US LLC accounting for owners who live outside America.
Forming a US LLC takes days. Running one from Britain means a federal information return, state filings on their own calendars, and a home-country tax position that does not automatically match the American one.
What a US LLC files, and when
An LLC usually pays no federal income tax of its own. That does not mean it has nothing to file — the reporting obligation and the tax obligation are separate questions.
Form 5472 with a pro-forma 1120
Required for a foreign-owned single-member LLC, including a year with no US trade or business and no US tax due. The penalty for not filing is $25,000.
Form 1065 for a multi-member LLC
A partnership return with a K-1 for each member, including members who live outside America.
State annual report and franchise tax
Most states want a yearly report and a minimum tax, on a calendar that has nothing to do with the federal deadline.
Registered agent in the state of formation
A continuing requirement, and the address the state writes to. A lapsed agent can cost the LLC its good standing.
Where owners get caught out
- Assuming no US tax means no US filing obligation
- Owner drawings and personal spending recorded as company expenses
- Missing the state annual report because the federal return was filed
- No EIN, or an EIN applied for under the wrong entity name
- Several LLCs run through one bank account with no separation
- Sales tax collected in states where no registration exists
The UK side of a US LLC
An American LLC is not automatically transparent for UK tax. The two countries look at the same entity and classify it differently, which is where most of the cost of getting this wrong sits.
Classification
The UK looks at the legal character of the entity rather than the US tax election, so the same profit can be taxed on a different basis on each side.
Self assessment
A UK-resident owner usually still has a UK filing obligation, whatever the LLC has already reported in America.
Double tax relief
Relief exists, but it depends on how the entity is classified and has to be claimed and evidenced rather than assumed.
Intercompany charges
Where there is a UK company as well as an LLC, the charges between them need documentation that both sides will accept.
Selling into America without an LLC
Plenty of clients sell to American customers and never form an American entity. It is worth knowing which trigger actually applies before paying for a structure you do not need.
UK company, US customers
Sales tax registration is decided by state economic nexus thresholds, not by whether you own a US company.
US stock or premises
Physical presence changes the analysis in the state where the inventory or the operation actually sits.
When an LLC earns its place
Usually a US bank account, US staff, US premises or a US investor — not simply having American customers.
Two entities, one picture
Where both exist we keep them reconciled, with intercompany charges documented on both sides.
What we handle
- Formation, EIN and registered agent
- Form 5472 and the pro-forma 1120, filed on time
- Form 1065 and K-1s for multi-member LLCs
- State annual reports and franchise tax
- Sales tax registration and returns where nexus exists
- Monthly bookkeeping kept in US format
- The UK return, and the interaction between the two
What it costs.
Published starting rates, not a quote form. Where a number depends on the size or complexity of the accounts we say so plainly, and the figure below is where your quote starts rather than a flat fee.
A single-member LLC with straightforward transactions, revenue up to $250,000 a year. A US entity, so no VAT — the same service line as UK accounting, on the American side.
Get this priceWhat is included
- Form 5472 and the pro-forma 1120, filed on time
- Monthly bookkeeping kept in US format, from a dedicated bank feed
- Treaty position and the double tax forms where they apply
- State annual report diary and franchise tax reminder
- Registered agent coordination
- Sales tax monitored against state thresholds
- A named contact who answers directly
A UK company trading into the US without a US entity is a different engagement: the cross-border US filing is from £1,478 a year, and the UK accounts stay where they are.
- Formation is £499, one-off.
- An ITIN application is handled alongside the first filing and quoted separately.
The things people ask before they commit.
If yours is not here, ask it directly — the answer comes from the person who would do the work.
One working day, no sales sequence afterwards.
Ask your questionDo I need a US LLC to sell into America?
No. Selling to American customers does not by itself require an American entity; state sales tax thresholds are the usual trigger for registration, and that is a separate question from having a company.
The LLC made no money — do I still file?
A foreign-owned single-member LLC generally files Form 5472 with a pro-forma 1120 even with no income. The penalty for missing it does not scale with the activity.
What is the $25,000 penalty for?
Failure to file Form 5472 for a reportable transaction, applied per return and per year.
Do I need an ITIN?
Often, for the owner or responsible party. We handle the application alongside the first filing.
Can you do the US and UK filings together?
Yes, which is the point: the two countries classify the same LLC differently, so sequential advisers tend to miss the interaction.
How long does formation take?
Usually a few working days at state level. The EIN can take longer, and the first federal filing deadline runs from the year of formation.
Start with the number in front of you.
Registration is a one-off. Compliance is annual. No onboarding surprises, no monthly conversion of an annual fee.