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.
Step-by-step: how to open a Mercury bank account for my foreign-owned LLC?
I keep seeing Mercury recommended for foreign LLC owners but I can't find a detailed walkthrough of the actual process. I'm a non-resident from France with a Wyoming LLC and an EIN. Can someone walk ...
What counts as a U.S. situs asset for NRA estate tax purposes?
I'm trying to understand my estate tax exposure as a non-resident alien. I own a U.S. LLC, have a U.S. brokerage account with stocks, a U.S. bank account, and some cryptocurrency on a U.S. exchange. W...
My U.S. company pays royalties to a foreign entity. Do we need to file Form 1042?
My U.S. corporation licenses software from a company based in Ireland and pays them about $200,000 per year in royalties. We've been withholding 30% on these payments and depositing the tax with the I...
What are the actual penalties for BSA/AML violations by a foreign-owned LLC?
I have been reading about BSA and AML requirements and the penalties sound terrifying. My foreign-owned LLC is a small online business making about $100,000 per year. What are the realistic penalties ...
Do I need an AML compliance program for my foreign-owned single-member LLC?
I own a consulting LLC in Wyoming as a Canadian citizen. A friend who works in banking told me I need an 'AML compliance program' for my LLC. I looked this up and it seems like something only banks an...
My parents overseas sent me $150,000 as a gift. Do I need to report this to the IRS on Form 3520?
I'm a U.S. citizen and my parents who live in India sent me $150,000 as a gift to help with a house down payment. I know gifts are generally not taxable to the recipient in the U.S., but a colleague m...
What's the best way to structure U.S. real estate investments as a foreigner to minimize FIRPTA impact?
I'm a wealthy individual from the UAE planning to invest $5M+ in U.S. real estate (mix of residential and commercial). I haven't bought anything yet, so I have complete flexibility on structure. I've ...
How do I write a penalty abatement request letter to the IRS?
I need to write a letter to the IRS requesting abatement of Form 5472 penalties for my foreign-owned LLC. What should the letter include? Is there a specific format the IRS expects? I want to make sur...
My foreign-owned LLC accepts cryptocurrency payments — what AML rules apply to crypto transactions?
I am a Turkish citizen with a U.S. LLC that sells software licenses. I recently started accepting Bitcoin and USDT payments from international customers because wire transfer fees were eating into my ...
How does the 2026 remittance excise tax affect transfers from my foreign LLC?
I am a nonresident alien with a U.S. LLC and regularly wire money from the LLC bank account to my personal account in my home country. I have heard that a 1% federal remittance excise tax began in 202...
Which countries have estate tax treaties with the U.S. and how do they help NRA LLC owners?
I've heard that some countries have estate tax treaties with the United States that can significantly reduce the estate tax burden for non-resident aliens. Which countries have these treaties? What do...
Form 5472 Part VI — do I need to attach a statement about the owner being the manager?
My CPA added an extra attachment to my Form 5472 filing labeled 'Part VI' that says 'THE FOREIGN RELATED PARTY IS THE MEMBER MANAGER OF THE REPORTING CORPORATION.' He told me this discloses the nonmon...
How do I get my FIRPTA withholding refund? $90K was withheld but my actual tax is only about $20K.
I sold a condo in New York for $600K earlier this year through my foreign-owned LLC. The buyer withheld $90,000 (15%). My CPA calculated my actual capital gains tax at about $20,000. So I'm owed rough...
E-2 Treaty Investor visa and LLC requirements
I am from a treaty country and I am applying for an E-2 investor visa to start a business in the U.S. through an LLC. I have heard the investment must be substantial but I am unsure what that means fo...
I own shares in a foreign mutual fund. Do I need to worry about PFIC rules and Form 8621?
I'm a U.S. resident and before I moved here, I invested about $50,000 in a mutual fund domiciled in Luxembourg through my European brokerage. I've held it for 5 years now and it's grown to about $75,0...
What is GILTI and how does it affect U.S. shareholders of foreign corporations?
I keep hearing about GILTI in the context of international tax reform. I'm a U.S. person who owns a foreign company, and someone told me I might owe tax on income my foreign company earns even if I ne...
I'm a foreign person owning a U.S. LLC — do I need to worry about GILTI?
I'm a non-U.S. resident who owns a single-member LLC in the United States. My LLC provides consulting services to clients in the U.S. and abroad. A friend told me about GILTI and said I should check i...
How does the Wayfair decision affect foreign-owned LLCs selling online in the U.S.?
I've been selling products in the U.S. for two years through my Wyoming LLC. I'm from Germany. I recently learned about the Supreme Court's Wayfair decision from 2018 that changed sales tax rules. Doe...
Is the Section 199A QBI deduction available to foreign LLC owners?
I have heard about the qualified business income deduction under Section 199A that allows eligible business owners to deduct up to 20% of their qualified business income. As a nonresident alien who ow...
Why can't foreign LLC owners elect S-Corp status?
I keep reading that S-Corp status is a great tax-saving strategy for small business owners in the US. As a foreign national who owns a US LLC, I tried to look into electing S-Corp but was told I canno...
What does 'trade or business within the United States' mean under IRC 864(b)? My tax advisor says this determines everything.
I'm an Australian freelance developer with a Wyoming LLC. I do all my work remotely from Melbourne but have U.S. clients who pay my LLC. My tax advisor says whether I'm engaged in a 'trade or business...
What are the Delinquent International Information Return Submission Procedures?
I missed filing Form 5472 for my foreign-owned LLC but I do not have any unreported income or unpaid tax. My accountant says I might be able to file the late forms without penalty using the Delinquent...
What is the Section 962 election and why would an individual CFC shareholder make it?
I'm a U.S. citizen who owns a CFC through a personal holding structure (not through a U.S. corporation). My CPA says I should consider a 'Section 962 election' to reduce my tax on GILTI and Subpart F ...
ITIN vs SSN for LLC owners on different visa types
I am confused about whether I need an ITIN or SSN for my U.S. LLC. I have been told that some visa types qualify for an SSN while others require an ITIN. What determines which tax identification numbe...
What are the transfer pricing penalties for foreign-owned LLCs?
My U.S. LLC receives management services from my company overseas and pays fees for those services. The IRS is questioning whether the prices are at arm's length. What transfer pricing penalties could...
Does cryptocurrency trading through my foreign-owned LLC create effectively connected income (ECI)?
I'm a foreign national living in Singapore and I own a single-member LLC in Delaware. The LLC's main activity is actively trading cryptocurrencies — buying and selling on U.S. exchanges like Coinbase ...
I filed Form 8832 and selected 'foreign eligible entity' — but I'm a foreign owner of a US LLC. Did I make a mistake?
I'm a German citizen who formed an LLC in Delaware. I wanted to elect corporate tax treatment so I filed Form 8832. Since I'm a foreign person, I selected 'foreign eligible entity' on the form. My acc...
Which address should I use on Form 5472 and pro forma 1120 — registered agent or personal foreign address?
I'm a non-resident owner of a U.S. single-member LLC (disregarded entity) and I'm preparing my annual Form 5472 filing with the pro forma Form 1120. My real business address is overseas, but internati...
When do I need to file Form 5471 for my foreign corporation as a U.S. shareholder?
I'm a U.S. green card holder and I own 60% of a company incorporated in Canada. The company has been operating for three years and generates about $500,000 in revenue annually. A friend who is also an...
Form 8938 vs FBAR: what exactly is the difference and do I need both?
I've been filing FBARs for my foreign bank accounts for years. Now my new tax preparer says I also need Form 8938. This seems like double reporting the same information. What is the actual difference ...
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