Are you aware of the foreign-owned single-member LLC filing requirements? When it comes to running a business in the US, you need to make sure that is done according to law, and that is especially the case when we talk about taxes.
In order to leave you ready, we have created this guide on the foreign-owned single-member LLC filing requirements you must know. You will get a complete overview on the topic, with the goal of bringing you additional tools for successfully running your LLC.
Foreign-owned Single-member LLC Filing Requirements: Do You Need an Employer Identification Number (EIN)?
Before 2017, the members of a foreign-owned single-member LLC did not require an Employer Identification Number (EIN), but nowadays the reality is completely different. Before we go ahead and talk about the forms you need to fill, it is key to get an EIN.
In order to get an EIN for this type of LLC, you need to designate a responsible person. This term, according to the IRS, means… “the individual who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets.”
Once you have obtained your EIN, it is time to talk about the necessary forms, according to the foreign-owned single-member LLC filing requirements.
Foreign-owned Single-member LLC Filing Requirements: What Forms Do You Need?
As a foreign-owned single-member LLC, you need to fill the Form 5472 and pro forma Form 1120. However, as long as your income is not classified as US sourced, your LLC will not be subjected to income tax. Now, let us talk about how to fill the required forms.
Foreign-owned Single-member LLC Filing Requirements for the Form 1120 and Form 5472
Now, you need to start by filling the pro forma Form 1120, which requires the following information:
- Name of the foreign-owned single member LLC
- Address of the foreign entity
- Employer Identification Number (EIN)
- Checkboxes for address changes, name changes, initial returns, and final returns
- Write “Foreign-owned U.S. DE” across the top of the document.
On the other hand, filing the Form 5472 will require more time and dedication because you need to enter specific sets of information into the right boxes. To do it correctly, especially if it is your first time doing it, we recommend you to work alongside a qualified accountant.
Once you have filed the Form 5472, it is time to attach it to the pro forma Form 1120, and send it to the address specified on the Form 5472. Make sure to check it is the correct address, because it changes from time to time.
Do the Foreign-owned Single-member LLC Filing Requirements Also Include Maintaining Books?
Yes, because you will need to prove the claims made on the Form 5472 with the information from your books. Therefore, if you do not have experience with bookkeeping, then it is a good idea to hire an experienced accountant to help you, in order to have all the necessary records, evidence and data that will support the claims made on the Form 5472.
Meet all the Foreign-owned Single-member LLC Filing Requirements Easily
You do not need to handle these matters alone, because we are ready to help you to do it correctly and easily. If you are ready to take the professional route, then give us a call at (786) 310-5582 or email us at [email protected]. We will be happy to help you with the filing requirements of your foreign-owned SMLLC.
