If you're not a US person and you own a US company

There are reporting obligations, they're unforgiving, and almost nobody explains them at the point of formation.

Filing obligations that surprise people

A US entity with foreign ownership can have information reporting obligations even in years with no income and no activity. Penalties for missing them can be substantial and are assessed per failure.

This catches people badly. They form an entity, do nothing with it for a year, and assume nothing is owed. The reporting obligation doesn't depend on whether the business made money.

Withholding

Payments from a US business to foreign owners can be subject to withholding. The rate depends on the type of payment and whether a treaty applies. Getting this wrong makes the payer liable for tax that wasn't withheld.

Entity choice matters more than usual

The right structure for a US owner and the right structure for a foreign owner are frequently different. An LLC that's simple for a domestic owner can create complications for a foreign one, including in the owner's home country, where US pass-through treatment may not be recognized.

Treaties

The US has treaties with many countries that can reduce withholding or affect how income is treated. They aren't automatic — positions have to be claimed, and there are forms and requirements.

The EIN problem

Getting an EIN without a US taxpayer identification number is possible but more involved, and the responsible party requirement causes confusion when no owner is a US person.

What tends to go wrong

Someone forms a US LLC through an online service, receives no guidance on reporting, does

nothing for two years, and then discovers penalties that dwarf anything the business earned.

What to do

If a non-US person owns any part of a US entity, get the reporting obligations mapped before the first filing deadline rather than after. This is an area where the cost of being late is out of proportion to the cost of getting advice.

Mapping those obligations is inbound investment structuring for non-US owners.

This is general information, not legal advice for your situation. If you want an answer for your business, book a consultation.