U.S. Companies for Foreign Owners
Accounting services
Forming and Running a U.S. Company From Abroad
Many foreign entrepreneurs and investors use a U.S. LLC or corporation to do business here. We help foreign owners choose the right entity, set it up, and meet the U.S. reporting rules that apply specifically to foreign ownership.
Choosing the Entity
The right structure depends on what the company will do, where the owners live, and how profits will reach them. The main options:
- Single-member LLC: simple to run, but has its own foreign-owner reporting rules.
- Multi-member LLC: taxed as a partnership by default, with withholding rules for foreign partners.
- C corporation: pays U.S. corporate tax, and dividends to foreign owners may be subject to withholding, sometimes reduced by treaty.
Foreign-Owned Single-Member LLCs
A U.S. single-member LLC owned by a foreign person generally has to file Form 5472 with a pro forma Form 1120 each year to report transactions with its owner, even if it had no income. The penalty for missing this filing is steep, starting at $25,000, so it's one of the first things we set up for new clients.
Our Services for Foreign-Owned Companies
- Entity selection and U.S. tax registration, including the EIN
- Annual federal filings, including Form 5472 where required
- Florida annual report reminders and state tax registrations
- Bookkeeping so the U.S. books are ready for filing
- Planning for how profits reach owners abroad, including treaty benefits
Related Reading
Frequently Asked Questions
Can a non-U.S. resident own a U.S. LLC?
Yes. Foreign individuals and companies can own U.S. LLCs, but they have extra U.S. reporting requirements.
What is Form 5472?
It's an information return that reports transactions between a foreign-owned U.S. company and related parties. Foreign-owned single-member LLCs generally file it every year, even with no income.
Can a foreign owner elect S corporation status?
No. S corporations can't have nonresident alien shareholders, so foreign owners typically use an LLC or a C corporation.
