Colombian entrepreneurs are increasingly forming U.S. companies to access U.S. customers, raise funding, and streamline international payments. But does owning a U.S. company mean you must file U.S. taxes from Colombia?
Yes. If you’ve formed a U.S. LLC or corporation, you are required to file U.S. taxes—regardless of where you live.
U.S. Federal Tax Obligations
What Forms You Need to File (By Entity Type)
C-Corporation
- Form 1120 – Corporate tax return
- Form 5472 – If the company is 25% or more foreign-owned and has reportable transactions
Single-Member LLC (Disregarded Entity)
- Form 5472 + Pro Forma 1120 – Required even if the business had no income, if there were reportable transactions
Multi-Member LLC (Partnership)
- Form 1065 – Partnership tax return
- Schedule K-1 – Distributed to each partner
Individual Filing
- Form 1040-NR – Required if you have U.S.-sourced income connected to a U.S. trade or business
What Is ECI (Effectively Connected Income)?
This includes:
- Services performed in the U.S.
- U.S.-based employees or contractors
- Real estate income from U.S. properties
Selling to U.S. customers from Colombia alone doesn’t count as ECI, but operating or hiring in the U.S. likely does.
Common Colombian Business Types That Must File
- SaaS or fintech startups targeting U.S. clients
- Consulting or development agencies with U.S. customers
- Online stores using U.S. fulfillment
- Businesses seeking U.S. investors
U.S. Tax Culture vs. Colombia
Audits and Transparency
In Colombia, DIAN may require detailed financial records and routine reporting. In contrast, U.S. tax returns are private and small businesses are not typically audited unless flagged.
IVA vs. U.S. Sales Tax
Colombia uses IVA (Impuesto al Valor Agregado)—a value-added tax applied at each stage of production, generally at 19%.
The U.S. uses sales tax, which:
- Applies at the final sale
- Is controlled by individual states
- Typically applies only to physical goods
Service-based companies are usually exempt from U.S. sales tax, while e-commerce sellers with U.S. inventory may need to register in certain states.
Bookmate does not handle sales tax filings.
Misconceptions to Avoid
- No revenue = no tax filing – False. You still need to file.
- Living outside the U.S. means I’m exempt – Not true if you formed a U.S. company.
State Filing Requirements
Delaware Franchise Tax (C-Corps)
- Due: March 1
- Cost: $225–$400+, based on 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 are state filings separate from IRS requirements.
Do You Need an ITIN?
If you earn U.S.-sourced personal income and file Form 1040-NR, you’ll need an ITIN (Individual Taxpayer Identification Number).
Summary
If you run a U.S. business from Colombia, you’re obligated to file U.S. tax forms annually. Your filings depend on your entity and income. Avoid costly penalties—file even if no income was made.
Book your free consult with Bookmate today: Schedule Now
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