What is the first-year election to be treated as a U.S. resident, and when would an LLC owner want it?
I moved to the U.S. in September 2025 on an L-1 visa and I own an LLC that was previously operated as a foreign-owned disregarded entity. I don't meet the Substantial Presence Test for 2025 because I was only here for about 4 months. My immigration attorney mentioned something called a 'first-year election' that would let me be treated as a resident for 2025. Why would I want to elect into U.S. tax residency? Doesn't that mean more tax? And how does this work mechanically with my LLC?
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