If you’ve formed a U.S. LLC from India, one of your most important responsibilities is making sure your business remains compliant with both federal and state tax requirements. Whether your LLC is a single-member disregarded entity or a multi-member partnership, foreign-owned LLCs have specific reporting and filing obligations with the IRS and the state of incorporation.
Understanding What Needs to Be Filed
The first thing to understand is your classification. A single-member LLC owned by a non-U.S. resident is considered a "disregarded entity" for U.S. tax purposes unless it elects otherwise. This means the entity is not taxed itself, but it must still file an informational return with the IRS.
Specifically, you’ll need to file Form 5472 along with a pro forma Form 1120 to disclose the foreign ownership and any reportable transactions with the owner. These filings are due by April 15 every year for the prior tax year. Failure to file can result in hefty penalties starting at $25,000 per missing form.
If your LLC has more than one owner, it is treated as a partnership unless you elect to be taxed as a corporation. In this case, you must file Form 1065 each year and issue Schedule K-1s to each member. Each foreign member may also need to file Form 1040-NR to report their share of U.S.-source income.
State-Level Franchise Taxes in Delaware and Wyoming
In addition to federal filings, your LLC must also stay compliant with state-level obligations. Delaware charges a flat annual franchise tax of $300 for LLCs. This payment is due by June 1 every year, and late payments are subject to a $200 penalty plus 1.5% interest per month. The state does not require an annual report for LLCs, only the tax payment.
Wyoming, on the other hand, requires an annual report and charges a small fee based on the company’s assets located in the state. The minimum fee is $60, and the annual report is due on the first day of the anniversary month in which your company was formed. For example, if you formed your LLC on March 15, your annual report would be due every year by March 1.
Registered agents in both Delaware and Wyoming can assist with reminders, mail forwarding, and in many cases, they will file your annual franchise tax for a small fee or as part of your subscription. Keeping your registered agent updated with your latest contact info is essential to avoid missing important deadlines.
Federal Tax Filing and Bookmate’s Support
Filing your federal taxes as a foreign-owned LLC can be complex, but that’s where Bookmate comes in. We help you identify the correct forms you need to file, gather the required documentation, and ensure everything is submitted accurately and on time.
For single-member LLCs, we handle Form 5472 and the pro forma Form 1120. For multi-member LLCs, we support Form 1065 preparation, issue Schedule K-1s, and coordinate Form 1040-NR filings for each foreign member.
Our process includes five clear steps designed to make U.S. LLC tax filing manageable, even if you're operating from India.
We begin with a free consultation over Zoom where we take time to understand your LLC’s structure, activity, and specific filing needs. During this conversation, we’ll identify what forms are required and answer any initial questions you may have.
Once we’ve agreed to work together, you’ll receive an invoice and a formal engagement letter outlining the scope of our services. This ensures you know exactly what to expect and gives us the green light to move forward.
After that, we’ll send you a secure web form designed to gather all the necessary information for your tax filing. This includes your EIN, formation documents, financial activity, and ownership details.
Our team of tax professionals will then prepare the appropriate forms, such as Form 5472 with a pro forma 1120, or Form 1065 with Schedule K-1s. We’ll verify the accuracy of your information and ensure it’s reported in compliance with IRS requirements.
Finally, we submit the returns for you—whether that’s through e-filing, mailing, or faxing to the IRS, depending on what’s needed. If the IRS later sends a notice or requests clarification related to a return we helped prepare, we assist you in drafting and submitting the appropriate response to help resolve the matter quickly.
If you're unsure what to file or when to start, Bookmate is here to help. Book a free consultation to get expert guidance tailored to your specific situation. Learn more at trybookmate.co
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Each tax situation is unique. Please consult Bookmate or a qualified advisor.
