Indian entrepreneurs often open US business bank accounts to access international markets. While this brings growth opportunities, it also triggers certain US compliance and reporting requirements; even if you’re not a US resident. Failing to meet these obligations can result in penalties, audits, or loss of banking privileges. This guide explains what Indian owners need to report, how, and why it matters.
If you’re an Indian resident holding a US business bank account; either personally or through a US company (LLC, Corporation, or Partnership), you are required to file annual reports with US authorities. These forms disclose ownership, account activity, and foreign control, regardless of whether the entity generated income.
Example: An Indian founder who owns a Delaware LLC must still file Form 5472 and Form 1120 annually; even if there were no transactions.
The US enforces strict compliance under laws like the Bank Secrecy Act (BSA) and FATCA to:
You must comply if you are:
| Form | Purpose | Who Files | Due Date |
|---|---|---|---|
| FBAR (FinCEN 114) | Report foreign financial accounts over $10,000 | Individuals with control over US accounts | April 15 (extension available till October 15) |
| FATCA (Form 8938) | Report foreign assets under FATCA law | US taxpayers with specified assets | Filed with personal income tax return |
| Form 5472 | Disclose foreign ownership & transactions in a US Co. | 25%+ foreign-owned US corporations/LLCs | Filed with Form 1120 |
| Form 1120 | US Corporation Income Tax Return | All US corporations (even without income) | April 15 |
| Form 1065 | US Return of Partnership Income | Partnerships with Indian ownership | March 15 |
You can verify updated deadlines and thresholds on the IRS official website.
Failing to report can result in:
Penalties apply even if your business is inactive or earns zero income.
A Pune-based founder opened a Wyoming LLC in 2023 and linked it to a US bank account via Mercury. Assuming there was no income, he ignored reporting obligations. In 2024, the IRS issued a $25,000 penalty for non-filing of Form 5472 and 1120. A simple filing by a professional could have prevented the issue.
Engage a qualified US compliance expert who can help you:
US business bank accounts offer global growth, but they come with serious compliance responsibilities. As an Indian owner, reporting to the IRS is not optional; it’s a legal requirement. Late or missed filings can trigger high penalties, restrict your access to financial services, and create unnecessary legal complications. Avoid the stress. Partner with compliance professionals to stay on top of all your filings and protect your international business presence.
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Yes. US reporting is required even for zero-income or dormant businesses.
You must file if your combined foreign account balance exceeds $10,000 at any time during the year.
No. FATCA applies to US taxpayers; FBAR applies to foreign account holders with access or control.
You could face a penalty of $25,000 per year of non-compliance.
Yes, through IRS e-Services or a professional filing agency.
It’s a US tax identification number required for business filings.
Not directly, but double taxation agreements and disclosures must align.
You still need to file forms for the period it was active.
Yes, if linked to a business bank account or earning US income.
Ebizfiling offers expert compliance support tailored for Indian founders with US entities.
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