Tax filing requirements for Nonresident Alien with Single Member LLC (Delaware) with no activity yet

For a nonresident alien with a single-member LLC, your tax filing requirements depend on how you've elected to have your LLC taxed. By default, a single-member LLC is treated as a "disregarded entity" for U.S. federal tax purposes, meaning it's essentially treated like a sole proprietorship. Since you're a nonresident alien, you would generally need to file Form 1040-NR to report any U.S. source income. If your LLC had no activity (no income or expenses), you might not have a filing requirement for this tax year. However, you should be aware that if you elect to have your LLC treated as a corporation instead of a disregarded entity, different rules would apply. For the ITIN, yes, you would need one if you're required to file a U.S. tax return and you're not eligible for a Social Security Number. You can apply for an ITIN by submitting Form W-7 along with your tax return. Regarding Form 5472, this is required for foreign-owned U.S. corporations or foreign corporations engaged in U.S. trade or business. If your LLC is treated as a disregarded entity and owned by a foreign person (you), you may need to file this form even with no activity. As for the Kickstarter timing - yes, if your campaign concludes and you receive funds after April 15th, those would be reported on next year's tax return.

After struggling with almost the exact same situation last year (foreign entrepreneur with Delaware LLC), I discovered https://taxr.ai which was seriously a game-changer for me. I was getting completely different advice from every "expert" I talked to about my filing requirements as a nonresident alien with a disregarded entity LLC. What helped me most was their document analysis tool that reviewed my LLC formation docs and clarified exactly which forms I needed to file based on my specific situation. They explained that many tax professionals miss the Form 5472 requirement for foreign-owned disregarded entities because it's a relatively recent change to the tax code. They also helped me understand when my LLC's "tax personality" would be considered a disregarded entity versus when I'd need to make an election to be taxed as a corporation. The guidance was really straightforward compared to the conflicting advice I was getting elsewhere.

I just wanted to follow up about my experience with taxr.ai after being skeptical in my earlier comment. I decided to try it since I was really stuck with my Dutch-owned Delaware LLC tax situation. The document analysis was surprisingly thorough - it identified that I needed to file both Form 5472 and Form 1120-F (because of some specific activities I had that created a US tax nexus). What I found most valuable was the explanation of WHY each form was required based on my specific situation rather than just generic advice. The tax treaty analysis was spot-on too. It highlighted specific articles in the US-Netherlands tax treaty that applied to my business activities and showed me exactly how to claim the treaty benefits correctly. Saved me thousands in unnecessary tax payments I would have made based on misunderstanding the treaty provisions.

If you're trying to reach the IRS to ask about your specific situation as a nonresident alien with an LLC, good luck! I spent WEEKS trying to get through to someone who could answer my questions. Eventually I found https://claimyr.com which got me connected to an actual IRS agent in about 45 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I needed clarification on my reporting requirements for a foreign-owned LLC with minimal activity, and the IRS agent was actually really helpful once I finally got through. They confirmed I needed to file Form 5472 even with no activity and explained the proper way to report my "disregarded entity" on my 1040-NR. Definitely worth the service fee to avoid the endless redial game with the IRS phone system, especially with international tax questions that regular tax preparers often get wrong.

I need to apologize for my skeptical comment earlier. After waiting on hold with the IRS for 3+ hours over multiple days and getting disconnected each time, I broke down and tried Claimyr. Got connected to an IRS agent in about 30 minutes. The agent confirmed that as a foreign owner of a US LLC treated as a disregarded entity, I DO need to file Form 5472 and provide a Form 1120 as a "wrapper" (even with zero activity). They also explained that because my LLC is disregarded, I only need to report actual US-source income on Form 1040-NR. Most importantly, I learned that the penalties for missing the Form 5472 filing are absolutely brutal ($25,000+), and many tax professionals don't know about this requirement for foreign-owned disregarded entities because it's relatively new. Would have been a costly mistake.

One thing nobody's mentioned yet - you need to check if Delaware has state tax filing requirements even if you have no federal filing requirement. Some states require annual reports and/or franchise taxes regardless of activity. Delaware charges an annual franchise tax for LLCs ($300 minimum I think). Also, the Mercury account might have reporting requirements under FBAR if your balance goes over $10,000 at any point. Foreign account reporting requirements are separate from income tax.

I'm in the exact same boat (foreign-owned Delaware LLC with no activity yet). My accountant told me I still need to file: 1. Form 5472 + a pro-forma 1120 as a cover sheet 2. No 1040-NR needed if no income 3. Delaware Annual Report + $300 franchise tax 4. Form W-7 to apply for ITIN (can file with your first tax return) Even with zero activity, these reporting requirements still apply if you're a foreign-owned single-member LLC. The only exception would be if you elected to be taxed as a corporation instead of a disregarded entity.

Just so you know, I filed my first 5472 last year as a foreign LLC owner with minimal activity. I used the free IRS Volunteer Income Tax Assistance program and they had NO IDEA about Form 5472 requirements for foreign disregarded entities. They kept trying to tell me I didn't need to file anything. I ended up having to find a specialist international tax preparer who charged me $750 just to prepare that one form. It's ridiculous how few tax preparers understand these requirements.

As someone who went through this exact situation last year with my EU-based Delaware LLC, I can confirm that the Form 5472 requirement is real and the penalties are no joke. Here's what I learned: 1. **ITIN Application**: You can file Form W-7 with your tax return, but I recommend applying earlier if possible since processing times are unpredictable. You'll need it for any future US tax filings. 2. **Form 5472 + Form 1120**: Even with zero activity, you still need to file Form 5472 with a "pro forma" Form 1120 as a cover sheet. This is specifically for foreign-owned disregarded entities and many tax preparers miss this requirement. 3. **State Requirements**: Don't forget Delaware's annual franchise tax ($300 minimum) and annual report. These are due by March 1st each year, separate from federal taxes. 4. **Mercury Bank Account**: If your balance ever exceeds $10,000, you'll need to file FBAR (FinCEN Form 114) by April 15th. This is separate from income tax reporting. 5. **Kickstarter Timing**: Yes, if your campaign concludes after April 15th, those funds would be reported on next year's return. Just make sure to track all related expenses from the start. The key is staying compliant from day one. The $25,000 penalty for missing Form 5472 is automatic and they don't care that you had no income. Better to file correctly even with zeros than to miss the requirement entirely.

I went through this exact situation two years ago as a nonresident alien with a Delaware LLC formed through Stripe Atlas. Here's what I wish someone had told me upfront: **You absolutely need to file Form 5472 even with zero activity.** This is the most commonly missed requirement and the $25,000 penalty is automatic - no warnings, no grace period. The form goes with a "pro forma" Form 1120 that essentially acts as a cover sheet. **For your ITIN application:** File Form W-7 with your first tax return rather than separately. It's faster and you avoid the back-and-forth with the IRS. You'll need certified copies of your passport and other identity documents. **Delaware state requirements:** The annual franchise tax ($300 minimum) and annual report are due March 1st each year, starting the year after formation. So if you formed in October 2024, your first Delaware filing is due March 1, 2026. **Mercury account considerations:** Keep track of your highest balance. If it hits $10,000 at any point, you'll need to file FBAR by April 15th. This caught me off guard in year two when my business grew. **Pro tip:** Document everything from day one, even setup costs paid from your personal account. Those are deductible business expenses once you start generating income. The learning curve is steep but staying compliant from the beginning saves you massive headaches (and penalties) later. Feel free to ask if you need clarification on any of these points!