A Foreign-Owned U.S. LLC Selling Only into Latin America on Mercado Libre: What Does It File in the U.S.?
A single-member U.S. LLC owned by a foreign person that ships from China to Latin American buyers, with no U.S. warehouse, employee or agent, generally owes no U.S. income tax. But as a foreign-owned disregarded entity it must file a pro forma 1120 and Form 5472 by April 15 every year, with a $25,000 penalty per missed form. A U.S. warehouse or U.S. activity calls for a fresh look at effectively connected income.
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