Tax Obligations for Pakistani-Owned LLCs in the USA
If you're a Pakistani entrepreneur who owns a US LLC, it's essential to understand your tax obligations. While US LLCs offer tax advantages, failing to comply can lead to penalties and legal issues.
This guide explains what taxes you need to pay as a non-resident LLC owner and how to stay compliant.
1. Does a Non-Resident LLC Pay US Taxes?
✅ If your LLC has no
US-sourced income and no physical presence, you may not be liable
for US taxes.
✅ If your LLC does business in the US, you may need
to file tax returns and pay federal/state taxes.
✅ The IRS classifies LLCs as pass-through entities,
meaning profits pass to the owner’s tax return.
2. Federal Taxes for Pakistani-Owned LLCs
💰 US LLCs have two tax categories:
1️⃣ Single-Member LLC (Disregarded Entity)
- If your LLC has no US presence, you don’t pay US taxes.
- If you do business in the US, file Form 1040-NR and pay federal tax on US-sourced income.
- Withholding tax (30%) applies to certain US payments to non-residents.
2️⃣ Multi-Member LLC (Partnership Taxation)
- Must file Form 1065 (Partnership Return).
- Each member files Form 1040-NR for their share of the income.
3. State Taxes (Varies by State)
✅ Wyoming, Texas, and Florida
have no state income tax.
✅ Delaware has no tax for foreign-owned LLCs that
operate outside the US.
✅ California and New York have high annual taxes.
💡 Choose a tax-friendly state like Wyoming to avoid extra costs.
4. Sales Tax (If Selling to US Customers)
- If your LLC sells physical products to US customers, you may need to collect & remit sales tax.
- Sales tax applies if you have economic nexus (exceed sales thresholds in a state).
- Use sales tax software like TaxJar or Avalara for compliance.
5. US Tax Filing Requirements for Pakistani-Owned LLCs
📌 Form 5472 –
Required if your LLC is foreign-owned.
📌 Form 1040-NR – If you have
US-sourced income.
📌 Form 1065 – For partnerships
(multi-member LLCs).
📌 Annual Franchise Tax – Applies in
states like Delaware & California.
Deadline: April 15 every year (extendable to October).
🚀 Need tax assistance? Ecom Assets helps Pakistani entrepreneurs stay compliant with US tax laws.
Final Thoughts
✅ Choose a tax-friendly state
like Wyoming or Delaware.
✅ Keep records of all transactions & expenses.
✅ Consult a tax expert for IRS filings &
compliance.
💡 Need help setting up a tax-compliant US LLC? Contact Ecom Assets today!
