Question 1

What exactly is Exentax?

Accepted Answer

We are a team specialized in the formation and comprehensive management of US LLC for digital entrepreneurs. We handle everything: • Complete analysis of your situation and business model • LLC formation in the most suitable state • EIN ready in 1 business day when the file is complete • Banking stack with Relay and Slash as preferred options, Wise Business for international money, and Mercury only when it truly fits the profile • Full compliance management and annual filings • ITIN in 3-4 weeks when your case requires it 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 and tax advisors who know the reality you are trying to organize: international revenue, banking, compliance, local tax and decisions that should never be made from a template. We do not speak from empty theory. We have structured LLC, dealt with banking reviews, IRS questions and the need to explain every movement clearly. That experience is what we bring to your case: practical judgment, understandable tax strategy and real support.

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 LLC, we realised that information wasn't accessible to most freelancers and digital entrepreneurs. Exentax exists to make the formation and management of US LLC accessible to any digital entrepreneur, with full transparency and clear ground rules from day one.

Question 4

Why should I trust Exentax?

Accepted Answer

Because we work with a very clear standard: first we understand your case, then we execute. We do not sell structures on impulse and we do not leave you alone with a newly formed LLC and a list of unanswered questions. Our way of working is simple and verifiable: • Diagnosis before execution: we review residency, clients, activity, collections and how profits will be withdrawn. • Execution guarantee: when you hire formation, EIN, documentation, assisted banking or maintenance, we deliver it cleanly, traceably and in order. • Real ongoing support: we do not disappear after formation. We stay with you to answer banks, organize documents and keep the LLC compliant. Choose us for how we work: clarity, speed and tax judgment applied to real businesses.

Question 5

What exactly do you sell, LLC or tax advice?

Accepted Answer

We offer a comprehensive formation and management service for US LLC for digital entrepreneurs. Specifically, we handle: • LLC formation in the right state for your profile • EIN from the IRS in 1 business day and ITIN processing in 3-4 weeks when needed • US banking setup with priority on Relay and Slash; Wise Business for collections, payments and international FX; Mercury only when it adds real value to the profile • Access to international payment gateways (Stripe, PayPal; PayPal may request an ITIN depending on setup and country) • 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. A traditional accounting firm usually focuses on local bookkeeping, tax returns and payroll. Exentax focuses on US LLC structures for international digital entrepreneurs: formation, EIN, banking, payment gateways, IRS compliance, ITIN when needed, investment context and coordination with your country of residence. That focus matters. A serious LLC is not a commodity filing; it is a working operating structure with tax logic, banking narrative, clean documentation and someone accountable when a bank, platform or authority asks questions.

Question 7

How is Exentax different from other LLC formation companies?

Accepted Answer

Three fundamental things: • Case-first analysis: we do not sell a generic template. We look at your residence, revenue, clients, money movement, platforms, banking needs and tax exposure before recommending a structure. • Execution with standards: formation, EIN, banking file, payment stack, IRS filings and ongoing maintenance are delivered in order, with documentation that can be defended. • Human support: we stay close after formation. If Relay, Slash, Wise, Mercury, Stripe, PayPal, Hotmart, IBKR or another provider asks for context, we help you answer with clarity instead of improvising.

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 model your situation with real numbers, explain the tax logic and show where an LLC may or may not make sense. We do this in the strategic call. At Exentax we design your complete structure so you have clarity before making a serious decision.

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.

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.

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.

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.

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.

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

Legal when it is properly structured and declared. The United States allows non-residents to form an LLC. You don't need: • To be a US citizen • To have US residency • Any type of visa You need valid identification, a coherent business case, proper filings and local tax reporting in your country of residence. We review your case before building anything.

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 reduced in a defensible way, but only if compliance in your country of residence is handled correctly. 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 a recognized structure, but recognition is not the same as automatic tax efficiency. The key is designing it correctly from the beginning: residency, banking, withdrawals, filings, documentation and local reporting must tell the same story. In the strategic advisory session we explain how the structure works for your specific situation and how to keep it 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 LLC.

Question 20

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

Accepted Answer

These are the three most popular states for forming LLC 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 favorite 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 LLC 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.

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.

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.

Question 27

How long does the whole process take?

Accepted Answer

We move fast because we work in parallel and prepare the file from day one. • LLC formation: usually 3-4 business days, subject to the Secretary of State in the chosen jurisdiction • EIN: 1 business day when the file is complete • ITIN: 3-4 weeks if you actually need it • Bank account: in around 12 hours in clear profiles; longer if compliance asks for extra information We do not inflate timelines to protect ourselves and we do not promise what depends on a third party. We give you the real scenario and push every step so the structure becomes operational as quickly as possible.

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.

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.

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 designed to determine whether working together makes sense before any structure is built. 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.

Question 31

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

Accepted Answer

Formation includes 12 months of continuous support by WhatsApp and email to resolve questions, fine-tune your operations and get your LLC working properly. When you renew the annual maintenance service (Annual Report where applicable, Form 5472, pro-forma Form 1120, current BOI/FinCEN scope review and Registered Agent), that support extends for another 12 months, year after year. We do not set up the company and disappear. We stay available to answer questions, resolve issues, assist with the bank account and manage IRS requirements that arise. You have one reference team for the structure and its real operating context.

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.

Question 33

Do you offer any kind of guarantee?

Accepted Answer

Yes. Our guarantee is operational and direct: what you hire is delivered, organized and corrected if something depends on us. • Your LLC is formed correctly • Your EIN file is handled with urgency and proper documentation • Annual compliance is managed before deadlines • If a bank, state office or provider asks for more context, we help you answer with order We cannot promise decisions that belong to banks or public authorities, but we do guarantee preparation, execution and support. If something fails on our side, we take responsibility and fix it. You can consult our refund policy for details.

Question 34

Which banks do you work with to open accounts?

Accepted Answer

We do not position one provider as a universal solution. We design a banking stack by real use case so your LLC can collect, pay and operate without depending on a single platform. • Relay: one of our preferred options for daily operations, sub-accounts, treasury control and clean cash-flow management. • Slash: preferred for cards, spend controls, teams, advertising, SaaS and high-volume digital operations. • Wise Business: the strongest piece for international money: multi-currency collections and payments, competitive FX and local account details when you need to move outside USD. • Mercury: we use it only when it fits the profile. It is well known, but we do not over-position it or recommend it by inertia. We prepare the file, organize the documentation and support you until the infrastructure is operational and aligned with your business.

Question 35

How long does it take to open a bank account?

Accepted Answer

For clear profiles, banking usually moves quickly: around 12 hours for operating accounts such as Relay or Slash once the LLC and EIN are ready. Wise Business can take longer if it asks for additional verification of activity, business address or source of funds. That is normal: Wise is very useful for international money, but its compliance may request more context. Our job is to submit a clean file: formed LLC, EIN, Operating Agreement, unambiguous activity description and documentation ready. That reduces friction and avoids improvised responses.

Question 36

Do you guarantee a bank-ready application?

Accepted Answer

Yes: we guarantee a banking application prepared with judgment, organized documentation and assisted submission with your authorization. We have real experience and working contact with financial institutions and platforms. When the activity is clear, the documentation is coherent and the intended use is professional, approvals usually move forward very smoothly. Our job is to make the file strong from day one. We prioritize Relay and Slash as operating layers when they fit, Wise Business for international collections and payments, and Mercury only when it adds real value to the profile. We prepare the KYC narrative, activity description, source of funds, website, contracts, invoices and Operating Agreement. If the institution asks for more context, we respond with you quickly and in order.

Question 37

What happens if the bank asks for additional documentation?

Accepted Answer

It is normal for a financial institution to request additional documentation during onboarding or account use. That is not a problem when the file is well built: it is part of professional banking compliance. At Exentax we manage it with you: • Clear activity explained professionally • Invoices, contracts and website aligned with the business • Source of funds documented without improvisation • Assisted banking application with your authorization and follow-up The idea is simple: you run your business; we organize the banking side so the institution understands who you are, what your LLC does and why the structure makes sense.

Question 38

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

Accepted Answer

Yes, when the account, EIN, website, activity and KYC story are aligned. Relay and Slash provide US operating accounts with routing number and account number; Wise Business covers international money. Depending on your model, that stack can support: • Stripe, PayPal, Shopify and Amazon • Hotmart, Dodo Payments, Adyen and other checkout layers • Advertising platforms, SaaS suppliers and, where the model requires it, local finance options such as SeQura The point is not just opening an account. The point is building a payment structure that platforms understand and that your LLC can defend.

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.

Question 40

Do the accounts have physical cards or only virtual ones?

Accepted Answer

It depends on the institution and delivery country, but we normally work with solutions that provide virtual cards for fast operations and, where available, physical cards. • Virtual cards: useful for software, ads, vendors and online payments from the first operational day • Physical cards: available with some providers and subject to country, verification and delivery logistics • Spend control: for team-based profiles, Slash is often very strong for cards, limits and operational control On the call we do not sell you “a bank”: we design which account, card and international layer fits how you collect and pay.

Question 41

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

Accepted Answer

If the bank requests additional documentation, you need to answer quickly, calmly and with proof. They usually ask for invoices, contracts, website, business-model explanation, source of funds or client relationship details. At Exentax we prepare that response with you so it matches your LLC, your activity and your filings. And if the institution decides to close the account, we coordinate an orderly exit: statement downloads, fund withdrawal, communication and an alternative account. The key is not reaching that point with an improvised structure. That is why we design banking, compliance and documentation from the start.

Question 42

What is compliance and why is it important?

Accepted Answer

Compliance means keeping the company legally and operationally in order. Each year we review the obligations that actually apply before the IRS, the state of formation and, when relevant, FinCEN: • Renew the Registered Agent • File Form 1120 + Form 5472 with the IRS • Review BOI/FinCEN scope if ownership or registration facts change • File the state Annual Report where required This is normal work for a serious US structure. With a clear calendar and one accountable team, it does not need to become a source of noise.

Question 43

What does your annual maintenance service include?

Accepted Answer

It includes the recurring work required to keep your LLC in good standing: • Registered Agent renewal • Preparation and filing of Form 1120 + Form 5472 with the IRS • State Annual Report filing where required • BOI/FinCEN applicability review under the current rule • Alerts before each deadline • Ongoing support by WhatsApp and email.

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.

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.

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.

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.

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.

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.

Question 50

What happens if I do not maintain the LLC?

Accepted Answer

Maintenance is a normal part of running a US company. The relevant obligations must be kept current so the structure remains usable and documented: • Registered Agent: keeps the company's official address active • Annual Report: state filing where required to preserve good standing • Form 1120 + Form 5472: annual IRS corporate and information filings • BOI/FinCEN: scope review when ownership, registration facts or the rule change With our maintenance service, we carry the calendar, prepare the documents and file what actually applies. You keep a clean operating file instead of chasing deadlines.

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.

Question 52

How do you close an LLC?

Accepted Answer

If you decide you no longer need the LLC, it should be closed formally. The process involves: • Filing Articles of Dissolution with the state • Closing the EIN file with the IRS • Filing final returns (Form 1120 + Form 5472 for the last year) • Reviewing whether any final BOI/FinCEN action applies • Closing the associated bank accounts The timeline usually depends on the state and the specific file. We guide the closure so no obligation is left hanging.

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 LLC 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 FinCEN's beneficial ownership reporting system. Under the March 2025 interim final rule, entities created in the United States are exempt from federal BOI reporting. The remaining scope focuses on certain foreign entities registered to do business in the United States. That is why we do not treat BOI as a blanket filing for every LLC. At Exentax we review the actual entity, document whether it is exempt and file or update BOI only when the current rule genuinely applies.

Question 60

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

Accepted Answer

It depends on the state where your LLC was formed: • Wyoming: Annual Report before the first day of the anniversary month. Annual Registered Agent renewal. • Delaware: Annual Report before June 1. Annual Registered Agent renewal. • New Mexico: no Annual Report. Annual Registered Agent renewal only. In addition: • Form 1120 + Form 5472: filed together annually by April 15, or October 15 with a Form 7004 extension • BOI/FinCEN: scope review when ownership, registration facts or the rule change We maintain the calendar and notify you before every relevant deadline.

Question 61

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

Accepted Answer

Deadlines matter. That is exactly why our maintenance service exists: we carry the calendar and make sure the filings that apply are handled on time. • Annual Reports: filed before the state deadline where required • Form 1120 + Form 5472: prepared and filed together every year • BOI/FinCEN: current-rule scope review when relevant • Registered Agent: renewed on time You focus on operating the business; we keep the file in order.

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 LLC, 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 LLC

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 US business banking without travelling to the US?

Can I use Stripe with my US LLC?