The company itself · A term for founders abroad
What is a single-member LLC?
An LLC with one owner; a disregarded entity for US income tax and, when the owner is foreign, a Form 5472 filer every year.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 93 of 105 in the glossary, filed under S.IRS: limited liability company
Single-member LLC, for a founder abroad.
With one owner, an LLC is a disregarded entity by default. It's the simplest company to run and the one most founders abroad form: no partnership return, no board, and in Wyoming no owner on the public record.
In a year with no income, its one federal filing is Form 5472 with a pro forma Form 1120, by 15 April. Its owner gives US payers a W-8BEN in their own name, not a W-9 for the LLC.
Sources: IRS: limited liability company.
Read next · guide · 4 minForm SS-4 without an SSN: line by line for a foreign-owned LLCWhat founders ask next.
- Does a foreign-owned single-member LLC pay US tax?
- Not itself. Any US income tax falls on the owner, mainly on income connected with a US trade or business, which a company run from abroad often doesn't have.
- Single-member or multi-member LLC: which is better for a founder abroad?
- Single-member, if you're the only owner: one federal filing and no partnership return. Single or multi-member compares the two.
- Can a single-member LLC become multi-member later?
- Yes, by amending the operating agreement to add a member. From then it's a partnership for tax and files Form 1065 instead of Form 5472.
03 · See also
- US tax for an owner abroadDisregarded entityA single-member LLC the IRS ignores for income tax, treating its income as the owner's; it still files Form 5472 if the owner is foreign.Read the term
- The EIN and IRS formsForm 5472The yearly IRS information return a foreign-owned US company files to report transactions with its foreign owner, with a $25,000 penalty for missing it.Read the term
- The company itselfMulti-member LLCAn LLC with two or more owners; a partnership for US tax, filing Form 1065 with a Schedule K-1 for each member.Read the term
- The company itselfLLCA US company whose owners aren't personally liable for its debts, and whose profit is taxed once, to the owners, unless it elects otherwise.Read the term
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