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All topics315 YCL news, community & stories7 Tax law & IRS updates45 Individual & family tax49 Small business & company tax82 Foreign assets & reporting15 Going global: US companies68 Immigration & residency tax22 IRS notices & penalties27

Going global: US companies · Nov 9, 2026

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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Going global: US companies · Nov 9, 2026

Selling into Mexico and Brazil on Mercado Libre from a U.S. Company: Who Pays Duties, VAT and Income Tax?

On direct-to-consumer orders the buyer is the importer and Mercado Libre collects duties and import taxes at checkout. Mexico charges 33.5% on courier parcels from non-FTA countries such as China from 2026; Brazil's Remessa Conforme rate up to $50 is 0%. Stock in Full Mexico makes the import and an RFC yours. U.S. income tax still applies; exports generally carry no U.S. sales tax.

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