How non-residents take money out of a US LLC

How you get money out of a US company as a foreign owner depends on how the company is taxed. For a single-member LLC it is simple, but it still has to be recorded and reported. This guide covers each structure and the paperwork that goes with it.

By Muhammad Bilal, Chartered Accountant. Reviewed by Hamza Fida, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

To pay yourself from a US LLC as a non-resident, if it is a single-member LLC, transfer money from the LLC's account to your own. The transfer is not itself taxed, because the IRS already treats the LLC's income as yours, but it must be reported on Form 5472. Partnerships and C corporations are different: partnerships may withhold on effectively connected income, and C corp dividends face 30% withholding or a treaty rate.

At a glance

Single-member LLC
Transfer to yourself. Not taxed as such, but reported on Form 5472
Multi-member LLC
Distributions. Partnership may withhold on effectively connected income
LLC taxed as a C corporation
Dividends, with 30% US withholding or a lower treaty rate
Salary
Working in the US raises tax and immigration questions
Records
Log every transfer with date and amount
Home country
May tax the money when you receive it or when earned
How non-residents take money out of a US LLCSteps: 1. Transfer from the LLC's account to yours; 2. Record it in the books; 3. Log it for Form 5472; 4. Keep enough in the LLC.THE PROCESS AT A GLANCEHow non-residents take money out of a US LLC1Transfer from theLLC's account to yoursBy bank transfer or wire, notby paying personal bills fromthe business account2Record it in the booksAs an owner's draw ordistribution, not an expense3Log it for Form 5472Date, amount and currency4Keep enough in the LLCFor upcoming expenses,registered agent and statefees, and any US taxChecked against official sourcesTax BakersHow non-residents take money out of a US LLCSteps: 1. Transfer from the LLC's account to yours; 2. Record it in the books; 3. Log it for Form 5472; 4. Keep enough in the LLC.THE PROCESS AT A GLANCEHow non-residents take money outof a US LLC1Transfer from the LLC's account toyoursBy bank transfer or wire, not by payingpersonal bills from the business account2Record it in the booksAs an owner's draw or distribution, not anexpense3Log it for Form 5472Date, amount and currency4Keep enough in the LLCFor upcoming expenses, registered agent andstate fees, and any US taxChecked against official sourcesTax Bakers
The process at a glance: 1. Transfer from the LLC's account to yours; 2. Record it in the books; 3. Log it for Form 5472; 4. Keep enough in the LLC.

How does a single-member LLC owner take money out?

By transferring money from the LLC's bank account to your own. Because the IRS disregards a single-member LLC, its income is already treated as yours when it is earned. Moving the money to your personal account is not a separate taxable event in the US. Whether that income is taxable in the US at all depends on whether it is effectively connected with a US business. See whether foreign-owned US LLCs pay US tax.

Every transfer between you and the LLC is a reportable transaction on Form 5472, in the part for distributions and contributions of a foreign-owned disregarded entity. Keep a log with the date and amount of each one.

What about a multi-member LLC?

An LLC with two or more members is a partnership. Members take distributions under the operating agreement. The key point for foreign members is that tax follows income, not distributions: if the partnership has income effectively connected with a US business, it generally must withhold tax on each foreign partner's share, whether or not anything is distributed. The partners then file Form 1040-NR. See Form 1065.

What about an LLC taxed as a corporation?

The company pays 21% corporate tax on its profit. When it pays a dividend to a foreign owner, US withholding tax generally applies at 30% of the dividend, or a lower rate under a tax treaty, reported on Forms 1042 and 1042-S. That is why the choice of structure matters for foreign founders. See LLC or C corp for a foreign founder.

Can you pay yourself a salary instead?

Payments for work you do from abroad are generally foreign-source. Working in the US for your company raises two separate issues: it generally requires immigration authorization, and it can create a US trade or business and US-source wages. See whether you need a visa to own a US company.

Whether you can be on your own company's payroll is covered in detail in can a non-resident be on the payroll of their own US company.

How should you move the money?

  1. Transfer from the LLC's account to yours

    By bank transfer or wire, not by paying personal bills from the business account.

  2. Record it in the books

    As an owner's draw or distribution, not an expense.

  3. Log it for Form 5472

    Date, amount and currency.

  4. Keep enough in the LLC

    For upcoming expenses, registered agent and state fees, and any US tax.

What about tax where you live?

Your country of residence may tax the LLC's profit when it is earned, when you receive it, or not at all, depending on how it treats a US LLC. Some countries treat a US LLC as transparent, others as a company. Check the rules where you live before settling on a structure.

What are the common mistakes?

  • Paying personal expenses directly from the LLC's account.
  • Not recording transfers, which leaves Form 5472 incomplete.
  • Assuming no US filing is needed because no US tax is due.

Want your withdrawals set up correctly?

We set up a clean process for taking money out, keep the log Form 5472 needs, and file every return the structure requires.

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Questions people ask

How do I pay myself from a US LLC as a non-resident?

For a single-member LLC, transfer money from the LLC's account to yours and record it as a distribution. Report it on Form 5472.

Is money taken out of a single-member LLC taxed in the US?

The transfer itself is not a taxable event. US tax depends on whether the LLC's income is effectively connected with a US business.

Is there US withholding on distributions to a foreign LLC owner?

Not on transfers from a disregarded single-member LLC. Partnerships may withhold on foreign partners' shares of effectively connected income, and C corporations withhold on dividends.

Do I need to report withdrawals from my LLC?

Yes. For a foreign-owned single-member LLC, every transfer to or from the owner is reported on Form 5472.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IRS: Instructions for Form 5472 (Rev. December 2024)
  2. IRS Publication 515: Withholding of Tax on Nonresident Aliens and Foreign Entities
  3. Internal Revenue Code section 1446: withholding on foreign partners
  4. IRS Publication 519: U.S. Tax Guide for Aliens

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

Business tax by entity typeHow to pay yourself from an LLCFederal tax formsForm 5472: who files, what to report and the deadlineForeign-owned and non-resident companiesLLC or C corp for a foreign founder

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This guide is general information. It is not tax or legal advice for your situation.