MiLLCenUSA Blog

LLC Taxes for Non-Residents: What You Do and Do Not Pay (Explained Without Jargon)

14 oct 2026 · 7 min read · MiLLCenUSA

«Will I have to pay US taxes?» is the question everyone asks before forming their LLC. The short answer: probably not in the US, but there are nuances you should know. Here is the long answer, in plain language.

The golden rule: the IRS looks at where YOU work

For the IRS what matters is whether your LLC generates income effectively connected with the United States: physical customers in the US, employees there, warehouses, offices… If you work from your country (design, consulting, software, dropshipping e-commerce from abroad), the LLC is a «foreign-owned disregarded entity» and pays no federal income tax on its profits.

What you DO have to do (even when you do not pay)

• File Form 5472 + pro forma 1120 every year if money moved between you and the LLC.
• File the state annual report where applicable (in New Mexico, not even that).
• Keep coherent records of income and movements.

Filing is not paying: these are informational returns. But skipping them costs $25,000.

What you do NOT pay in most cases

• Federal income tax of the LLC (with no effective US activity).
• State income tax in WY or NM (it does not exist).
• Sales tax, unless you sell to end consumers with nexus in some state (a specific case worth reviewing in e-commerce).

Your obligation in your country of residence

Here is the part nobody should hide from you: as the owner of the LLC, your profits are declared where you live. In Spain, a US single-member LLC is generally treated as transparent: you pay personal income tax on the profits, with a credit for US tax paid (usually zero). Each country has its own rules (transparency vs. participation exemption); a local tax advisor confirms this in a one-hour consultation.

Scenarios with nuances

Selling to US consumers with inventory there, having a US partner, providing services from US soil, or handling crypto with US custody can change the picture. If your case touches any of these points, it deserves a specific review before you move.

Conclusion

A well-managed non-resident LLC is fiscally very efficient: minimal US burden and transparency at home. In our plan we handle the entire US side so you only need to talk to your local advisor once a year.