FBAR and Your Foreign-Owned US LLC

Most FBAR (Foreign Bank and Financial Accounts) content is written for Americans with offshore accounts. That's not you. You're a non-US person who owns a US LLC. The FBAR rules hit you differently.

Your US LLC is a "US person" under the Bank Secrecy Act. If your LLC has financial interest in or signature authority over foreign accounts totaling more than $10,000 at any point during the year, it may need to file an FBAR — FinCEN Form 114. This is completely separate from Form 5472.

When FBAR Applies to Your LLC

Wise, Airwallex, or Payoneer balances. These EMIs hold your money in pooled accounts at foreign financial institutions. If your LLC's foreign-denominated balances — euros at a European partner bank, GBP at a UK institution — exceed $10,000 in aggregate at any point, that's potentially reportable. The IRS FBAR reference guide confirms that accounts at foreign money service businesses count.

Foreign payment processors. Amazon sellers using Payoneer to collect international payments before routing to a US account — if those funds sit in a foreign-held account above the threshold, it could be reportable.

Signature authority over a foreign subsidiary. If your LLC controls a foreign entity's bank accounts, that's signature authority under FinCEN's definition.

The threshold is aggregate — $10,000 total across all foreign accounts combined, not per account. $6,000 in Wise EUR + $5,000 in Payoneer GBP = you've crossed it. Even for one day.

When It Doesn't Apply

Your LLC only uses US banks. Mercury, Relay, Chase — all US-based. No FBAR. Even fintechs, because the underlying accounts are at US-chartered banks.

You personally as a non-resident alien. You don't have an individual FBAR obligation for your own foreign accounts. The obligation applies to the LLC as a US entity. Though as one tax practitioner notes: "When in doubt, the entity should file to avoid the risk of substantial penalties."

Foreign accounts never exceeded $10,000. Every single day of the year. One brief spike counts.

FBAR vs Form 5472

You might need both. You almost certainly need Form 5472. FBAR depends on whether your LLC touches foreign accounts.

The Penalties

Non-willful: up to $16,536 per form, per year. Important: after the 2023 Supreme Court decision in Bittner v. United States, non-willful penalties apply per FBAR form — not per account. So if you missed one FBAR covering 5 foreign accounts, that's one penalty, not five. Willful: the greater of $165,353 or 50% of the account balance per account per year, plus potential criminal charges.

In January 2026, the Second Circuit ruled in United States v. Reyes that "reckless disregard" is enough for willful penalties. You don't have to intentionally hide accounts — being careless about compliance is enough.

What to Do

For most foreign-owned LLCs banking only at Mercury or Chase, FBAR isn't an issue. Where it gets real is if you're moving money through Wise, Payoneer, or foreign accounts regularly.

If that's you: track every foreign account your LLC touches, note the max balance throughout the year, and file if the aggregate exceeds $10,000. A simple Excel spreadsheet tracking both your Form 5472 transactions and foreign account balances covers both requirements.

For FBAR, file through FinCEN's BSA E-Filing System. For Form 5472, MyFreeTaxAmerica.com handles the entire filing. Our Premium Package ($149) includes professional review and a reasonable cause letter if you're late. Check our FAQ for the basics.

Resources:

• IRS — FBAR Requirements
• FinCEN — FBAR Filing
• BSA E-Filing System
• IRS FBAR Reference Guide (PDF)

General information, not tax or legal advice. FBAR rules are complex and fact-specific. Consult a qualified tax professional about your situation.