US LLC taxes: the clear guide you were looking for
Find out how much tax an LLC pays, when you pay nothing at all and which forms apply to your case. No jargon.
Which forms does your company need to file?
Answer these questions and we’ll tell you exactly what your company has to file with the IRS and what you have to file as an owner.
The first thing to understand: filing is not the same as paying
Most Latin American founders with a digital LLC pay no federal income tax in the US. But they do have to file. These are two completely different processes.
Filing taxes
- Reporting your LLC’s situation to the IRS at the end of the tax year.
- Required for EVERY LLC, even with zero revenue.
- Done with specific forms depending on your LLC type.
Paying taxes
- Sending money to the IRS on the business’s profits.
- Only if your LLC earns income effectively connected to the US.
- For most non-residents with digital businesses: $0.
Heads up if you sell physical products
If your LLC keeps inventory in US warehouses (Amazon FBA included), has an office, employees or someone closing sales for you, the rule changes: you have US effectively connected income. In that case your LLC still files Form 5472 + 1120, but you also have to file your personal 1040-NR and, most likely, collect Sales Tax in the states where you sell. The $0 scenario applies to digital services delivered from outside the US.
How much tax does an LLC pay? It depends on 3 factors
These define your full scenario.
Are you a US resident or non-resident?
If you live outside the US, special rules apply that in many cases exempt you from federal income tax.
Does your business have a physical presence in the US?
With no office, employees or warehouse in the US, you are most likely not subject to federal income tax.
Does your LLC have one member or several?
A single-member LLC and an LLC with partners file differently and use different forms.
Single-Member LLC vs. Multi-Member LLC: two different tax paths
Single-member LLC
- The IRS treats it as a disregarded entity
- If you are a non-resident with no physical nexus: no federal income tax
- Forms: Form 5472 + pro-forma 1120 (informational only, $0)
- Deadline: April 15
LLC with two or more members
- The IRS treats it as a partnership
- Each partner reports their share of the income
- Forms: Form 1065 + Schedule K-1 per partner
- Deadline: March 15
Your LLC’s forms: fewer and simpler than you think
Depending on your case, only one or two probably apply to you.
| Form | Who files it? | What does it do? | Is there a payment? | Deadline |
|---|---|---|---|---|
| Form 5472 + 1120 | Single-Member LLC with a foreign owner | Reports transactions with the owner | No · Informational only | April 15 |
| Form 1065 | Multi-Member LLC | Reports income and allocations | Depends on the case | March 15 |
| Schedule K-1 | Each Multi-Member partner | Reports each partner’s share | - | With the 1065 |
| Form 1040-NR | Non-resident with ECI | Personal return if there is a US trade or business (ETBUS) | Yes · If there is ECI | June 15 (payment due April 15) |
| Form SS-4 | Any new LLC | EIN application (tax ID number) | No · Free | At formation |
| Form 8832 | LLC electing to be taxed as a C-Corp | Changes the tax classification | Yes · 21% corporate tax | Up to 75 days before or 12 months after |
| State Sales Tax (e.g. DR-1 and DR-15 in Florida) | LLC selling products to US consumers | Collects and reports the state’s Sales Tax | Yes · Collected from the buyer | Monthly, quarterly or annually depending on the state |
| Form 8804 / 8805 | Multi-member LLC with foreign partners and effectively connected income | Quarterly withholding on income allocated to foreign partners | Yes · The partnership withholds and pays | March 15 |
| ITIN (applied for with Form W-7) | Foreign partner who must file a 1040-NR | Taxpayer ID number: you can’t file without it | No · It’s an application | Before filing. Attached to the first return, on paper |
An extension gives you more time to FILE, never more time to PAY.
See how your US LLC’s taxes work
Answer 4 questions and get your estimated tax scenario.
5 common LLC tax mistakes Latin American founders make
Knowing them ahead of time can save you time, money and penalties.
"My LLC doesn’t pay taxes, so I don’t have to do anything"
Filing is required even if you owe nothing. Skipping it triggers penalties from year one.
Not filing Form 5472 because "it doesn’t apply"
A $25,000 penalty for not filing it, even if your LLC had no revenue. It’s the most expensive and most common mistake.
Confusing filing with paying
You can be required to file forms without owing the IRS a single dollar. They are different processes.
Ignoring the state Franchise Tax
Almost every state charges an annual fee to keep your LLC active. Not paying it can get your LLC dissolved.
Believing the LLC removes your tax obligations at home
Having a US LLC does not exempt you from reporting income in Colombia, Mexico, Argentina or wherever you live.
Missed the deadline or need to fix a return? We can help.
You’re not alone. Many Latin American founders find out about their LLC obligations late or file information that needs correcting. Sell-U handles these cases too.
We file amendments to returns already submitted
- Corrections to a Form 5472 / 1120 already filed
- Amendments to Form 1065 and Schedule K-1
- Adjustments to the owner’s reportable transactions
- Corrections to Registered Agent or EIN information
You missed the deadline: you still have options
- Late filing of Form 5472 + 1120 (due April 15)
- Late filing of Form 1065 (due March 15)
- Reasonable cause requests to reduce or remove penalties
- Catching up LLCs with several years of unfiled returns
Real US tax compliance stories
Companies and founders who went from uncertainty to properly meeting their IRS obligations, with clear processes and the right support.
We got your information!
Within 24 hours a Sell-U advisor will reach out by WhatsApp or email with an initial analysis of your case.