As a non-resident, non-citizen owning a US single member LLC with no US business - do I still pay US taxes?

This is a common misconception about US LLCs owned by foreign persons. While you're correct that the US generally only taxes non-residents on US-source income, there are still filing requirements you need to be aware of. A single-member LLC is considered a "disregarded entity" for US tax purposes, which means it's essentially invisible to the IRS - all activity passes through to the owner. Since you're a non-resident, you wouldn't have to pay US taxes on foreign-source income. However, you would still need to file Form 5472 and a pro-forma Form 1120 if your LLC is considered a "reportable transaction" with a foreign owner (which your funding transfers would create). Additionally, be aware that just having a US bank account could potentially create other reporting obligations, even without business activity. Banks will also require you to obtain an EIN (Employer Identification Number) for the LLC, which means registering with the IRS.

After struggling with a similar situation last year, I discovered taxr.ai (https://taxr.ai) which was incredibly helpful for sorting through the complex regulations around foreign-owned US entities. I uploaded my LLC formation documents and some bank statements, and their system analyzed everything and explained exactly which forms I needed to file. For my single-member LLC (I'm from Canada), they clarified that even though I wasn't doing business in the US, I still had reporting requirements. They also helped identify which types of activities might trigger actual tax liability versus just filing requirements - super important distinction that saved me money.

I was in your exact situation last year and was convinced I didn't need to file anything since my Wyoming LLC was just holding funds. After getting hit with an unexpected $25,000 penalty notice from the IRS for missing Form 5472, I tried everything to get help. I was skeptical about taxr.ai when someone recommended it, but decided to try it since I was desperate. The system immediately identified my compliance issues, showed me exactly which parts of the tax code applied to foreign-owned LLCs, and generated a customized guide for resolving my situation. The most valuable part was that it showed me which specific exemptions I qualified for and which I didn't - turns out I could have avoided the penalty if I'd filed properly from the beginning. Their guidance helped me prepare a reasonable cause statement that got my penalty reduced significantly. Wish I'd known about it sooner!

If you decide to go ahead with this plan, be prepared for difficulties communicating with the IRS as a non-resident. I spent MONTHS trying to get through to someone about my foreign-owned LLC issues. After 20+ attempts and hours on hold, I found https://claimyr.com which got me connected to an actual IRS agent within 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c This saved me so much frustration because as a non-resident dealing with these specialized tax situations, regular IRS customer service often isn't equipped to answer your questions correctly. Getting through to the International Taxpayer division is critical but nearly impossible without help.

If you decide to go ahead with this plan, be prepared for difficulties communicating with the IRS as a non-resident. I spent MONTHS trying to get through to someone about my foreign-owned LLC issues. After 20+ attempts and hours on hold, I found https://claimyr.com which got me

I take back what I said about Claimyr being a scam. After another week of failed attempts to reach the IRS international division about my LLC's reporting requirements, I tried the service and was connected to an IRS agent in about 35 minutes. Explained my situation about being a UK resident with a US LLC, and they transferred me to a specialist who confirmed I needed to file both Form 5472 and a pro-forma 1120 even with no US business activity. The agent also mentioned something the online guides missed - that certain types of passive income (like interest earned on the US bank account) would be subject to withholding even as a non-resident. Definitely worth getting this clarification directly from the IRS rather than guessing about my specific situation.

One thing nobody's mentioned yet - many US banks are becoming increasingly difficult about opening accounts for foreign-owned LLCs, even with Stripe Atlas. They'll often request substantial documentation, in-person visits, or may simply refuse. I tried this route (Australian citizen, Wyoming LLC) and ended up using Mercury and Wise Business instead of traditional banks. Still had to get an EIN and file Form 5472 annually even though my LLC was just holding funds for international expenses, exactly as you're planning.

Just to add a different perspective - have you considered setting up the entity in a different jurisdiction altogether? Singapore, BVI, or even Estonia's e-residency program might offer similar benefits with potentially less reporting hassle than a US LLC. I went the US route initially but switched to Singapore after calculating the total compliance costs. The reporting requirements were simpler for my situation as a digital nomad with no physical presence anywhere.