The IRS finalized regulations in December of 2016 that require all foreign owners of single member LLCs to file an annual information return with the IRS. A single member LLC is an LLC owned by one person or entity, or by a husband and wife. Until now, the ownership of the LLC itself did not have to report.
Many foreigners have created a U.S. LLC themselves online or through an inexperienced advisor and will not know about this new reporting requirement. Failure to file this annual return results in penalties for foreign investors using LLCs to hold investments or conduct business in the United States or abroad. If a foreign person fails to file Form 5472 when required, the initial penalty is US$10,000. This penalty is increased by US$10,000 for each 30-day period (after an initial 90-day period) for which the failure persists.What are the choices for a foreigner now?
For foreigners coming to the United States to visit, live, work or invest.
Nonresidents, residents and Green card holders. EB5 and EB2 investors
The IRS finalized regulations in December of 2016 that require all foreign owners of single member LLCs to file an annual information return with the IRS.
Tax Guide 4 Foreigners: Investing, Working or Living in the United States published in English, or in Bi-lingual English-Simplified Chinese in print or in English in ebook formats from Amazon.com
Also available to purchase in a Bi-lingual English-Simplified Chinese version at www.taxguide4foreigners.com. This edition is for those purchasers outside of the Amazon shipping areas. It requires that you print out the copy purchased yourself.