Australian founders often form U.S. companies to gain access to U.S. investors, customers, and payment platforms. If you’ve registered a U.S. LLC or corporation from Australia, you may be wondering: do I need to file U.S. taxes?
Yes—you do. The IRS requires annual tax filings for all U.S. business entities, no matter where the owner resides.
U.S. Federal Tax Obligations
What Forms You Need to File (By Entity Type)
C-Corporation
- Form 1120 – U.S. Corporation Income Tax Return
- Form 5472 – Required if the company is 25% or more foreign-owned and had reportable transactions
Single-Member LLC (Disregarded Entity)
- Form 5472 + Pro Forma 1120 – Even with no income, you must file if there are reportable transactions
Multi-Member LLC (Partnership)
- Form 1065 – U.S. Return of Partnership Income
- Schedule K-1 – Distributed to each partner
Individual Filing
- Form 1040-NR – Required if you earned U.S.-sourced income that is effectively connected to a U.S. trade or business
What Is ECI (Effectively Connected Income)?
ECI is income that’s linked to U.S. operations, such as:
- Services performed within the U.S.
- U.S.-based contractors or employees
- Rental income from U.S. property
Simply selling to U.S. customers from Australia doesn’t typically qualify as ECI. But operating in the U.S. likely does.
Common Australian Business Types That Must File
- SaaS or digital service platforms targeting U.S. customers
- E-commerce businesses with U.S. warehousing
- Consulting firms with U.S. clients
- Startups raising U.S. venture capital
U.S. Tax Culture vs. Australia
Auditing and Transparency
In Australia, companies must often prepare financial statements and may face audits depending on revenue or structure. U.S. tax returns, by contrast, are private—they are not publicly accessible. Small U.S. businesses are rarely audited unless red flags appear.
GST vs. U.S. Sales Tax
Australia uses Goods and Services Tax (GST)—a 10% tax applied to most goods and services at every stage of the supply chain.
The U.S. uses sales tax, which:
- Applies only at the final sale
- Is state-specific, not national
- Typically affects goods, not most services
Service businesses usually don’t need to collect U.S. sales tax. However, product-based businesses may have to register in states where they have nexus.
Bookmate does not offer sales tax filing services.
Misconceptions to Avoid
- No income = no filing required – False. U.S. entities must file regardless of activity.
- I don’t live in the U.S., so I’m not subject to U.S. tax – Owning a U.S. business creates tax responsibilities.
State Tax Obligations
Delaware Franchise Tax (C-Corps)
- Due: March 1
- Cost: $225–$400+, based on share structure
Delaware LLC Franchise Tax
- Due: June 1
- Cost: $300 flat
Wyoming Annual Report
- Due: Company anniversary month (the month your business was originally registered in the state)
- Cost: Starts at $60
These filings are required separately from your federal tax return.
Do You Need an ITIN?
If you earn U.S.-sourced income personally and need to file Form 1040-NR, you’ll need an ITIN (Individual Taxpayer Identification Number).
Summary
If you own a U.S. business from Australia, you’re responsible for U.S. federal and state filings—even without revenue. Filing late or skipping forms can result in penalties.
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