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US Expat Business & LLC Guide
Check your visa's business rights, starting an LLC, and IRS tax filing rules for foreign owners.
🚨 The $25,000 IRS Form 5472 Tax Trap:
If a single-member LLC in the U.S. is owned by a **non-US resident**, the IRS classifies it as a foreign-owned corporation for tax reporting. You must file **Form 5472 and Form 1120 (Pro-Forma)** every year. Failure to file or late filing carries a mandatory, automatic IRS penalty of $25,000 USD.
Expat Visa Business Checker
Corporate & Tax Compliance Checklist
Follow this checklist when starting a US LLC or C-Corp as an expat or non-resident:
- Appoint a Registered AgentYou must have a physical street address in the state of incorporation (e.g. Delaware, Wyoming) to receive legal service of process.
- Apply for EIN (Form SS-4)Obtain an Employer Identification Number from the IRS. Non-residents without an SSN must apply by faxing Form SS-4.
- Draft an Operating AgreementEnshrines the rules of ownership, percentages, and management (required to open US business bank accounts).
- File FinCEN BOI (Beneficial Ownership Information) ReportMandatory filing under the Corporate Transparency Act within 90 days of formation. Failure to file carries a $500/day penalty.
- File Form 5472 & Form 1120 Pro-Forma (Every April)Mandatory for foreign-owned single-member LLCs. You must report any "reportable transactions" (transfer of funds, loans, capital contributions) to the IRS.
- Pay State Franchise Tax / Report FilingsDelaware LLCs must pay $300 flat annual tax. Wyoming charges $60 minimum. Do not miss deadlines to avoid interest and corporate dissolution.
Popular LLC States
| State | Setup Fee | Annual Fee |
|---|---|---|
| Delaware | $90 | $300 |
| Wyoming | $100 | $60 |
| New Mexico | $50 | $0 |
| Texas | $300 | $0 |
Entrepreneur Pathways
If you wish to work full-time on your startup, explore these visa transitions:
- O-1A Visa: For extraordinary ability founders who raise VC funding, have media coverage, or patent awards.
- L-1 New Office: If you own a foreign company that has operated for 1+ years, you can transfer yourself to open a US branch.