Below is the complete English version, rewritten in formal, IRS-compliant language, and explicitly listing all required forms.
You can use this directly for clients, emails, compliance guides, or professional documentation.
Tax Filing Requirements for a Nonresident Alien (NRA) Owning a Single-Member LLC (SMLLC)
For a Nonresident Alien (NRA) who owns a Single-Member Limited Liability Company (SMLLC), U.S. tax compliance is highly specialized and subject to strict reporting requirements.
Under U.S. federal tax law, a single-member LLC is by default treated as a “Disregarded Entity” (DE) unless an election is made to be taxed as a corporation. This means:
The LLC itself does not pay federal income tax
All income and expenses flow through directly to the foreign owner
The following explanation is based on IRS official instructions, including:
Form 1040-NR Instructions
Schedule C Instructions
Form 5472 Instructions
1. Owner Status and the Use of an ITIN
Because the SMLLC is a disregarded entity, the foreign owner is the actual taxpayer.
ITIN Requirement
As a Nonresident Alien, you generally do not qualify for a Social Security Number (SSN)
Therefore, you must obtain an ITIN (Individual Taxpayer Identification Number) to file a U.S. tax return
When an ITIN Is Required
You cannot apply for an ITIN by itself. It must be submitted together with a valid U.S. federal tax return.
Typical scenario:
You own a U.S. single-member LLC
The LLC is engaged in a U.S. trade or business
You are required to file Form 1040-NR
Action required:
Submit Form W-7 together with your original Form 1040-NR
This establishes a legitimate “tax purpose” for the ITIN application
2. Required Tax Filing Package (Core Forms)
An NRA owning a U.S. SMLLC generally must file three separate but related filings.
This is a combined compliance structure, not optional.
A. Income Tax Filing
Form 1040-NR + Schedule C
This filing reports and pays U.S. income tax.
1. Form 1040-NR
U.S. Nonresident Alien Income Tax Return
This is your main individual income tax return
Nonresident aliens must use Form 1040-NR, not Form 1040
Net business income from the LLC flows into:
Schedule 1, Line 3 (Business Income or Loss)
Then into the main body of Form 1040-NR
2. Schedule C (Form 1040)
Profit or Loss From Business
Used to calculate the LLC’s net profit or loss
Reports:
Gross receipts
Ordinary and necessary business expenses
(advertising, software, fulfillment, contractor fees, rent, etc.)
IRS instructions explicitly state that:
A single-member LLC owner must file Schedule C unless the entity elects corporate taxation
B. Information Reporting (Critical)
Form 5472 + Pro-forma Form 1120
This filing satisfies foreign-ownership disclosure requirements and is one of the most commonly missed obligations.
Background (IRC §6038A)
Even though the LLC is a disregarded entity for income tax
For information reporting purposes, a foreign-owned U.S. disregarded entity is treated as a domestic corporation
1. Form 5472
Information Return of a 25% Foreign-Owned U.S. Corporation
Purpose:
Discloses reportable transactions between the LLC and its foreign owner
Reportable transactions include (but are not limited to):
Capital contributions by the owner
Owner paying LLC expenses
LLC reimbursing owner
Intercompany transfers
⚠️ Even zero-revenue or inactive LLCs must file if any reportable transaction occurred.
2. Pro-forma Form 1120
U.S. Corporation Income Tax Return (Cover Page Only)
Used only as a transmittal cover for Form 5472
Not used to calculate tax
How to complete:
Fill in:
Entity name
Address
EIN
Basic identification items (Item B, Item E)
Write clearly at the top:
“Foreign-Owned U.S. Disregarded Entity”
Do NOT report income or expenses on Form 1120
💥 Failure to file Form 5472 can result in a $25,000 penalty per year, even if no tax is due.
C. ITIN Application (If First-Time Filing)
Form W-7
Used to apply for an ITIN
Select reason:
Box b — Nonresident alien filing a U.S. federal tax return
Must be submitted with:
Original or certified passport copy (or via IRS-authorized CAA)
Original Form 1040-NR
3. Step-by-Step Filing Workflow
Step | Action | Forms Involved | Notes |
1 | Calculate business income & expenses | Schedule C | Determine net profit or loss |
2 | Report income on personal return | Form 1040-NR | LLC income taxed at owner level |
3 | Disclose foreign ownership | Form 5472 + Form 1120 (pro-forma) | Mandatory, even without profit |
4 | Apply for or use ITIN | Form W-7 | W-7 placed on top of filing package |
Expert Notes & Deadlines
Filing Deadline
Calendar-year entities:
April 15 (standard deadline)
June 15 automatic extension if living outside the U.S.
(interest still accrues)
Estimated Tax Payments
If total expected tax liability exceeds $1,000
Quarterly estimated payments may be required using:
Form 1040-ES (NR)
Disclaimer
This guide is provided for general informational purposes only. Under no circumstances is it intended to constitute, nor shall it be construed as, legal or tax advice, guidance, mediation, or consultation.
The views and opinions expressed in this guide represent those of the author only. Our company makes no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, adequacy, or timeliness of the information contained herein.
For advice relating to your specific circumstances, you should seek guidance from a qualified attorney or accountant duly licensed to practice in your applicable jurisdiction.