At Bookmate, we help international founders navigate the complex world of US tax compliance for their US-registered LLCs. Whether you're running a remote business with global clients or just starting out, it's completely normal to feel overwhelmed by US tax rules.
That’s why we offer free consultation calls to guide you through what’s required and give you peace of mind. After hundreds of calls, we’ve found that the same 10 questions come up again and again. Here’s a clear breakdown of what we’re often asked and what you should know to stay compliant.
1. Do I still need to file if I had 0 activity this year?
It depends on your entity type. If you're a non-US resident with a single-member LLC or a C corporation, you are still required to file even if you had no revenue, expenses, or bank activity.
For single-member LLCs, the IRS expects a pro forma Form 1120 and Form 5472 annually, due April 15. For C corporations, you must file a standard Form 1120 and Form 5472 by the same deadline. Not filing can result in penalties of 25000 dollars or more per form.
However, if your business is a multi-member LLC with zero activity and no effectively connected income, you may be exempt from filing for that year. We always recommend a consultation to confirm your specific filing obligations.
2. When is my deadline?
It depends on your entity type:
- For single-member LLCs, C corporations, and personal US tax returns, the deadline is April 15.
- For multi-member LLCs (partnerships), the deadline is March 15.
Non-US residents often qualify for an automatic extension to June 15. If you need more time, Bookmate can help you file a formal extension to October 15. Just remember, missing your deadline without an extension can lead to penalties.
3. If I have U.S. clients, do I need to pay taxes because of that?
Not automatically. Having U.S.-based clients does not mean you owe U.S. taxes. What matters is whether your income is "effectively connected" to a U.S. trade or business.
If you have no physical presence in the U.S., no employees or dependent agents in the U.S., and you operate everything from abroad, you're likely not subject to U.S. income tax. But you still have filing obligations to declare that.
4. Can I fill out the forms myself and have you submit it?
The short answer is no. The forms required for foreign-owned LLCs, especially Form 5472, are complex and must be submitted using IRS-approved electronic filing software.
Bookmate does not accept partially completed forms from clients. Instead, we provide a simple intake form, and our experienced tax team prepares and files everything on your behalf.
If you prefer to handle the filings yourself, it is technically possible to prepare and submit the forms by mail or fax, but this is not recommended unless you have professional tax experience.
These filings require a high level of accuracy and understanding of IRS rules, which is why we strongly recommend working with a qualified CPA.
5. Is my federal return my only obligation?
No. In addition to your federal return, you may also need to file a state return. Most states require an annual filing or payment, even if your LLC had no activity.
However, in many cases, your registered agent can assist with your state filing, especially for simple renewals or compliance forms. Ignoring your state-level obligations can lead to penalties or loss of good standing.
Beyond state filings, you may have other responsibilities depending on how your business operates. If you hired US-based contractors or employees, you might need to file payroll forms.
If you sell physical goods and store inventory in certain states, you could have a sales tax requirement. And if your LLC earned interest or received payments through platforms like Stripe or PayPal, you might receive IRS forms such as 1099s.
We go over all of these potential obligations during your consultation to make sure nothing is missed and you remain fully compliant.
6. I had $100,000 in revenue this year. Why isn’t it stated in my return?
For most foreign-owned single-member LLCs, your federal return (Form 1120 with 5472) does not include your income or expenses. This is because you're taxed as a "disregarded entity," meaning the LLC itself is not subject to U.S. income tax.
The return is primarily informational. You report the total value of transactions between you and the LLC, such as owner contributions or withdrawals, but not the income of the business.
7. I already dissolved my company. Do I still need to file?
Yes. If your company existed at any point during the calendar year, you are required to file for that year. For example, if you dissolved your LLC in May 2025, you still need to file a 2025 return by the deadline in 2026. Failing to do so can result in penalties, even though the company no longer exists.
8. Do I need to do anything else after I submit the web form and pay?
Once you submit our web form and make your payment, we’ll send you a confirmation email and begin preparing your return. While you don’t need to take any immediate action, it’s important to stay responsive. You may be asked to answer follow-up questions or review and sign the draft return before it is submitted to the IRS.
We also recommend keeping a copy of your confirmation email and all filed documents for your records. If you’re filing late, we may assist you with requesting penalty relief or submitting any necessary supporting documents.
9. What happens if I miss the deadline?
If you miss your filing deadline and did not request an extension, the IRS can impose steep penalties depending on your entity type. For single-member LLCs, failing to file Form 1120 and Form 5472 can result in a penalty of $25,000 dollars per form, totaling $50,000 dollars.
For C corporations, the same penalty applies if Form 1120 and Form 5472 are not filed on time. Multi-member LLCs, which file Form 1065, may face penalties of around $220 dollars per partner per month, up to 12 months, for missing the March 15 deadline. Regardless of your entity type, late filings can become costly fast.
10. Do I need an ITIN to file my return?
No. If you are a non-U.S. resident you do not need an ITIN (Individual Taxpayer Identification Number). These forms are submitted on behalf of the company and do not require a personal taxpayer ID.
You would only need an ITIN if you were filing a personal income tax return in the U.S., such as Form 1040NR, because you had U.S.-sourced income. For most clients filing only the LLC’s or C Corp’s annual return, an ITIN is not necessary.
Let’s Wrap It Up: Your Next Move
Still have questions about your LLC’s tax obligations? Book a free consultation with our team today. We’ll walk you through everything and make sure you’re fully compliant.
Every tax situation is unique, so it’s always best to speak with a professional. Learn more about how we help at trybookmate.co.
