Following are the main forms applicable to an LLC owned by a Non-Resident Alien (NRA) in USA:
Form 5472 with proforma Form 1120 -These are applicable to only Sole owner LLC (Disregarded Entity). Form 5472 contains all reporting transactions between the LLC and the NRA owner. Form 5472 is a federal disclosure form but it is not a tax return. Effective for taxable years after January 1st, 2017, all foreign owners of U.S. disregarded entities (such as a single-member LLC) are required to file an information return with the IRS on Form 5472. The information return calls for reporting transactions between the LLC and a foreign or domestic related party that occurred during the taxable year. Above all, the return is for informational purposes only and comes with no tax liability (i.e. no tax is imposed on the LLC if/when Form 5472 is filed).
1) A reportable transaction stands for any contribution, distribution, loan, advance, salary and similar monetary and non-monetary transfer between the LLC and a related party. For instance, the organizational and start-up costs paid with personal funds of the owner are considered contributions to the capital of the entity, unless reported as a loan subject to interest and repayment.
2) A related party is defined as any person related to the LLC, such as the single-owner and immediate family members, as well as other companies owned or controlled by the same interest.
On the Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation) you will report only three basic financial information:
- The value of the LLC as of the 31st of December of the tax year.
- The amount of money moved from the non-US owner to the LLC in the tax year.
- The amount of money moved from the LLC to the non-US owner in the tax year.
The Form 1120 will be only partially completed and includes only basic identifying information, not income and tax deductions like on a complete tax return.
Form 1040-NR -you may need to file Form 1040-NR as your income tax return if you were a non-resident alien engaged in a trade or business in the United States during the tax year or otherwise earned income from U.S. sources throughout the year. The form must also be filed by representatives of a deceased person who would have needed to file the 1040-NR and by representatives of an estate or trust that needs to file the form. A non-resident alien is somebody who is not American and lives abroad, but who earns taxable income in the U.S.
Form 1065 If the LLC is a partnership (having 2 or more members), normal partnership tax rules will apply to the LLC and it should file a Form 1065, U.S. Return of Partnership Income. Each owner should show their pro-rata share of partnership income, credits and deductions on Schedule K-1 (1065), Partner’s Share of Income, Deductions, Credits, etc. Generally, members of LLCs filing Partnership Returns pay self-employment tax on their share of partnership earnings.
Form FBAR (Foreign Bank Accounts Report) LLC needs to report following information in this form:
- a financial interest in or signature or other authority over at least one financial account located outside the United States if
- the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
The due date for filing all these forms is April 15 of the following year.
If you should have received a 1099-K form because you earned over $600 through any Business portal Platform like Shopify, you can contact Shopify directly. This can be through their online chat support or you can email them directly and ask to have your form sent to you.
On top of all of this, there are certain forms you’re going to need to file along with your Shopify 1099 form. You’re going to also need to submit:
- A Schedule C form, which is where you have to report all of your expenses and gross business income
- A Schedule SE form, which is how you go about calculating all your self-employment taxes
- Form 1040, which is how you report relevant taxable income as well as calculate your taxes
An eligible entity uses Form 8832 to elect how it will be classified for US federal tax purposes, as a corporation, a partnership, or an entity disregarded as separate from its owner. An eligible entity includes US-based partnerships, a US-based limited liability company (LLC), and most foreign entities can elect to be taxed as a C-corporation, a partnership, or a sole proprietorship.
You have made any federal tax withholding payments during the tax year. There are different types of tax forms that shows US tax withheld during the tax year. For example: W-2 for wages withheld, 1099 Div for Dividends income, 1099Int for Interest income, 1099-R for retirement income, 1042-S for any US tax withholding for non-residents.
Charges for major Tax forms are mentioned below
|Proforma Form 1120
|Foreign Owned US Corp Return – Form 5472
|Non-resident Alien Tax Return – Form 1040NR
Review of Tax Treaty will cost $250 extra.