US Tax Filing Requirements for International Founders
Managing taxes and IRS reporting requirements can be a challenge. We’ve compiled an overview of required filings and key deadlines to help you manage your business taxes. Need help with IRS paperwork or tax filing? Contact Startxpress. Our network of professionals offers fair and affordable rates negotiated specifically for you.
I am a US Single Owner/Sole Proprietor (US Single Member LLC) with a Personal Income Tax Filing Requirement
Included Filings:
- Preparation of individual tax return (Form 1040)
- Preparation of one self-employment income form (Schedule C)
- Preparation of one rental real estate property (Schedule E)
- Inclusion of income from one brokerage account (Schedule B/ Schedule D)
Key Dates:
- April: Individual tax returns (Form 1040) including LLCs filing on Schedule C must be filed or to request a six-month extension of time to file.
I am a Foreign Single Owner/Sole Proprietor (Foreign Single Member LLC)
If you own a Foreign Single Member LLC and are not considered “Engaged in US Trade or Business,” you are not required to file Form 1040NR or pay personal income taxes.
As a “Non-Resident Alien” (foreigner), you are only required to file and pay U.S. taxes if you have FDAP income without withholding at the source or effectively connected income (US-sourced income) with US Trade or Business.
For detailed information on what may constitute US Trade or Business, check this article here.
However, as of 2017, you must report information like a corporation (see Section 1.6038A-1). Unless registered as a corporation, all single-member LLCs must comply with these requirements. Failure to file or incorrect filing will result in a minimum penalty of $25,000.
Included Filings:
Key Dates:
- April: Deadline for LLC tax returns when filing as Foreign Owned Disregarded Entity (Forms 1120 and 5472) or to request a six-month extension of time to file.
- April: Deadline to file individual tax returns for foreign individuals (Form 1040NR) or to request an extension for an extra six months to file your return.
Multiple Member LLC
As a “Non-Resident Alien” (foreigner), you are only required to file and pay U.S. taxes if you have FDAP income without withholding at the source or effectively connected income (US-sourced income) with US Trade or Business.
For a detailed explanation of what may constitute US Trade or Business, refer to this article here.
I am a Non-US Multi Owner with US Sourced Income
Included Filings:
- Preparation of partnership return (Form 1065)
- Preparation of one rental real estate investment (Form 8825)
- Preparation of Schedule K-1, K-2 & K-3s for up to four members
- Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
- 1040NR is required, and an ITIN will be needed to do the 1040NR
Key Dates:
- March: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.
I am a Non-US Multi Owner without US Sourced Income
Included Filings:
- Preparation of partnership return (Form 1065)
- Preparation of one rental real estate investment (Form 8825)
- Preparation of Schedule K-1, K-2 & K-3s for up to four members
- Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
- no 1040NR required, if all activities reported on the K1, K2, and K3 are foreign sourced or non-US Sourced
Key Dates:
- March: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.
I am a US Multi Owner (with international item of relevance)
International items of relevance come into play when there is either a foreign partner involved or foreign source income.
Included Filings:
- Preparation of partnership return (Form 1065)
- Preparation of one rental real estate investment (Form 8825)
- Preparation of Schedule K-1, K-2 & K-3s for up to four members
- Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
- Individual tax return is filed (Form 1040)
Key Dates:
- March: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.
I am a US Multi Owner (without international item of relevance)
International items of relevance arise when there is either a foreign partner involved or foreign source income.
Included Filings:
- Preparation of partnership return (Form 1065)
- Preparation of one rental real estate investment (Form 8825)
- Preparation of Schedule K-1, K-2 & K-3s for up to four members
- Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
- Individual tax return is filed (Form 1040)
Key Dates:
- March: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.
I have an LLC that has elected to file taxes as a C-Corporation
Included Filings:
- Preparation of Corporate Tax Return (Form 1120)
- Preparation of foreign owner report/ Related Party Disclosures (Form 5472)
Key Dates:
- April: Deadline for Corporations or to request a six-month extension of time to file.
I have a Delaware C Corp (Foreign Owned)
Foreign Owned = a member of the C Corp owns 25% or more of the C Corp
Included Filings:
- Preparation of Corporate Tax Return (Form 1120)
- Preparation of foreign owner report/ Related Party Disclosures (Form 5472)
- DE Corporate Franchise Tax Return (Owners pay required taxes directly)
Key Dates:
- March 1st (DE Franchise Tax Return)
- April: Deadline for Corporations or to request a six-month extension of time to file.
I have a Delaware C Corp (Domestic)
Included Filings:
- Preparation of Corporate Tax Return (Form 1120)
- DE Corporate Franchise Tax Return (Owners pay required taxes directly)
Key Dates:
- March 1st (DE Franchise Tax Return)
- April: Deadline for Corporations or to request a six-month extension of time to file.
Complicated? – Startxpress Can Help
That was a lot to take in. While the IRS provides information online to help you fill out these forms, it can be confusing and time-consuming to understand and complete them on your own.
If you need assistance with filing your paperwork and taxes with the IRS, contact Startxpress. We have a vast network of tax professionals ready to assist you at fair and affordable rates.
Focus on what you do best: building your business. Let us handle the rest.
For further insights, explore the Startxpress Help Center and Blog. If you have questions or need support, reach out anytime at support@startxpress.io!
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