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Wyoming LLC Yearly Compliance Requirements for a Foreign-Owned Single Member LLC

The yearly ongoing costs will depend on several factors, and mainly on the way the company is taxed as each tax classification has its own and different form. Compliance requirements are at a State and Federal Level.

State Compliance

In general, at the state level, companies must maintain and renew the Registered Agent and Address, and file the Annual Report.

Annual Report:

 

The State charges a USD$60 fee when submitting the annual report. In the Annual Report we confirm and submit information to the State confirming the business and mailing address of the company, the registered agent and address, email address, value of assets located in Wyoming, and information alike.

Federal Compliance

Federal requirements, hence costs, will depend on your tax classification. In summary, a Single Member LLC owned  by a foreigner files form 1120 Pro Forma and Form 5472 as Information Return. An LLC classified as a Partnership files form 1065 as Tax Return, and an LLC taxed as a corporation files form 1120 and related and applicable Schedules

Foreign-Owned US Disregarded Entity

US Single Member LLCs owned by a non-resident foreigner are classified as Foreign-Owned US Disregarded Entity for tax purposes, hence the LLC itself does not file a federal US tax return.  What they file is an information return comprised of (1) form 1120 Pro Forma, and (2) form 5472

Form 1120 For Foreign-Owned US Disregarded Entity

What is form 1120?

Form 1120 U.S. Corporation Income Tax Return is a form filled by the U.S. Corporation as their tax returns, but domestic Disregarded Entities wholly owned by one foreign person or company (single member LLC) are required to file form 1120 Pro-Forma, so basically only the top section of the form which requires basic information of the company must be filled.

 

How to fill form 1120?

  • On top of the form you must add the phrase “Foreign-Owned US Disregarded Entity”

  • Fill section requiring the company name and address.

  • Add Employer Information Number (EIN) on section B.

  • Check the appropriate box in section E (1) or (2). Leave empty if none applies.

  • Sign at the bottom of first page, add date.

5472

Form 5472 is what we call an information return, and not a tax return. In this form, we report information on the transactions between the LLC and the foreigner owner(s) or any other related party, like a company owned by the Owner(s) - except for other US companies - or relatives.

 

The company has to fill one form 5472 for each owner or related party that had a transaction with the company. These transactions include royalty payments, salaries, licenses, donations, loans, etc.. We also have to report transactions that had no monetary value, such as royalty-free licenses.

 

It is worth noting that also the expenses for forming the company are reported if those expenses come from the owner or a related party.

Where to mail: form 1120 and 5472 are mailed or faxed to a different address than the one set for corporations who fill 1120. It is better to confirm this address each year to avoid relying on information not updated.

 

When to file form 1120 and 5472 for a Foreign-Owned US DE Entity: you must file it before around the second week of April.

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