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.
What is IRC 6038A and why does my single-member LLC have to file Form 5472 with a $25,000 penalty?
I'm an Indian citizen living in Mumbai. I formed a single-member LLC in Wyoming two years ago for an online consulting business. I just learned about IRC 6038A and Form 5472 from a tax forum. Apparent...
What are the key differences between Subpart F income and GILTI?
I'm trying to understand the difference between Subpart F and GILTI. They both seem to tax CFC income currently to U.S. shareholders. If GILTI was supposed to be a catch-all for everything not already...
What is a year-end tax planning checklist for foreign LLC owners?
The end of the tax year is approaching and I want to make sure I have covered all important tax planning items for my US LLC. As a foreign owner, I know there are unique considerations beyond what dom...
How does my foreign-owned LLC decide if a worker is an employee or independent contractor?
I have a foreign-owned LLC and I'm working with several people in the U.S. — a web developer who works from home on their own schedule, a virtual assistant who works set hours, and a marketing consult...
We discovered our filed Schedule K-2 was incomplete. Do we correct just the schedule, or does the amended-return package have to carry the whole explanation too?
I am part of the tax team for a U.S. person that files Form 8865. After filing, we realized one international item relevant to Schedule K-2 and K-3 was omitted. The partnership facts themselves did no...
I deducted foreign income taxes years ago instead of claiming the credit. Is it really still possible to amend after more than three years?
I am a U.S. person based in the UAE and found out that in an older year my adviser treated foreign taxes as an itemized deduction rather than using the foreign tax credit. The original return is well ...
I contributed appreciated software IP to a foreign partnership. Is Schedule O the main Form 8865 schedule I should expect?
I am a U.S. founder who transferred software-related intangible property into a foreign partnership in exchange for a partnership interest. The transfer was made as part of a restructuring and the ini...
My foreign tax was refunded after I already claimed the credit. Do I just adjust this year's Form 1116, or do I need to amend prior years too?
I live in Canada and in 2026 I received a partial refund of Canadian tax that I had previously claimed as a foreign tax credit on my U.S. return. The refund relates mostly to my 2024 U.S. tax year. I ...
If I elect resident treatment with my U.S. spouse, do I stop filing Form 1040-NR completely for that year?
I am a nonresident from Spain married to a U.S. resident. During 2025 I had about $36,000 of foreign freelance income and a small amount of U.S.-source consulting income. My spouse had around $112,000...
We badly overpaid corporate estimates. Can Form 4466 still get a quick refund if the return is almost ready?
Our U.S. corporation had a much lower fourth quarter than expected, and now it looks like we overpaid federal estimated tax by roughly $28,000. The final return is nearly done, but our CFO mentioned a...
Several U.S. owners are Category 1 filers. Can only one of us file the actual Form 8865?
I am one of three U.S. persons who together control a foreign partnership in the UAE. Each of us appears to fit the Category 1 rules, and no one wants to file three full copies of the same Form 8865 p...
My Schedule K-3 shows several foreign tax categories. Can I still combine everything onto one Form 1116 to keep the return manageable?
I am a U.S. individual investor in a foreign-focused partnership, and my Schedule K-3 includes passive category items, general category items, and a small amount that looks treaty re-sourced. I also h...
Our corporation still has not received its EIN. Can we e-file Form 1120 with 'Applied For' or do we have to change filing strategy?
I formed a U.S. C corporation from Singapore near year-end and the company is now ready to file its first return. Gross receipts were only about $118,000, but our tax software keeps rejecting the file...
I claimed foreign tax credits on an accrued basis in my workpapers but forgot the election statement. Did I actually make the election?
I am a U.S. resident founder living in France, and in our 2025 workpapers we computed the foreign tax credit using accrued taxes because the French assessment cycle lags behind payment timing. My retu...
My U.S.-business income is fully treaty-exempt. Do I still have to file Form 1040-NR?
I am a resident of the Netherlands and earned about $54,000 through work that my adviser says falls under treaty protection, so the expected U.S. tax is zero. I was still engaged in activity that coul...
We joined a consolidated group midyear. Does our short-period Form 1120 count as a final return even though the corporation still exists?
I run a U.S. software company owned by a foreign parent, and during 2025 we were acquired into a larger consolidated tax group. We still legally exist, but our stand-alone return only covers the month...
Disregarded entity vs C-Corp election: pros and cons?
I own a single-member LLC as a foreign person and it is currently treated as a disregarded entity. I have been hearing that electing C-Corp status might be better for my situation. What are the advant...
What are the Form 5471 filing requirements for CFC owners?
I just learned I need to file Form 5471 for a foreign corporation I have an interest in. This form looks incredibly complex — it has multiple schedules and categories of filers. Can someone explain wh...
What is Subpart F income and how does it apply to foreign-owned business structures?
I've been reading about Subpart F income in the context of CFC rules and I'm confused about how it fits in with GILTI. I'm a U.S. citizen running a business through a foreign corporation. Some of the ...
What are the FBAR penalties for non-willful vs. willful violations?
I have a foreign bank account that I use for my LLC business but I never filed an FBAR (FinCEN Form 114). What is the difference between non-willful and willful FBAR penalties? My account balance was ...
Starting my first online business — should I go with sole proprietorship or single-member LLC?
I'm a freelance web developer based in Germany and I want to start selling SaaS products to US customers. I'm trying to figure out the simplest business structure. A sole proprietorship seems easiest ...
Does First Time Abatement apply to Form 5472 or other international penalties?
I heard the IRS has a First Time Abatement policy that removes penalties for first-time offenders. Does this apply to international information return penalties like Form 5472 or Form 5471? I have a c...
How do I ship Form 5472 to the IRS from overseas? Can I use DHL or FedEx instead of regular mail?
I'm a foreign owner of a U.S. single-member LLC and I live overseas. I need to mail my Form 5472 and pro forma 1120 to the IRS in Ogden, Utah. Regular international mail from my country is unreliable ...
Form 5472 Line 1n — what country do I enter for 'files an income tax return as a resident'? My LLC is a disregarded entity.
I'm filling out Form 5472 for my foreign-owned single-member LLC (disregarded entity) and I'm stuck on Line 1n in Part I. It asks for the countries under whose laws the reporting corporation files an ...
My foreign-owned LLC had zero income this year. Do I still need to file Form 5472?
I formed a single-member LLC in Wyoming through Stripe Atlas about a year ago. I'm a non-US person living in Germany. The LLC hasn't made any money yet — it's basically dormant. I did put about $2,000...
What are the best U.S. banks for a foreign-owned LLC in 2026?
I just formed my single-member LLC in Wyoming and now I need a U.S. bank account. I live in the UK and won't be visiting the U.S. anytime soon. I've heard that most big banks like Chase and Bank of Am...
What business deductions can foreign LLC owners claim?
As a foreign owner of a US LLC, I want to make sure I am taking advantage of all available business deductions to reduce my US tax liability. I know that ordinary and necessary business expenses are d...
Can I pay myself a salary from my foreign-owned single-member LLC?
I'm a non-resident alien from Brazil who owns a single-member LLC in the U.S. The LLC does web development work and earns good revenue. I want to pay myself a regular salary like an employee. Is this ...
DUNS Number Application: Is my single-member LLC a sole proprietorship?
I'm applying for a DUNS number for my single-member LLC (foreign-owned) so I can enroll in the Apple Developer Program. During the application, it asks "Are you a sole proprietorship?" — should I answ...
Digital nomad with U.S. LLC: tax by visa status
I am a digital nomad who travels the world while running my online business through a U.S. LLC. I do not have a fixed residence and I enter the U.S. occasionally on ESTA or B-1 visa. My clients are bo...
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