🇮🇹Italy Guide · Updated 2026

Complete guide: US LLC for residents of Italy

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

🇮🇹 3 key obligations for residents of Italy

1IVAFE declaration at 0.2% on the value of your LLC ownership stake

2Quadro RW filing in the Redditi PF income tax return

3Mandatory IRS Form 5472 due by April 15

Detailed tax obligations

IVAFE — Tax on the value of foreign financial assets

IVAFE applies at a rate of 0.2% on the value of your ownership stake in the US LLC. It is calculated based on the market value of the stake as of December 31, or, in its absence, on the nominal or redemption value. It must be declared in Quadro RW of the Redditi PF income tax return.

Penalty ranging from 3% to 15% of the undeclared value.

Quadro RW — Tax monitoring of foreign assets

Every ownership stake in a foreign entity (including a US LLC) must be declared in Quadro RW of the Redditi PF income tax return. This serves both for tax monitoring purposes and as the basis for calculating IVAFE. The obligation applies to any value above €0.

Penalty ranging from 3% to 15% of undeclared amounts (doubled for tax havens, but the US is not on the blacklist).

IRPEF — Taxation of foreign income

Income generated by the US LLC is taxed in Italy as business income or capital income, depending on the structure. A single-member LLC is a tax-transparent entity in the US, so income is attributed directly to the Italian member. A foreign tax credit applies for any US taxes already paid.

Form 5472 — IRS Annual Return

Every LLC with a foreign owner must file Form 5472 along with a pro-forma 1120 with the IRS by April 15 each year. It documents all transactions between the LLC and the foreign owner (capital contributions, withdrawals, payments).

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

Deadline calendar 2026

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

April 15

Form 5472 + 1120 (IRS)

Annual deadline for the US federal return. Extension to October 15 is possible by filing Form 7004.

June 30

FBAR (FinCEN 114)

If the total balance of foreign accounts (including the LLC bank account) exceeds $10,000 at any point during the year, the FBAR report must be filed.

November 30

Quadro RW + IVAFE (Redditi PF)

Deadline for filing the Redditi PF income tax return with Quadro RW and IVAFE calculation. IVAFE is paid together with income taxes.

January 1 (following year)

Wyoming Annual Report

Annual report to be filed with the Wyoming Secretary of State. Fee: ~$60. Included in the Incorpo plan.

Step-by-step guide

Form your LLC with Incorpo

Choose your plan and complete the onboarding in 10 minutes. We handle the Wyoming registration, EIN, and Registered Agent.

Open a US business bank account

With your LLC documents ready, open an account with Mercury or Relay. Step-by-step guide included in the Essential plan.

Set up your bookkeeping

Track your income and expenses. The Complete plan includes monthly bookkeeping.

Inform your Italian accountant

Download the accountant guide (included in the Essential plan) for the correct filing of Quadro RW and IVAFE.

File Form 5472 by April 15

With the Essential plan, Form 5472 is included. We prepare it and you sign digitally.

Frequently asked questions — Italy

Do I have to pay taxes in both the US and Italy?+

A single-member LLC is a "disregarded entity" in the US, so it does not pay US federal taxes (except in specific cases). Income is taxed in Italy as foreign income. The Italy-US tax treaty prevents double taxation: you can deduct US taxes already paid as a foreign tax credit in Italy.

How much does IVAFE cost on the LLC?+

IVAFE is 0.2% of the value of your ownership stake as of December 31. If your stake in the LLC is worth €50,000, IVAFE amounts to €100/year.

Can my Italian accountant handle everything?+

Quadro RW and IVAFE, yes. For Form 5472 you need a US preparer — with the Essential plan, we handle it for you. We also provide a dedicated guide for your accountant.

What happens if I don't file Form 5472?+

The penalty is $25,000 for each Form not filed. The IRS is very strict about this obligation. With Incorpo Essential, we alert you 30 and 7 days before the deadline and prepare the form for you.

Do I need an Italian VAT number (partita IVA) to have an LLC?+

No, the LLC is a separate American entity. However, if you invoice Italian or EU clients through the LLC from Italy, you may have local VAT obligations. Consult your accountant for your specific case.

Form your LLC with the Italy compliance guide

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

Form your LLC now →

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