DOES THE US REPORT YOUR LLC TO YOUR HOME COUNTRY?

The OECD Common Reporting Standard (CRS) is an international framework for the automatic exchange of financial account information between participating countries. Over 100 countries participate in CRS, including all EU member states, the UK, Australia, Canada, and most other developed economies.

Under CRS, banks and financial institutions in participating countries automatically report account information — including account balances, interest, dividends, and proceeds from sales — to their local tax authority, which then shares this information with the tax authority of the account holder's country of residence.

The United States is one of the few major economies that does not participate in the OECD CRS. This means that US banks and financial institutions do not automatically report account information to foreign tax authorities under the CRS framework.

As a result, a US LLC with a US bank account (Mercury, Relay) is generally not subject to CRS reporting. Your home country's tax authority does not automatically receive information about your US LLC or its bank account.

The US has its own information exchange framework called FATCA (Foreign Account Tax Compliance Act). FATCA requires foreign financial institutions to report information about accounts held by US persons to the IRS.

FATCA is relevant to US citizens and residents — not to non-US residents who own a US LLC. If you are not a US person, FATCA does not require your home country's banks to report your US LLC to the IRS.

The CRS non-participation applies at the US level — but it applies at the bank level. If you use a European bank or a European-based fintech (such as Wise, which is a UK company) for your LLC's banking, that bank may be subject to CRS reporting in its home country.

This is why we recommend using US-based banking providers — Mercury or Relay — for your ZeroTax LLC. These are US-chartered institutions that are not subject to CRS reporting.

While the US does not participate in CRS, it does have its own beneficial ownership reporting requirement. Since 2024, all US LLCs must file a Beneficial Ownership Information (BOI) report with FinCEN. This information is held in a non-public government database and is not shared with foreign tax authorities under CRS.

For a non-US resident who owns a ZeroTax LLC with a US bank account (Mercury or Relay): your LLC and bank account are generally not automatically reported to your home country's tax authority. The US does not participate in CRS, and US banks are not required to report to foreign tax authorities.

This does not mean you have no tax obligations in your home country — you do. But the automatic information exchange mechanism that exists between CRS-participating countries does not apply to your US LLC and US bank account.