More Mexican entrepreneurs are forming U.S. companies to serve American clients, raise capital, and access online infrastructure. But many ask: do I need to file U.S. taxes if I run my business from Mexico?
Yes—you do. U.S. tax filings are required if you’ve registered a U.S. corporation or LLC. Your location in Mexico doesn’t exempt you.
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 – If 25% or more foreign-owned and there are reportable transactions
Single-Member LLC (Disregarded Entity)
- Form 5472 + Pro Forma 1120 – Required even with no income, if there are reportable transactions
Multi-Member LLC (Partnership)
- Form 1065 – U.S. Return of Partnership Income
- Schedule K-1 – Issued to each partner
Individual Filing
- Form 1040-NR – If you have U.S.-sourced income that is effectively connected with a U.S. trade or business
What Is ECI (Effectively Connected Income)?
This includes:
- Work done physically in the U.S.
- Revenue from employees or contractors in the U.S.
- U.S. property income
Simply selling to U.S. customers from Mexico isn’t ECI. But if you have U.S.-based operations, then it likely is.
Common Mexican Business Types That Must File
- Software and app companies billing U.S. users
- E-commerce businesses shipping from U.S. warehouses
- Freelancers or consultants with U.S. clients
- Startups seeking U.S. funding
U.S. Tax Culture vs. Mexico
Auditing and Filing
Unlike in Mexico, where many businesses must keep SAT-compliant electronic records and may face regular reviews, U.S. tax filings for small businesses are typically private and not publicly accessible. Most small companies are not audited unless flagged.
IVA vs. U.S. Sales Tax
Mexico uses the Impuesto al Valor Agregado (IVA)—a value-added tax that is applied at each stage of production and distribution. Businesses are required to charge IVA on most sales of goods and services and can claim credits for the IVA paid on business-related purchases. The current standard IVA rate is 16%.
In contrast, the U.S. uses a sales tax system, which is:
- Applied only at the point of final sale to the consumer
- Determined and administered by individual U.S. states (not federally controlled)
- Mostly applicable to physical goods and certain taxable services
Service-based companies and many digital businesses are generally exempt from collecting sales tax in most U.S. states. However, businesses selling physical products or using U.S. warehouses for fulfillment may have sales tax obligations in specific states based on "nexus."
Bookmate does not assist with sales tax filings.
Misconceptions to Avoid
- No income = no filing – False. U.S. filings are required regardless of revenue.
- Mexican residents don’t owe U.S. taxes – You must file if your company is U.S.-formed.
State Obligations in Delaware and Wyoming
Delaware Franchise Tax (for C-Corps)
- Due: March 1
- Cost: $225–$400+ depending on structure
Delaware LLC Franchise Tax
- Due: June 1
- Cost: $300 flat
Wyoming Annual Report
- Due: Company anniversary month (the same month your business was originally formed)
- Cost: Starts at $60
These are required regardless of profit.
Do You Need an ITIN?
If you earn U.S.-sourced income personally and must file Form 1040-NR, you’ll need an ITIN.
Summary
Mexican founders of U.S. businesses are required to file federal and sometimes state tax forms, based on their company type and U.S. activity. Missing a filing—even if no tax is due—can lead to penalties.
Book a free consultation to stay compliant: Schedule Now
Each case is unique. Let Bookmate guide your next steps.
