USA Calculators/US 0% Tax Eligibility

US Foreign Owner 0% Tax Eligibility Checker (2026)

Test IRS ETBUS (Engaged in Trade or Business) & ECI (Effectively Connected Income) rules to verify if your foreign-owned US LLC pays 0% US income tax.

🎉 Eligible for 0% US Federal Income Tax!

Your LLC qualifies as a Foreign-Owned Disregarded Entity under IRS guidelines. You pay 0% US federal income tax and only file Form 5472 & Form 1120 information returns.

Answer the Following IRS Compliance Questions:

Are you a US Citizen or Green Card Holder?US citizens pay worldwide income tax regardless of LLC structure.

Is your LLC a Single-Member LLC?Single-Member LLCs are treated as tax pass-through disregarded entities by the IRS.

Do you have a physical office, retail store, or warehouse in the US?A virtual address or registered agent DOES NOT count as physical presence.

Do you hire dependent employees working physically in the US?Hiring independent contractors (W-8BEN) abroad DOES NOT trigger ETBUS.

Mandatory IRS Compliance for 0% Tax Foreign US LLCs

Even though you pay 0% US Income Tax, foreign-owned single-member LLCs must file annual Form 5472 and Form 1120 with the IRS by April 15th every year. Failure to file carries a strict $25,000 IRS penalty.

Need Assistance with IRS Form 5472 & Tax Structuring?

Guaranteed compliant tax filing for foreign US LLC owners.

File IRS Form 5472 with ADVAQ