I'm a person that lives outside of the US. I'm in the process of creating an LLC in New Mexico, which I will own 100%.
I have read in different sources that foreign-owned LLCs must file the 1120 form every year.
I was trying to find in the IRS the documents were that is stated. In the instructions for the 1120, I found a paragraph that which I think applies to me (in General Instructions / Who must File):
Foreign-owned domestic disregarded entities.
If a foreign person, including a foreign corporation, wholly owns a domestic disregarded entity (DE), the domestic DE is treated as a domestic corporation separate from its owner (the foreign corporation) for the limited purposes of the requirements under section 6038A that apply to 25% foreign-owned domestic corporations. While a DE is not required to file a U.S. income tax return, a DE covered by these rules is required to file a pro forma Form 1120 with Form 5472 attached by the due date (including extensions) of the return. See the Instructions for Form 5472 for additional information and coordination with Form 5472 reporting by the domestic DE.
I'm having trouble to understand the term "domestic". My guess is that a domestic LLC is just simply an LLC founded in some state of the US. But I'm not 100% sure.