Running a U.S. LLC as a non-resident is straightforward, but staying compliant with U.S. laws requires meeting certain annual obligations. This guide outlines everything you need to keep your LLC in good standing and ensure your focus remains on growing your business.

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1. Federal Filing Requirements

A. For Single-Member Foreign-Owned LLCs

You must file two forms:

1. Form 5472 + Pro Forma 1120
   • Who Files? Single-member LLCs owned by non-residents.
   • Why File? To report transactions between the LLC and its foreign owner (e.g., money transfers between the owner and LLC).
   • When to File? By April 15 (or later with an extension).
   • Penalties: $25,000 or more for missing or incorrect filings.

B. For Multi-Member LLCs

You must file:

1. Form 1065 + Schedule K-1 for each member
   • Who Files? Multi-member LLCs taxed as partnerships.
   • Why File? To report the LLC’s income, expenses, and distribute Schedule K-1s to members.
   • When to File? By March 15 (or later with an extension).

When You Don’t Pay U.S. Federal Taxes:

If your LLC has no physical U.S. presence (e.g., no office, employees, or warehouses) and only sells online, its income is typically not considered ECI (Effectively Connected Income), meaning no U.S. federal taxes are due.

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2. State-Level Requirements

Each state has unique compliance obligations. Here’s a summary for the most common states:

• Wyoming:
  • Annual Report Fee: $60 minimum (or 0.0002 of in-state assets, whichever is higher).
  • Due Date: Anniversary of LLC formation.
• Delaware:
  • Franchise Tax: $300 flat fee.
  • Annual Report: Not required for LLCs.
  • Due Date: June 1 annually.
• New Mexico:
  • Annual Report: Not required.
  • Franchise Tax: Not applicable.
• Montana:
  • Annual Report Fee: $20.
  • Due Date: April 15 annually.

When State Taxes Are Not Required:

If your LLC has no physical presence in the U.S. and only sells online, its income is generally not taxed by the state, but annual reports or franchise taxes may still apply.

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3. Sales Tax

Sales tax may sound intimidating, but it’s simpler than you think! You’re required to collect and remit sales tax only when you cross specific thresholds or meet certain criteria.

When Does Sales Tax Apply?

• Domestic Sales (Within the U.S.):
  If your LLC sells physical products to customers in the U.S., you may need to collect sales tax based on the state’s rules. Each state has its own economic nexus thresholds:
  • $100,000 in sales revenue, OR
  • 200 transactions in a specific state within a calendar year.

Example: Wyoming LLC Selling to Other States

1. Sales to Texas:
   • Threshold: $500,000 in sales (Texas does not use a transaction threshold).
   • You only need to collect sales tax if your sales to Texas customers exceed $500,000 in a year.
2. Sales to California:
   • Threshold: $500,000 in sales (California does not use a transaction threshold).
   • You only need to collect sales tax if your sales to California customers exceed $500,000 in a year.
3. Sales to New York:
   • Threshold: $500,000 in sales AND 100 transactions.
   • You must meet both conditions to trigger sales tax collection in New York.

When Sales Tax Is NOT Required:

• For International Sales:
  If you sell to customers outside the US, there’s no US sales tax requirement. International sales are treated as exports, which are exempt from US sales tax.
• If You’re Below the Threshold:
  If your total sales in a state don’t exceed the thresholds, you don’t have to register for or collect sales tax in that state.

Pro Tip:

Even if your business is registered in one state, you must monitor sales thresholds and tax requirements for every state you sell in. This ensures compliance and avoids unexpected penalties as your business grows.

How to Stay Compliant with Sales Tax:

• Use tools like TaxJar or Avalara to track sales and automatically calculate, collect, and file sales tax where necessary.
• Platforms like Shopify, Amazon, and Etsy often handle sales tax for you as “marketplace facilitators,” making compliance even easier.

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4. Registered Agent Service

What Is a Registered Agent?

A registered agent is a person or service responsible for receiving legal and official documents on behalf of your LLC.

Requirements:

• Maintain a registered agent in the state where your LLC is formed.
• Renew this service regularly (starting at $9/month).

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5. Bookkeeping and Record-Keeping

Why It’s Essential:

Accurate bookkeeping ensures compliance with federal and state requirements and helps track your LLC’s financial health.

What to Track:

• Transactions: Include all funding, distributions, and operational expenses.
• Bank Accounts: Keep records for all accounts, including fintech apps like Payoneer, Wise, and Mercury.
• Receipts and Invoices: Save all business-related documents.

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Summary Checklist for Compliance

• Federal Reporting: File Form 5472 + Pro Forma 1120 (single-member) or Form 1065 + K-1s (multi-member).
• State Fees: Pay annual report or franchise taxes, as required by your selected state.
• Sales Tax:
  • Only collect if you cross a state’s sales tax threshold (e.g., $100,000 or 200 transactions in a specific state).
  • No U.S. sales tax for international customers.
  • Use automated tools to manage sales tax efficiently.
• Registered Agent: Renew your registered agent service annually.
• Bookkeeping: Maintain accurate records of all financial transactions.

If your LLC operates without a physical U.S. presence and only sells online, its income is typically not ECI, so no U.S. federal taxes are required. Managing state and sales tax is straightforward and can be easily automated with the right tools, leaving you free to focus on growing your business.