US business
EIN & tax guide
Start with the business’s tax classification, then plan its EIN, filings and payments. For US and overseas owners.
No effective corporate election
1065 + a K-1 for each partner
Full Form 1120
Then check employees, payments and transactions, foreign ownership, and states of operation. These facts can add requirements.
[07][16]Start with the legal form and tax treatment
Whether the owners are in the US or overseas, getting an EIN, filing returns, paying tax and maintaining state registrations are separate tasks. This guide starts with the rules for US LLCs and corporations, then explains the additional checks for foreign ownership.
Start with how the business is taxed, then check who owns it. An LLC is a legal form under state law, not one fixed federal income-tax classification. Here, “domestic” means organized in the US; it does not mean every owner lives there.
[07]- Is the US entity an LLC or corporation, and when was it formed?
- Who owns it directly or indirectly, in what proportions, and what changed this year?
- Has the LLC made an effective corporate tax election, and from what date?
- Where are the activities, people, services and inventory, and what dealings took place with owners?
Find the chapter for your business
Single-member LLC
Usually reports income through its owner. Wholly foreign-owned entities must also check the Form 5472 conditions.
Multi-member LLC
Usually files as a partnership: Form 1065 reports the business and K-1s report each partner’s share. Foreign partners add a withholding check.
C corporation
The company generally files a full Form 1120. Foreign shareholders or payments to foreign recipients may add reporting duties.
The ID, the return and the payment
- EIN: the business’s federal tax ID. Receiving it does not complete a tax return.
- Filing: reporting income, expenses, owner shares or specified transactions. Some forms report information rather than calculate income tax due.
- Payment: paying by the applicable deadline. Some payments are due during the year, before the annual return.
- State and local duties: annual reports, state tax, sales tax and payroll requirements depend on formation and business activity.
Establish the owner’s tax status
In this guide, a foreign owner is not identified by passport alone. US citizenship, US tax residency and foreign individual or entity status can lead to different rules. A non-US citizen can be a US tax resident under the green-card or substantial-presence rules, subject to exceptions, treaties and elections.
Individual owners should establish their tax status; entity owners should establish their place of formation and US tax classification. A US citizen does not become a foreign individual owner merely by living abroad. Each chapter labels the additional foreign-owner requirements.
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