Real Tax Questions, Expert Answers
Get answers to your foreign-owned LLC tax questions from ForeignLLCTax. Every answer includes IRS source citations and step-by-step guidance.
My SaaS contract has a $12,000 setup fee and $1,200 monthly subscription. Do I analyze the tax the same way?
I live in India and own a Delaware LLC that sells workflow software to U.S. companies. One new client agreed to pay a one-time $12,000 implementation fee plus $1,200 per month after launch. I do all o...
If my LLC only trades through Interactive Brokers, does that mean I am not in a U.S. trade or business?
I am in Singapore and use a Wyoming LLC mainly for trading U.S. stocks and ETFs through a U.S. broker. There are no employees, no office, and no other business activity. Annual gains vary a lot, but c...
I only use a U.S. warehouse for distribution, not retail. Does that still create a major U.S. tax issue?
I live in the UAE and use a New Mexico LLC to sell branded products online. We do not have a store or office in the U.S., but a New Jersey warehouse stores inventory and ships all U.S. orders. Revenue...
I hired my first U.S. employee for my foreign-owned LLC. Did I just change my whole tax profile?
I am in India and run an ecommerce operations company through a Delaware LLC. Until now everyone worked overseas, but I just hired a full-time U.S. employee in Texas to handle customer operations and ...
I am a non-U.S. founder with a brand-new Delaware LLC. Which bank setup is the least painful first move?
I live in Japan and just formed a Delaware LLC for a SaaS startup. I have been comparing Mercury, Relay, Novo, and Wise, and now I feel less certain than when I started. Mercury seems best for interna...
I discovered the missed filing myself before the IRS contacted me. Should I file the delinquent return now or wait for advice?
I am in Hong Kong and realized my foreign-owned LLC missed an international information filing. The IRS has not contacted me yet. I found the delinquent international information return procedures onl...
I got an IRS exam letter asking for records tied to Form 5472. What is the first smart step?
I live in France and own a Delaware LLC. The IRS sent a letter asking for supporting records tied to our Form 5472 filing, including related-party transactions and ownership details. I have the record...
If I missed Form 5472 two years ago, is the problem only the penalty or is the year still open too?
I am in Australia and my Delaware LLC missed a Form 5472 filing for an earlier year because I did not understand owner-paid expenses counted as reportable transactions. I was mentally treating the iss...
My preparer missed the filing. Can actions of an agent help with reasonable cause?
I am in the UAE and my accountant missed the Form 5472 filing even though I had sent the records on time. We now have a penalty notice. I know the IRS often says taxpayers are still responsible even i...
I keep hearing about Schedule C, but my foreign-owned LLC adviser says it may not apply to me at all
I am in Brazil and own a single-member U.S. LLC. Generic LLC content online keeps telling me Schedule C is the standard return for a one-owner business. My U.S. adviser says that is domestic content a...
I just got a $25,000 Form 5472 penalty notice. What should I do first?
I am in India and own a Delaware single-member LLC. We filed late and now received an IRS notice assessing a $25,000 Form 5472 penalty. Revenue was only about $18,000, so the penalty is larger than th...
My LLC is filing Form 5472, but does that mean I personally also file Form 1040-NR?
I live in South Korea and own a Delaware single-member LLC. My preparer is getting ready to file Form 5472 with the pro forma Form 1120 because I had owner funding and reimbursements during the year. ...
I meant to elect corporate treatment when I formed the LLC but never filed Form 8832. Can I backdate it now?
I am in Japan and formed a U.S. LLC almost a year ago. From day one I intended to treat it like a corporation for tax planning reasons, but I later realized Form 8832 was never actually filed. We alre...
Can I split a $20,000 deposit into two $10,000 deposits to avoid the CTR paperwork?
I heard that banks file a report if you deposit more than $10,000 in cash. My foreign-owned LLC just received a $20,000 cash payment from a client. I was thinking of depositing $10,000 today and $10,0...
My advisor says the treaty protects me, but do I actually need Form 8833 if no U.S. tax ends up due?
I am in France and use a Delaware LLC for consulting. My advisor says the treaty should protect me because there is no permanent establishment in the U.S., and that my U.S. tax may be reduced to zero ...
My LLC only files Form 5472 with a pro forma 1120. On Form 7004 do I still use the 1120 code?
I am in Canada and my accountant is preparing an extension for my foreign-owned single-member LLC. Since the business is disregarded, I assumed there would be some special code for Form 5472 itself. B...
My principal place of business is in Singapore. Should I still try the IRS EIN online system first?
I am forming a Delaware LLC from Singapore and need an EIN. Some people say everyone should just use the IRS online EIN application, but others say international applicants have to use phone, fax, or ...
For my foreign-owned LLC, do I really leave almost all of Form 1120 blank?
I am in Brazil and my accountant told me the Form 1120 for my foreign-owned single-member LLC is basically just a pro forma cover form with Form 5472 attached. That sounds strange because when I look ...
I paid LLC costs personally from India. Which Form 5472 section do those usually affect?
I own a Delaware single-member LLC from India and I am trying to prepare records for Form 5472. During the year I paid AWS, legal fees, and some contractor invoices personally before reimbursing mysel...
Do I owe California's $800 franchise tax if my foreign-owned LLC is registered in CA but earns no CA income?
I registered my single-member LLC in California because my registered agent is there. I'm a non-resident alien living in Germany and all my clients are outside the U.S. I just got a notice from the Ca...
My affiliate programs handle payouts, but I pay a lot of tools and content costs personally. Does that still matter for Form 5472?
I am in the Philippines and use a Delaware LLC for affiliate sites. Revenue is around $68,000 from Amazon Associates and a few other programs. The programs handle the payout side, but I still personal...
My affiliate programs are all U.S. companies, but I do the marketing from Mexico. Is the income automatically U.S.-source?
I run SEO and email campaigns from Mexico through a Wyoming LLC and earn commissions from several U.S. affiliate programs. Annual revenue is about $74,000. Some people say because the merchants are Am...
I have Amazon Associates, ShareASale, and direct SaaS referral programs. Should they all be booked the same way?
I am in Brazil and use a Delaware LLC for affiliate marketing. Revenue is about $92,000 this year, split across Amazon Associates, ShareASale, and two direct SaaS referral programs. One network asked ...
Amazon says it may withhold 30% unless I submit tax info. Does my LLC change that?
I am based in India and earn affiliate income through Amazon Associates using a Delaware LLC. The program says non-U.S. associates may face up to 30% withholding unless they provide tax information. C...
If I work from the U.S. for a few months as a nomad, does that create a problem even if I stay under the day-count limit?
I am an Australian digital nomad with a Wyoming LLC and I may spend about 100 days in the U.S. this year while still working full time online for my business. I know that may be below some residency t...
Can my LLC get a U.S. tax residency certificate even though I personally live abroad?
I am a UK founder with a Delaware LLC and I live outside the U.S. full time. A foreign bank and one local tax advisor mentioned a U.S. tax residency certificate, and now I am trying to understand whet...
My accountant mentioned a treaty tie-breaker. Does that mean I automatically avoid U.S. residency if I am still tax resident in Canada?
I am a Canadian founder with a Delaware LLC and spend a lot of time in the U.S. for networking and customer meetings. I may end up meeting the substantial presence test this year. My Canadian accounta...
If I exceed the substantial presence formula but stay under 183 days this year, can the closer connection exception save me?
I am a consultant living mostly in Thailand with a Wyoming LLC. My U.S. day count will probably be around 145 this year, but when I add the prior-year weighted days it looks like I may meet the substa...
I live in Portugal most of the year but spend a few months in the U.S. with my SaaS LLC. When does residency become the real issue?
I am a digital nomad with a Delaware single-member LLC and usually spend most of the year in Portugal, but I also spend a few months in the U.S. visiting friends and working remotely. This year I may ...
A California warehouse will store my bestsellers. Is that enough to make my LLC's income effectively connected?
I am based in Pakistan and use a Delaware LLC for an ecommerce brand that started as pure dropshipping. A 3PL in California now wants to store our top products for faster delivery. Annual revenue is a...
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