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 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...
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...
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