Do I have to withhold 30% when I take an owner draw from my disregarded LLC to myself as the foreign owner?
I'm the single foreign owner of a US LLC that is disregarded for tax. Every month I move profit from the LLC's bank account to my personal account abroad. Someone told me that because the money is going to a foreign person, I should be withholding 30% on my own draws and filing Form 1042-S to myself. That sounds absurd. Is a plain owner draw really a Chapter 3 payment?
Related Questions
I'm paying US-source income to a foreign-owned disregarded LLC — whose W-8 do I collect and who goes on the 1042-S?
From the other side of the table: my company is paying US-source royalties to a US LLC that is disregarded and owned by a foreign person. The LLC sent me a W-8 in the LLC's own name claiming a treaty ...
My US LLC (taxed as a corporation) pays royalties and interest to its foreign parent — do I withhold and file 1042-S?
We have a US LLC that elected to be taxed as a corporation. It pays a royalty for IP and some interest on an intercompany loan up to its foreign parent company. Because it's all inside the same group,...
Do I withhold and issue Form 1042-S if my foreign contractor worked entirely outside the U.S. in 2026?
I hired a contractor in Ukraine to do all the work remotely. They never came to the U.S. Does my LLC still need to issue them a Form 1042-S and withhold 30%?
What goes on Form 1042 Part III when my foreign-owned LLC made one royalty payment to its NRA owner?
My foreign-owned Delaware LLC paid one royalty of $8,000 USD to its NRA owner during 2025. I already filed Form 1042-S to report the payment to the IRS and to the owner. Now I have to file the annual ...
My foreign-owned LLC paid one royalty to its NRA owner — do I really have to e-file Form 1042-S now?
I run a small Wyoming LLC that elected to be taxed as a C-corp. In 2025 the corporation paid exactly one royalty distribution to me (the sole shareholder, an NRA in Portugal) and withheld 30%. That's ...
What is IRC 1441 withholding and when do my U.S. clients have to withhold 30% from payments to me?
I'm a South Korean graphic designer with a New Mexico LLC. A U.S. company I freelance for said they need to withhold 30% of my payments because I'm a foreign person and IRC 1441 requires it. Is this r...
I'm paying a foreign freelancer who did work inside the US — do I withhold, and is W-8ECI the right form for a treaty claim?
My LLC hired an independent contractor based abroad. For one project they actually flew to the US and performed the work here. They asked to send me a W-8ECI so I don't withhold, and they mentioned a ...
Do I report a treaty-exempt or zero-withheld payment on Form 1042-S in 2026?
I paid a foreign vendor under a tax treaty so withholding was zero. Do I still issue them a Form 1042-S for 2026, or does the treaty exemption skip the reporting too?
The W-8 hasn't arrived yet but I need to pay my foreign payee now — should I just over-withhold at 30%?
I have a US-source payment due to a foreign payee, but the valid W-8 still hasn't come back. I don't want to hold up the payment, and I'm tempted to just withhold the full 30% now and let them sort ou...
Why is 30% being withheld from my U.S. LLC income as a foreign owner?
I am a nonresident alien who owns a single-member LLC in the United States. I recently received a payment from a U.S. client, but 30% was withheld before I got the funds. I did not expect such a large...
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/moDisclaimer: 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.
