Tax filing for nomad LLC owners
Forming an LLC is the start of your tax obligations, not the end. Every year your LLC requires filings — even with zero income. The one you cannot miss: Form 5472. Late filing penalty is $25,000.
Key takeaways
Per form, per year. Applies even if no tax is owed. This is the one deadline you cannot miss.
Form 5472 + Pro Forma 1120, FinCEN BOI report, and your state's annual report and fee.
Clean bookkeeping monthly is far cheaper than reconstructing a year of transactions come tax time.
Most local CPAs have never filed a Form 5472. Find one who works specifically with expats and foreign-owned LLCs.
What you need to file each year
A single-member US LLC owned by a non-US person has the following annual obligations:
- Form 5472 + Pro Forma 1120: Required for foreign-owned single-member LLCs. Reports transactions between you and your LLC. Due April 15 (or October 15 with extension). Penalty for late filing: $25,000.
- FinCEN BOI Report: Beneficial Ownership Information report, required for most LLCs formed after January 1, 2024 (and older LLCs from 2025). Filed once at formation, with updates if ownership changes.
- State annual report: Wyoming and Delaware both require a small annual report and fee (~$50–300 depending on state and structure).
If you're a US citizen or green card holder, your LLC income passes through to your personal 1040, and you'll also be dealing with FBAR/FATCA obligations if you have foreign financial accounts over $10,000.
⚠️ The $25,000 penalty for missing Form 5472
The IRS penalty for failing to file Form 5472 is $25,000 per form per year. This is not a typo. It applies to foreign-owned LLCs that don't file — even if no tax is owed. This is the one deadline that you must not miss. See the Form 5472 guide for full details.
Bookkeeping — keep it clean from day one
Good bookkeeping makes filing simpler, protects the legal separation between you and your LLC, and becomes critical if you're ever audited. The basics: separate business bank account (Mercury), record every transaction, categorise expenses, and reconcile monthly rather than annually.
A bookkeeping tool or service is worth the cost. The time required to reconstruct a year of transactions from bank statements is significant — and accountants charge more when they have to do it for you.
Doola bookkeeping — managed service
Doola offers managed bookkeeping for LLC owners, where they handle the monthly transaction categorisation and produce reports your accountant can use. Pricing is around $25–50/month depending on transaction volume. For nomads who don't want to spend time on bookkeeping and prefer to delegate it entirely, this is a clean solution — especially if you already formed your LLC through doola. Get doola bookkeeping →
Entity — compliance and filing service
Entity.inc focuses on the compliance side: registered agent, annual report filings, and compliance reminders. If you want a service that manages the ongoing compliance calendar so nothing slips through the gaps, they're worth looking at. They also offer filing services for Form 5472 and other IRS requirements.
💡 Find a CPA who works with nomads
Most local CPAs have never filed a Form 5472. Find a CPA who specifically works with expats, nomads, or foreign-owned US entities — they're familiar with the forms and won't charge extra for learning on your bill. Greenback Tax Services, Bright!Tax, and Taxes for Expats all specialise in this area.
When to DIY vs hire a professional
DIY is feasible if your situation is simple: one LLC, one owner, straightforward income, and you're not a US citizen dealing with FBAR/FATCA. Form 5472 with a Pro Forma 1120 is doable with the right instructions (see our Form 5472 guide). Hire a professional when: you're a US citizen (the foreign income exclusion and FEIE calculations are complex), you have multiple entities or income streams, you're establishing or ending tax residency in another country, or any time you're unsure.
The annual compliance calendar
- January–February: Reconcile prior year books, gather all income records
- March 15: Partnership/S-Corp returns due (if applicable)
- April 15: Form 5472 + Pro Forma 1120 due; personal returns for US persons; FBAR deadline
- Before April 15: File for 6-month extension if needed (use Form 7004 for business, 4868 for personal)
- October 15: Extended deadline for all above
- December 31: BOI report updates if ownership changed during the year
The bottom line
Don't let the annual filings slip — particularly Form 5472. Hire a nomad-specialist CPA for your first year to understand your obligations, then decide whether to continue with professional filing or handle it yourself with tools. Keep your bookkeeping clean monthly; annual cleanups are expensive and stressful.
doola — bookkeeping + compliance for LLC owners
Managed bookkeeping, annual reports, and compliance reminders for US LLC owners. Integrates with Mercury for automatic transaction import.
Get doola bookkeeping → Affiliate link — we may earn a commission at no extra cost to you.