Do You Also File a Personal US Return? Form 1040-NR for LLC Owners
Summary
Most foreign owners who run the business from abroad file no personal US return; the LLC files Form 5472. Work done while in the US, or a US office or staff, can change that.
The Form 5472 your LLC files is the LLC's return. A separate question is whether you, the owner, must file your own US income tax return, Form 1040-NR. For most founders who live and work abroad, the answer is no. Here is how to tell.
Why the question arises at all
A single-member LLC is disregarded for US income tax: its income is treated as the owner's. So the LLC's profit is, for US tax purposes, your income. Whether the US taxes it depends on two things about that income: where it comes from, and whether it is connected with a trade or business in the United States.
Three situations
| How the business runs | Personal US return likely? |
|---|---|
| You live abroad and do all the work abroad; US customers pay the LLC online | Usually no |
| You come to the US and do some of the work while there | Possibly, for income from that work |
| The LLC has US staff, a US office, a US warehouse or someone in the US acting for it | Likely; this is the point to get professional advice |
The first row is most founders. Income from services performed outside the US is generally treated as coming from outside the US, and a nonresident is generally taxed by the US only on US-source income and income connected with a US trade or business. A developer in Lisbon writing code for US clients is usually outside both.
The second row is where many founders slip. Working from a hotel in New York for a month, or visiting a US client to deliver work, can make the income from that work US-source.
The third row is the one that usually means a US trade or business, with a personal Form 1040-NR (due June 15 for nonresidents who have no US wages subject to withholding), and possibly other obligations.
What changes, and what does not
Whatever the answer, the LLC's Form 5472 is still due every year it has transactions with you. A personal return does not replace it, and not owing personal tax does not remove it.
If you do need to file Form 1040-NR, you need a US taxpayer number for yourself. A nonresident without an SSN applies for an ITIN on Form W-7, usually together with the return.
When to get help
If any part of your business touches the second or third row, the answer depends on facts that deserve a qualified CPA's view: how many days, what work, what the arrangement looks like, and what any treaty with your country provides. An automated Form 5472 tool is not the place to answer that question, and FileTax's own filing requirements page says the same.
For the first row, the LLC's yearly filing is the only US federal return, and FileTax prepares the Form 5472 and pro forma Form 1120 in under 15 minutes for $99 per year. The Form 5472 guide explains it.
Questions about a personal US return
Is Form 5472 my personal tax return?
No. It is the LLC's information return. Your personal return, if you need one, is Form 1040-NR.
I have never been to the US. Do I file Form 1040-NR?
Usually not, if the business has no US office, staff or agent and all the work is done abroad.
I spent three weeks in the US working for clients. Does that matter?
It can. Income from work done while in the US may be US-source. Get a view from a qualified CPA before deciding.
Does a tax treaty with my country help?
It can reduce or remove US tax on some income, depending on its terms. It does not remove the LLC's Form 5472.
Related pages
Continue reading
US Tax Filing Requirements for Foreign-Owned LLCs →
A foreign-owned US LLC files Form 5472 with a pro forma 1120 by April 15, plus its state annual report. BOI reporting no longer applies. US income tax is usually zero.
Form 5472: The Complete Guide for Foreign-Owned US LLCs →
A foreign-owned US single-member LLC files Form 5472 with a pro forma Form 1120 by April 15. Funding the LLC is itself reportable. Missing it costs $25,000 per form, per year.
CPA vs DIY for Form 5472 - When to Self-File and When to Get Help →
Form 5472 can be self-prepared for simple cases. Some situations call for CPA review. This guide covers when each path makes sense for foreign-owned LLC owners.