Tax Filing for Online Business Owners Abroad
Running an online business while living abroad creates a distinct set of tax challenges: self-employment tax that FEIE doesn't eliminate, business entity reporting requirements, multi-currency income, and in some cases foreign corporate tax obligations. Whether you're a US or UK national, our team handles the full complexity — personal return, business entity filing, and FBAR where needed.
Get started with your filingWho this is for
- ✓ US citizens or UK nationals running an online business while living abroad
- ✓ Entrepreneurs with e-commerce stores, digital products, or consulting businesses
- ✓ Business owners with US LLCs, UK limited companies, or offshore entities
- ✓ Those earning multi-currency online income from clients worldwide
- ✓ Online business owners who may owe self-employment tax in their home country
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 US Form 1040 with Schedule C — self-employment income and deductions
- 2 Schedule SE — self-employment tax (15.3%, applies even with FEIE for US filers)
- 3 Form 2555 — FEIE (reduces income tax but not self-employment tax)
- 4 UK SA100 with SA103 — UK Self Assessment for self-employed UK nationals
- 5 Business entity returns (Form 1065 for US LLC partnerships, Form 1120-S for S-Corps)
- 6 Form 5472 — if operating a foreign-owned US LLC
Documents usually needed
- 📄 Business income records — all revenue received by source and currency
- 📄 Business expense records — software, marketing, subcontractors, home office
- 📄 Business bank account statements
- 📄 Entity formation documents (LLC operating agreement, company registration)
- 📄 Prior year business and personal tax returns
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We identify your entity structure and filing obligations across both personal and business returns
Business income and expenses are accurately prepared on Schedule C or the appropriate business return
FEIE is applied where it reduces income tax; self-employment tax is calculated separately
A licensed professional reviews and files both your personal and business returns
When human review matters
- ⓘ SE tax of 15.3% applies to net self-employment profit even when FEIE eliminates all income tax
- ⓘ Structuring through an S-Corp can reduce SE tax — but adds complexity and compliance costs
- ⓘ Operating in the US market with a US LLC may create ECI obligations for non-US-person owners
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
- ✓ Everything in Leaver / Non-Resident
- ✓ Multiple properties or investment types
- ✓ Additional advisory support as needed
- ✓ LLC partnership return (Form 1065)
- ✓ Up to 2 owners, simple P&L and balance sheet
- ✓ K-1s prepared for owners
Frequently asked questions about Tax Filing for Online Business Owners Abroad
Does FEIE eliminate self-employment tax for online business owners?
No. FEIE reduces income tax, but self-employment tax (15.3% on net profit) applies regardless of FEIE. For US self-employed expats, this is often their largest remaining US tax obligation after FEIE is applied.
Should I use a US LLC or a foreign company for my online business?
This is a significant decision with tax, banking, and legal implications. US LLCs offer simplicity and US banking access but create Form 5472 obligations for non-US owners and potential ECI issues. We can model the tax implications of different structures, but recommend legal advice as well.
What if I have employees or contractors in multiple countries?
Multi-country payroll, contractor payments, and PE (permanent establishment) risk all become relevant when you have staff abroad. This is a complex area where we recommend a thorough professional review of your specific business structure.
Who is this for?
Browse by your situation for tailored guidance and the right package.
