Description: This article is written for international entrepreneurs and non-U.S. residents. It provides a deep dive into what happens after obtaining an EIN for your LLC, and the severe tax consequences of failing to comply. Based on IRS official documents (Pub 1635, 583, ISS4), we break down required forms, deadlines, fines, and filing obligations. ⚠️ Note: SpeedEIN does not provide a U.S. address or forward CP575 forms. Clients must provide their own U.S. mailing address.
🧩 1. Getting an EIN Is Not the End—It’s the Beginning
Many people believe that once they’ve obtained an EIN (Employer Identification Number), they’re done. In reality, receiving an EIN signals to the IRS that you’ve officially started doing business, and with that comes an obligation to report annually, even if you’ve never earned a dollar.
As stated in IRS Publication 1635:
“The EIN assignment triggers filing responsibilities… Even if the business does not begin operations, the IRS still expects annual returns.”
📑 2. Common Tax Filing Forms & Their Use Cases (Based on ISS4 & Pub 583)
| Form | When It’s Required | Due Date | Mandatory? |
|---|---|---|---|
| 5472 | For single-member LLCs owned by a non-U.S. individual | April 15 | ✅ Yes |
| 1120 | If LLC is treated as a corporation | April 15 | ✅ Yes |
| 1040NR | If owner has U.S.-sourced income | April 15 | ⚠️ Depends |
| 1065 | For multi-member LLCs treated as a partnership | March 15 | ✅ Yes |
| 941 / 940 | If the LLC has employees and withholds payroll taxes | Quarterly/Annual | If applicable |
| W-8BEN-E | For banking or merchant account verification | Ongoing | ✅ Yes |
💣 3. The Dangerous Myth: “No Income = No Filing Required”
A common and costly misconception is that if your LLC hasn’t made money, you don’t need to file taxes. This is false.
IRS Publication 583 states clearly:
“Even if no income is received… the entity must still file Form 1120 and Form 5472 to avoid penalties.”
💸 4. Real Consequences of Not Filing
| Mistake | Consequence |
|---|---|
| Failing to file Form 5472 | Minimum $25,000 fine per year |
| Invalid U.S. address for EIN | CP575 cannot be delivered; IRS may not recognize your EIN |
| Ignoring tax obligations after EIN | IRS may consider your LLC a tax evasion attempt |
| EIN cancellation or entity closure | IRS may classify your LLC as a shell and deactivate your records |
🔍 5. Do You Even Know Your LLC’s IRS Classification?
Most EIN applicants don’t realize their LLC is automatically classified for tax purposes depending on ownership:
| Member Count | Default IRS Classification | Required Forms |
|---|---|---|
| 1 Owner | Disregarded Entity | Forms 5472 + 1120 |
| 2+ Owners | Partnership | Form 1065 |
| Elected Corp | If 8832 filed to elect C Corp | Form 1120 |
Misclassifying can lead to rejected filings, missed deadlines, and penalties.
🛑 6. The Hidden Cost of Cheap EIN Services
Low-cost services may skip key steps or fail to warn you of tax consequences:
| Service Flaw | Long-Term Damage |
|---|---|
| Using virtual/invalid addresses | CP575 never arrives, EIN records remain incomplete |
| No post-EIN guidance | Clients believe “getting the EIN is the end” |
| Misclassifying the LLC | IRS sees incorrect data → higher scrutiny or penalties |
✅ 7. Why Choose SpeedEIN?
| Feature | Cheap EIN Providers | SpeedEIN |
|---|---|---|
| Legal EIN process | ❓ Unclear | ✅ 100% IRS-compliant |
| Warns about CP575 & address | ❌ Never mentioned | ✅ Address disclosure upfront |
| Tax aftercare guidance | ❌ None | ✅ Templates, articles, support |
| Multilingual IRS documentation help | ❌ English only | ✅ Visual + native-language support |
📌 Final Word
If you’ve already obtained an EIN through SpeedEIN or elsewhere, your legal obligation to the IRS has already started. Even if your LLC has no income, skipping tax filings can result in massive fines, especially for foreign-owned entities.
Don’t wait. Review your tax obligations today or contact us for professional EIN and LLC compliance support.