What you actually owe, what you have to file even with $0 in tax owed, and how to keep your LLC in good standing year after year.
This is the single most common question we get, and the honest answer is: it depends on where your income comes from and how your business operates — not simply on whether you own a US LLC.
The key concept is "US-source income" and "effectively connected income" (ECI). If you're a non-US resident running a single-member LLC, and your business has no US employees, no physical US office, and your customers/clients are mostly outside the US (or you're selling digital products/services with no US-based operations), your LLC's income is generally not subject to US federal income tax. Many non-resident freelancers, dropshippers, and digital service providers fall into this category.
However — and this is the part that catches people out — not owing tax does not mean you have nothing to file. Even with zero US tax liability, most foreign-owned single-member LLCs still have a mandatory annual information filing requirement, covered below. Skipping it isn't a "no harm, no foul" situation — penalties for not filing start at $25,000, even when no tax is owed.
If your business does have US-source income — for example, you have US-based employees or contractors performing work for the business in the US, or you operate a physical presence in the US — the picture changes and you likely do owe US tax on that portion of income. This is where it's worth getting a proper review of your specific situation rather than relying on general guidance.
If you have a foreign-owned single-member LLC (which describes most non-resident-owned LLCs), the IRS requires an annual filing consisting of two parts:
This filing is required even if your LLC had zero activity, zero revenue, and zero US tax owed for the year. The deadline is the same as the corporate tax deadline — typically April 15th for calendar-year filers, with an extension available to October 15th. The filing is submitted to the IRS via fax or mail (not e-file, for this form).
This is not a typo. The penalty for failing to file Form 5472 when required starts at $25,000 — regardless of whether any tax was actually owed. This is an information-reporting penalty, separate from any tax liability. It's the single highest-stakes compliance item for foreign-owned LLCs, and the one most commonly missed by DIY founders who assume "no income = nothing to file."
We prepare and file Form 5472 + pro forma 1120 for foreign-owned LLCs, including the required supporting statements, and fax it to the correct IRS office. This is included as part of our annual compliance services.
Get Help With Your Filing →FBAR (Foreign Bank Account Report, technically FinCEN Form 114) is a US requirement for US persons — including, in some interpretations, certain US entities — to report foreign financial accounts if the aggregate value exceeds $10,000 at any point during the year.
For most non-resident LLC owners, this becomes relevant only in specific scenarios — for example, if the LLC itself holds accounts outside the US, or depending on how the LLC's ownership and the owner's own tax residency status interact. FBAR is filed separately from your tax return, directly with FinCEN, and the penalties for willful non-filing are severe.
Because whether FBAR applies depends heavily on your specific account structure and tax residency situation, this is one area where we'd recommend a direct conversation about your circumstances rather than relying on a general rule — the cost of getting this wrong is high enough that it's worth confirming for your specific case.
The Beneficial Ownership Information (BOI) report is a relatively new requirement (in effect since 2024) under the Corporate Transparency Act. It requires most LLCs and corporations in the US to report information about their "beneficial owners" — generally, anyone who owns 25% or more of the company, or who exercises substantial control over it — directly to FinCEN (the Financial Crimes Enforcement Network, part of the US Treasury).
The information required includes each beneficial owner's full legal name, date of birth, residential address, and an identifying document number (such as a passport number) with an image of that document. This is filed electronically through FinCEN's BOI E-Filing system.
| Situation | BOI Deadline |
|---|---|
| LLC formed before Jan 1, 2024 | Initial filing deadline already passed — if you haven't filed, this should be addressed promptly |
| LLC formed in 2024 or later | Within 90 days of formation |
| Any change to beneficial ownership info | Updated report required within 30 days of the change |
This filing is free to submit directly to FinCEN, but the process of correctly identifying beneficial owners, gathering the right documentation, and submitting it electronically is where a service adds value — particularly since the rules around who qualifies as a "beneficial owner" aren't always intuitive for multi-member LLCs or LLCs owned by other entities.
BOI Report filing is included in our Standard and Premium packages, or available standalone for $49.
"Good standing" is your state's official confirmation that your LLC has met all its ongoing legal obligations. Losing good standing doesn't happen suddenly — it's the result of missing one or more of a small, predictable set of recurring requirements:
The practical way to never miss these is a compliance calendar — knowing your LLC's anniversary month (for the annual report), your registered agent renewal date, and the April 15th / October 15th deadlines for the 5472 filing. Our Premium package includes a full year of Compliance Watch with reminders for all of these, so nothing falls through the cracks.
If your LLC has already fallen out of good standing, this is recoverable — see our guide on LLC dissolution and reinstatement for what to do if your LLC has been administratively dissolved.
Form 5472, BOI reports, and annual report filings — done right, every year.