Answer the questions to see the US filing and tax obligations that typically apply to your situation.

01

Two different questions

Owing US income tax and having to file a US form are separate questions. Many foreign-owned single-member LLCs owe no US income tax, yet still must file Form 5472 with a pro forma Form 1120 because they had reportable transactions. Missing that filing - even on a dormant company - is what triggers the $25,000 penalty.

US income tax itself turns on effectively connected income: whether your activity rises to a US trade or business through an office, employees, a dependent agent or inventory. That is a facts-and-circumstances test, so treat this tool as a map and confirm your specific case with a qualified professional.