The Ultimate Tax Guide for Non-U.S. LLC Founders

Whether you’re launching a business from abroad or running a U.S.-based LLC, understanding your tax obligations can be overwhelming.

That’s why doola’s CEO Arjun Mahadevan spoke with James Baker, CPA, a tax expert with nearly 20 years of experience helping international and domestic founders navigate U.S. tax laws.

This tax guide for non-U.S. LLC founders breaks down the key takeaways from their conversation; from single-member LLCs and corporations to e-commerce taxes and bookkeeping basics.

Need help filing your taxes? Get expert support from doola’s Tax Filing services.

Meet the Expert: James Baker, CPA

James Baker specializes in international taxation. Over the years, he’s worked with:

• Foreign nationals living in the U.S.

• Multinational corporations

• International entrepreneurs starting U.S. businesses

He’s especially experienced with helping non-residents, like Indian LLC owners or Belarusian founders, understand how U.S. tax laws apply to them. His approach is practical and focused on clarity in a space that’s often filled with confusion.

Taxes for Non-U.S. Single-Member LLCs

If you’re a non-U.S. resident who formed a single-member LLC (say in Delaware or Wyoming), here’s what you need to know:

• Your LLC is a “disregarded entity” for federal tax purposes. You, as the individual, are responsible for taxes (not the LLC itself).

• If all your services or e-commerce operations are conducted outside the U.S., you likely don’t owe U.S. income taxes. However, you must file Form 5472 with a pro-forma Form 1120 every year to report related-party transactions. This is due April 15.

• State-level filings and renewals may also be required.

Confused? doola will simplify the tax filing process for you.

Example: An Indian entrepreneur running a U.S. LLC that sells products to Europe via dropshipping typically has no U.S. tax liability, but still needs to file certain forms.

🔖 Related Read: US Tax Filing Requirements for International Founders – Your Guide

Taxes for Non-U.S. Multi-Member LLCs and Corporations

If your U.S. business has more than one foreign owner, it’s treated as a partnership.

That changes your filing requirements.

• You’ll need to file Form 1065 by March 15.

• Each partner gets a Schedule K-1 showing their share of the profits or losses.

• Like with single-member LLCs, if your activities happen entirely outside the U.S., there’s usually no U.S. income tax owed.

Running a foreign-owned C corporation in the U.S.? In that case, you must:

• Watch for extra compliance requirements like Beneficial Ownership Information (BOI) reporting

• File Form 1120

• Pay taxes at the corporate level

E-Commerce Taxes for Non-U.S. Founders

Selling online through Amazon, Shopify, or Walmart? Your income tax obligations depend on where the business operates.

If your operation is managed from outside the U.S., and you don’t own physical assets like warehouses, you likely owe no U.S. income taxes.

However, keep in mind that sales tax may apply due to economic nexus laws.

What Is Economic Nexus?

If your business reaches a certain threshold of sales or transactions in a U.S. state, you’re required to collect and remit sales tax (even if you don’t have a physical presence there).

This rule, known as economic nexus, typically kicks in when your annual sales exceed $100,000 or you complete 200 transactions in that state.

Just starting out? Focus on growth first. But once you cross $1M in sales, consult a pro.

🔖 Related Read: How to File Taxes for Ecommerce: Best Tips for Entrepreneurs in 2025

U.S.-Based Single-Member LLC Taxes

If you live in the U.S. and own a single-member LLC, here’s what to expect:

• Your LLC’s income is reported on Schedule C of your personal tax return (Form 1040).

• You’ll owe income tax and self-employment tax (15.3% on net earnings).

• You don’t need to file extra LLC-specific tax forms.

📌 doola’s Tip for the Do’ers: If you’re making $50K or more, an accountant can help you find ways to lower your tax bill.

U.S. Multi-Member LLC Taxes

Co-owning an LLC with a friend or partner? That makes it a partnership, and you must:

• File Form 1065

• Issue each partner a Schedule K-1

• Report each share of income on Schedule E of their 1040

Filing errors can be costly, so it’s wise to use software or work with a tax professional.

What About S Corporations?

An S corp is not a separate type of business. It’s a tax election for LLCs or corporations that allows you to:

🎯 Avoid some self-employment tax

🎯 Pay yourself a salary

🎯 Take the rest as distributions (which aren’t subject to the 15.3% tax)

Here’s how it works:

• You file Form 2553 to elect S corp status

• File Form 1120S annually

• Run payroll correctly to avoid IRS penalties

S corps are ideal if you’re earning more than $50K to $100K annually. However, they do come with added complexity. Talk to doola’s tax team to see if it’s right for you.

🔖 Related Read: Top Tax Deductions for S Corporations to Maximize Savings

Bookkeeping and Accounting Tips

Good bookkeeping is the backbone of tax compliance.

It helps you track income and expenses, prepare for tax season and make smarter business decisions. Here’s how to stay organized:

• Segregate personal and business finances, with separate business bank accounts

• Record all transactions; income, supplies, services, and inventory

• Review your finances monthly or quarterly

Whether you DIY or outsource it, remember, bookkeeping is key.

doola: Taxes Simplified for Non-U.S. LLC Founders

U.S. tax laws don’t have to be scary, even if you’re running a business from overseas. Here’s a quick recap:

✅ Non-U.S. founders often don’t owe U.S. income tax if operations are abroad, but must still meet filing requirements

✅ E-commerce sellers should monitor sales tax obligations due to economic nexus

✅ U.S. founders must report business income on personal tax returns

✅ S corporations can offer tax savings but come with added complexity

✅ Bookkeeping is essential for accuracy, compliance, and smarter decisions

Want to simplify your taxes and stay compliant year-round? Let doola handle your Tax Filing, so you can focus on growing your business.