What Is the Tax Deadline for Foreign-Owned Single-Member LLCs?
Every year, foreign-owned single-member LLCs are required to:
- Obtain Employer Identification Number (EIN)
- File Proforma Form 1120
- File Form 5472 if there have been any “reportable transactions” during the previous tax year. (Remember, formation and dissolution filings are reportable transactions.)
- Maintain books and records that will support the claims you make on Form 5472
Note: the IRS considers every foreign-owned disregarded LLC as a separate entity. So if you’re involved in multiple LLCs, you’ll need to file separate forms 1120 & 5472 for each one.
But you might be wondering, “What’s the deadline for filing? “Fortunately, the answer is simple:
If able, foreign-owned single-member LLCs must file Form 1120 and Form 5472 by April 15th every year.
There are times when the IRS delays the deadline for reporting certain U.S. tax and Information returns. In 2021, Notice 2021-21 did just that, postponing the deadline to May 17th. However, these delays apply only to individual taxpayers. For corporations and Foreign-Owned Single Member LLCs, the deadline is still April 15th.
If the foreign owner of a U.S single-member LLC is unable to file forms 1120 and 5472 by April 15th, they can generally get an automatic 6-month extension. You can do this by filing Form 7004.
But you cannot file an extension after the due date of April 15th has passed. You must file on or before the due date.
Let’s look at an example. Say you create an LLC in 2021. The due date for filing your tax return will be April 15th, 2022—regardless of whether the deadline is delayed for individual taxpayers.
If for some reason you can’t file by that due date, you’d need to file Form 7004 on or before April 15th, 2022. Then, you will have until October 15, 2022 (6 months later) to file.
If you form the LLC in 2022 instead, the first due day will be April 15th, 2023, and so on…
It is very important that you abide by these rules, too. If you fail to file the proper forms at the right time, the penalties can be severe. The standard fine for not filing Form 5472 is $25,000. And if you have multiple LLCs, you’ll get a separate fine for each. That adds up fast!
It’s always worth making sure you’re covering all the bases.
How about a little help? I’m a licensed CPA with years of experience helping foreign business owners with their taxes. Just contact me, and I’ll be happy to answer all of your questions.
Then, I’ll get right to work. I can:
- Gather all the necessary documents
- Prepare your tax forms
- Fax or mail them in on your behalf
From start to finish, I’m in your corner. Let’s talk!
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***Disclaimer: I am a tax accountant and a CPA licensed in Massachusetts , but I am not your accountant or advocate (Unless you have signed up to my services). This communication is not intended as tax advice, and no tax accountant -client relationship results**