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.
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 ...
A U.S. payer says I might need W-8ECI instead of W-8BEN-E. How do I know if they are right?
I live in Mexico and run a Delaware LLC for enterprise software implementation. One U.S. payer told me to ask my tax adviser whether the payments are effectively connected and whether I should give th...
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...
Marketplace wants a W-8BEN-E, but I am not even sure which entity should be signing it
I live in the UAE and use a Delaware LLC for marketplace sales and some direct consulting. The marketplace asked for Form W-8BEN-E, but I have a foreign parent company too, and I suddenly realized I a...
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...
I am in Russia and the payer says treaty rates are off the table now. Is that because of the suspension?
I use a U.S. LLC for online licensing income and one U.S. payer recently said they have to withhold at the statutory 30% rate on new payments because they cannot accept treaty claims anymore. I know t...
I live in Turkey and do consulting. Should I actually care about U.S. day counts under the treaty tables?
I am a Turkish consultant using a U.S. LLC for software and analytics projects. Most work is done from Istanbul, but I may spend a few weeks in the U.S. this year with one client. I found the IRS trea...
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...
I am in Israel and built the LLC for a startup. When does the treaty matter versus just keeping the file investor-clean?
I run a Delaware LLC from Tel Aviv for a small AI tooling startup. So far the company mostly needs a clean cap table, clean banking, and clear ownership docs, which makes it feel like a startup admin ...
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 ...
I live in Nigeria and serve U.S. clients. Without a treaty, what should I focus on first?
I own a U.S. LLC from Lagos and do consulting for U.S. startups. There is no U.S. office or staff, but I know Nigeria is not usually listed as a treaty country with the U.S. That makes me feel like I ...
I live in the Philippines and do all the work there. Is that the kind of fact pattern the treaty actually helps with?
I use a Delaware LLC for design and editing services, but all the work is done from Manila. No U.S. staff, no U.S. office, and no inventory. Most of my clients are in the U.S., which is what creates t...
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...
My supplier ships from China to U.S. customers. How do I know whether my LLC is the importer of record?
I am in Vietnam and run a dropshipping store through a Wyoming LLC. Orders are about $9,000 to $12,000 a month and the supplier in Shenzhen handles almost all shipping logistics. Sometimes they say du...
I am in Singapore. Why is everyone telling me there is no treaty path for the LLC?
I run a Delaware LLC from Singapore for software consulting and digital products. Because Singapore is such a major business hub, I honestly assumed there would be some broad treaty path with the U.S....
My 3PL wants to store inventory in New Jersey. Does that create a U.S. income tax problem, not just sales tax?
I am based in Colombia and sell home goods through a Delaware LLC. Right now I ship from abroad, but a U.S. 3PL offered to store inventory in New Jersey so delivery times would improve. Sales are abou...
I am in Mexico and assumed the treaty meant the LLC filing would be light. Why am I still hearing about Form 5472?
I live in Monterrey and own a Wyoming LLC for remote product design services. Almost all work is done in Mexico, and I originally thought the U.S.-Mexico treaty meant the annual U.S. compliance would ...
Amazon collects tax on marketplace orders, but what about my Shopify site orders fulfilled with Amazon?
I am based in Mexico and run a U.S. LLC for a small supplement brand. Most sales are on Amazon, but I also have a Shopify store and use Amazon's fulfillment network to ship some direct website orders....
I set up the U.S. LLC because I thought it would lower withholding. Why did nothing change?
I am in Brazil and moved my online business into a U.S. LLC this year because I thought U.S. platforms would treat me better once I was using a U.S. entity. Instead, the withholding and documentation ...
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