US Tax Filing for Business Owners Living Abroad
Running a US LLC or S-Corp while living outside the United States adds significant complexity to your tax situation. Your business entity files its own return, your personal return must reconcile pass-through income with expat exclusions and credits, and FBAR may apply to both personal and business foreign accounts. We handle the full stack: Expat personal return plus the business entity filing.
Is this for me?
- US LLC or S-Corp owner living abroad
- Self-employed operating through a US entity while in another country
- Receiving K-1 pass-through income alongside foreign-earned income
- Concerned about reasonable compensation requirements for S-Corps
- Managing foreign bank accounts for both personal and business use
Why this is complex
- FEIE and pass-through business income interact in non-obvious ways
- SE tax is not eliminated by FEIE, a common costly misconception
- S-Corp 'reasonable compensation' rules are especially important for expats
- Both the entity and you personally may have separate FBAR obligations
- Some foreign countries treat US LLC income differently than the US does
Recommended plans
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ LLC partnership return (Form 1065)
- ✓ Up to 2 owners, simple P&L and balance sheet
- ✓ K-1s prepared for owners
- ✓ S-corp return (Form 1120-S)
- ✓ Up to 2 owners, simple P&L and balance sheet
- ✓ K-1s prepared for owners
- ✓ Reasonable compensation guidance
What's included
Our AI gathers your information, spots missing data, and drafts your return, faster and more accurately than forms alone.
A licensed CPA (US) or qualified accountant (UK) reviews every return before it's filed. No AI-only filings.
No hidden fees. The price you see is what you pay, including all forms covered by your package.
[INSERT: customer testimonial, e.g. "founder and sole owner of a US LLC in Medellin, Colombia, saved money and stress using Nomadic.Tax"]
- founder and sole owner of a US LLC, Medellin, Colombia
Frequently asked questions about US Tax Filing for Business Owners Living Abroad
Does FEIE apply to income from my LLC?
It depends on your LLC structure. A single-member LLC disregarded for tax purposes means the income flows to your personal return, if it's earned income and you qualify for FEIE, it may be excludable. S-Corp distributions are not earned income and don't qualify for FEIE. Reasonable salary from an S-Corp does qualify. We model this carefully.
Do I still pay self-employment tax as an expat LLC owner?
Yes. FEIE reduces your income tax but does NOT eliminate self-employment tax. SE tax (15.3% on net profit) still applies to expat sole proprietors and LLC members. This surprises many expat business owners. Structuring as an S-Corp with reasonable compensation can reduce SE tax exposure.
My LLC has a foreign bank account, does it need its own FBAR?
Possibly, FBAR applies to 'US persons', which includes US entities (LLCs, corporations). If your LLC holds foreign bank accounts exceeding $10,000, an FBAR must be filed for the entity, separate from your personal FBAR. We handle both.
Can you file both my personal expat return and my LLC/S-Corp return?
Yes. Our business add-on packages are designed to sit alongside a personal Expat return. The LLC add-on ($399) covers Form 1065; the S-Corp add-on ($499) covers Form 1120-S. Both include K-1 preparation for the owners.
Related tax guides
How FEIE applies (and doesn't) to LLC and S-Corp pass-through income, and the SE tax trap.
Why your LLC may need its own FBAR separate from your personal filing.
Behind on returns as a business owner? The IRS Streamlined Procedure can help catch up with penalties waived.