Filing U.S. tax returns for international business owners can be one of the most challenging tasks entrepreneurs face. It is important to understand not only the IRS requirements, but also the variety of forms and deadlines that vary depending on the type of business and its structure.
This guide is designed to help international business owners easily navigate the U.S. tax laws and minimize the risk of penalties and problems with regulators. Whether you do business through an LLC, C-corporation, or partnership, knowing the key dates and required documents is the first step to successful tax filing.
U.S. tax filing requirements for international entrepreneurs
If you have any questions or need additional information, our experts are always available to help you understand the complexities of the U.S. tax system.
US Single Member LLC with obligation to file a personal tax return
If you are a non-U.S. resident and own a U.S. single-member LLC that is actively engaged in activities (e.g., providing services, leasing property, or investing through a brokerage account), you are required to file a personal tax return and report income in the United States. This structure requires income to be included on the individual return because the LLC is considered "transparent" for tax purposes.
Required Submission Forms:
- Form 1040NR - non-resident individual tax return
- Schedule C - income from self-employment
- Schedule E - rental income from real estate
- Schedule B / Schedule D - income from brokerage account or capital gains
Key dates:
- April 15 is the deadline for filing Form 1040NR or requesting a 6-month filing extension
Foreign Single Member LLC filing when there is no activity or income in the U.S.
If you own a single-member foreign LLC and do not conduct a U.S. trade or business, you are not required to file Form 1040NR and pay taxes on your personal income. As a nonresident (foreign national), you are only required to file U.S. tax returns if:
- FDAP income (fixed, defined, annual, or periodic) without withholding at source,
- or income effectively connected with a trade or business in the United States.
Required Submission Forms:
- Form 1120 (Pro Forma) - Corporate Information Statement
- Form 5472 - foreign owner's report
Key dates:
- April 15 is the deadline for filing Forms 1120 and 5472 or submitting an extension request
- April 15 is the deadline for filing an individual return (Form 1040NR), if one is required
Filing tax returns for Multi-Member LLC (Multi-Member LLC)
If you are a non-U.S. resident who owns an LLC with multiple members, this structure is by default treated by the IRS as a partnership. This means that the LLC is required to file a partnership tax return (Form 1065), and each member reports its share of income separately on Schedule K-1, K-2, and K-3.
1. Foreign participants with U.S. income
If the LLC is owned by more than one nonresident and earns income related to U.S. activities, the following forms must be filed:
- Form 1065 - partnership tax return
- Form 8825 - rental real estate income
- K-1, K-2, K-3 - for each participant
- Forms 8804, 8805, 8813 - if there is effectively connected income (ETB)
- Form 1040NR - filed by each foreign participant
- Obtaining an ITIN - if required to file a 1040NR
Submission Deadline: March 15 of the year or a 6-month extension
2. Foreign participants with no U.S. income
If all members are non-residents and the LLC's activities are not U.S. related, filing a 1040NR is not required. However, partnership reporting is required:
- Form 1065
- Form 8825 - if there is a lease
- K-1, K-2, K-3 - for each participant
- Forms 8804, 8805, 8813 - only if ETB is available
Submission Deadline: 15 March
3. Mixed composition of participants (residents and non-residents)
If there are both residents and non-residents among the LLC members, the following reporting is required:
- Form 1065
- Form 8825 - if there is a lease
- K-1, K-2, K-3
- Forms 8804, 8805, 8813 - at ETB
- Form 1040 - for U.S. residents
- Form 1040NR - for non-residents
Submission Deadline: 15 March
4. All participants are U.S. residents
If the LLC members are only U.S. residents, reporting is done in standard partnership format:
- Form 1065
- Form 8825 - if there is a lease
- K-1, K-2, K-3
- Forms 8804, 8805, 8813 - at ETB
- Form 1040 - individual declaration of each participant
Submission Deadline: 15 March
Filing tax returns for LLCs and corporations with C-Corp status
Some LLC owners may voluntarily elect to be taxed as a corporation (C-Corp) by filing a notice with the IRS. This changes the LLC's tax status: the company becomes a separate taxpayer and is required to file a corporate return. Reporting is also required to disclose information on foreign owners.
C-Corp taxable LLC
- Form 1120 - corporate tax return
- Form 5472 - report of foreign owner or related parties
Submission Deadline: April 15 of the year or a 6-month extension
Delaware C-corporation with foreign ownership
If your company is incorporated in Delaware and owned by a foreign owner, not only is federal tax reporting required, but filing a state franchise tax report is also required.
- Form 1120 - corporate tax return
- Form 5472 - foreign owner's report
- Delaware franchise tax return
Timeline:
- March 1 - Delaware franchise tax report
- April 15 - reporting on Forms 1120 and 5472
Delaware C-corporation with in-house status
Even if a company only does business within the U.S., it is required to file two types of returns when incorporating in Delaware:
- Form 1120 - corporate tax return
- Delaware Franchise Declaration
Timeline:
- March 1 - Delaware Franchise Tax.
- April 15 - federal declaration (1120)
DAO LLC
If a decentralized autonomous organization (DAO) is registered as an LLC, it is subject to the standard partnership requirements unless it has elected a different tax status.
- Form 1065 - partnership tax return
- Form 8825 - rental income
- Appendices K-1, K-2, K-3 - for each participant
- Forms 8804, 8805, 8813 - if there is income effectively connected with a business in the United States
Submission Deadline: March 15 of the year or a 6-month extension
Conclusion
Understanding U.S. tax filing requirements for non-residents requires attention to detail, accurate timelines, and the right forms depending on your business structure. Whether you operate through a single-member LLC, a C-corporation or a DAO, each situation requires a different approach and precise IRS compliance. Filing errors or incomplete reporting can lead to penalties and complications in the future. If you are not sure how to prepare the documents correctly or want to delegate this process to professionals, the TaxFreeCorp. team is ready to help. We accompany entrepreneurs from different countries, ensuring correct and timely filing of reports in accordance with U.S. law.