IRS Compliance & PenaltiesAnswered

If I never foreign-qualified, do my contracts in that state become void?

EV
Elena V.new member
May 10, 2026 1,740 views 1 answer
foreign-qualificationcontractsenforceabilitypenalties

I've been operating in a couple of states without registering as a foreign LLC. Now I'm worried that every contract I signed with customers and vendors in those states is automatically void or unenforceable because I wasn't qualified. Is that true? Did I just invalidate all my agreements, or is the consequence of not qualifying something else entirely?

Related Questions

ComplianceAnsweredFeatured

My Wyoming LLC has Amazon FBA inventory in California, Texas, and Florida — do I have to foreign-qualify in all three?

I formed my LLC in Wyoming and sell on Amazon. Amazon moves my inventory into warehouses in California, Texas, and Florida without asking me. I keep reading conflicting things — some say FBA inventory...

AK
Aaron K.·May 2, 2026
2,6401
ComplianceAnswered

Does being a non-resident foreign owner change whether my LLC has to foreign-qualify?

I'm not a US citizen or resident — I live abroad and own a US LLC. I keep wondering whether my being a foreign person changes the foreign-qualification analysis. Does the state look at where I, the ow...

YA
Yusuf A.·May 24, 2026
1,6101
ComplianceAnswered

My company is formed in the UK and registered in New York. Does that still make me a BOI filer even though domestic LLCs are exempt now?

I am a UK resident and my business is a UK company that registered to do business in New York instead of forming a new U.S. LLC. After the 2025 BOI rule changes, I got confused because everyone now ta...

OA
oliver_afb4·Sep 27, 2024
2,4301
ComplianceAnswered

I bought a rental property in Florida through my out-of-state LLC — does that alone require foreign qualification?

My LLC is formed in Wyoming and I just bought a single-family rental house in Florida that I rent out for income. I don't have an office or employees in Florida — the only Florida connection is this i...

PN
Petra N.·May 17, 2026
1,7201
ComplianceAnswered

What does it actually cost to foreign-qualify in New York, and what's this 'publication requirement' I keep hearing about?

I might need to register my out-of-state LLC in New York. The state filing fee doesn't look bad, but everyone mentions a 'publication requirement' that can get expensive, especially in certain countie...

JH
Joon H.·May 13, 2026
1,6601
ComplianceAnswered

I just hired a remote employee who works from home in Washington — does that force me to foreign-qualify there?

My LLC is formed in New Mexico and I live abroad. I hired my first US employee, a developer who works from her home in Washington State. There's no office, no warehouse, nothing else in Washington — j...

MD
Marco D.·May 6, 2026
1,8201
ComplianceAnswered

If the IRS assesses an FBAR penalty, do I fight it in Tax Court — and is it separate from Form 8938?

Two things I can't figure out about cleaning up old foreign accounts. First, if the IRS hits me with an FBAR penalty, is that a Tax Court case like an income-tax dispute? Second, I've also heard about...

M5
marek_5e27·May 27, 2026
1,1801
ComplianceAnswered

If I should have filed Form 8938 but didn't, does that keep my tax year open too?

My LLC may have crossed into being a specified domestic entity, and I think I should have filed Form 8938 with the return but didn't. Separate from the $10,000 penalty, does leaving Form 8938 off the ...

M4
mei_4c08·May 14, 2026
9801
ComplianceAnswered

Can First-Time Abatement remove the accuracy penalty on my CP2000?

My CP2000 added a 20% accuracy penalty on top of the extra tax. I've never had a penalty before, so can I just ask for First-Time Abatement to get it removed? If not, what's the right way to fight the...

N8
noah_8e54·May 27, 2026
1,0901
ComplianceAnswered

Can I keep my section 6038A records electronically, or do I need paper? Is a folder of PDFs enough?

I run everything paperless. My invoices, contracts, and bank records are all scanned into cloud folders, and my accounting is in software. Is electronic storage actually acceptable for section 6038A, ...

SL
Sven L.·May 25, 2026
1,2801

Have a similar question?

ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.

Become a Member — $9.99/mo

Disclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.

Watch the walkthroughs