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.
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...
What happens to my U.S. LLC when I expatriate? Do I have to close it?
I'm a covered expatriate planning to surrender my green card. I own a single-member LLC that generates about $150,000 per year in revenue from U.S. clients. After I expatriate, can I still keep the LL...
Green card holders: tax obligations for LLC owners
I recently received my green card and I own a single-member LLC. As a new permanent resident, I understand I now have to report worldwide income. What specific tax obligations do I have as a green car...
Can I avoid FIRPTA by having my LLC elect to be taxed as a C-Corporation?
I've read that if my LLC is treated as a domestic C-Corp, the corporation can sell the property and the gain is taxed at the corporate level at 21%. Then when I eventually take distributions, I'd pay ...
Is it true non-resident aliens only get a $60,000 estate tax exemption in the U.S.?
I'm a British citizen living in London and I own a single-member LLC in Delaware that holds a rental property in Texas. A friend told me that if I die, the U.S. will tax my estate but only exempt the ...
What is the 1099-K reporting threshold and does it apply to my foreign-owned LLC?
I keep seeing conflicting information about the 1099-K threshold. Is it $600? $5,000? $20,000? It seems like it changes every year. My foreign-owned LLC receives payments through Stripe and PayPal for...
How does treaty transparency work for disregarded LLCs?
I have a single-member LLC in the U.S. that is disregarded for U.S. tax purposes. My tax advisor says that to claim treaty benefits, the LLC must be treated as transparent by both the U.S. and my home...
I'm from the UAE — how does my U.S. LLC get taxed?
I'm a UAE resident living in Dubai. I formed a Wyoming LLC for my online consulting business. The UAE recently introduced corporate tax, but it has a high threshold. What are my U.S. and UAE tax oblig...
Single-member vs multi-member LLC for foreign owners?
I am a foreign national considering forming an LLC in the United States. I am unsure whether to set up a single-member LLC or bring in a partner and create a multi-member LLC. How does each structure ...
How do I claim the foreign tax credit on Form 1116 to avoid double taxation?
I'm a U.S. citizen living in the Netherlands and I pay Dutch income tax on my worldwide income. I also have to report the same income on my U.S. return. I know I can claim a foreign tax credit to avoi...
How can a tax treaty reduce withholding on my foreign-owned LLC income?
I am a tax resident of Germany and I own a single-member LLC in the U.S. I understand there is a tax treaty between the U.S. and Germany. How exactly does the treaty help me reduce the 30% withholding...
How does the OECD Pillar Two global minimum tax affect foreign-owned U.S. LLCs?
I keep reading about the OECD's Pillar Two framework and a 15% global minimum tax that countries are implementing. My foreign parent company is based in a country that has adopted Pillar Two. We have ...
What is OFAC sanctions screening and how does it affect my foreign-owned LLC?
I am an Iranian-born Canadian citizen who owns a U.S. LLC. When I tried to open a bank account, they said my application needed 'OFAC screening.' A week later they told me my application was still und...
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