One yearly package for non-US owners
Annual US Compliance for Your Foreign-Owned US LLC
You live in Canada or elsewhere and own a single-member LLC in South Dakota, Wyoming, Delaware or another state. Each year it has federal and state filings due, and some of them carry large penalties if missed. Gurleen Kaur, CPA licensed in British Columbia and Washington State, handles them as one package from US$595 a year.
Quick answer
What does a foreign-owned single-member US LLC have to file each year?
Usually more than people expect. A single-member LLC owned by a non-US person is a foreign-owned disregarded entity, and the IRS requires it to file a pro forma Form 1120 with Form 5472 attached for any year with a reportable transaction with its owner, such as money put in or taken out. The penalty for not filing is US$25,000. It may also need a Form 7004 extension, Forms 1099-NEC for US contractors it paid, its state's annual report and, in its first 45 days, a BE-13 Claim for Exemption with the Commerce Department. Our package covers all of these for one LLC and one owner, from US$595 a year.
What's included
One LLC, one foreign owner, one tax year. The fee covers the services listed here. Anything outside this list is quoted separately before we start.
| Filing | What it is | When |
|---|---|---|
| Form 5472 with pro forma Form 1120 | The information return that reports transactions between the LLC and its foreign owner. Prepared only for years with reportable transactions; formation costs, contributions and distributions count (IRS instructions). It cannot be e-filed, so we fax or mail it to the dedicated IRS address. | 15th day of the 4th month after year end: April 15 for a calendar year |
| Form 7004 extension | Generally six more months to file the pro forma 1120 and Form 5472, requested by the regular due date and marked "Foreign-owned U.S. DE" as the instructions require (Form 7004 instructions). | By the original due date |
| Forms 1099-NEC | For US contractors the LLC paid for services. For payments made after December 31, 2025, the threshold is US$2,000 per recipient per year (IRS). Non-US contractors are handled with Form W-8BEN or W-8BEN-E instead. | January 31 |
| State annual report | The annual or franchise tax report your LLC's state requires to keep the company in good standing, in any state. Each state sets its own due date, fee and any franchise or minimum tax; see LLC annual fees and deadlines by state. | Set by your state |
| BE-13 Claim for Exemption (new LLCs) | The Commerce Department filing for a new US business with a foreign owner of 10% or more. Required whether or not BEA contacts you (15 CFR 801.7). | Within 45 days of forming the LLC |
| US tax check | A yearly review of whether the LLC's activity creates US income tax for you as the owner, and whether any other federal or state return is needed. | Before the filing season |
| Proof of filing | Fax confirmations, mailing records, state receipts and copies of every return, kept for you in the client portal. | After each filing |
What the price covers
- From US$595 a year for the filings above, for one single-member LLC with one foreign owner. That is our US$425 Form 5472 filing plus Form 7004, Forms 1099-NEC, the state report, the BE-13 Claim and the yearly tax check, for owners who stay with us every year.
- State and government fees are paid by you, such as the state's annual report fee. We tell you the amount before we file.
- More than one state? We can also handle annual reports and foreign registrations in other states; ask us. Each state's own fees are paid by you.
- Quoted separately before any work starts: late or missed years, more than one owner or related party, bookkeeping, a US individual return for the owner, payroll, sales tax, responses to IRS or state notices, and LLCs that elected to be taxed as a corporation.
- For a single Form 5472 filing on its own, or late years, see our Form 5472 filing service. Closing the LLC? See closing a US LLC.
No US tax does not always mean no return
Many foreign owners hear that their LLC owes no US tax and assume nothing else needs filing. That is not always true.
The IRS instructions say a nonresident alien engaged in a trade or business in the United States must file Form 1040-NR even if they had no income from it, no US-source income, or income exempt under a treaty (Form 1040-NR instructions). Claiming a treaty position may also need Form 8833.
Our yearly US tax check tells you whether this applies to you. If you need a Form 1040-NR, we quote it separately. See our Form 1040-NR guide.
How it works
- Quote request. Send your details through the form. We confirm the LLC is a single-member, foreign-owned disregarded entity and that the package fits, and reply with a fixed quote.
- Engagement and fixed quote. You get a written scope and fee. Extra years or extra work are priced at this point, not later.
- Questionnaire and documents through the secure client portal. You complete a short yearly questionnaire and upload bank statements, formation papers and contractor details in our secure client portal. Please never email documents.
- Preparation and review. We build the year's reportable-transaction schedule from your bank records, prepare each filing and send it to you for review.
- Filing and proof. We file with the IRS, the state and BEA as needed, and upload the confirmations to the portal.
- Calendar for next year. You get the next year's due dates, including the state report and any 1099-NEC deadline.
LLCs registered in more than one state
An LLC formed in one state that has an office, staff or property in another state generally has to register there as a foreign LLC. From then on it files that state's annual report and pays its fees and any taxes each year, on that state's own dates, in addition to its home state. We can handle the annual reports and foreign registrations in each state; ask us. Not sure which state your LLC should be in? Read Do I need a Delaware LLC?
Example: a Canadian owner with a South Dakota LLC
A Canadian resident forms a single-member LLC in South Dakota to sell services to US clients. In the first 45 days the LLC files a BE-13 Claim for Exemption. Its formation costs and the owner's first contribution are reportable transactions, so the first year needs Form 5472 with a pro forma Form 1120. If the LLC paid a US freelancer US$2,000 or more, a Form 1099-NEC is due by January 31. The state annual report is filed on South Dakota's schedule. The yearly US tax check looks at where the work is done and whether the owner needs a Form 1040-NR.
The Canadian side matters too: a US LLC owned by a Canadian resident is often taxed differently in Canada than in the US. Read US LLCs for Canadians before you form one.
Penalties if a filing is missed
Form 5472 carries a US$25,000 penalty for each failure to file when due, and another US$25,000 for each 30 days the failure continues more than 90 days after the IRS sends notice (IRS instructions). The BE-13 civil penalty range is set out on our BE-13 page. A state can end a company's good standing, and eventually dissolve it, for missed annual reports. If you have already missed years, see late Form 5472 filing and IRS notices.
Common questions
How much does the annual compliance package cost?
From US$595 a year for one single-member LLC with one foreign owner. State and government fees are paid by you. The fee covers the listed services; extra work, such as late years or a Form 1040-NR, is quoted separately before we start.
Does my LLC need Form 5472 every year?
Only in years with a reportable transaction between the LLC and its foreign owner or another foreign related party. For a foreign-owned disregarded entity, the IRS counts amounts paid or received for formation, dissolution, acquisition and disposition, including contributions and distributions. Most active LLCs have one every year.
If my LLC owes no US tax, do I still need a US return?
Sometimes. The IRS Form 1040-NR instructions say a nonresident alien engaged in a US trade or business must file even with no income from it, no US-source income, or income exempt under a treaty. Our yearly US tax check tells you if this applies. A Form 1040-NR is quoted separately.
Do I need to file a 1099-NEC?
If the LLC paid a US contractor for services in the course of its business. For payments made after December 31, 2025, the IRS threshold is US$2,000 per recipient per year. Payments to non-US contractors are handled with Form W-8BEN or W-8BEN-E instead.
What is the BE-13 and is it included?
It is a Commerce Department filing due within 45 days of forming a US business with a foreign owner of 10% or more. Small companies file the short Claim for Exemption. It is included for new LLCs we take on within that window.
What will my state charge each year?
It depends on the state where the LLC was formed: some ask for no annual report, many charge a modest report fee, and a few add a tax due even with no income, such as California's US$800 annual LLC tax. Our page on US LLC annual fees and deadlines by state lists every state and DC with links to the official sources. State fees are paid by you on top of our fee.
How do I send you my documents?
Through our secure client portal. You fill in the yearly questionnaire and upload bank statements and formation papers there. Please do not email documents or account numbers.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- IRS: Instructions for Form 5472
- IRS: Instructions for Form 1120 (when to file)
- IRS: Instructions for Form 7004 (automatic extension, generally 6 months)
- IRS: Form 1099-NEC and independent contractors
- IRS Publication 15 (2026): information reporting threshold change
- IRS: Instructions for Form 1040-NR (who must file)
- 15 CFR 801.7: rules for the BE-13 survey (eCFR)
- BEA: BE-13 Claim for Exemption (rev. 10/2025)
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated October 28, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: Form 5472, Form 5472 filing service, BE-13, US LLCs for Canadians, Form 1040-NR, Closing a foreign-owned LLC, LLC fees by state, Best state for an LLC, Closing your LLC, Do I need a Delaware LLC?, Form 5472 penalties.
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Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify