One of the biggest questions non-residents ask is: do I have to pay US tax on my LLC? The honest answer is “it depends” — and this guide explains the key rules in plain English. (This is general information, not tax advice.)
The core principle
A non-resident generally owes US federal income tax only on income that is “effectively connected” with a US trade or business, or US-source income. Many non-residents running online businesses with no US staff or office have little or no US income tax — but they still have filing obligations.
The key filing: Form 5472 + pro-forma 1120
A single-member LLC owned by a non-resident is usually a “disregarded entity.” Even if it owes no tax, it must file Form 5472 with a pro-forma Form 1120 each year to report transactions between you and the company. Missing this carries steep penalties, so never skip it.
When you DO owe US tax
- You have a US office, warehouse, or dependent agent.
- You have US-based employees or staff doing the work.
- You earn certain US-source income.
If any apply, you likely have US “effectively connected income” and a tax liability — get professional advice.
Do not forget sales tax
US sales tax is separate from income tax. If you sell physical goods to US customers and cross a state economic-nexus threshold, you may need to collect and remit sales tax in those states.
Stay compliant: BOI & annual reports
Beyond income tax, your LLC must file its BOI report with FinCEN and keep up with state annual reports. Compliance is what keeps your company in good standing.
Frequently asked questions
My LLC made money but has no US presence — do I owe US tax?
Often no US income tax, but you still must file Form 5472/1120. Confirm your exact situation with a professional.
Do I need an ITIN?
Sometimes — see our ITIN guide. Many owners only need an EIN.
Start with 3Companion
3Companion helps non-residents in 150+ countries form US & UK companies, get an EIN/ITIN, open banking, and stay compliant — 100% remotely. Start your application here or message us on WhatsApp for a free consultation.
Disclaimer: This article is general information only and not legal or tax advice. Consult a qualified professional for your situation.