Question 1

What exactly is Exentax?

Accepted Answer

We are a team specialized in the formation and comprehensive management of US LLCs for digital entrepreneurs. We handle everything: • Complete analysis of your situation and business model • LLC formation in the most suitable state • EIN obtainment from the IRS • Bank account opening (Mercury, Relay, Wise) • Full compliance management and annual filings • ITIN obtainment if needed From formation to annual maintenance, we manage every step so you can focus on your business.

Question 2

Who is behind Exentax?

Accepted Answer

Behind Exentax are digital entrepreneurs who went through exactly the same thing as you. We were paying over 50% in taxes, looked for legal alternatives, studied the US tax system in depth and set up our own LLCs. We're not an investment fund or a large advisory firm. We're people who understand your situation because we've lived it. That direct experience is what allows us to guide you through the process with practical and relevant information.

Question 3

Why did you build this?

Accepted Answer

Because we believe access to a sound international tax structure shouldn't be a privilege reserved for a few. When we discovered there were fully legal ways to structure taxation using US LLCs, we realised that information wasn't accessible to most freelancers and digital entrepreneurs. Exentax exists to make the formation and management of US LLCs accessible to any digital entrepreneur, with full transparency and clear ground rules from day one.

Question 4

Why should I trust you if you are new?

Accepted Answer

Because behind Exentax there's a team that has been working with US LLCs for years, first in our own businesses and later helping other digital entrepreneurs set up theirs. That direct experience is what you put to work on your case from the very first call. Our way of working is simple and verifiable: • Full transparency from minute one: clear rules, fixed pricing and no fine print. • Honest judgment: if we see on the call that an LLC doesn't fit your situation, we tell you straight. We gain nothing from setting up something you don't need. • Real ongoing support: we don't vanish after the formation. We stay with you every year, handling compliance, filings and anything that comes up. Choose us for what we do, not for what we promise. → Book a free 30-minute call and decide afterwards.

Question 5

What exactly do you sell, LLCs or tax advice?

Accepted Answer

We offer a comprehensive formation and management service for US LLCs for digital entrepreneurs. Specifically, we handle: • LLC formation in the right state for your profile • EIN obtainment from the IRS and ITIN if needed • US bank account opening (Mercury and Relay as primary banks, Wise Business as a secondary option for multi-currency and FX) • Access to international payment gateways (Stripe, PayPal, the latter requires ITIN) • Compliance, annual filings and complete maintenance In short: you focus on billing, we take care of everything else.

Question 6

Are you a traditional accounting firm?

Accepted Answer

No. Traditional accounting firms do everything for everyone. We only do one thing: US LLCs for digital entrepreneurs. Formation, banking, compliance and filings. We don't handle local freelancers, we don't do income tax returns, we don't manage payroll. Only US LLCs and everything around them. That specialization is what allows us to do it well.

Question 7

How is Exentax different from other LLC formation companies?

Accepted Answer

Three fundamental things: • Personalized analysis: we don't sell you a generic template. We analyze your specific case and design the structure you actually need. • Ongoing support: we don't disappear after forming the LLC. We stay with you to manage maintenance, compliance and anything that comes up. • Real closeness: we speak your language, literally and figuratively. We understand your situation because we've been in it.

Question 8

Why does Exentax not promise specific tax results?

Accepted Answer

Because it would be irresponsible to do so. Every tax situation is different and depends on multiple variables: • Your country of tax residence • Your type of activity • Your billing volume • How you withdraw profits • Dozens of additional individual factors Anyone who promises "you'll pay exactly X%" without knowing your case thoroughly is misleading you. What we do is share detailed information about the typical savings range we see in profiles similar to yours, based on hundreds of real cases. We do this in the strategic call. At Exentax we design your complete structure so you have total clarity about your taxation.

Question 9

What kind of businesses fit an LLC?

Accepted Answer

An LLC fits especially well with digital businesses that bill international clients: • Freelancers and advisors working with clients from multiple countries • Digital agencies (marketing, development, design) • Content creators with income from international platforms • SaaS and digital products with global sales • E-commerce with international suppliers and customers • Online coaches and trainers with an international audience The key is that your income comes mostly from outside your country of residence. If you bill locally to companies in your city, an LLC is probably not the best fit. → Book a 30-minute call and we'll go through your case.

Question 10

Do you only work with Spaniards or any country?

Accepted Answer

We work with entrepreneurs from any Spanish-speaking country and also with Portuguese, French, German, Catalan and English speakers. Most of our clients are in Spain, Mexico, Argentina, Colombia and Chile, but the structure works the same from any country. What matters is not your nationality but your business model and tax situation. We evaluate that in the initial call. → Book a 30-minute call and we'll go through your case.

Question 11

Can I have an LLC if I already have a company in my country?

Accepted Answer

Yes, no problem. Having a company in your country and an LLC in the United States are independent things. In fact, many of our clients have both. The key is how you structure the relationship between both entities: who bills what, how payments flow, what each one declares. That's exactly what we analyze in your particular case. In the strategic advisory session we explain how the combination could work for your specific situation. → Book a 30-minute call and we'll go through your case.

Question 12

Do I need to bill a minimum amount for this to make sense?

Accepted Answer

There is no legal minimum: any freelancer or digital entrepreneur can incorporate an LLC. The useful question is not how much you invoice today, but how your activity is structured: international clients, digital business model, compatible tax residency and growth plans. In the initial call we review your real situation and tell you clearly whether an LLC fits your case or whether it makes more sense to wait. → Book a 30-minute call and we'll go through your case.

Question 13

Is an LLC better than continuing as a freelancer in Spain?

Accepted Answer

It depends on your specific situation. If you're a freelancer in Spain and most of your income comes from international clients, an LLC can significantly reduce your overall tax burden. But it's not a binary decision. Some clients maintain both structures; others migrate completely. The right decision depends on: • Your billing volume • Where your clients come from • How you withdraw profits • Your personal and family situation In the strategic advisory session we analyze all of this with you and give you an honest recommendation. → Book a 30-minute call and we'll go through your case.

Question 14

What exactly is an LLC?

Accepted Answer

LLC stands for Limited Liability Company. It's a type of US business entity that combines the best of both worlds: • Legal protection: your personal assets are separate from the company • Tax flexibility: the company doesn't pay corporate taxes in the US if you have no physical presence there; results pass through to the member It's a structure widely used by individual entrepreneurs or small teams who want to operate internationally in a serious way but without the complexity of a corporation. Book a strategic advisory session and we'll explain how it works for your case.

Question 15

Is it legal to have an LLC as a foreigner?

Accepted Answer

Completely legal. The United States allows any person from any country in the world to form an LLC. You don't need: • To be a US citizen • To have US residency • Any type of visa You only need a valid passport or ID document. Millions of foreigners have US LLCs operating from their countries without any legal issues. Consult your case with no commitment.

Question 16

Does having an LLC automatically reduce taxes?

Accepted Answer

No. Having an LLC by itself doesn't reduce anything. What can generate tax efficiency is the complete structure designed around the LLC: how you bill, how you collect, how you withdraw profits and how you file in your country of residence. That's why we insist on analyzing each case individually: to ensure the structure is designed correctly from the start and works in your favor. At Exentax we handle designing and executing that structure from start to finish, so it works correctly from day one.

Question 17

Does the LLC eliminate my personal taxes?

Accepted Answer

No, the LLC is a structuring tool, not a tax elimination tool. What it allows is organizing your income more efficiently: controlling how much you withdraw, when you withdraw it and how everything is structured. With good design, the total tax burden can be significantly reduced in a completely legal way. In the strategic advisory session we explain exactly how it works for your specific case and how it complements compliance in your country of residence.

Question 18

Can my country challenge the LLC?

Accepted Answer

Having an LLC in the United States is completely legal and internationally recognized. Tax authorities in all countries know this structure perfectly well. The key is that the structure is well designed from the beginning. When everything is correctly configured, there's nothing to challenge. In the strategic advisory session we explain how the structure works for your specific situation and how to ensure everything is in order from day one.

Question 19

Why an LLC and not another type of company?

Accepted Answer

Because for digital businesses with international billing, an LLC offers several key advantages: • Doesn't pay corporate taxes in the US if you have no physical presence there • Gives you access to US bank accounts and tools like Stripe, PayPal or Mercury • Gives you immediate international credibility • Is relatively simple to maintain compared to other types of companies A C corporation would pay taxes twice. A sole proprietorship doesn't protect you legally. The LLC is, in many cases, the optimal choice for digital entrepreneurs. Learn more about LLCs.

Question 20

What is the difference between Wyoming, Delaware and New Mexico?

Accepted Answer

These are the three most popular states for forming LLCs and each one has distinct advantages: • Wyoming: ideal if you are looking for maximum privacy. Does not make partner information public. Lightweight annual maintenance and favourite of digital nomads. • Delaware: the premium state. Chosen by startups seeking funding and international investors. Has a very developed legal system and is internationally respected. • New Mexico: efficient and direct structure. Good privacy and perfect if you're looking to operate without unnecessary complexity. In the initial call we tell you which one we recommend based on your profile. Book your strategic advisory session.

Question 21

Does the LLC protect my personal assets?

Accepted Answer

Yes. That's one of the main benefits of an LLC. If your company has a debt or legal issue, your creditors can only go after the company's assets, not your house, car or personal account. However, this protection works as long as you keep finances separate. If you mix personal money with company money, the protection can be lost (known as "piercing the corporate veil"). That's why it's essential to have a separate bank account and keep things organized.

Question 22

Can I have partners in the LLC or does it have to be just mine?

Accepted Answer

You can have partners without any problem. An LLC can have one or multiple members (multi-member LLC). Each partner has their defined ownership percentage and profits are distributed according to that percentage. That said, taxation has additional nuances with multiple partners because each one declares their share. At Exentax we manage multi-member LLCs and ensure that each partner's tax structure is properly configured.

Question 23

Does my LLC have to charge VAT?

Accepted Answer

No. Your US LLC doesn't charge VAT (or sales tax) when you provide advisory, consulting, software development or other digital services. The United States has no federal VAT, and professional services are not subject to state sales tax. This means your invoices from the LLC are clean, with no VAT surcharges, which greatly simplifies your international billing. What if my client is in the European Union? It depends on the type of client: • Business client (B2B): you don't pay VAT. The reverse charge mechanism applies and it's your client who handles VAT in their country. • Individual client (B2C): in some cases VAT from the client's country may apply, depending on the type of service. Advisory and consulting services are generally exempt when provided from outside the EU. In practice, most of our clients bill B2B to businesses and professionals, so VAT is not an issue. At Exentax we set up your billing correctly from day one.

Question 24

What is the process from when I contact you until I have the LLC operational?

Accepted Answer

The process has four very clear steps: • Step 1, Initial call: we talk via video call for 30 minutes with no commitment. We ask you questions about your business, your income, your current situation and your goals. We tell you if an LLC could make sense for you. • Step 2, Structure design: if you decide to move forward, we design your personalized structure. We tell you which state we recommend, which bank suits you and what configuration you need. • Step 3, Execution: formation, EIN, bank account coordination, complete documentation. You give us the data once and we coordinate everything. • Step 4, Ongoing maintenance: once everything is active, we continue managing annual compliance so you never have problems. → Book a 30-minute call and we'll go through your case.

Question 25

Do you do everything or do I have to do paperwork myself?

Accepted Answer

We handle everything: formation, banking, compliance and filings. You only need to give us the data once: personal information, documents and business details. From there, we: • Prepare the Articles of Organization and file them with the state • Request the EIN from the IRS • Coordinate with the Registered Agent • Assist with the bank account application • Deliver everything ready to operate You don't have to fill out IRS forms in English, call US offices, or understand legal procedures. Book your call and let's get started. → Book a 30-minute call and we'll go through your case.

Question 26

What documents do I need to get started?

Accepted Answer

Very few. To get started you need: • Valid passport or ID • Address outside the United States where you habitually live • Basic business details: desired company name, description of activity and approximate start date Later, for bank account opening, some banks may ask for additional documents like proof of address or information about the source of funds, but we handle that case by case. → Book a 30-minute call and we'll go through your case.

Question 27

How long does the whole process take?

Accepted Answer

From the moment you confirm you want to go ahead until your LLC is formed and your bank account is operational, it usually takes between 5 and 7 business days. • LLC formation: between 3 and 5 days depending on the state • Bank account opening: from 24 hours to one week depending on the bank and your profile We coordinate everything in parallel to make it as fast as possible. Timelines are estimates and may vary due to factors beyond our control. → Book a 30-minute call and we'll go through your case.

Question 28

Do I have to travel to the United States at any point?

Accepted Answer

No. The entire process is 100% online. You never need to set foot in the United States. The formation is done online, the EIN is requested digitally, and bank accounts are opened online. You can be in Barcelona, Buenos Aires or Mexico City and operate your LLC without leaving your couch. → Book a 30-minute call and we'll go through your case.

Question 29

Can I choose any name I want for my LLC?

Accepted Answer

Almost always yes, but with some restrictions: • The name must be unique in the state where you register the LLC • It cannot include certain restricted words like "bank", "insurance" or "university" without special licenses • It must end with "LLC" or "Limited Liability Company" Other than that, you have complete freedom. We verify name availability before filing the documents. → Book a 30-minute call and we'll go through your case.

Question 30

Can I talk to you before signing up?

Accepted Answer

Absolutely. In fact, it's mandatory. We don't accept clients without speaking first. The initial 30-minute call is free, no commitment, and its purpose is for both of us to determine if working together makes sense. In that call, we ask all the necessary questions to understand your case, explain how your structure would work, and tell you clearly if we think it's a good idea for you or not. → Book a 30-minute call and we'll go through your case.

Question 31

What level of support do you offer after forming the LLC?

Accepted Answer

The formation includes 12 months of continuous support via WhatsApp and email to resolve questions, fine-tune your operations and get your LLC fully functional. When you renew the annual maintenance service (Annual Report, Form 5472, Form 1120 pro-forma, BOI Report with FinCEN and Registered Agent), that support extends another 12 months, year after year. We're not the type to set up the company and disappear. We're available to answer questions, solve problems, assist you with the bank account and handle any IRS requirement that may arise. We're your reference team for everything related to your LLC. → Book a 30-minute call and we'll go through your case.

Question 32

Do you respond quickly or does it take days?

Accepted Answer

We respond within less than 24 business hours always. Most of the time much sooner. We're not a large corporation where your email gets lost in a ticket system. We're a small team and we respond ourselves. If you write to us on a Monday at 10 AM, you'll have a response that same day. If you write to us on a Sunday night, we'll respond on Monday. → Book a 30-minute call and we'll go through your case.

Question 33

Do you offer any kind of guarantee?

Accepted Answer

We guarantee that everything you hire will be executed correctly: • Your LLC will be properly incorporated • You will have your EIN • Compliance will be managed on time If for any reason something fails on our side, we take care of it ourselves and leave it resolved. And if anything unexpected comes up, we work it out together. You can consult our refund policy for more details. → Book a 30-minute call and we'll go through your case.

Question 34

Which banks do you work with to open accounts?

Accepted Answer

We coordinate account openings primarily with Mercury and Relay. They are the two digital banks most used by international entrepreneurs with LLCs and the ones with the best acceptance rates for foreigners. • Mercury: ideal for tech businesses, SaaS and companies billing medium-high volumes. Great platform, tool integrations and fast support. • Relay: excellent for freelancers, advisors and service businesses. Very easy to use and with good support. • Wise Business: recommended secondary option when you need multi-currency operations or international payments with competitive FX, complementing Mercury or Relay. We coordinate the entire application, prepare the documentation and accompany you through the process until your account is operational. → Message us on WhatsApp and we'll come back with concrete steps.

Question 35

How long does it take to open a bank account?

Accepted Answer

It depends on the bank: • Mercury and Relay: usually approve accounts within 24-48 hours if your profile is clear • Wise: can take up to a week In cases where the bank requests additional information or performs a manual review, it may take a bit longer. Typically you'll have your account operational in less than 7 days from when we submit the application. Timelines are estimates and depend on each bank. → Message us on WhatsApp and we'll come back with concrete steps.

Question 36

Do you guarantee that the bank will accept me?

Accepted Answer

We work with banks that have the highest acceptance rates for international entrepreneurs, and we prepare your application optimally so the process is as smooth as possible. If for any reason a bank needs additional information, we help you prepare the response. And if you need to apply to an alternative, we assist you through the entire process. → Message us on WhatsApp and we'll come back with concrete steps.

Question 37

Can I lose my bank account?

Accepted Answer

It's very rare. Digital banks have compliance departments that review accounts periodically, and sometimes they may request additional documentation. The key to keeping everything running smoothly is keeping documentation up to date, not mixing personal operations and responding quickly if the bank asks for something. That's precisely what we manage in our maintenance service. If a bank ever needs additional information, we help you prepare the response. And if you need to open an account at another bank, we assist you through the entire coordination process. → Message us on WhatsApp and we'll come back with concrete steps.

Question 38

Can I use the account to receive payments from Stripe, PayPal, etc?

Accepted Answer

Yes, no problem. Mercury and Relay are full US bank accounts with routing number and account number. You can connect them to: • Stripe, PayPal, Shopify • Amazon, Google Ads, Facebook Ads • Any platform that needs a US account In fact, that's one of the main reasons people form LLCs: to be able to use these tools without restrictions. → Message us on WhatsApp and we'll come back with concrete steps.

Question 39

Can I have accounts at more than one bank?

Accepted Answer

Yes, you can hold accounts at several banks without any issue. There is no legal limit on how many bank accounts your LLC can have. Some clients do this to diversify: • One account for primary operations and another as backup • One to receive client payments and another to hold reserves Each bank has its own conditions and onboarding requirements. → Message us on WhatsApp and we'll come back with concrete steps.

Question 40

Do the accounts have physical cards or only virtual ones?

Accepted Answer

Both Mercury and Relay offer physical and virtual cards. • Virtual: available immediately when you open the account • Physical: sent by mail and take between 7 and 15 days to arrive depending on your country You can request multiple cards. They work at any merchant that accepts Visa or Mastercard, online and physically, in any country in the world. → Message us on WhatsApp and we'll come back with concrete steps.

Question 41

What happens if the bank closes my account or requests additional documentation?

Accepted Answer

Digital banks have compliance departments that review accounts periodically. If they need to verify information, they contact you and ask for documents: invoices, client contracts, proof of source of funds. It's a routine and completely normal process. You respond with the documentation they ask for and it's resolved. We help you prepare the response. If for any reason you need to open an account at another bank, we assist you through the entire coordination process. → Message us on WhatsApp and we'll come back with concrete steps.

Question 42

What is compliance and why is it important?

Accepted Answer

Compliance means legal fulfillment. These are all the obligations your LLC must meet every year before the IRS and the state where it's registered: • Renew the Registered Agent • File Form 1120 + Form 5472 with the IRS • Update the BOI Report if there are changes • State Annual Report (only Wyoming and Delaware; New Mexico doesn't require it) All of this is a normal part of maintaining a US company, and it's much simpler than it seems. We take care of managing everything for you, so you only worry about growing your business. → Book a 30-minute call and we'll go through your case.

Question 43

What does your annual maintenance service include?

Accepted Answer

It includes everything necessary to keep your LLC in good standing throughout the year: • Registered Agent renewal • Preparation and filing of Form 1120 + Form 5472 with the IRS • State Annual Report filing (Wyoming and Delaware) • BOI Report management with FinCEN • Automatic alerts before each deadline • Continuous support via WhatsApp and email → Book a 30-minute call and we'll go through your case.

Question 44

What exactly do I have to do once I have the LLC?

Accepted Answer

Your job is to operate your business: bill, collect, pay suppliers, manage your clients. We handle US compliance (Form 1120 + Form 5472, BOI, Annual Report in states that require it, renewals). What you do need to do: • File correctly in your country of tax residence (we guide you on how to do it) • Keep your LLC's accounting organized: record income, expenses and invoices You don't need complicated software, but you do need to have everything documented. At Exentax we help you keep everything organized and guide you on your obligations in your country of residence. → Book a 30-minute call and we'll go through your case.

Question 45

What happens if I do not earn money with the LLC?

Accepted Answer

Your LLC still has legal obligations even if it doesn't bill anything: • Renew the Registered Agent • File Form 1120 + Form 5472 with the IRS • State Annual Report (only Wyoming and Delaware) It's important to keep them up to date, and with our maintenance service we handle everything automatically. If you've been inactive for several months and want to evaluate options, we help you decide what's best: keep it active for when you need it or close it in an orderly manner. → Book a 30-minute call and we'll go through your case.

Question 46

Do I have to keep formal accounting for my LLC?

Accepted Answer

Yes. Even though your LLC doesn't pay taxes in the United States, the IRS can request documentation at any time. You need to have records of: • All your income (invoices issued) • All your expenses (invoices received) • All bank transactions You don't need a complex system: it can be a well-organized spreadsheet or software like QuickBooks or Xero. The important thing is that it exists and is up to date. At Exentax we guide you on how to organize it from day one. → Book a 30-minute call and we'll go through your case.

Question 47

Can I mix personal money with LLC money?

Accepted Answer

You shouldn't. One of the fundamental principles for maintaining the LLC's legal protection is keeping finances separate. If you mix personal money with company money (use the LLC card for personal expenses, or put personal money into the LLC account without documenting it), you're piercing the corporate veil. This can cause you to lose limited liability protection. Keep everything separate: personal account for you, LLC account for the business. → Book a 30-minute call and we'll go through your case.

Question 48

Do I have to issue US invoices or can I use invoices from my country?

Accepted Answer

You must issue invoices in your LLC's name. You can't bill with your personal name if you're operating through the company. Invoices must include: • Your LLC's name • Address (the Registered Agent's) • EIN • Description of the service, amount and date They don't need to be in a specific US format. They can be normal invoices with that data. The important thing is that they're in the company's name, not your personal name. → Book a 30-minute call and we'll go through your case.

Question 49

Do I need to hire someone in my country to handle my local taxes?

Accepted Answer

At Exentax we guide you on everything you need regarding your LLC and your international tax situation. Properly integrating a US LLC into your local tax return has nuances depending on your country, your type of activity and how you withdraw profits. That's why we analyze your specific case and explain exactly what you need to declare and how. Our goal is for you to have total clarity about your tax situation, no surprises, no gaps, with everything well covered. → Book a 30-minute call and we'll go through your case.

Question 50

What happens if I do not maintain the LLC?

Accepted Answer

Maintenance is a normal part of having a US company, and it's important to keep it up to date so your LLC continues operating without interruptions: • Registered Agent: keeping it active ensures your LLC retains its official address • Annual Report (Wyoming/Delaware): annual filing that keeps your LLC in good standing • Form 1120 + Form 5472: annual corporate and informational filing with the IRS • BOI Report: beneficial ownership registry that is updated when there are changes With our maintenance service we handle all of this for you. We notify you of every deadline, prepare all documentation and file it on your behalf. So you don't have to worry about anything. → Book a 30-minute call and we'll go through your case.

Question 51

Can I change state after forming the LLC?

Accepted Answer

Yes, it's possible but it's not as simple as changing an address. You have two options: • Domestication: transfer your LLC from one state to another, keeping the same EIN and seniority (not all states allow it) • Dissolution and new formation: simpler but you lose seniority We evaluate it with you and recommend the best option for your case. We outline the scope of the procedure and any additional coordination before proceeding. → Book a 30-minute call and we'll go through your case.

Question 52

How do you close an LLC?

Accepted Answer

If you decide you no longer need the LLC, a formal dissolution must be done. The process involves: • Filing Articles of Dissolution with the state • Closing the EIN with the IRS • Filing final returns (Form 1120 + Form 5472 for the last year) • Updating the BOI Report • Closing all associated bank accounts The process usually takes between 4 and 8 weeks depending on the state. We guide you through the entire process so everything is properly closed, with no pending obligations. → Book a 30-minute call and we'll go through your case.

Question 53

What is CRS and does it affect me if I have an LLC in the US?

Accepted Answer

CRS (Common Reporting Standard) is the OECD's framework for the automatic exchange of financial information between over 100 jurisdictions. In 2023 the OECD approved a comprehensive overhaul known as CRS 2.0, alongside the CARF (Crypto-Asset Reporting Framework) for crypto-assets; both are transposed in the EU through Directive (EU) 2023/2226 (DAC8), with material application from 1 January 2026 and first effective exchange in 2027 over fiscal-year 2026 data. Key fact: the United States does not participate in CRS and will not sign CRS 2.0 either. The US runs its own system, FATCA, which is bilateral and works differently. That means your LLC's US bank account is not automatically reported to your home tax authority via CRS. It is not an invitation to hide anything: the correct — and required — practice is to declare your accounts and income in your country of residence. If your structure is properly declared, there is no problem.

Question 54

What is FATCA and how does it work?

Accepted Answer

FATCA (Foreign Account Tax Compliance Act) is the US law on financial information exchange. It's the US's own system, which doesn't participate in CRS like other countries. FATCA requires banks worldwide to report to the IRS information about accounts of US citizens and US tax residents. If you're not a US citizen or tax resident in the United States, FATCA doesn't directly affect you. US banks comply with FATCA, not CRS. That said, you must correctly declare all your accounts in your country of residence. At Exentax we guide you on your local obligations so everything is in order.

Question 55

What is Form 5472 and do I have to file it?

Accepted Answer

Yes. Form 5472 is an informational return filed with the IRS, mandatory for all Single-Member LLCs with a foreign owner. It's filed together with Form 1120 every year. It informs the IRS about transactions between you (the owner) and your LLC: capital contributions, distributions, service payments, etc. At Exentax we prepare and file Form 5472 and Form 1120 for you as part of the annual maintenance service. We ensure everything is filed correctly and on time.

Question 56

Is Form 5472 a report to tax authorities in my country or only to the IRS?

Accepted Answer

Form 5472 is a report only to the US IRS. It doesn't go directly to your country's tax authorities. Since the US doesn't participate in CRS (only in FATCA), that information is not automatically exchanged with your country of residence under standard exchange mechanisms. Your filing obligations in your country are independent. At Exentax we guide you on what you need to declare and how, so everything is in order from day one.

Question 57

What is Form 1120 and do I have to file it?

Accepted Answer

Yes. If you're a foreign owner of a Single-Member LLC, you must file Form 1120 together with Form 5472 every year with the IRS. Form 1120 is the corporate return and Form 5472 is the informational return about transactions between you and your LLC. Both are filed together and have the same deadline: April 15 (or October 15 if an extension is requested with Form 7004). At Exentax we handle preparing and filing both forms as part of the annual maintenance service. You don't have to worry about deadlines or paperwork.

Question 58

What is Form 7004 and what is it for?

Accepted Answer

Form 7004 is an automatic 6-month extension request for filing Form 1120 and Form 5472 with the IRS. If the April 15 deadline isn't feasible, Form 7004 is filed before that date and you automatically have until October 15 to file your returns. The IRS doesn't ask why you need it: the extension is automatic. At Exentax we manage Form 7004 when necessary, so you always have enough margin and everything is filed correctly.

Question 59

What is the BOI Report and do I have to file it?

Accepted Answer

The BOI Report (Beneficial Ownership Information Report) is a mandatory filing with FinCEN (Financial Crimes Enforcement Network) that went into effect in 2024. All LLCs must report who the real beneficial owners of the company are to prevent money laundering. It's a simple but mandatory procedure. It's a procedure we manage for you as part of the maintenance service, so you don't have to worry about anything.

Question 60

When do things need to be renewed and what exactly needs renewing?

Accepted Answer

It depends on the state where your LLC is located: • Wyoming: Annual Report before the 1st of the anniversary month. Annual Registered Agent. • Delaware: Annual Report before June 1. Annual Registered Agent. • New Mexico: No Annual Report. Only annual Registered Agent renewal. Additionally: • Form 1120 + Form 5472: filed together annually before April 15 (or with extension until October 15 via Form 7004) • BOI Report: only updated when there are changes in beneficial ownership information We keep track of everything and notify you in advance of every deadline.

Question 61

What happens if something expires and we do not renew it on time?

Accepted Answer

Deadlines are important, and that's precisely why our maintenance service exists. We keep track of all your obligations and make sure everything is filed on time. • Annual Reports: we file them before the deadline • Form 1120 + Form 5472: we prepare and file them together each year • BOI Report: we keep it updated • Registered Agent: we renew it automatically With our maintenance service, you focus on your business and we make sure everything is always in order. → Book a 30-minute call and we'll review your case in depth.

Question 62

Can I open an Interactive Brokers (IBKR) account with my US LLC?

Accepted Answer

Yes. Interactive Brokers (IBKR) accepts accounts in the name of US LLCs, even when the members are not US residents. It's one of the most popular options for international entrepreneurs who want to invest their LLC's profits. To open the account you'll need: • LLC documentation: Articles of Organization, Operating Agreement and EIN confirmation letter • W-8BEN-E signed in the LLC's name (for a single-member LLC with a non-resident owner, IBKR usually also asks for the member's personal W-8BEN) • Beneficial owner ID: passport and proof of address • Source of funds: LLC bank statements justifying the capital you plan to deposit It's important to understand that an investment account is not the same as an operating account. IBKR does not replace Mercury or Relay for invoicing and collecting from clients: it is used exclusively to invest the company's treasury. In addition, dividends and interest generated on the account may be subject to withholding at source, we cover that in another question in this section. At Exentax we guide you through the documentation and the W-8BEN-E so your application goes through without friction.

Question 63

What is Form W-8BEN-E and does my LLC have to file it?

Accepted Answer

W-8BEN-E is the IRS form that a foreign entity, or a US entity treated as "disregarded" with a non-resident owner, uses to certify its tax status to a US counterparty (a bank, a broker, a platform or a client paying you). It is not filed with the IRS directly. It is handed to the payer or financial institution that requests it and they keep it on file. When will they ask for it? • When opening an account at a broker such as Interactive Brokers • When opening some bank accounts (Mercury, Relay and Wise usually use their own equivalent forms) • When a US client pays you and needs to justify why they are not withholding the standard 30% • On some platforms (Amazon KDP, Udemy, Upwork) to certify that you are not a US taxpayer For a single-member LLC with a non-resident owner, the LLC is treated as a "disregarded entity" and the form is signed in the LLC's name, identifying the member as the beneficial owner. It is normally accompanied by the member's personal W-8BEN. The W-8BEN-E expires every 3 years (or sooner if the data changes), so it has to be renewed. At Exentax we prepare it with you whenever a bank, broker or platform requests it.

Question 64

Does my LLC have to pay US withholding on dividends or interest from US investments?

Accepted Answer

It depends on the type of income. US-source passive income is subject to withholding at source, even though your LLC doesn't pay corporate tax on operating profits. The general rates are: • Dividends from US stocks: 30% withholding by default • Interest: a lot of bank and bond interest is exempt under portfolio interest rules, but other interest may also carry 30% • US-source royalties: 30% by default The good news: if your country of residence has a double-taxation treaty with the US, dividend withholding is usually reduced to 15% (or even 10%) and interest can drop to 0%. To apply the treaty, the broker or bank needs a W-8BEN-E properly completed showing the beneficial owner's country and the applicable treaty clause. The amount withheld is reported on Form 1042-S, issued to you by the broker or payer at year-end, and can be credited on your tax return in your country of residence. That's why we insist: operating income (invoices to international clients) has nothing to do with investment income inside the US. At Exentax we review with you which treaty applies and how to document the W-8BEN-E correctly so you don't overpay withholding. Book a call if you want to review your case.

Frequently asked questions: US LLC and international tax

About US LLCs

What is a US LLC?

Do I need to travel to the United States to form an LLC?

Which state is best for my LLC?

How long does LLC formation take?

Can I own an LLC while being a salaried employee?

About taxation

Is tax optimization with a US LLC legal?

Do I have to declare the LLC in my country of residence?

Which IRS forms must I file?

About banking and payments

Can I open a Mercury account without travelling to the US?

Can I use Stripe with my US LLC?