The world of US taxation is filled with numbered forms that look nearly identical. If you are an international founder with a US LLC, you have likely received advice to “just file your 1040” at the end of the year.
This is dangerous advice.
For a non-resident, filing the standard Form 1040 is not just a paperwork error. It can have severe financial consequences. It effectively tells the IRS that you want to be treated as a US resident for tax purposes. This could potentially expose your worldwide income to US taxation.
Here is the definitive guide on what Form 1040 actually is and the specific forms non-resident LLC owners should file instead.
What is IRS Form 1040?
The IRS Form 1040 is the standard “U.S. Individual Income Tax Return.” It is the form that US citizens and Green Card holders use to report their annual income to the government.
When a US person files this form, they are reporting everything they earned globally. This includes their salary, dividends, interest, and business profits regardless of where that money was earned.
Key Takeaway: The standard Form 1040 is strictly reserved for US residents and citizens. If you live outside the US and do not hold a Green Card, this form is generally not for you.
The Correct Form: Meet the 1040-NR
If you are a non-US citizen living abroad, you are classified as a “Non-Resident Alien” by the IRS.
You do not file the standard 1040. Instead, you must file Form 1040-NR (U.S. Nonresident Alien Income Tax Return).
The “NR” stands for Non-Resident. This small difference in the form name makes a massive difference in your tax liability.
- Form 1040 taxes your worldwide income.
- Form 1040-NR taxes only your US-sourced income.
Expert Note: Filing the wrong form can accidentally classify you as a tax resident. This means the IRS could demand taxes on income you earned in your home country even if it has nothing to do with your US business.
Do All LLC Owners Need to File Form 1040-NR?
This is where it gets specific. Your filing requirement depends on how your LLC is structured and whether you made money.
Scenario 1: You Own a Single-Member LLC
If you are the sole owner of your LLC, the IRS considers your business a “Disregarded Entity.” This means the business is ignored for tax purposes and everything flows to you personally.
- If you had US-Sourced Income: You must file Form 1040-NR to pay taxes on those profits.
- If you had NO US-Sourced Income: You generally do not need to file Form 1040-NR. However, you still have a critical filing obligation called Form 5472.
The Form 5472 Trap: Even if your Single-Member LLC made $0 profit, you must file Form 5472 and a pro-forma Form 1120. This is an informational return that discloses foreign ownership. The penalty for failing to file this form is $25,000.
Scenario 2: You Own a Multi-Member LLC
If your LLC has two or more owners, it is taxed as a Partnership.
- The LLC itself must file Form 1065 (Partnership Return) to report total revenue.
- The LLC issues a Schedule K-1 to each partner showing their share of the profit.
- You (the partner) use that K-1 to file your own Form 1040-NR.
Critical Deadlines for 2026
Missing a deadline is the easiest way to invite an IRS audit. Mark these dates on your calendar.
| Form | Who Files It? | Deadline |
| Form 1065 | Multi-Member LLCs | March 15, 2026 |
| Form 1040-NR | Non-Resident Owners | April 15, 2026 |
| Form 5472 | Single-Member LLCs | April 15, 2026 |
Note: While some non-residents living abroad strictly qualify for a June 15 deadline, we strongly recommend sticking to the April 15 date to ensure you never fall behind.
Final Thoughts: Don’t Guess with the IRS
The distinction between Form 1040 and Form 1040-NR is the difference between paying fair taxes on your US business and accidentally volunteering your life savings to the US Treasury.
If you are a non-resident, your rule of thumb is simple. Stay away from the standard 1040.
Stay Compliant with Clemta: Tax season doesn’t have to be a headache. Clemta handles the entire tax filing process for international founders. From Form 5472 to Form 1040-NR, we ensure the right forms are filed on time so you can focus on growing your business.
