Creating a U.S.-based LLC as a non-resident has become popular due to the added credibility and access to international clients.
As remarkable as the advantages are, there are also significant responsibilities that come with them, such as proper record keeping, filing taxes, and compliance with U.S. law.
A non-U.S. resident managing a U.S. LLC is exposed to all sorts of complex legal, tax, and organizational structures. Bookkeeping services go beyond good organization; they are critical in legal compliance, profitability, and tax preparedness.
In this article, we will cover the importance of bookkeeping services for non-US residents, what to seek in a service, and how EasyBooks (by EasyFiling) can help automate the entire process.
Why Professional Bookkeeping Services Are Crucial For Non-U.S. Residents With American LLCs
Accurate bookkeeping is a strict requirement for anyone running a business in the United States, and even more so for a non-resident owner. Here is why:
✅ Compliance With The IRS Is Mandatory
Even if your LLC is not earning money in the United States, you must still submit yearly returns to the IRS. Accurate bookkeeping facilitates:
- Preparation of Forms 5472 and Form 1120 for foreign-owned single-member LLCs.
- Proper evidential documentation in the event of an IRS audit.
- Correct categorization of inbound and outbound transactions.
✅ Evade Severe Penalties, Fines, Or Legal Problems
The lack of compliance comes at a high price for anyone. Failing to submit necessary tax papers incurs:
- More than $25,000 in penalties from the late submission of Form 5472.
- State-level fines for not submitting yearly reports.
- Interest on unpaid taxes.
✅ Gain Clear Financial Insights To Propel Your Business Forward
As an internationally operating business owner, you require real-time insights into:
- Monthly income and expenditure.
- Trends in profit and loss.
- Current cash flow position.
Accurate and timely bookkeeping empowers business owners with the ability to make smart, data-driven decisions, which can be exercised from anywhere in the world.
What Comes Under Bookkeeping Services for Multi-National Owners of American LLCs:
As a foreign non-resident owner of a US LLC, while selecting a bookkeeping service, please ensure that the following key points are included in the scope of work:
- Every month, all business transactions must be categorized
- Reconciliation of expenses and payment system accounts (like Mercury, Brex, Wise)
- Tracking income and expenses in USD
- Monthly delivery of Profit & Loss Reports, Balance Sheets, and other financial statements
- Preparation of year-end financial statements for tax purposes
- Support for filing on IRS documents such as Form 5472 and Form 1120
Common Financial and Bookkeeping Challenges Faced by Non-Resident U.S. LLC Owners
🌍 Time Differences and Geographies Can Lead To Difficulties In Communication
While working outside of the US, communication in real time can be quite challenging. It becomes more crucial to partner with a remote-based bookkeeping firm that provides round-the-clock access through email and a secure client portal.
💱 Exchanging Foreign Currencies or Tracking International Expenditures
Even though your clients can pay you in different currencies, all financial and tax reporting has to be done in USD. Your preferred bookkeeping service must have experience with foreign currency accounting.
📚 Understanding Bookkeeping and Tax Regulations in the US is Limited
As a non-resident, you might have little or no knowledge of the intricacies of American bookkeeping and tax systems. An outsourced bookkeeping service designed for foreign LLC owners can solve this problem for you.
Why EasyFiling’s EasyBooks Is the Best Bookkeeping Partner for Non-U.S. LLC Owners
We developed EasyBooks at EasyFiling to automate bookkeeping for international residents with U.S.-registered LLCs. Here is how we differentiate ourselves:
Foreign-Owned LLCs Specialization: We cater to the dormant tax reporting needs of non-resident LLCs.
Executive Financial Reports: Access comprehensive P&L statements alongside other balance sheet reconciliations.
Prepared IRS Filings: Compliance with IRS standards means our reports are ready for any tax preparer or CPA.
Remote Monitoring: Over 30 clients from different countries attest to all our online services.
Prompt and Available Team: There are real people available to attend to you. No chatbots here.
It does not matter whether you worked on forming your LLC recently or have been operating for a while, EasyBooks guarantees your financials are orderly, precise, and up to date.
Final Thoughts
Professional bookkeeping is a necessity for any non-resident managing a U.S. LLC. This is the first step towards safeguarding yourself from client non-compliance and tax concerns. The right bookkeeping strategy allows you to effortlessly run a lean, profitable business from anywhere in the world.
Do not expose your U.S. operations to confusion or harsh IRS penalties. With EasyBooks by EasyFiling monitoring your monthly bookkeeping, you are free to shift your focus towards expanding the scope of your business internationally.
Are you in need of assistance regarding the setup of your U.S. LLC or the management of ongoing compliance?
👉 Contact EasyFiling and inquire about our tailored bookkeeping and LLC formation bundles specially designed for non-American residents.
Frequently Asked Questions (FAQs)
1. Do I need bookkeeping if my U.S. LLC hasn’t made any income yet?
The answer to this is yes. For foreign owners of an LLC, there are several mandatory informational returns to be filed, such as Form 5472 and Form 1120. Even with no income, bookkeeping can assist in tracking expenses along with preparing tax filings and return documents.
2. Can I manage bookkeeping on my own using QuickBooks, Wave, or other similar software?
Managing bookkeeping through tools like QuickBooks and Wave may provide some level of assistance, however, they lack a full guarantee of IRS compliance for Non-Residents. The unique tax rules applied to foreign-owned LLCs and the subsequent sizable fines due to errors make it advisable to seek help from professionals versed in non-US owner legal and tax intricacies.
3. What documents do I need to provide for bookkeeping services?
Typically, you’ll need to share access to:
- Your U.S. business bank account(s) (e.g., Mercury, Brex, Wise)
- Payment processor reports (e.g., Stripe, PayPal, Shopify)
- Expense receipts or summaries (if available)
- LLC formation documents and EIN (if not already with EasyFiling)
Your bookkeeping team will use this data to track all financial activity in USD and generate monthly reports.
4. Is bookkeeping required if I only use the LLC for holding assets or freelance work?
Yes. Even ‘passive’ or ‘low-activity’ LLCs require accurately maintained books for legal compliance, tax reporting, and auditing. Proper bookkeeping is essential for staying compliant, whether your LLC is used for freelance work, dropshipping, or holding digital assets.
5. What do bookkeeping services for a U.S. LLC owned by a non-resident typically cost?
Pricing is relative to the number of transactions you have and how complicated your business is. At EasyBooks, we provide lower-cost, fixed monthly pricing starting from approximately $99/month, which comes with monthly reports, support during tax season, and compliance documentation.
Swostika Silwal
