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.
B-1 visa and U.S. LLC: what activities are allowed?
I am a foreign entrepreneur planning to visit the U.S. on a B-1 business visa. I already formed an LLC in Wyoming for my consulting business. I want to know what activities I can legally perform while...
What is the Bank Secrecy Act and how does it affect my foreign-owned LLC?
I recently formed a single-member LLC in Delaware as a non-resident from the UK. My accountant mentioned something about the 'Bank Secrecy Act' and said I need to be aware of it as a foreign owner. I ...
How do I apply for a FIRPTA withholding certificate (Form 8288-B) to reduce the 15% withholding?
I'm about to sell a rental property in Colorado for $500K through my foreign-owned LLC. My basis is $430K so the gain is only about $70K. But 15% of $500K is $75,000 withheld — way more than my actual...
Can I leave my U.S. LLC assets to my non-citizen spouse without estate tax using a QDOT?
My wife is a non-resident alien and I'm a U.S. citizen. We own a U.S. LLC together that holds rental properties worth about $5 million. I understand that the unlimited marital deduction doesn't apply ...
How do I open a U.S. bank account remotely as a foreign LLC owner?
I'm based in Singapore and just got my Wyoming LLC approved along with my EIN. Now I need to open a U.S. business bank account but I can't travel to the States. Every guide I find seems to assume I ca...
I'm from Australia — how does my U.S. LLC get taxed?
I'm an Australian citizen and tax resident in Sydney. I set up a Wyoming LLC for my SaaS business targeting U.S. customers. All development and operations happen from Australia. What are my U.S. and A...
Can I use reasonable cause to get Form 5472 penalties removed?
I received a $25,000 penalty notice for not filing Form 5472 for my foreign-owned LLC. My tax preparer in my home country never told me about this form. Can I argue reasonable cause to get the penalty...
What are the Streamlined Filing Compliance Procedures and can foreign LLC owners use them?
I have been non-compliant with my U.S. tax filing obligations for several years. My foreign-owned LLC never filed Form 5472 and I never filed FBARs for my foreign accounts. Someone recommended the Str...
What is Form 8858 and does my foreign disregarded entity need it?
I'm a U.S. citizen living in the UK and I have a UK limited company that I elected to treat as a disregarded entity for U.S. tax purposes. My CPA mentioned I might need to file Form 8858 in addition t...
How does the IRS audit process work for foreign-owned LLCs?
I received a letter from the IRS saying my foreign-owned LLC is being examined. I have never been audited before and I am not even in the United States. How does the IRS audit process work for foreign...
How do I file Form 941 for my foreign-owned LLC — what gets reported each quarter?
My foreign-owned LLC started paying employees in February. I know I need to file Form 941 quarterly but I'm not sure what exactly goes on it. Is it just wages and taxes withheld? Do I report the emplo...
My LLC received a $15,000 cash deposit — will the bank file a Currency Transaction Report?
I own a foreign-owned LLC that operates a small retail store in Texas. A customer paid $15,000 in cash for a large order. When I deposited it at my bank, the teller had me fill out some extra paperwor...
What is the $25,000 penalty for failing to file Form 5472?
I own a single-member LLC as a foreign person and just learned about Form 5472. I never filed it since forming my LLC two years ago. What exactly is the penalty for not filing, and can it really be $2...
What is Form 1099-DA and how do the new broker reporting rules affect my foreign-owned LLC?
I just got an email from Coinbase saying they'll start issuing Form 1099-DA for 2025 transactions. I own my LLC as a non-resident alien and I've been filing W-8BEN with the exchange. What exactly is ...
What is the Substantial Presence Test under IRC 7701(b) and could I accidentally become a U.S. tax resident?
I'm a Canadian citizen who owns a Delaware LLC for my e-commerce business. I travel to the U.S. about 100 days per year for trade shows and meetings. My accountant warned me about something called the...
Can I gift my U.S. LLC interest and stocks to my children without U.S. gift tax as an NRA?
I'm a non-resident alien from South Korea and I own a U.S. LLC plus a substantial U.S. stock portfolio. I'm doing estate planning and my advisor suggested gifting these assets to my children now inste...
Can I use an LLC to hold U.S. real estate and avoid NRA estate tax?
I keep reading online that foreign investors should use an LLC to hold U.S. rental properties to avoid estate tax. The idea seems to be that the LLC creates a layer between you and the property. But m...
When is Form 706-NA required and how do you file it for an NRA decedent's estate?
My father was a non-resident alien who owned a condo in New York and some U.S. stocks. He passed away recently and I'm the executor of his estate. I've been told I need to file Form 706-NA with the IR...
Tax residency determination for visa holders
I have been in the U.S. on different visa types over the past few years, including F-1, H-1B, and now I am on an L-1. I am confused about how the IRS determines my tax residency with these visa change...
I'm becoming a U.S. tax resident — what changes for my foreign-owned LLC?
I've been operating a Wyoming LLC as a nonresident alien for 3 years, filing Form 5472 every year. Now I'm getting a green card through my employer. What changes for my LLC once I become a U.S. tax re...
A U.S. client is asking my foreign company to fill out Form W-8BEN-E. What is this?
I own a UK limited company that provides consulting services to U.S. clients. One of my clients just sent me a Form W-8BEN-E and asked me to complete it before they can pay me. The form is 8 pages lon...
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 is a dual-status tax return and when do I need to file one?
I got my green card in July 2025 after living in the U.S. on a work visa. My accountant says I need to file a 'dual-status return' for 2025. I've never heard of this before. What exactly is a dual-sta...
W-8BEN vs W-8BEN-E: Which form should a foreign LLC owner file?
I keep seeing references to both Form W-8BEN and Form W-8BEN-E for foreign persons receiving U.S. income. I own a single-member LLC in the U.S. as a nonresident alien individual. Which of these two fo...
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...
How does the U.S.-Canada tax treaty apply to Canadian owners of U.S. LLCs?
I am a Canadian resident who owns a U.S. single-member LLC that provides consulting services. I know Canada and the U.S. have a tax treaty, but I have heard that Canada does not always recognize U.S. ...
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 ...
I'm from Germany — how does my U.S. LLC get taxed?
I am a German citizen living in Berlin. I formed a Wyoming LLC for my digital marketing agency serving U.S. clients. I perform all work from Germany. What are my U.S. and German tax obligations? I hav...
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...
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