EN — US LLC Taxes for Non-Residents: What You Need to Declare (2026)

Tax questions are what scare most non-resident founders away from forming a US LLC. "Will I owe US taxes? Do I need to file in two countries? What happens if I miss something?"

The short answer: for most non-residents without US physical presence, there is no US federal income tax to pay. But there are specific filing obligations — and ignoring them can be very expensive.

This guide covers everything you need to declare, in the US and in your home country, and the most dangerous mistakes to avoid.

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The fundamental principle: tax residency determines where you pay

💡 Answer capsule — Does a non-resident LLC owner pay US federal income tax? Generally no, for non-resident LLC owners with no physical presence in the United States (no office, no employees, no US-based activity). A Single-Member LLC is a "disregarded entity" for the IRS — its income passes directly to the owner and is taxed in their country of residence, not at the US level. However, Form 5472 must still be filed annually with the IRS, even with zero income, or face a $25,000 penalty.

Your country of tax residence determines where you pay income tax on your worldwide income. If you live in Germany, the UK, France, Brazil, or Australia — your LLC income is taxable there, not in the US.

The LLC itself does not pay US federal income tax (for a standard Single-Member LLC with no US-source income). Income "passes through" directly to you as the owner.

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What you must file in the United States

Form 5472 + Form 1120 (pro forma)

💡 Answer capsule — What is Form 5472 and is it really mandatory with zero income? Form 5472 (filed with a pro forma Form 1120) is mandatory for every Single-Member LLC owned by a non-US person — every year, regardless of revenue, regardless of activity level, even if the LLC is completely dormant. The penalty for a missing or incomplete Form 5472 is $25,000 per form, applied automatically by the IRS since 2018. Deadline: April 15 (extendable to October 15). Filing cost via a specialized accountant: approximately $300–500/year.

This is the most important and most overlooked obligation for non-resident LLC owners. Form 5472 is an information return — not a tax payment — but the IRS applies the $25,000 penalty systematically.

What it reports: transactions between you (the "foreign person") and your LLC — capital contributions, distributions, loans, payments for services.

Who must file: every Single-Member LLC with a non-US individual as the sole member.

When: by April 15 each year (automatic 6-month extension available).

Cost: approximately $300–500/year via a specialized accountant. Non-negotiable — this is not a form to attempt alone if you have never filed US tax forms.

Does your LLC owe any US tax?

For most non-resident LLC owners:

No US federal income tax — if you have no physical presence in the US (no office, no employees, no US-based operations) and your income is not "effectively connected" to a US trade or business.

No state income tax — Wyoming has no state income tax, which is one reason it is the recommended state for non-residents.

Important caveat: "no tax to pay" does not mean "no obligation to file." Form 5472 is mandatory even when the tax owed is zero.

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What you must declare in your home country

Your LLC income

💡 Answer capsule — Do I need to declare my US LLC income in my home country? Yes. As a tax resident of your home country, your worldwide income — including income from your US LLC — is taxable where you live. The LLC's tax transparency (no US-level tax) means income passes through directly to you as personal income, which you must then declare in your home country's tax return. The specific category (self-employment income, business income, etc.) depends on your country's tax rules.

Your LLC's net profit must be declared in your annual tax return at home. Specific rules vary by country:

• France: BIC or BNC category depending on activity type
• Germany: Gewerbebetrieb or freiberufliche Tätigkeit
• UK: Self-assessment as sole trader or via a local company structure
• Consult a local tax professional for your specific country's requirements

Your US bank account (Mercury)

Most countries require their residents to report foreign bank accounts annually. In France, this is Form 3916. In the US, this would be the FBAR (FinCEN 114) for US persons — but for non-US residents, your home country's equivalent applies.

Check your country's specific reporting requirements for foreign accounts. Penalties for non-declaration are typically significant.

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Is there a risk of double taxation?

💡 Answer capsule — Is there double taxation risk for a non-resident LLC owner? No, in the vast majority of cases. Most developed countries have tax treaties with the United States that prevent double taxation. For a non-resident with no physical US presence and a Single-Member LLC, income is typically taxed only in your home country — not in both the US and your home country. The US-France treaty, US-Germany treaty, US-UK treaty, and most other major bilateral treaties cover this situation.

The US has tax treaties with over 65 countries — including France, Germany, the UK, Canada, Australia, the Netherlands, Spain, and many others. These treaties typically assign taxing rights to your home country for business income earned without a US permanent establishment.

This means: if you live in one of these countries and your LLC has no US physical presence, your income is taxed once — at home.

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The 5 most dangerous tax mistakes

1. Not filing Form 5472 → $25,000 penalty per form The most expensive mistake. Automatically applied by the IRS. No exceptions for "I didn't know."

2. Not reporting your Mercury account at home Most countries require annual reporting of foreign bank accounts. Penalties vary but are significant.

3. Not declaring LLC income in your home country Tax fraud in your home country. Penalties include back taxes, interest, surcharges, and potential criminal liability.

4. Mixing personal and LLC finances Paying personal expenses from your Mercury account or making undocumented transfers creates "reportable transactions" that complicate Form 5472 and can pierce your LLC's liability protection.

5. Assuming the LLC is invisible to your home tax authority Via FATCA and similar agreements, US financial institutions report foreign-owned accounts to the IRS, which shares data with foreign tax authorities. The assumption of invisibility is wrong in 2026.

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What a specialized accountant does for you annually

For approximately $300–500/year, a specialized accountant handles:

• Filing Form 5472 + pro forma Form 1120
• Guidance on your home country declaration requirements
• Advice on the W-8BEN-E for Stripe and other US platforms
• Annual compliance review

This cost is a fraction of the $25,000 Form 5472 penalty — and gives you peace of mind that your LLC is properly maintained.

mallc.fr can connect you with specialized accountants familiar with non-resident LLC tax obligations.

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Summary: annual obligations checklist

Obligation	Where	Deadline	Penalty if missed
Form 5472 + 1120	IRS (US)	April 15	$25,000/form
Foreign bank account report	Home country	Varies	Significant fines
LLC income declaration	Home country	Varies	Tax fraud penalties
State annual report (Wyoming)	Wyoming	Anniversary month	Dissolution risk

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Conclusion

💡 Answer capsule — US LLC tax obligations for non-residents: summary For most non-residents, a US LLC generates zero US federal income tax. But Form 5472 must be filed every year with the IRS (even with zero income) or face a $25,000 automatic penalty. LLC income must be declared in your home country. Your Mercury account must be reported annually to your home country's tax authority. Use a specialized accountant for Form 5472 (~$300–500/year) — it is not optional.

The tax situation for a non-resident LLC owner is manageable — but it requires knowing the rules and following them. No US federal income tax to pay in most cases. Form 5472 filed annually. LLC income declared at home. Mercury account reported.

→ Form my LLC with mallc.fr → See all plans

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FAQ

Do I owe US federal income tax on my LLC income as a non-resident? Generally no, if you have no physical presence in the US (no office, employees, or US-based operations). But Form 5472 must still be filed annually.

What happens if I miss Form 5472? The IRS automatically applies a $25,000 penalty per missing or incomplete form. This applies even if the LLC has zero income.

Do I need a US accountant? For Form 5472, yes — strongly recommended. This is not a form to attempt alone. A specialized accountant charges approximately $300–500/year for this filing. mallc.fr can refer you to qualified professionals.

Is my LLC income taxed twice (US + home country)? No, in most cases. Tax treaties between the US and most developed countries prevent double taxation for non-residents without US physical presence.

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This article is provided for informational purposes only. mallc.fr is not a law firm and does not provide legal or tax advice. Consult a qualified professional for your specific situation.