Nomadic.Tax
Online Business Owners

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.

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APPLICABILITY/WHO THIS IS FOR

Who 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
FILING RECORD/FORMS THAT MAY APPLY

What this filing may involve

Every situation is different. The forms below commonly apply — your specific filing may vary.

US Form 1040 with Schedule C — self-employment income and deductions
Schedule SE — self-employment tax (15.3%, applies even with FEIE for US filers)
Form 2555 — FEIE (reduces income tax but not self-employment tax)
UK SA100 with SA103 — UK Self Assessment for self-employed UK nationals
Business entity returns (Form 1065 for US LLC partnerships, Form 1120-S for S-Corps)
Form 5472 — if operating a foreign-owned US LLC
DOCUMENTS/INFORMATION REQUIRED

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
PROCESS/RETURN ASSEMBLY

How Nomadic.Tax works

AI-assisted preparation with licensed professional review — every time.

1
INFORMATION
We identify your entity structure and filing obligations across both personal and business returns
2
DOCUMENTS
Business income and expenses are accurately prepared on Schedule C or the appropriate business return
3
AI PREPARATION
FEIE is applied where it reduces income tax; self-employment tax is calculated separately
4
PROFESSIONAL REVIEW / E-FILE
A licensed professional reviews and files both your personal and business returns
PROFESSIONAL REVIEW/CPA / ACCOUNTANT SIGN-OFF

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.

Most popular

Expat
$499
For Americans living abroad — FEIE, foreign tax credits and FBAR included.
  • ✓Everything in Premier
  • ✓Foreign Earned Income Exclusion (Form 2555)
  • ✓Foreign Tax Credit (Form 1116)
  • ✓FBAR filing (FinCEN 114) included
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UK Plus
£199
For more complex returns with multiple income sources.
  • ✓Everything in Leaver / Non-Resident
  • ✓Multiple properties or investment types
  • ✓Additional advisory support as needed
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US LLC Partnership
$399
For simple LLC partnerships you own, filed on top of your personal return.
  • ✓LLC partnership return (Form 1065)
  • ✓Up to 2 owners, simple P&L and balance sheet
  • ✓K-1s prepared for owners
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REFERENCE/COMMON QUESTIONS

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.

US Business Owners Abroad Expat online business owners managing US entity and personal expat returns. See who this is for → Digital Nomads Location-independent business owners filing across multiple jurisdictions. See who this is for →

Related filing services

US Tax Filing for Digital Nomads → View filing service Form 5472 Filing for Foreign-Owned US LLCs → View filing service US Tax Filing for Non-Resident Owned US LLCs → View filing service What Tax Documents Do Expats Need? → View filing service

Ready to get your Online Business Owners filing handled?

AI-assisted preparation, reviewed and e-filed by licensed professionals. Fixed price, no surprises.

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