(1) According to the FinCen's FBAR filing instructions,
"Any US person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR..."
This implies that non-resident aliens are excluded from FBAR filing requirements.
(2) However, a LLC is considered an US person as stated in the same source.
"A person means an individual and legal entities including, but not limited to, a limited liability company..."
(3) Regarding single-member LLCs, the IRS states that
"An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes)"
This is where the confusion starts.
Based on the above facts, it is unclear in which way a non-resident alien is required to file the FBAR when owning a single-member LLC.
1. Does the LLC owner file the FBAR as a person (i.e. non-resident alien), listing all his foreign accounts?
- In this case, there is no SSN/ITIN/EIN involved. How would the IRS then reference this back to the LLC?
- Worst case scenario is that the LLC violates its filing requirements and penalties are due.
2. Does the owner file the FBAR as LLC entity, referencing the LLC's EIN?
In this case, it is unclear if the LLC "has a financial interest in or signature authority over" the private foreign accounts of its owner, as the LLC is ONLY disregarded separate from its owner "for income tax purposes" and FBAR reporting is not connected to the LLC's income tax return (see above).
Again, worst case is that the LLC violates its filing requirements by not listing those accounts and penalties are due.
Do non-resident aliens with a single-member LLC file their FBAR on an individual level or on a LLC level, or both?