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.
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 ...
How do I calculate the Substantial Presence Test to know if I'm a U.S. tax resident?
I'm a foreign national who owns a single-member LLC in the U.S. and I travel to the States frequently for business meetings. Last year I was in the U.S. for about 110 days, and the year before about 9...
I run a SaaS business through my foreign-owned LLC — are subscription revenues subject to U.S. tax?
I'm from Poland and I built a project management SaaS tool. I formed a Delaware LLC to accept payments from U.S. and international customers. Everything runs on AWS and I manage everything from Warsaw...
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...
I'm from Canada — how does my U.S. LLC get taxed?
I'm a Canadian citizen and resident in Toronto. I formed a Delaware LLC for my software development freelancing business with U.S. clients. I do all work from Canada. What are my tax obligations in bo...
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 ...
Does my U.S. LLC create a permanent establishment under a tax treaty?
I am a nonresident alien who operates a consulting business through a U.S. LLC. I keep hearing that a permanent establishment (PE) in the U.S. could affect my tax treaty benefits and my overall tax li...
How do I determine if my foreign-owned LLC's e-commerce income is effectively connected income (ECI)?
I've read through all the threads here about ECI and I'm still confused. Everyone says 'it depends on the facts' but no one explains how to actually analyze those facts. I run three different business...
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 ...
I'm from India — how does my U.S. LLC get taxed?
I am an Indian citizen and tax resident living in Bangalore. I formed a single-member LLC in Delaware for my IT consulting business that serves U.S. clients remotely. I perform all work from India and...
How do I properly fill out Form W-8BEN-E for my foreign-owned LLC?
I need to submit Form W-8BEN-E to a U.S. client for my foreign-owned LLC. The form is very long and confusing with all the entity classifications and FATCA statuses. Can someone walk me through the ke...
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...
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...
What exactly is FIRPTA and how does it affect me as a foreign LLC owner with U.S. real estate?
I'm a Canadian citizen who owns a single-member LLC in Wyoming. I bought a rental condo in Phoenix through the LLC last year. My accountant mentioned something called FIRPTA that could hit me with a b...
Do I need to file FBAR for crypto held on foreign exchanges through my U.S. LLC?
My Wyoming LLC holds Bitcoin on Binance (the international version, not Binance US) and some ETH on a smaller exchange based in Hong Kong. Combined, the accounts had a peak balance of about $15,000 th...
When do I need to file Form 8833 for a tax treaty position and what happens if I don't?
I'm a Canadian citizen working temporarily in the U.S. and I'm claiming a treaty exemption under the U.S.-Canada tax treaty for certain income. My tax preparer mentioned Form 8833 but said it might no...
Are there any exceptions where FIRPTA withholding doesn't apply? I keep hearing about loopholes.
I'm a German national selling a small investment condo in Texas through my LLC. Sale price is about $250K. I've been told I'll lose 15% to FIRPTA withholding at closing, but a friend said there are ex...
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