US Tax Filing Requirements for International Founders – Your Guide

Taxes and IRS filing requirements can be extremely confusing. So we’ve put together an overview of the required filings + key deadlines to keep in mind to stay on top of taxes for your business! And if you need help filing your paperwork/taxes with the IRS, contact doola. We have an extensive network of professionals who can help you. We have personally negotiated and secured fair and affordable rates for tax filings.

I am a US Single Owner/Sole Proprietor (US Single Member LLC) with a Personal Income Tax Filing Requirement

Included Filings:

• Preparation of individual tax return (Form 1040)
• Preparation of one self-employment income form (Schedule C)
• Preparation of one rental real estate property (Schedule E)
• Inclusion of income from one brokerage account (Schedule B/ Schedule D)

Key Dates:

• April 15, 2024: Individual tax returns (Form 1040) including LLCs filing on Schedule C must be filed or to request a six-month extension of time to file.

I am a Foreign Single Owner/Sole Proprietor (Foreign Single Member LLC)

If you own a Foreign Single Member LLC, and you are not considered as “Engaged in US Trade or Business” you are not required to file 1040NR or pay personal income taxes.

As a “Non-Resident Alien” (aka foreigner), you are only required to file and pay taxes in the U.S if you have FDAP income for which withholding was not done at source, or have effectively connected income (US sourced income) with US Trade or Business.

Here is an extensive article on what may constitute US Trade or Business: **https://oandgaccounting.com/amazon-foreign-sellers-irs-taxes-and-1099-k-reporting/**

However, as of 2017, you still report information like a corporation (see Section 1.6038A-1). Therefore, unless you have registered as a corporation, all single-member LLCs are subject to these requirements. Failure to file or incorrect filling will incur a minimum penalty of $25,000.

Included Filings:

• Preparation of Pro-forma (Form 1120)
• Preparation of foreign owner report (Form 5472)

Key Dates:

• April 15, 2024: Deadline for LLC tax returns when filing as Foreign Owned Disregarded Entity (Forms 1120 and 5472) or to request a six-month extension of time to file.
• April 15, 2024: Deadline to file individual tax returns for foreign individuals (Form 1040NR) or to request an extension for an extra six months to file your return.

Multiple Member LLC

As a “Non-Resident Alien” (aka foreigner), you are only required to file and pay taxes in the U.S if you have FDAP income for which withholding was not done at source, or have effectively connected income (US sourced income) with US Trade or Business.

Here is an extensive article on what may constitute US Trade or Business: **https://oandgaccounting.com/amazon-foreign-sellers-irs-taxes-and-1099-k-reporting/**

I am a Non-US Multi Owner with US Sourced Income

Included Filings:

• Preparation of partnership return (Form 1065)
• Preparation of one rental real estate investment (Form 8825)
• Preparation of Schedule K-1, K-2 & K-3s for up to four members
• Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
• 1040NR is required, and an ITIN will be needed to do the 1040NR

Key Dates:

• March 15, 2024: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.

I am a Non-US Multi Owner without US Sourced Income

Included Filings:

• Preparation of partnership return (Form 1065)
• Preparation of one rental real estate investment (Form 8825)
• Preparation of Schedule K-1, K-2 & K-3s for up to four members
• Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
• no 1040NR required, if all activities reported on the K1, K2, and K3 are foreign sourced or non-US Sourced

Key Dates:

• March 15, 2024: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.

I am a US Multi Owner (with international item of relevance)

International items of relevance is when either a foreign partner involved, or foreign source income is involved.

Included Filings:

• Preparation of partnership return (Form 1065)
• Preparation of one rental real estate investment (Form 8825)
• Preparation of Schedule K-1, K-2 & K-3s for up to four members
• Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
• Individual tax return is filed (Form 1040)

Key Dates:

• March 15, 2024: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.

I am a US Multi Owner (without international item of relevance)

International items of relevance is when either a foreign partner involved, or foreign source income is involved.

Included Filings:

• Preparation of partnership return (Form 1065)
• Preparation of one rental real estate investment (Form 8825)
• Preparation of Schedule K-1, K-2 & K-3s for up to four members
• Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business
• Individual tax return is filed (Form 1040)

Key Dates:

• March 15, 2024: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.

I have an LLC that has elected to file taxes as a C-Corporation

Included Filings:

• Preparation of Corporate Tax Return (Form 1120)
• Preparation of foreign owner report/ Related Party Disclosures (Form 5472)

Key Dates:

• April 15, 2024: Deadline for Corporations or to request a six-month extension of time to file.

I have a Delaware C Corp (Foreign Owned)

Foreign Owned = a member of the C Corp owns 25% or more of the C Corp

Included Filings:

• Preparation of Corporate Tax Return (Form 1120)
• Preparation of foreign owner report/ Related Party Disclosures (Form 5472)
• DE Corporate Franchise Tax Return (Owners pay required taxes directly)

Key Dates:

• March 1st (DE Franchise Tax Return)
• April 15, 2024: Deadline for Corporations or to request a six-month extension of time to file.

I have a Delaware C Corp (Domestic)

Included Filings:

• Preparation of Corporate Tax Return (Form 1120)
• DE Corporate Franchise Tax Return (Owners pay required taxes directly)

Key Dates:

• April 15, 2024: Deadline for Corporations or to request a six-month extension of time to file.

Key Dates:

• March 1st (DE Franchise Tax Return)
• April 18, 2022: Deadline for Corporations or to request a six-month extension of time to file.

I have a DAO LLC

Included Filings:

• Preparation of partnership return (Form 1065)
• Preparation of one rental real estate investment (Form 8825)
• Preparation of Schedule K-1, K-2 & K-3s for up to four members
• Preparation of forms 8804, 8805 and 8813 may be required if the partnership has effectively connected income with US Trade or Business

Key Dates:

• March 15, 2024: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.

What are the key dates to be aware of in 2024?

2024 Date Update

• January 18, 2024: Individual filers must pay fourth-quarter estimated tax payment for tax year 2023.
• January 24: IRS begins 2023 tax season. Individual 2023 tax returns begin being accepted and processing begins
• February 1, 2024: Last day for employers to mail out W-2 Forms to their employees.
• February 1, 2024: 1099 forms for interest, dividends, and Form 1099-S relating to real estate transactions must be mailed to recipients.
• February 1, 2024: Form 1099-MISC must be sent to US independent contractors.
• March 1, 2024: Delaware Franchise Tax filing deadline for corporations formed in Delaware.
• March 15, 2024: Deadline for partnership and LLCs owned by multiple members to file tax returns (Form 1065) or to request a six-month extension of time to file.
• March 15, 2024: Deadline for filing form 1042-S reporting dividends or partnership income to non-US individuals.
• March 15, 2024: Elections for changing 2023 entity tax classification for LLCs or S-corp election for corporations must be filed by this date.
• March 31, 2024: Last date for businesses to e-file Forms 1099 and 1096 to the IRS.
• April 15, 2024: California minimum tax ($800) is due for all entity types that engage in business in California.
• April 15, 2024: Deadline for LLC tax returns when filing as Foreign Owned Disregarded Entity (Forms 1120 and 5472) or to request a six-month extension of time to file.
• April 15, 2024: Individual tax returns (Form 1040) including LLCs filing on Schedule C must be filed or request an extension for an extra six months to file your return.
• April 15, 2024: Deadline to file individual tax returns for foreign individuals (Form 1040NR) or to request an extension for an extra six months to file your return.
• April 15, 2024 Payment of any additional tax due on individual or corporate tax returns must be paid on this date.
• April 15, 2024: First-quarter estimated tax payments for the 2021 tax year are due.
• May 17, 2024: Texas franchise tax returns and public information report are due for Texas corporations and LLCs.
• June 1, 2024: Delaware Franchise Tax payment is due for LLCs formed in Delaware.
• June 15, 2024: Second-quarter estimated tax payments for the 2021 tax year are due.
• June 15, 2024: Deadline for U.S. citizens living abroad or corporations and partnerships who keep their books and records abroad to file tax returns (Form 1040, 1120 or 1065) or to request a four-month extension.
• March 15, 2024: Forms 8804 and 8805 reporting income for foreign owners of US partnerships are due, or an extension can be requested (separate from 1065 extension).
• September 15, 2024: Third-quarter estimated tax payments for the 2021 tax year are due.
• September 15, 2024: Final deadline to file partnership tax returns for tax year 2020, if an extension was requested (Forms 1065).
• October 17: Corporation and Individual Due date to file for those requesting an extension on their 2021 tax returns

Save Yourself the Hassle – doola Can Help

That was a lot to take in. And even though the IRS provides information online to fill these forms out on your own, it can be confusing to understand this information and time consuming to fill these forms out.‍

If you need help filing your paperwork/taxes with the IRS, contact doola. We have an extensive network of tax professionals who can help you at fair and affordable rates!

That way, you can focus on what you do best: building your business. We’ll handle the rest.