U.S. Tax Filing for Foreign-Owned LLCs

Complete Eligibility & FAQ Guide

This guide explains exactly who OtoCo’s tax filing service is for, how eligibility works, and answers the most common questions international founders have about U.S. tax filing.

This service is intentionally limited in scope to keep it simple, affordable, and compliant.

Who This Service Is For

This service is only for founders who meet all of the following conditions:

You are not a U.S. citizen
You are not a U.S. tax resident
You are based entirely outside the United States
You own a U.S. LLC (Wyoming, Delaware, etc.)
All work is performed outside the United States
Your business has:
- No U.S. office
- No U.S. employees
- No one working while physically in the U.S.

If all of the above are true, this service applies to you.

Supported Business Structures

OtoCo currently supports only the following structures, under the conditions described above.

1. Foreign-Owned Single-Member LLC

This applies if:

You own 100% of the LLC
You are a non-U.S. person
All work is performed outside the U.S.

Typical example Juan is a citizen and tax resident of Argentina. He owns 100% of a Wyoming LLC. He provides services remotely from Argentina, has U.S. clients, and is paid through Stripe to a U.S. bank account. He does not travel to the U.S. to work.

Forms filed

Form 1120 (pro-forma)
Form 5472

No U.S. income tax is calculated or paid.

2. Foreign-Owned Multi-Member LLC (All Owners Non-U.S.)

This applies if:

The LLC has two or more owners
All owners are non-U.S. persons
All work is performed outside the U.S.

Typical example Lucía and Martín are citizens and tax residents of Spain. They jointly own a Wyoming LLC. All business operations are run from Spain. They have U.S. clients but no U.S. office, employees, or on-the-ground activity.

Forms filed

Form 1065
Schedule K-1 (for each member)
Schedule K-2

No U.S. income tax or withholding is calculated or paid.

What “All Work Is Performed Outside the United States” Means

This phrase is critical and is the main eligibility requirement.

It means all of the following are true:

You do not perform work while physically in the U.S.
Your company has no U.S. office or physical location
Your company has no U.S. employees (W-2)
No one in the U.S. can:
- Sign contracts for the company
- Bind the company legally
Any contractors or collaborators also work outside the U.S.

If all of these are true, your business is considered outside the U.S. for tax purposes, even if you have U.S. clients.

Detailed FAQ

I invoice U.S. clients. Is that U.S.-source income?

No.

If you perform all work outside the United States, your income is considered non-U.S. source, even if:

Your clients are U.S. companies
You invoice in USD
You are paid into a U.S. bank account
You use Stripe or another U.S. payment processor

For services, the IRS looks at where the work is performed, not where the customer is located.

I have a U.S. LLC. Does that automatically mean I have U.S. business activity?

No.

Simply having:

A U.S. LLC
A U.S. EIN
A U.S. bank account
A U.S. mailing address
A registered agent

does not mean you have U.S. business activity.

What matters is where the work happens and whether you have a physical or operational presence in the U.S.

I live outside the U.S. but travel there sometimes. Does this qualify?

It depends.

If you do not perform any work while physically in the U.S., this service may still apply.
If you perform work while physically in the U.S., even temporarily, this service does not apply.

Work includes:

Client meetings
Coding, consulting, design
Business operations
Sales activity

What would make me ineligible for this service?

This service does not apply if any of the following are true:

You perform work while physically in the U.S.
You have U.S. employees (W-2)
You have a U.S. office, warehouse, or physical workspace
Someone in the U.S. can sign contracts on behalf of the company
You earn certain types of U.S. passive income, such as:
- U.S. dividends
- U.S. interest
- U.S. real estate income

If any of these apply, your tax situation is more complex and outside the scope of this service.

Do I owe U.S. income tax under this service?

No.

Under this service:

No U.S. income tax is calculated
No U.S. income tax is paid
The filings are required compliance filings only

You may still owe taxes in your home country and should consult a local tax professional about that.

Why do I need to file anything if I owe no U.S. tax?

U.S. law requires certain informational filings for foreign-owned U.S. entities, even when no tax is owed.

Failing to file these forms can result in significant penalties, even if the tax due is zero.

This service exists to help you meet those requirements correctly.

Who files the forms?

You do not file anything yourself.

OtoCo coordinates the preparation and filing of all required forms through independent third-party tax professionals.

Who submits the filings to the IRS?

The filings are submitted directly to the IRS by the third-party tax professionals OtoCo works with.

What do I need to do?

You will:

Select your business structure
Answer a short set of questions
Provide basic business and ownership details

After that, no further action is required from you.

What if I’m not sure whether I qualify?

That’s okay.

You can chat with genco.otoco.io to help understand eligibility before continuing.

By continuing, you acknowledge that:

Genco is not a tax advisor
Genco does not provide tax, legal, or accounting advice
Eligibility is based on the information you provide

Important Disclosures

Tax filing services are provided by independent third-party tax professionals
OtoCo is not a CPA firm, law firm, or tax advisor
OtoCo does not provide tax, legal, or accounting advice

By purchasing OtoCo products or services, you:

Agree to OtoCo’s Terms of Service and Privacy Policy
Acknowledge that OtoCo does not provide tax advice
Accept responsibility for determining whether this service applies to your situation

If you are unsure about your tax position or eligibility, you should seek advice from a qualified tax professional before proceeding.

Summary

This service is for you if:

You live and work outside the United States, own a U.S. LLC, and have no U.S. office, employees, or on-the-ground activity — even if your clients are U.S. companies.

If that sentence describes you, this service is designed for your situation.