LLC for Info-Product Creators: How It Works and How It Is Taxed

An LLC makes sense for the info-product creator who sells a course or digital product to customers outside Brazil and wants to separate the business from personal assets. It does not eliminate Brazilian tax: the owner resident in Brazil declares the LLC's profits under Law 14,754/2023, and the tax authority treats a Brazilian's transparent LLC as a privileged tax regime.

When does an LLC for info-product creators make sense?

An LLC (Limited Liability Company) is a limited liability company created under US state law. For someone who sells a course, recorded mentoring, an ebook, a template or a content subscription, it serves to hold contracts, accounts and checkout in the name of a legal entity, separate from the creator's individual taxpayer number (CPF).

What decides whether it is worthwhile is where the buyers are and how the money returns to the owner.

This article covers only what is specific to the info product: the sale of a digital product and the return of the money to the Brazilian owner.

How does the tax authority tax a Brazilian info-product creator's LLC?

The LLC of a Brazil resident is a "controlled entity" abroad, and Law 14,754/2023 requires its profit to be taxed on the owner's return. Two rules support this.

1. Law 14,754/2023. Art. 5 provides that the profits determined by controlled entities abroad of resident individuals are taxed on December 31 of each year. Art. 2, § 1, sets individual income tax (IRPF) at 15% on the annual portion, with no deduction from the calculation base. Under § 1 of art. 5, a controlled entity is one in which the individual has preponderance in decisions or more than 50% of the capital or profits.

The regime of art. 5 applies to a controlled entity that meets at least one of these conditions (§ 5):

• •being in a country with favored taxation or benefiting from a privileged tax regime (arts. 24 and 24-A of Law 9,430/1996); or
• •determining own active income below 60% of total income.

2. IN RFB 1,037/2010. Art. 2, VII, lists as a privileged tax regime the US state LLC "whose ownership is made up of non-residents, not subject to federal income tax". Cosit Consultation Ruling 218/2018 clarified that "non-residents" means non-residents of the US. Cosit Consultation Ruling 56/2026, of April 9, 2026, went further: an LLC with non-resident ownership in the US and treated as transparent under US tax law is a privileged tax regime, and that qualification stems from the structure, not from the tax actually paid each year.

In practice, a Brazilian's transparent LLC tends to fall under art. 5, § 5, I, of Law 14,754. The profit goes into the return on December 31, even if it stays sitting in the LLC's account. The Consultation Ruling answers an individual inquiry: it shows the tax authority's understanding, it does not replace the law. For an LLC that elected to be taxed as a corporation, classification under item VII requires its own analysis.

Beware of royalty revenue: in the definition of own active income (art. 5, § 6, I), the law excludes it. If part of the revenue comes from licensing content to third parties, rather than from selling to the end customer, this can weigh on the 60% test. Classify each revenue source with your accountant.

There is also the option in art. 8, which allows declaring the controlled entity's assets, rights and obligations as if they were the individual's. It is irrevocable as long as you keep the controlled entity and, for holdings acquired from January 1, 2024, must be exercised in the first annual return after the acquisition (§ 3). Decide this before opening the LLC.

How does the sales money reach Brazil?

Through the foreign exchange channel. Law 14,286/2021 defines Brazilian capital abroad as the amounts, goods, rights and assets of any nature held outside the national territory by residents (art. 8, I). Art. 14 requires that the entry and exit of currency into and out of the country occur exclusively through an institution authorized to operate in the foreign exchange market, which identifies the sender and the recipient.

For the info-product creator, this leads to three habits:

1. •Bring the LLC's money in through an institution authorized to operate in foreign exchange, not through informal arrangements.
2. •Keep the articles of organization, the LLC's account statement and the documentation that explains the origin of the amount.
3. •Treat the LLC's profit and the distribution to the owner as separate events. Under art. 5, § 11, of Law 14,754, profit already taxed on December 31 is not taxed again when distributed; the individual indicates in the return the controlled entity and the year of origin.

To open an account in the LLC's name, see the offshore banking service.

What if the course buyer lives in Brazil?

The fact that the LLC is American does not turn a sale to a Brazilian into an export. Complementary Law No. 214/2025 (Lei Complementar 214/2025) defines the export of an intangible good as supply to a person resident or domiciled abroad with consumption abroad (art. 80). On the other hand, it treats as an import the supply of an intangible good or service by a person resident abroad whose consumption occurs in Brazil (art. 64), and IBS and CBS apply to imports made by an individual or a legal entity (art. 63).

On ISS, Complementary Law 116/2003 provides that the tax does not apply to service exports (art. 2, I), but does apply to services coming from abroad (art. 1, § 1). Services performed in Brazil whose result is verified here are not exports even if payment comes from a person resident abroad (art. 2, sole paragraph). The attached list includes items such as "instruction, training, pedagogical and educational guidance" (8.02) and "licensing or assignment of the right to use computer programs" (1.05).

What this article does not state:

• •whether a specific recorded course is a service subject to ISS or an intangible good, and in which municipality. That depends on municipal law and the specific case;
• •how and when IBS and CBS will be charged to the Brazilian buyer, because they depend on the reform's schedule and regulation;
• •the income tax rate on income from Brazilian sources. The levy depends on specific law and the nature of the transaction, and must be confirmed case by case.

If your customer base is Brazilian, compare with a domestic structure before opening the LLC. The company models are at corporate structures.

What are the LLC's obligations in the US?

The IRS treats a single-member LLC as a disregarded entity unless it files Form 8832 and elects to be taxed as a corporation. An LLC with two or more members is treated as a partnership, also unless it elects otherwise using Form 8832.

When the sole owner is foreign, Form 5472 comes into play. The IRS instructions explain that a single-owner LLC held by a foreign person (foreign-owned U.S. DE) must file a pro forma Form 1120, with Form 5472 attached, by the due date of that Form 1120, including extensions. The extension request is made using Form 7004.

For the info-product creator, the sensitive point is the list of reportable transactions. The instructions include amounts paid or received on the formation, dissolution, acquisition and disposition of the entity, including contributions and distributions between the LLC and the owner. Mixing the personal account with the LLC's account multiplies what needs to be reported.

The penalty is US$ 25,000 for failing to file Form 5472 on time and in the required manner. If the failure persists for more than 90 days after IRS notice, there is an additional penalty of US$ 25,000 for each 30-day period, or fraction.

US federal taxation of the foreign owner depends on the source of the income and the activity in the US. Ask a US accountant (CPA) to analyze your case. For the calendar of obligations in both countries, see the compliance service.

Does the LLC need to file the BOI report with FinCEN?

As a rule, no longer. According to the FinCEN page, a final rule of August 11, 2026, in effect since August 14, 2026, exempted US companies from the obligation to report beneficial ownership information (BOI). Only certain foreign companies registered to operate in the US remain obligated.

The page itself warns that some previously published guidance may be outdated. Check the FinCEN page before following old guides.

When does the info-product creator need to file the CBE with the Central Bank?

The Declaration of Brazilian Capital Abroad (CBE) is mandatory for an individual resident in Brazil who has, on December 31, assets, goods and rights abroad that total US$ 1,000,000.00 or more. The basis is Law 14,286/2021, regulated by BCB Resolution 279/2022. The deadline for the annual declaration runs from February 15 to April 5 of the following year. The quarterly declaration is only required from US$ 100,000,000.00.

The Declarant Manual provides for declaring holdings in companies abroad. If the LLC's equity and the other assets abroad stay below the threshold, there is no annual CBE. Track the balance: it grows with retained profit.

How do you open the LLC for info-product creators, step by step?

1. •Define the model before the state. Decide how many members there will be, who controls it and how profit will be distributed. This determines the classification in the US and the treatment in Brazil.
2. •Choose the state. Delaware and Wyoming have their own comparison and page on this site. The comparison is in Wyoming LLC vs Delaware LLC for Brazilians; the jurisdiction pages give the details of Wyoming and Delaware.
3. •Make the state filing and draft the operating agreement with the distribution and contribution rule the LLC will actually follow.
4. •Get the EIN and open the account in the LLC's name. Never receive the LLC's sales in your personal account.
5. •Build the calendar on both sides: pro forma Form 1120 with Form 5472 in the US; annual income tax return and, if applicable, CBE in Brazil.
6. •Only then publish the checkout in the LLC's name and issue the terms of sale.