Questions

I'm single owner of DE LLC, non-resident and I need help with the first time tax preparation.

I'm single owner of Delaware LLC, non-resident. Need help with the first time tax preparation. Specifically - income tax. What do I need? What forms? How to calculate? How to fill? How to avoid double taxation? I paid Delaware franchise tax. Thank you.

3answers

There are so many different moving pieces in this type of situation, you're best bet is to reach out to an expert accountant.

Personally, I use and recommend Eric from Charitax (http://charitax.com)


Answered 3 years ago

A single owner of a U.S. LLC is by default a disregarded entity for U.S. federal income tax purposes. Essentially, this means the entity is transparent for U.S. tax purposes. A single owner may file an election, under certain circumstances, to be treated as an S corporation or a C corporation. A foreign owned U.S. disregarded entity must file Form 5472 each year to report the business activity of the LLC, as well as information about the non-resident owner. The owner completes this task by filing a proforma Form 1120 with the Form 5472 attached. It's very important that these returns are filed timely and accurately. The IRS has recently increased the penalty for noncompliance from $10,000 to $25,000.


Answered 9 months ago

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