Many Spanish founders form U.S. companies to expand globally, raise investment, or sell to U.S. customers. But does owning a U.S. LLC or corporation mean you need to file U.S. taxes from Spain?
Yes—if your business is registered in the U.S., you must file annual U.S. tax forms regardless of where you live.
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 25% or more foreign-owned and there are reportable transactions
Single-Member LLC (Disregarded Entity)
- Form 5472 + Pro Forma 1120 – Even if no income, this must be filed 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 earn U.S.-sourced income that is effectively connected to a U.S. trade or business
What Is ECI (Effectively Connected Income)?
ECI is income linked to:
- Services performed in the U.S.
- U.S. employees or contractors
- Rental or real estate income in the U.S.
Just selling to U.S. customers from Spain usually isn’t ECI. But if you have physical presence or operations in the U.S., it likely is.
Common Spanish Business Types That File
- SaaS platforms billing U.S. clients
- Marketing agencies or consultants with American customers
- E-commerce businesses using U.S. warehouses
- Startups seeking U.S. investment
U.S. Tax Culture vs. Spain
Accounting and Filings
Spain is known for its rigid accounting rules and frequent audits. In contrast, U.S. small business filings are private and rarely audited unless there’s a red flag. Bookmate clients often remark on how much simpler U.S. tax filings can be.
VAT vs. U.S. Sales Tax
Spain uses Impuesto sobre el Valor Añadido (IVA)—a value-added tax applied on most goods and services at each step of the supply chain. The standard rate is 21%.
The U.S. uses sales tax, which:
- Applies only at the final sale to the consumer
- Is managed at the state level (no federal sales tax)
- Applies mostly to tangible goods
Service-based businesses usually do not need to collect U.S. sales tax. E-commerce companies with inventory in the U.S. may have state-level sales tax obligations.
Bookmate does not assist with sales tax filings.
Common Misunderstandings
- No income = no filing – False. You must file even if you didn’t generate revenue.
- U.S. taxes don’t apply to non-residents – If you own a U.S. entity, you must file.
State Requirements: Delaware and Wyoming
Delaware Franchise Tax (C-Corps)
- Due: March 1
- Cost: $225–$400+ depending on share structure
Delaware LLC Franchise Tax
- Due: June 1
- Cost: $300 flat
Wyoming Annual Report
- Due: Company anniversary month
- Cost: Starts at $60
These are state obligations separate from your federal taxes.
Do You Need an ITIN?
If you earn U.S.-sourced income and need to file Form 1040-NR, you’ll need an ITIN.
Summary
Spanish founders with U.S. businesses must file U.S. taxes each year. Your filing obligations depend on your entity type and business activity. Failing to file—even with no income—can result in penalties.
Book a free consultation with Bookmate to handle your filings properly: Schedule Now
Every tax case is unique—Bookmate is here to help you stay compliant.
