Tax guides
Foreign owners under US federal and state rules.
Check each owner's tax status first. A two-owner LLC normally files Form 1065; a US individual files Form 1040, a nonresident individual Form 1040-NR, and a foreign corporate partner usually Form 1120-F. The LLC pays foreign-partner withholding. A C corporation pays tax and files Form 1120; shareholders report dividends, with foreign-payee withholding. Nonresident alien or corporate shareholders bar S status.
Partnerships · Corporations
For a calendar-year US C corporation, a valid Form 7004 makes Form 1120 and any required Form 5472 due October 15. File both by then. Pay tax by April 15, or June 15 if the corporation qualifies for the business and books abroad rule. A late Form 5472 can cost the corporation $25,000 even with zero income tax.
Corporations
A US C corporation may prepare its own Form 1120; an authorized officer signs even without an SSN or ITIN. Attach any required Form 5472. E-file, or mail if paper filing is allowed, using the address for the corporation's principal location. The corporation pays its tax separately, including by international wire from a foreign bank.
Corporations
A foreign-owned US C corporation generally files its first Form 1120 from the date it first has shareholders, assets, or business activity through its tax year-end, even if sales are zero. First confirm those dates, then report income and deductible costs. Start-up and organization costs generally wait until business begins. The corporation pays any tax and keeps its own losses.
Corporations
US sales or LLC ownership alone do not require Form 1120-F. First check US activity and LLC classification. A foreign corporation with a US trade or business generally files and pays any Form 1120-F tax, even with treaty relief. A disregarded LLC may separately file Form 5472; partnership and elected corporate LLCs file their own returns.
Corporations
A US C corporation generally files a full Form 1120 every tax year, even with no sales or taxable income. It attaches Form 5472 if it had a reportable transaction with a foreign or domestic related party. Payments to a foreign owner may also trigger withholding returns. State filings depend on where the corporation operates and was formed.
Corporations
A US single-member LLC owned by one foreign person must file a pro forma Form 1120 with Form 5472 attached for any year it has a reportable transaction with its owner or another related party, including contributions and distributions. For a calendar-year LLC it is due April 15, extendable with Form 7004, and must be faxed or mailed, not e-filed.
Self-employed · Corporations
A US partnership or multi-member LLC with a foreign partner generally withholds federal tax on that partner's share of effectively connected taxable income, even without a cash distribution. It pays installments with Form 8813 and files Forms 8804 and 8805. Separate withholding may apply to passive income, a sale of the interest, and state-source income.
Partnerships
A nonresident can generally own a US LLC or C corporation, but a nonresident alien cannot be an S corporation shareholder. A single-owner LLC usually passes income to its owner, a multi-owner LLC usually files as a partnership, and a C corporation pays its own income tax. Ownership, US activity, and state rules determine the actual filings.
Self-employed · Partnerships · Corporations
Check each year the US entity was subject to Form 5472 and had reportable related-party transactions. File each missing form with the required corporate return. Voluntary filing does not guarantee penalty relief, but you can explain reasonable cause. If you received a CP215 notice, meet its response deadline, cure any missing filing, and request relief with evidence.
Self-employed · Corporations
First identify each owner's US tax status, share, and rent collector. Nonresident owners owe US tax on US rent. The payer generally withholds on gross rent unless net treatment is documented; a collector who fails to withhold can owe that tax. Individuals elect net treatment on Form 1040-NR; foreign corporations use Form 1120-F. An LLC's classification controls. Reconstruct missed years.
Individuals · Corporations
First confirm nonresident status, including any treaty tie-breaker. For taxable US business income, file your own Form 1040-NR: report a direct or disregarded LLC business on Schedule C, or a partnership share from Schedule K-1 and claim any Form 8805 withholding. You owe tax on your share even without a payout. Self-employment tax usually does not apply; check estimates and state filing.
Individuals · Self-employed
If a US single-member LLC is disregarded for federal tax, its owner can generally transfer cash as an owner draw: the transfer itself creates no separate US income tax or dividend withholding, but the LLC's income may still be taxable to the owner. A C corporation can pay dividends, reasonable wages or fees, or repay a real loan; each has different sourcing, withholding and reporting rules.
Self-employed · Corporations
A wire from abroad is generally not income to a US C corporation if it buys shares or creates a genuine loan. Before sending money or paying company bills, document whether the corporation will issue shares or owe repayment. A foreign owner's loan and interest can require Form 5472; the corporation must withhold and report taxable interest paid to that owner.
Corporations
First check your entity's formation-state agent rule; an unformed sole proprietor needs no registered agent. Give the IRS your real mailing and physical addresses, even abroad. A US or foreign business can apply for a US account, but banks verify its location and identity, and payment platforms set their own checks. Remote opening and acceptance are institution decisions.
Self-employed · Partnerships · Corporations
Yes. A Delaware C corporation files Form 1120 and generally pays federal tax at 21% on worldwide taxable income, even when managed abroad. With no Delaware business, it owes no Delaware corporate income tax, but its annual report and franchise tax are due March 1 of the following year. Another state or its management country may also tax it.
Corporations
First confirm the subsidiary is a corporation for US tax. A US C corporation that wholly owns it files Form 5471 and Form 8992 with Form 1120, even without dividends; the parent pays any US tax. Use Form 8993 for a deduction and Form 1118 for a credit. Reportable related-party dealings may require Form 5472.
Corporations
A foreign company's US C corporation subsidiary files Form 1120 each year and one Form 5472 per related party with reportable transactions. First reconcile parent charges and obtain the parent's W-8BEN-E. Support prices at arm's length; withhold on taxable US-source interest and royalties, then file Forms 1042 and 1042-S by March 15 after the payment year. The subsidiary owes missed withholding.
Corporations
Contact a preparer now with prior returns, ownership records, books, bank statements, and related-party transactions. There is no official Form 1120-plus-5472 fee: missing books, related parties, loans, withholding, payroll, and late years increase work. The corporation owes its tax and remains responsible for the return. A calendar-year return with a timely Form 7004 is due October 15.
Corporations
A non-resident or foreign company owes US tax on business income effectively connected with a US trade or business, usually from US work or operations. It is taxed on net profit at regular rates. Work done outside the US is generally not taxed. A treaty can exempt profits not tied to a US permanent establishment, such as an office.
Self-employed · Partnerships · Corporations
Not sure which rules apply?