{"id":2829,"date":"2026-05-19T11:37:21","date_gmt":"2026-05-19T11:37:21","guid":{"rendered":"https:\/\/e-startup.io\/blogs\/?p=2829"},"modified":"2026-05-19T11:39:32","modified_gmt":"2026-05-19T11:39:32","slug":"form-1120-vs-1065-filing-2026","status":"publish","type":"post","link":"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/","title":{"rendered":"Form 1120 vs 1065 Filing 2026: Which US Tax Return Does Your Foreign-Owned Business Actually Need"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As an entrepreneur that has formed their business in the United States but is not a citizen of America, one of the major issues that you will face at the start of each tax period will be &#8220;What federal tax form should I really file?&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are several different tax forms for US businesses: Form 1120 vs 1065 Filing being some of the most popular. However, choosing the wrong one may cost you a lot of trouble.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this post, we&#8217;ll outline what differentiates Form 1120 vs 1065 filing, explain why either of the forms applies to your <strong><a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/e-startup.io\/blogs\/tax-obligations-for-foreign-owned-us-llcs-explained-a-2026-guide-for-non-us-founders\/\">foreign-owned US LLC<\/a><\/strong>, and highlight major filing obligations for 2026.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#What_is_Form_1120\" >What is Form 1120?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Key_facts_about_Form_1120_in_2026\" >Key facts about Form 1120 in 2026:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#What_is_Form_1065\" >What is Form 1065?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Key_facts_about_Form_1065_in_2026\" >Key facts about Form 1065 in 2026:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Main_Difference_Between_Form_1120_vs_1065_Filing\" >Main Difference Between Form 1120 vs 1065 Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#What_About_Single-Member_LLCs_Owned_by_a_Foreign_Person\" >What About Single-Member LLCs Owned by a Foreign Person?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Which_Form_Does_Your_Business_Need_A_Simple_Decision_Guide\" >Which Form Does Your Business Need? A Simple Decision Guide<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#File_Form_1120_when\" >File Form 1120 when:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#File_Form_1065_when\" >File Form 1065 when:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#You_do_neither_of_the_above_when\" >You do neither of the above when:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Important_2026_Deadlines_for_Foreign-Owned_US_Businesses\" >Important 2026 Deadlines for Foreign-Owned US Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Common_Mistakes_Foreign_Founders_Make_with_US_Tax_Filings\" >Common Mistakes Foreign Founders Make with US Tax Filings<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#1_Not_meeting_the_Form_5472_requirements_for_the_SMLLC\" >1. Not meeting the Form 5472 requirements for the SMLLC.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#2_Submitting_Form_1065_when_you_need_to_file_Form_1120\" >2. Submitting Form 1065 when you need to file Form 1120.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#3_Not_meeting_the_earlier_Form_1065_filing_deadline\" >3. Not meeting the earlier Form 1065 filing deadline.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#4_Not_issuing_Schedule_K-1_to_foreign_partners\" >4. Not issuing Schedule K-1 to foreign partners.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#5_Assuming_that_filing_cannot_happen_without_generating_revenue\" >5. Assuming that filing cannot happen without generating revenue.<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Entity_Type_Tax_Classification_How_the_IRS_Sees_Your_US_Business\" >Entity Type Tax Classification: How the IRS Sees Your US Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Should_You_Consider_Changing_Your_Entity_Classification\" >Should You Consider Changing Your Entity Classification?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Change_Form_1120_vs_1065_Filing_where\" >Change Form 1120 vs 1065 Filing, where:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Remain_in_the_1065_format_where\" >Remain in the 1065 format where:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Can_a_foreigner_own_a_US_C-corp\" >Can a foreigner own a US C-corp?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Would_an_LLC_registered_in_the_name_of_a_foreigner_always_need_to_submit_a_Form_1065\" >Would an LLC registered in the name of a foreigner always need to submit a Form 1065?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#What_would_happen_in_the_event_of_missing_the_deadline\" >What would happen in the event of missing the deadline?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#Do_I_really_need_an_American_tax_expert_for_filing_those\" >Do I really need an American tax expert for filing those?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Form_1120\"><\/span><b>What is Form 1120?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Form 1120 has the name of \u201cU.S. Corporation Income Tax Return&#8221;. It is used for reporting incomes by companies based in USA territory and incorporated there in accordance with American laws (C-corporations).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, when you are a foreign entrepreneur from either India or Africa with a company registered as a <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/e-startup.io\/blogs\/step-by-step-guide-to-forming-a-delaware-c-corp-for-startups-in-2026\/\">Delaware C corporation<\/a> in America (which is the most common legal structure for starting a business, especially for attracting US venture capital from foreigners), you have no option but to file your tax returns through Form 1120.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_facts_about_Form_1120_in_2026\"><\/span><b>Key facts about Form 1120 in 2026:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The corporations will be taxed using a 21% rate for the federal corporate tax.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When looking at the situation for the year 2026, the date when the corporations&#8217; tax return must be filed is 15th April, 2026, and it could be extended until 15th October, 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should a foreign individual own a C corporation, the corporation would have to file <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/e-startup.io\/blogs\/form-5472-penalties-2026-avoiding-25000-irs-fines-for-foreign-owned-us-entities\/\">Form 5472<\/a> alongside their corporate tax return.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Even without the business being operated in 2025, that should not prevent the corporation from filing a nil return.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Form_1065\"><\/span><b>What is Form 1065?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Form 1065 refers to the US Partnership Tax Return that needs to be completed by partnerships and multi-member LLCs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A partnership does not get taxed just like a corporation; rather, it functions as a flow through entity whereby profits and losses are shared between all the partners or members in the business. Each member gets taxed on his\/her share of profit or loss on his\/her own personal tax return. Non-resident foreign partners might file Form 1040-NR where necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Filing such a form provides the <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.irs.gov\/businesses\/corporations\/filing-corporate-income-tax-returns\" target=\"_blank\" rel=\"noopener\">IRS<\/a> with insight into how the business income was split among partners.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_facts_about_Form_1065_in_2026\"><\/span><b>Key facts about Form 1065 in 2026:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A six-month extension would result in September 15, 2026, as the filing date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allocation of Schedule K-1 among individual partners is made in accordance with percentage income, deduction and credit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Withholding tax needs to be provided for foreign partners as partners pay their taxes. Such taxes are documented with Forms 8804 and 8805.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A US limited liability company owned by two or more foreigners is automatically treated as a partnership.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Main_Difference_Between_Form_1120_vs_1065_Filing\"><\/span><b>Main Difference Between Form 1120 vs 1065 Filing <\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The biggest difference lies in Form 1120 vs 1065 filing: how taxes are handled.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Factor<\/b><\/td>\n<td><b>Form 1120<\/b><\/td>\n<td><b>Form 1065<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Business type<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Corporation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Partnership<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax treatment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Corporate-level taxation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Pass-through taxation<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax payment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A corporation pays taxes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Partners pay taxes individually<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Ownership structure<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Shareholders<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Partners or members<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Additional forms<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Corporate schedules<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Schedule K-1<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Understanding your company&#8217;s legal and tax structure of Form 1120 vs 1065 Filing determines which form applies.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_About_Single-Member_LLCs_Owned_by_a_Foreign_Person\"><\/span><b>What About Single-Member LLCs Owned by a Foreign Person?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Even more difficult to comprehend for international entrepreneurs. Below is a list of points you should bear in mind:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the SMLLC is not treated as a person in the USA, then it will be viewed as a disregarded entity under U.S. tax laws. Consequently, no taxes are paid on the LLC profit.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Which_Form_Does_Your_Business_Need_A_Simple_Decision_Guide\"><\/span><b>Which Form Does Your Business Need? A Simple Decision Guide<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"File_Form_1120_when\"><\/span><b>File Form 1120 when:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You are a company based in US and operating as a C Corporation (Delaware\/Wyoming etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You have opted to report taxes on basis of an S-Corporation (though S-corporations report taxes using Form 1120-S)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You are an LLC operated by foreigners hence Pro-Forma Form 1120 and 5472<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"File_Form_1065_when\"><\/span><b>File Form 1065 when:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You own a multi-member LLC in the USA (minimum number of owners\/members equals two)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You own a general partnership or limited partnership in the United States of America<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You do not elect to be filed as a corporation despite owning an LLC<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"You_do_neither_of_the_above_when\"><\/span><b>You do neither of the above when:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your LLC is foreign-owned single-member LLC and only files Pro-Forma 1120 and Form 5472<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You are a sole proprietor filing ITIN<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Important_2026_Deadlines_for_Foreign-Owned_US_Businesses\"><\/span><b>Important 2026 Deadlines for Foreign-Owned US Businesses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: left;\"><b>Form<\/b><\/p>\n<\/td>\n<td style=\"text-align: left;\"><b>Entity Type<\/b><\/td>\n<td style=\"text-align: left;\"><b>Due Date: 2026<\/b><\/td>\n<td style=\"text-align: left;\"><b>Due Date for Extensions<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Form: 1065<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Taxpayer: Partnership or Multi-Member LLC (MMLLC)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Date: March 15, 2026<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Date: September 15, 2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Form 1120<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Taxpayer: C-Corporation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Date: April 15, 2026<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Date: October 15, 2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Form 5472 + Pro Forma 1120<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Foreign-Owned Single-Member LLC (SMLLC)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">April 15, 2026<\/span><\/td>\n<td><span style=\"font-weight: 400;\">October 15, 2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Form 8804 \/ 8805<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Partnership with Foreign Partners<\/span><\/td>\n<td><span style=\"font-weight: 400;\">March 15, 2026<\/span><\/td>\n<td><span style=\"font-weight: 400;\">September 15, 2026<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\"><span style=\"font-weight: 400;\">FinCEN BOI Report<\/span><\/td>\n<td style=\"text-align: left;\"><span style=\"font-weight: 400;\">All US Entities<\/span><\/td>\n<td style=\"text-align: left;\"><span style=\"font-weight: 400;\">Varies by formation date<\/span><\/td>\n<td>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">No extension available<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>To check out the full list of requirements, see <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/e-startup.io\/blogs\/llc-annual-report-and-compliance-guide-for-non-us-founders-in-2026\/\">LLC Annual Report and Compliance Guide for Non-US Founders 2026<\/a>.<\/p>\n<p><span style=\"font-weight: 400;\">Note: There can be changes in filing dates and other regulations depending on the IRS policies. Make sure to clarify your filing obligations.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Common_Mistakes_Foreign_Founders_Make_with_US_Tax_Filings\"><\/span><b>Common Mistakes Foreign Founders Make with US Tax Filings<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"1_Not_meeting_the_Form_5472_requirements_for_the_SMLLC\"><\/span><b>1. Not meeting the Form 5472 requirements for the SMLLC.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A number of founders believe that since their SMLLC generated no US income, there is no need for filing. Wrong. All foreign owners&#8217; SMLLCs should submit Form 5472, including those with zero activity during the year. The failure fee amounts to $25,000.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"2_Submitting_Form_1065_when_you_need_to_file_Form_1120\"><\/span><b>2. Submitting Form 1065 when you need to file Form 1120.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A few founders do not understand their LLC&#8217;s tax treatment. In case the LLC elects C-corporation status through Form 8832, it must use Form 1120 and not Form 1065.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"3_Not_meeting_the_earlier_Form_1065_filing_deadline\"><\/span><b>3. Not meeting the earlier Form 1065 filing deadline.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This document should be filed on March 15th, which is one month earlier than the usual April 15th tax filing deadline. Missing this date will incur a late fee.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"4_Not_issuing_Schedule_K-1_to_foreign_partners\"><\/span><b>4. Not issuing Schedule K-1 to foreign partners.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In case of any foreign ownership, you must prepare Schedule K-1, and if necessary, withhold income from a partner&#8217;s US income. It also relates to <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/e-startup.io\/blogs\/withholding-tax-on-dividends-how-foreign-founders-can-minimize-us-tax-on-distributions\/\">withholding tax on dividends rules<\/a> that many foreign founders neglect. The issuance of this statement should not be confused with information filing.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"5_Assuming_that_filing_cannot_happen_without_generating_revenue\"><\/span><b>5. Assuming that filing cannot happen without generating revenue.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Corporations and partnerships that do not earn any revenue must file annually; however, their filings will be zero-return filings.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Entity_Type_Tax_Classification_How_the_IRS_Sees_Your_US_Business\"><\/span><b>Entity Type Tax Classification: How the IRS Sees Your US Business<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Knowing how the IRS classifies your type of business is critical to identifying which tax form you should use. The information below will guide you in this endeavour:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">C-corporation, Delaware \u2013 Form 1120 is always used.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LLC Multi-Member default (no election is made) \u2013 Form 1065 is used (regarded as a partnership)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LLC Multi-Member (C-corporation election via Form 8832) &#8211; Form 1120 is used.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LLC Single Member Foreign Owner (no election is made) &#8211; Disregarded entity form; Form 1120 pro forma is used in addition to form 5472.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LLC Single Member (C-corporation election via Form 8832) \u2013 Form 1120 is used.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Partnership general form &#8211; Form 1065 is used.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Partnership Limited form &#8211; Form 106<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Should_You_Consider_Changing_Your_Entity_Classification\"><\/span><b>Should You Consider Changing Your Entity Classification?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">However, for the international founders, there is an opportunity that the default taxation structure may not work the best. For example:<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Change_Form_1120_vs_1065_Filing_where\"><\/span><b>Change Form 1120 vs 1065 Filing, where:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You wish to seek venture capital funding since most of the U.S. investors require C-Corp structuring.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your plan is to retain the cash within your business rather than making payments using the personal foreign tax rate. Instead you will enjoy the favorable corporate rate of 21%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issuance of stock options to your employees or advisers<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Remain_in_the_1065_format_where\"><\/span><b>Remain in the 1065 format where:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You have a services-orientated business such as consultancy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The founding team would like to have flexibility in terms of distribution of profits among themselves without involving any corporate structures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You come from a country that has a bilateral tax treaty with the U.S.\u2014see also <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/e-startup.io\/blogs\/feie-and-foreign-earned-income-exclusion-2026-income-limits-for-us-business-owners-abroad\/\">FEIE and Foreign Earned Income Exclusion 2026<\/a>.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><b>Final Thoughts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are certain things to be considered when it comes to selecting either Form 1120 vs 1065 filing. There must be a need to evaluate the organisational structure of your business first before making a decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many foreigners who own businesses in the USA normally have problems in determining ways to pay their taxes since there are different ways of doing this depending on whether the entity is an LLC, a partnership or even a corporation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At any particular time, if you experience any difficulty in relation to the choice of the tax form for your foreign corporation in the year 2026, then this information will be useful.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do you want to Form 1120 vs 1065 Filing to incorporate a company in the United States but lacking information regarding taxes? Contact E-Startup for comprehensive assistance in matters concerning taxation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"Can_a_foreigner_own_a_US_C-corp\"><\/span><b>Can a foreigner own a US C-corp?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Yes. Foreign persons may own US C-corps without limitation. In such a case, Form 1120 must be filed, and the foreign owner must be reported as a beneficial owner using Form 5472 in the case of reportable transactions between the foreign person and the corporation.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Would_an_LLC_registered_in_the_name_of_a_foreigner_always_need_to_submit_a_Form_1065\"><\/span><b>Would an LLC registered in the name of a foreigner always need to submit a Form 1065?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">No, only when there are at least two members, and the LLC doesn&#8217;t elect to be taxed as a corporation via Form 8832. Single-member foreign LLCs are treated as disregarded entities; thus, no taxes should be filed.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"What_would_happen_in_the_event_of_missing_the_deadline\"><\/span><b>What would happen in the event of missing the deadline?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A $235 monthly penalty is charged by the IRS for late filing of Form 1065 in 2026 for each partner. Consequently, if the filing for a partnership with three members is submitted after five months past the due date, penalties of $3,525 will have to be paid along with the interest.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Do_I_really_need_an_American_tax_expert_for_filing_those\"><\/span><b>Do I really need an American tax expert for filing those?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">While you technically may complete these procedures yourself, most foreign entrepreneurs would greatly appreciate employing a US CPA or EA who has the expertise in international taxes.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As an entrepreneur that has formed their business in the United States but is not a citizen of America, one &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Form 1120 vs 1065 Filing 2026: Which US Tax Return Does Your Foreign-Owned Business Actually Need\" class=\"read-more button\" href=\"https:\/\/e-startup.io\/blogs\/form-1120-vs-1065-filing-2026\/#more-2829\" aria-label=\"Read more about Form 1120 vs 1065 Filing 2026: Which US Tax Return Does Your Foreign-Owned Business Actually Need\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":2830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[164,162,163,159,158,160,161],"class_list":["post-2829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-c-corporation-tax-return","tag-foreign-owned-business-usa","tag-foreign-owned-llc-tax-filing","tag-form-1065","tag-form-1120","tag-form-1120-vs-1065-filing","tag-us-tax-return-2026","resize-featured-image"],"_links":{"self":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts\/2829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/comments?post=2829"}],"version-history":[{"count":2,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts\/2829\/revisions"}],"predecessor-version":[{"id":2834,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts\/2829\/revisions\/2834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/media\/2830"}],"wp:attachment":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/media?parent=2829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/categories?post=2829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/tags?post=2829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}