Forming a Wyoming LLC is one of the most popular ways for Indian founders to start a U.S. business. It's simple, affordable, and doesn’t require U.S. residency or citizenship. But after you’ve formed the LLC, the big question becomes: Do I need to file U.S. taxes even if I live in India and have no income yet?
The answer is almost always yes—owning a U.S. LLC as a nonresident comes with federal and state tax filing responsibilities, even if your business had no income. This article breaks down what you need to know if you’re based in India and own a Wyoming LLC, including tax obligations, timelines, and how to stay compliant.
Can Someone From India Own a U.S. LLC?
Yes, Indian citizens can absolutely own and operate a U.S. LLC. In fact, the U.S. doesn’t place restrictions on foreign individuals forming and fully owning a U.S.-based LLC. You don’t need a visa, green card, or even a Social Security Number. You also don’t need to physically be in the United States.
Wyoming is especially popular among Indian founders for its low annual fees, strong privacy laws, no state income tax, and simple compliance requirements. The entire LLC formation process can be handled online.
Once your LLC is registered, you’ll receive formation documents (Articles of Organization) and be ready to take the next step: applying for your Employer Identification Number (EIN).
U.S. Tax Obligations for Indian-Owned Wyoming LLCs
One of the most misunderstood aspects of owning a U.S. LLC from abroad is that you still need to file U.S. taxes even if you didn’t earn any money. U.S. tax compliance is more about reporting than it is about paying—and non-compliance often results in steep penalties.
Your tax obligations depend on the ownership structure of your LLC. Let’s walk through both scenarios:
Federal Tax Obligations
Single-Member LLCs (Disregarded Entities):
If you're the sole owner of your Wyoming LLC, the IRS considers your company a "disregarded entity." That means the business is treated as an extension of you for tax purposes (even if you’re based outside the U.S.). You’ll need to file:
- Form 5472 — to disclose foreign ownership and report any transactions between you and the LLC.
- Pro forma Form 1120 — a simplified version of the corporate tax return, filed only for disclosure purposes alongside Form 5472.
These are required even if you had no U.S. customers, no income, and no expenses. Transactions can include something as basic as depositing funds into your company bank account. If you miss these filings, the IRS can charge a $25,000 penalty per year.
Multi-Member LLCs:
If your LLC has more than one owner—such as a co-founder or investor—the IRS treats it as a partnership. In this case, you must file:
- Form 1065 — the partnership return
- Schedule K-1s for each member, detailing profit/loss share
Each member may also need to file Form 1040-NR if they received income effectively connected with a U.S. trade or business (ECI).
There is one exception worth noting: If your multi-member LLC had absolutely no income, no expenses, and no financial activity whatsoever—you may be exempt from filing.
This is the only case where the IRS does not require a return from a foreign-owned LLC. But this situation is rare and should be confirmed with a tax professional.
State Obligations — Wyoming
Even though Wyoming has no income tax, it still requires all LLCs to file an Annual Report each year. This report is due every year by the end of your anniversary month (the month your company was formed).
The filing is relatively simple and can be submitted online through the Wyoming Secretary of State’s website. The minimum fee is $60, but may be higher if your LLC owns physical assets in Wyoming.
Importantly, Wyoming does not charge any state income tax as long as your LLC does not have a physical presence or employees in Wyoming. This is one of the reasons the state is so attractive to international founders. As long as you’re operating remotely, you won’t owe any state income taxes to Wyoming.
Failure to file the report can lead to administrative dissolution, which means your company could be shut down by the state.
What If I Had No U.S. Income?
This is one of the most common situations we see—Indian founders who formed a Wyoming LLC for future use, but haven’t started earning yet. Perhaps you’re still building your product, researching your market, or waiting on Stripe approval.
Even in these cases, you are still required to file federal tax forms unless you fall into the very narrow exception described above for multi-member LLCs with no activity. Filing is about transparency, not tax liability.
Failing to file can result in steep penalties and difficulties with future banking, payment platforms, and compliance. Many U.S. platforms will require you to show good standing with the IRS to continue using their services.
Do I Need an EIN for My LLC?
Yes, an EIN is mandatory for filing taxes, opening a U.S. bank account, applying for Stripe or PayPal, and just about every other business activity. It’s like a Social Security Number for your business.
Even if you don’t have a U.S. SSN or ITIN, you can still apply. You’ll use Form SS-4, mark that you’re a foreign entity, and write “Foreign” in the SSN field. You can submit this by fax directly to the IRS and typically receive your EIN within a few weeks.
Do I Need to File Taxes in India Too?
This depends on your personal income and how much you’ve received from the U.S. LLC. India has its own tax laws regarding foreign income and ownership of foreign entities. If your LLC is treated as a pass-through entity in the U.S. and you’re receiving profits, that may be considered taxable in India.
Bookmate does not offer Indian tax services, but we always recommend speaking to a licensed accountant in India to ensure you are reporting your worldwide income correctly and avoiding double taxation.
How Bookmate Can Help
Navigating U.S. tax compliance from India isn’t easy—but you don’t have to do it alone. Bookmate was built specifically for international founders who own U.S. companies, and we specialize in preparing:
- Form 5472 + pro forma 1120 (for single-member LLCs)
- Form 1065 + K-1s (for multi-member LLCs)
- Extensions and late filings if you're behind
- IRS correspondence if you receive a notice
Our process is entirely remote, straightforward, and fully managed by professionals who understand your situation. We don’t require you to print, scan, or mail anything—we take care of it all.
Our Process
We’ve streamlined the entire experience into five easy steps:
Step 1: Free ConsultationYou’ll speak with one of our tax specialists to explain your business setup, goals, and what filings are needed.
Step 2: Engagement & InvoiceOnce we confirm your requirements, we’ll send you an engagement letter and invoice to get started.
Step 3: Secure OnboardingWe’ll send you a secure web form to collect company documents, ownership details, EIN, and other necessary info.
Step 4: We Handle All FilingsOur licensed team prepares your IRS forms and reviews everything for accuracy. We’ll ask for final confirmation before submission.
Step 5: Filing & SupportWe file with the IRS and send you confirmation. If you ever receive an IRS notice related to a return we filed, we’ll help respond.
All of this is done 100% online—no paperwork, no physical presence, and no dealing directly with the IRS.
Ready to File or Still Have Questions?
We’ve helped hundreds of Indian founders with their Wyoming LLC tax filings, and we can help you too. Whether you're filing for the first time or catching up on missed filings, Bookmate is here to support you.
📅 Book a free consultation or visit trybookmate.co to learn more.
Disclaimer: This article is for informational purposes only and is not legal or tax advice. Always consult a qualified advisor for your specific case.
