US LLC Taxation for Indian Owners
How a US LLC's income is taxed in the US and in India
- 1AnalyseUS and Indian tax positions.
- 2StructureBest entity and flows chosen.
- 3ComplyAnnual filings in both countries.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About US LLC Taxation for Indian Owners
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A single-member US LLC owned by a foreign person is, by default, disregarded for US income tax: the owner is taxed in the US only on income effectively connected with a US trade or business, and the LLC files Form 5472. An Indian resident owner is taxed in India on the LLC's profits as their own income, and India may not recognise US tax paid through a disregarded LLC for credit in every case — so the structure needs planning before profits build up.
For service businesses run entirely from India with no US office, employees or dependent agents, the LLC often has no US effectively connected income — but state taxes, sales tax and the facts of each case must be checked.
On the Indian side, the LLC investment must follow the overseas investment rules under FEMA, and profits, assets and accounts must be reported in the ITR. We compare an LLC with a C corporation or an Indian company billing directly.
| US default | Disregarded entity; owner taxed on ECI |
|---|---|
| Information return | Form 5472 + pro forma 1120 |
| India (resident owner) | LLC profits taxed as owner's income |
| FEMA | Overseas investment rules and reporting |
| Alternatives | C corp, or invoicing from India |
Work that the law requires a US enrolled agent or CPA to sign or represent is delivered through Indus Tax's partner professionals; our team prepares the records, coordinates the filing and stays your single point of contact.
Who this is for
Common scenarios where this service is a good fit.
- Indian residents owning US LLCs
- Founders deciding between LLC and C corp
- NRIs returning to India with a US LLC
What you get
Clear deliverables so you know exactly what's included.
- US and Indian tax analysis
- Structure comparison
- FEMA compliance check
- Annual filings plan
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
US and Indian tax positions.
Best entity and flows chosen.
Annual filings in both countries.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Work that legally needs a US enrolled agent or CPA is signed by a partner professional; we coordinate it end to end.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
- CA reads your case before the call
- DTAA, property, capital gains covered
- Written summary + checklist after
- Fee adjustable if you engage us
Frequently asked questions
Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
