I Opened an LLC in the United States, What Should I Do Now?
Creating your LLC is just the first step.
Opening an LLC in the United States can be the beginning of a new business, an investment, or a strategy to operate within the U.S. market. However, receiving your company's formation documents does not mean the process is complete.
From the moment you create the company, different responsibilities may begin. Some depend on the state where it was registered, others on its tax classification, the number and type of owners, the operations it carries out, and even whether it has not yet started generating income.
Understanding from the beginning what responsibilities an LLC has can help you avoid late filings, unexpected notices, or penalties that could have been prevented with proper planning.
What Happens When I File Taxes With My LLC?
For federal income tax purposes, a single-member LLC is generally considered an entity that is not separate from its owner, unless it elects to be taxed as a corporation. A domestic LLC with two or more owners is generally classified as a partnership, unless it makes a different election.
This is important because your LLC's tax classification will determine how its income, expenses, and results are reported, as well as which tax returns may be required.
As the business grows, it may also be advisable to review whether the initial classification remains appropriate. A structure that works when a company is just starting out may not necessarily be the most suitable when its income increases, it brings in new owners, or its operations change.
At Jambrina CPA, we can help you identify how your LLC is classified and develop a tax plan that aligns with your business's current situation and goals.
What Happens If I Opened My LLC but Still Have No Income?
The fact that your LLC has not generated income does not automatically mean it has no responsibilities. A company may spend months preparing before making its first sale. During that time, the owner may contribute money, open a bank account, hire professional services, purchase equipment, or pay various expenses related to the creation and preparation of the business.
Before concluding that an LLC “had no activity,” it is necessary to review what actually happened since its formation. The obligation to file a tax return will also depend on the company's classification.
Does My LLC Also Have State Tax Obligations?
The IRS is not the only entity you should consider after creating your company. LLCs are formed under state laws, and each state may establish its own compliance requirements.
Depending on where your company is formed or conducts business, there may be reports, taxes, fees, renewals, and information updates that you must keep up to date.
Among these responsibilities, many states also require maintaining a Registered Agent. Their role is to act as an official point of contact to receive certain legal processes, notices, and communications addressed to the company.
Having a reliable Registered Agent can be especially important for business owners who are not physically located in the state or who live outside the United States, as it helps ensure that official communications received through this channel reach the company and can be addressed in a timely manner.
At Jambrina CPA, we offer Registered Agent services and can help you maintain this requirement as part of your LLC's overall compliance, so your company is better prepared to receive and respond to official state communications.
If the Owner Is Foreign, Additional Rules Apply
U.S. LLCs with foreign owners may be subject to additional information reporting requirements. In certain cases, a foreign-owned single-member LLC must file Form 5472 along with Form 1120 DE to report certain transactions with its owner or other related parties.
These transactions may include contributions, distributions, and other movements related to the company, so it is important to identify and document them correctly.
Failing to file Form 5472 when required, filing it late, or filing it incompletely can result in a $25,000 penalty. In addition, if noncompliance continues for more than 90 days after receiving an IRS notice, additional penalties of $25,000 may apply for each additional 30-day period or fraction thereof while the noncompliance continues.
For this reason, it is especially important for foreign owners to understand their information reporting obligations from the time the company is formed and not wait until they receive an IRS notice to review them.
Jambrina CPA Can Help You
If you have just opened an LLC, this is a good time to understand what comes next.
At Jambrina CPA, we help entrepreneurs, investors, and foreign owners review the tax structure of their LLCs, identify the tax returns and reports that may apply, keep their accounting organized, and develop a tax plan for their LLC from the early stages of the business.
We also offer Registered Agent services, helping your company maintain this requirement and have a reliable point of contact for official communications received through the registered agent.
Work with an Accountant in Spanish and English to keep your company compliant and develop a tax strategy that can evolve alongside your business.