US LLC Tax Reporting Requirements

IRS taxes and tax obligations can be quite complicated. So we've put together an overview of mandatory filings and key deadlines to keep in mind.

You can call on ExpertLLCUSA.com if you wish to be helped in your steps.

I am a U.S. sole proprietor with a personal income tax filing requirement

Statements included:

- Preparation of an individual income tax return (Form 1040)

- Preparation of a self-employment income form (Schedule C)

- Preparation of a Schedule E form for leasing a property

- Income inclusion from a brokerage account (Schedule B/Schedule D)

Key dates:

In April: Individual tax returns (Form 1040), including LLC tax returns (Schedule C), must be filed or request a six-month extension of time to file.

I am a foreign sole proprietor (foreign single member LLC)

If you are a foreign partner in a single member LLC and are not considered "engaged in a trade or business in the United States," you are not required to file Form 1040NR or pay personal income taxes.

As a "Non-Resident Alien", you are only required to report and pay U.S. taxes if you have FDAP income for which withholding has not been made, or if you have effectively connected income (U.S. source income) from a trade or business in the United States.

However, you must report the information as a corporation (see Section 1.6038A-1). Therefore, unless you have registered as a corporation, all single member LLCs are subject to these requirements. Failure to report or incorrect completion will result in a minimum penalty of $25,000.

Deposits included:

- Preparation of the pro-forma (form 1120)

- Preparation of the Foreign Owner Report (Form 5472)

Key dates:

In April: Deadline for LLC tax returns when filed as a foreign-owned disregarded entity (Forms 1120 and 5472) or to request a six-month extension of time to file.

In April: Deadline for filing foreign individual tax returns (Form 1040NR) or request a six-month extension to file your return.

LLC with several foreign members

Statements included:

- Preparation of the partnership declaration (form 1065)

- Preparing for a rental property investment (form 8825)

- Preparation of K-1, K-2 and K-3 forms for up to four members.

- Preparation of Forms 8804, 8805, and 8813 may be required if the partnership has income effectively connected with a U.S. trade or business.

- Form 1040NR is required, and an ITIN will be needed to complete the 1040NR.

Key dates:

In March: Deadline for partnerships and multi-member LLCs to file tax returns (Form 1065) or request a six-month extension of time to file.

Save yourself the hassle - ExpertLLCUSA can help

Even though the IRS provides information online so you can fill out these forms yourself, it can be difficult to understand and complete these forms.

Contact us if you need help filling out your IRS forms. 

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