If you operate a single-director LLC in the US, or a foreign-owned LLC, proper accounting is non-negotiable: it determines tax obligations, penalties, and bankability. Here you'll find the 2025 rules, the forms you need to file, and best practices for staying compliant and protecting your margin.

The IRS, or Internal Revenue Service, is the American equivalent of the Italian Revenue Agency. It collects taxes. The IRS requires simple but mandatory annual accounting for LLCs owned by non-resident foreigners. We've seen how opening an American LLC requires very little, but to make it functional and open accounts, you need an EIN, the American tax identification number or VAT number. Thanks to this code used to open accounts, the IRS always knows the account holder's "live" bank transactions.

 Accounting requirements for the American company

If you're a foreigner owning a U.S. LLC , understanding U.S. LLC accounting is essential to staying compliant with U.S. tax laws. LLCs are flexible structures, but they require careful management of financial records and tax returns.

For legal reasons, due to anti-AML (Anti-Money Laundering) and counter-terrorism (FinCen) regulations, the IRS is required to formally require LLCs owned by nonresident aliens to provide simple accounting, using Forms 5472 and 1120, by March of each tax year. Failure to submit these forms 20 days before the due date results in a minimum fine of $10,000, and the arrest of any managers or members if they fail to do so within the following three months.

It's therefore vitally important to understand that with the US tax authorities, which don't ask for anything in return or even the payment of taxes, providing the required documentation is a must. To avoid errors, you should rely on an experienced CPA who knows how to fill out the forms. This will ensure you're 100% exempt from tax liability and avoid fines for typing errors.

Please remember that the US tax authorities have direct access to accounts, and any outstanding fines are automatically deducted from the account holder. It's therefore worth using a proven US CPA for your annual accounting. At Studio Panama Italia, we offer accounting services through our own US-licensed CPA in Miami.

Accounting Requirements for American LLCs

American LLC accounting for foreigners includes:

• Record Keeping : Maintain detailed records of all transactions, income, and expenses.
• Separation of Finances : Use a separate business bank account to avoid confusion between personal and business funds.
• Financial Reports : Prepare balance sheets, income statements, and cash flows to monitor the financial health of the LLC.

Tax Obligations

American LLC accounting also requires:

• Tax Return : Although LLCs do not pay federal taxes directly, profits must be reported on the owner's tax return
• Estimated Taxes : If the LLC generates income, you may have to pay estimated quarterly taxes.
• State of Residence : Some states require separate tax returns, so check your local regulations.
• For income tax, the default is "disregarded entity": no separate filing; income and expenses go on Schedule C of the owner's Form 1040. You can opt for corporate taxation with Form 8832.
• A single-manager, foreign-owned LLC is disregarded for income purposes, but for reporting purposes, it is treated as a corporation under §6038A: Form 5472 attached to a pro forma Form 1120 is required, even if no tax is due. The basic penalty is $25,000 for failure to file or for inadequate accounting records.
• Maintain audit-ready books: chart of accounts, journal entries, bank reconciliations, invoices, and intragroup contracts. The IRS requires sufficient records to prove the accuracy of the return and related-party transactions (for 5472).

In addition to opening your LLC, you will probably be interested in creating a life insurance policy on your tax status by taking a second tax residence in a country with territorial taxation, such as a residence in Panama or a residence in Paraguay.

Payments to suppliers and payroll: practical safeguards

US Contractor: Collect W-9; if >$600, issue 1099-NEC by 1/31.

Employees: Payroll requirements (941, W-2) if any; does not apply to pure LLCs without personnel

When is the 1099-NEC deadline?

The deadline for submitting the 1099-NEC is January 31st.

From June 2023, it will be mandatory to submit the BE-12C. What is the BE-12C?

The BE-12C is a mandatory but discreet form for American LLC accounting, required by the IRS and its BEA arm, the U.S. Department of Commerce. The BE-12C is required for all foreign single-director . It is required every June, every 5 years. The next mandatory date is June 15, 2023, then June 15, 2028, and June 15, 2033. The penalty for not faxing it is $45,000. It doesn't matter how many years or months the LLC has been in business, what matters is that the procedure is mandatory. It is for statistical purposes only. The data remains completely private.

The BE-12C is requested by the Bureau of Economic Analysis of the Federal Government of the United States of America.

You can contact us to issue a certified copy of BE-12C by May or within the first 10 days of June. The cost of production and shipping is EUR 950. We ask that you send payment and request at least 10 days before the expiration date. Every 5 years.

The BE-12C document to be produced can be found at this LINK

According to the relevant offices, there are various fines and possibilities:

*Failure to comply with this procedure results in an automatic penalty of USD 45,000, doubled for each month of delay. If the LLC is also late or has not honored the Tax Remittance Service 1120/5472, the individual, ultimate beneficial owner of the LLC may be denied entry to the United States or may no longer be eligible for ESTA.

Once within six months of opening the LLC, simply for due diligence purposes, to understand who operates and manages the LLC and comply with existing corporate transparency laws worldwide, you are required to file a simple disclosure with FinCen. You can do this yourself on the relevant website , or we can do it for you for a fee.