Estimate the US federal tax obligations of a non-resident-owned US LLC. Most non-resident-owned single-member LLCs without US-source ECI owe no US income tax but must file Form 5472 + pro-forma 1120 annually. The snapshot lays out the four standard scenarios.
Single-member non-resident-owned (SMLLC) or multi-member with at least one non-resident. Default tax classification differs.
Effectively Connected Income (ECI) — income from a US trade or business — is taxed at standard US rates. FDAP income (interest, dividends) is taxed at 30% or treaty rate. No US-source income generally means no US income tax.
Each scenario produces a filing checklist (Form 5472, Form 1120, Form 1065, K-1, withholding, etc.) and an order-of-magnitude tax estimate.
Wyoming-fulfilled, EIN included. Most non-resident founders pair this with $99 EIN and $299 ITIN.
See Formation — $397Static snapshot pulled from current state filing fees, statutes, and pricing data. Updates when source data changes.
| Scenario | Structure | Income type | Filings required | Tax outcome |
|---|---|---|---|---|
| Non-resident SMLLC, no US-source income | Disregarded SMLLC | None US-source | Form 5472 + pro-forma 1120 annually | Zero US income tax |
| Non-resident SMLLC, US-source ECI | Disregarded SMLLC | ECI (US trade or business) | Form 5472 + 1120 + owner Form 1040-NR (with ITIN) | Standard US income tax on net ECI |
| Non-resident SMLLC, US-source FDAP | Disregarded SMLLC | FDAP (interest, dividends, royalties) | Form 1042/1042-S withholding + Form 5472 + 1120 | 30% withholding (or treaty rate 5-15%) |
| Multi-member LLC with non-resident | Partnership (1065) | ECI portion to non-resident | Form 1065 + K-1 + Form 8804/8805 + 1040-NR for owner | Partnership withholds on non-resident's ECI share |
| Non-resident LLC electing C-corp | C-corp election (Form 8832) | Corporate income | Form 1120 + standard corporate filings | 21% corporate tax + 30% withholding on dividends to owner |
Non-resident = not a US citizen, not a US tax resident under the substantial-presence test, no green card. ECI = Effectively Connected Income from a US trade or business. FDAP = Fixed, Determinable, Annual or Periodic income. Order-of-magnitude only; consult a US tax preparer for actual filings.
Foreign founder forms a US LLC to invoice international clients. No US employees, no US warehouse, no US-located inventory. Result: no US-source ECI, no US income tax. But Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation) and a pro-forma Form 1120 must still be filed annually. Missing this filing carries a $25,000 penalty per violation per year.
If the LLC has US employees, a US office, US inventory, or US-sourced sales activities, the income may be ECI — subject to US income tax. The line is drawn by the 'trade or business in the US' test. Cross-border facts require a US tax preparer.
If the LLC pays interest, dividends, or royalties to a foreign owner, it is required to withhold 30% (or treaty rate) and file Form 1042-S. Failure to withhold is a strict-liability failure — penalties accrue regardless of whether the foreign owner ultimately owed the tax.
Non-resident owners need an ITIN to file Form 1040-NR (when ECI is involved) or to claim a tax treaty benefit. ITIN is acquired via Form W-7 + certified passport copy. Anonymousllc.co handles ITIN as a $299 service.
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