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🇩🇪Germany Guide · Updated 2026

Complete guide: US LLC for residents of Germany

Everything you need to know to form and manage a US LLC in compliance with DE tax regulations.

🇩🇪 3 key obligations for residents of Germany

1Außensteuergesetz (AStG): German CFC rules
2Hinzurechnungsbesteuerung: add-back taxation on passive income
3Mandatory IRS Form 5472 due by April 15

Detailed tax obligations

Außensteuergesetz (AStG) — Foreign tax law

The AStG (foreign tax law) governs the taxation of ownership stakes in foreign companies. If you control a US LLC (>50% ownership), CFC (Controlled Foreign Corporation) rules may apply. Passive income from the LLC may be taxed in Germany even if not distributed.

Immediate taxation of undistributed foreign passive income plus interest and penalties.

Hinzurechnungsbesteuerung — Add-back taxation

If the LLC has passive income (interest, royalties, dividends) and the effective tax rate is below 25%, Hinzurechnungsbesteuerung is triggered: the income is "added back" to the German member's income and taxed in Germany even if not distributed.

Einkommensteuer — Income tax

LLC income is taxed in Germany as Einkünfte aus Gewerbebetrieb (business income). A foreign tax credit applies for taxes paid in the US under the DBA USA-Deutschland (US-Germany tax treaty). Rates range from 14% to 45% plus Solidaritätszuschlag (solidarity surcharge of 5.5%).

Form 5472 — IRS Annual Return

Every LLC with a foreign owner must file Form 5472 along with a pro-forma 1120 by April 15.

$25,000 penalty for each Form 5472 not filed.

Deadline calendar 2026

Key dates for your LLC if you are a resident of Germany.

April 15

Form 5472 + 1120 (IRS)

Annual deadline for the US federal return.

July 31

Einkommensteuererklärung (Finanzamt)

German income tax return with Anlage AUS (foreign income) and Anlage KAP if applicable. With a Steuerberater (tax advisor): extended deadline to February 28/29 of the following year.

June 30

FBAR (FinCEN 114)

If foreign accounts exceed $10,000 in total.

January 1 (following year)

Wyoming Annual Report

Wyoming annual report. Fee: ~$60. Included in the Incorpo plan.

Step-by-step guide

1

Form your LLC with Incorpo

Onboarding in 10 minutes. Wyoming registration, EIN, and Registered Agent included.

2

Open a US business bank account

Open an account with Mercury or Relay using the guide included in the Essential plan.

3

Review AStG compliance with your Steuerberater

Ensure your LLC structure is compliant with the AStG. The guide for your Steuerberater (tax advisor) is included in the Essential plan.

4

File Form 5472 by April 15

Included in the Essential plan — we prepare it and you sign digitally.

5

File your Einkommensteuererklärung

Include LLC income in the Anlage AUS of your German tax return.

Frequently asked questions — Germany

Does Hinzurechnungsbesteuerung always apply?+
No, it only applies if the LLC has passive income and the effective tax rate is below 25%. If the LLC only has active income (e.g., selling services), it generally does not apply. Consult your Steuerberater.
How is LLC income taxed in Germany?+
As Einkünfte aus Gewerbebetrieb (business income). German income tax rates range from 14% to 45% plus Solidaritätszuschlag at 5.5%. A foreign tax credit applies under the DBA tax treaty.
Do I have to pay Gewerbesteuer (trade tax)?+
Generally no, if the LLC does not have a permanent establishment (Betriebsstätte) in Germany. The LLC operates from the US. Verify with your Steuerberater.
What happens if I don't file Form 5472?+
IRS penalty of $25,000 per form not filed. With the Essential plan, we alert you and prepare the form.
Do I need a specialized Steuerberater (tax advisor)?+
We recommend a Steuerberater with experience in internationales Steuerrecht (international tax law). With the Essential plan, we provide a complete guide in German for the professional.

Form your LLC with the Germany compliance guide

The Essential plan includes Form 5472, the compliance guide for Germany, and automatic deadline alerts.

Form your LLC now →

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