax in your residence country - through CFC, permanent-establishment or classification rules - can all still apply.
Free tools for this
- Compliance calendar - Put Form 5472 and other deadlines on your calendar.
Quick answers
Frequently asked questions
Do I owe US tax on a US LLC as a non-resident?
Not necessarily. It depends on effectively connected income and US presence. Even at zero tax, Form 5472 and home-country tax can still apply.
Is the $25,000 Form 5472 penalty real?
Yes. IRS instructions describe a $25,000 failure-to-file penalty, and a dormant company is not automatically exempt.