A US LLC owned by a foreign person does not necessarily pay federal corporate tax, but it almost always has reporting duties: getting an EIN, filing Form 5472 with a pro forma Form 1120 every year, meeting state reports and keeping bookkeeping. Failing to file Form 5472 can carry a significant penalty according to the IRS.
Reviewed on 2 October 2026. Informational guide, not tax advice; deadlines and requirements change.
Key forms
| Form | Purpose | When |
|---|---|---|
| SS-4 | Apply for the EIN (the LLC’s tax ID) | When forming the LLC |
| 5472 + pro forma 1120 | Report transactions between the LLC and its foreign owner | Every year |
| State annual report | Keep the LLC active in its state of formation | Depends on state |
| W-8BEN or W-8BEN-E | Prove non-resident status to payers | When a platform asks |
For Form 5472 details, see the IRS. The usual 5472 and pro forma 1120 deadline follows the federal corporate return, but check the date and extensions every year.
What to keep in mind
- Bookkeeping. You need clear records of transactions with the owner to complete the 5472 (LLC bookkeeping).
- State of formation. Each state has its own fees and reports.
- Your country of residence. Profits may be taxed there; the LLC does not remove local duties.
- US indirect taxes. If you sell there, sales tax may apply depending on the state.
Common mistakes
- Not filing the 5472 because the LLC supposedly has no activity.
- Mixing personal and LLC funds.
- Letting the state annual report lapse.
FAQ
Does an LLC with a foreign owner pay tax? It depends on US-connected income and your residence; often the work is reporting, but your case needs analysis.
LLC or OÜ? It depends on where you sell: US LLC or Estonian company for Amazon FBA.
How Data Biz helps
We set up and run bookkeeping and annual filings for LLCs: US LLC. Request a free consultation.
Sources and review
Forms and penalties: IRS. Reviewed on 2 October 2026.
More on LLCs: selling on Amazon with a US LLC · US LLC if you live in Spain.