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.

IRS or Internal Revenue Service, is the American equivalent of the Italian revenue agency. Collect taxes. IRS requires simple but mandatory annual accounting for LLCs owned by nonresident aliens. We have seen how very little is needed to open an American LLC, but to make it functional and open accounts you need to have the EIN, the tax code or American VAT number. Well, thanks to this code used to open accounts, the IRS always knows what the account holder's “in Vivo” bank transactions are.

 Accounting obligations for American society

If you are a foreigner who holds an American LLC , understanding the accounting of American LLC is essential to remain in compliance with the tax laws of the United States. The LLCs are flexible structures, but require accurate management of financial documents and tax declarations.

Due to legal issues due to anti AML (Anti Money Laundering) and anti terrorism (FinCen) regulations, the IRS has the obligation to formally request simple accounting from LLCs held by non-resident foreigners, through forms 5472 and 1120. By March of each fiscal year. Failure to issue them 20 days prior to the expiration date will result in a minimum $10,000 fine, and imprisonment of any managers or members if they fail to do so within the next 3 months.

It is therefore of vital importance to know that with the US taxman, which does not ask for anything in exchange and not even the payment of taxes, providing documentary requests is an essential duty. Therefore, in order to avoid errors in filling in, you will have to rely on an expert CPA who knows how to fill in the forms in order to make you 100% tax exempt and in order not to receive fines for typing errors.

We remind you that the American taxman has direct access to the accounts and any amount equal to the fines to be paid are automatically subtracted from the account holder. It is therefore worthwhile to take advantage of a proven American CPA for annual accounting. At Studio Panama Italia we offer accounting through our own American licensed CPA in Miami.

Accounting obligations for American LLC

The American LLC accounting for foreigners includes:

• Tenuta of the registers : Keep detailed registers of all transactions, income and expenses.
• Finance separation : use a separate corporate bank account to avoid confusions between personal and corporate funds.
• Financial reports : prepares financial statements, economic accounts and cash flows to monitor the financial health of the LLC.

Tax obligations

American LLC accounting also requires:

• TAX DECLARATION : Even if the LLC do not pay federal taxes directly, the profits must be reported on the tax return (form 1040-nr for foreigners).
• Estimated taxes : if the LLC generates income, you may have to pay esteemed quarterly taxes.
• State of residence : some states require separate tax returns, therefore check 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 taxation, taking up 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 becomes mandatory to send the BE-12C. What is the BE-12C ?

The BE-12C is a mandatory but discreet form for the American LLC accounting, required by the IRS and its Bea arm, or the United States Department of Commerce. The Be-12C is required for all the American LLC moni -iree foreign . Every June, every 5 years. The next compulsory date is June 15, 2023 then June 15, 2028 and 15 June 2033. The fine to not send it via fax is 45,000 USD. It doesn't matter how many years or months has the LLC of activity, what matters is the mandatory nature of the same procedure. It is only for statistical purposes. The data remain totally private.

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

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

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

According to what was declared by the offices in charge, there are various fines and possibilities:

*Omission to do so will result in an automatic fine of USD 45,000, doubled for each month of delay. Furthermore, if the LLC is late or has not honored the Tax Remittance 1120 / 5472 service, the physical person, the final beneficiary of the LLC may not be admitted to enter the United States or may no longer be able to benefit from obtaining ESTA.

Only once within 6 months from the opening of the LLC, for questions simply relating to due diligence in knowing who operates and manages the LLC to be in line with the laws already present throughout the world on corporate transparency, you are required to issue a simple information at FinCen. You can do it yourself at the relevant website or we can do it for you by paying our fee.