If a non-U.S. person (nonresident alien, or NRA) owns a U.S. single-member Limited Liability Company (LLC), the owner cannot be considered self-employed. The LLC is treated as a foreign-owned U.S. disregarded entity. The tax and reporting requirements can be surprisingly extensive, even if the LLC doesn’t generate U.S.-source income or worldwide income. See How to file taxes for an LLC with no income: a comprehensive guide.
Tax filing obligations for both the LLC and the foreign owner
U.S. single-member LLC owned by the NRA treated as a foreign-owned U.S. disregarded entity (FOUSDE)
EIN requirement:
The LLC must apply for an Employer Identification Number (EIN) using Form SS-4 and submit it via fax or mail, or apply online through the IRS website.
Box 10 should explain that it is for filing Form 5472.
Form 5472 with Pro Forma 1120:
Required even if there is no U.S. trade or business or U.S.-source income.
Form 5472 — to report transactions between the U.S. LLC and its foreign owner (e.g., capital contributions, payments). Refer to our Guide to Form 5472: filing requirements and instructions.
Pro Forma Form 1120 — just the first page, with "Foreign-Owned U.S. DE" written at the top.
Deadline: April 15 (with an option to file Form 7004 for a 6-month extension to file 5472/1120. Request a non-personal extension in your TFX account).
How to file:
“Foreign-owned U.S. DE” should be written across the top of the Form 1120 and Form 7004.
❗ Neither the extension (Form 7004) nor Form 5472 with Pro Forma 1120 can be e-filed. Both must be faxed or mailed to a specific IRS department that handles foreign-owned disregarded entities (FOUSDEs):
☎ Fax (300 DPI or higher) to 855-887-7737.
✉ Mail to:
Internal Revenue Service
1973 Rulon White Blvd
M/S 6112 Attn: PIN Unit
Ogden, UT 84201
Owner-level filings: When required
Form W-7:
If you don’t have a TIN (SSN or ITIN), apply for an ITIN using Form W-7 and mail it with your tax return.
Form 1040-NR:
The foreign owner must file if the LLC is engaged in a U.S. trade or business or has effectively connected income (ECI).
If the LLC only holds passive assets or has no U.S. activity, the owner might not need to file Form 1040-NR — but filing Form 5472 is still mandatory.
Withholding obligations (if applicable):
If the LLC makes distributions to its NRA owner or pays U.S.-source income to other foreign persons, it may need to:
Withhold 30% tax (or lower treaty rate).
File Form 1042 and 1042-S to report payments to foreign persons.
Deadline: April 15 or June 15 (with an option to file for a 6-month extension to file personal nonresident tax return. Request a personal extension in your TFX account).
How to file: E-filing is allowed.
Common pitfalls
Failure to file Form 5472 carries a $25,000 penalty per year.
Filing Form 5472 without an EIN or mailing to the wrong address can result in rejection or penalties.
No Form 5472 e-filing: must be mailed or faxed to the correct Ogden, UT address.
Individual tax return preparation or tax preparation for a business?
If you have a single-member LLC based in the U.S. that you would like to be treated as a disregarded entity (DE), and you want TFX to prepare a tax return for you:
If you are a non-resident or NRA (not a U.S. person), answer Yes to "I am looking for tax preparation for a business or entity" in your tax questionnaire, because the IRS treats FOUSDE differently from USDE.
If you are a U.S. resident, then answer Yes to "I am looking for individual tax return preparation" in your tax questionnaire. You need to file a personal tax return.
A "disregarded entity" is a business structure that is separate from its owner for legal purposes, but ignored (or "disregarded") for U.S. federal income tax purposes.
For legal purposes: The entity exists as a separate legal person. For example, a single-member LLC can sign contracts, own property, and offer liability protection to its owner.
For tax purposes: The IRS ignores the entity as separate from its owner. The income, expenses, and tax obligations "pass through" to the owner's individual tax return.