Is a foreign-owned Delaware LLC required to maintain accounts, or submit any forms?

[Quakespeare]

I've had a sole proprietor, foreign owned Delaware LLC with a Transferwise Borderless account for a year now and haven't submitted anything other than paying the regular annual franchise tax. I've now been told that there may well be several forms that I would have to have submitted.

Is there any truth to that? Does it help that I only operate with an EMI account, which doesn't report my information?

 

[UScorp]

Hi, yes that is correct. Has been discussed in other treads here before. You need to file several form with the IRS -Form 5472- , and you need an EIN

 

[Quakespeare]

Thank you for your reply.

I do have an EIN, but haven't filed 5472. Does it make a difference that I only have a Transferwise account, so that no transactions were reported to the IRS?

 

[UScorp]

The account is not the problem. Do you have business in the US ? Maybe you should consult a CPA . Here the link https://www.irs.gov/pub/irs-pdf/i5472.pdf

 

[Quakespeare]

No, I consciously exluded all US customers.

 

[Martin Everson]

Are you a US Person firstly?

Secondly get yourself an accountant. A US Delaware LLC is no Seychelles IBC. When it comes to anything US get yourself professional advice and do things properly.

 

[fshore]

Y

No, I consciously exluded all US customers.

You need to file the form anyway, a 10000 fine for not filing.

 

[Nyep]

Foreign owned passthrough LLC's used to be reportless until not that long ago (2017). These days you will need to report with forms 5472 and 1120F.
The US isn't what it used to be...

 

[UScorp]

You can be sure that your 'home' Tax office will get the information from the US. I have a case on my desk where a Dutch citizen got caught by the Dutch Tax office because he 'forgot' to report his profits from his DE LLC.

 

[Quakespeare]

Firstly, how would they know if Transferwise doesn't report a thing?

Secondly, since I'm homeless, I'm not too bothered about personal income tax.

 

[UScorp]

Well, then good luck to you .

 

[Martin Everson]

Firstly, how would they know if Transferwise doesn't report a thing?

Excuse me if I am wrong but are you assuming US LLC + Transferwise = no reporting? Was this the basis of your setup?

 

[Quakespeare]

Excuse me if I am wrong but are you assuming US LLC + Transferwise = no reporting? Was this the basis of your setup?

It's certainly not the basis for my setup, no. But in what way would there be reporting and from whom to whom?

 

[UScorp]

Can you tell us more about?

He had a DE LLC since 2012 and did quite a lot of business with the company. Dutch IRS got information about the company and asked him about it. He did not cooperate so they asked the IRS for help. He lost his house ,McLaren and still owes 1Million.

 

[Martin Everson]

It's certainly not the basis for my setup, no. But in what way would there be reporting and from whom to whom?

If its not the basis then why ask . No answer needed.

 

[Quakespeare]

If its not the basis then why ask . No answer needed.

Because an intellectual interest is not exclusively derived from necessity.

 

[sierra]

If the DE entity had any assets/cash in the financial year, EIN needed, IRS 5472, also don't forget FBAR if turnover makes it applicable.