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.
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...
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 does Delaware's franchise tax work for a foreign-owned LLC — and is it worth the cost?
Everyone recommends Delaware for LLC formation, but I'm trying to understand the actual annual costs. I'm a non-resident alien from India and I have a Delaware LLC that I use for freelance software de...
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...
What is the U.S. expatriation tax (exit tax) and who does it apply to?
I've been a U.S. green card holder for 12 years and I own a profitable LLC. I'm considering renouncing my green card and moving back to my home country permanently. A friend told me there's an 'exit t...
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...
I run a Shopify store through my foreign-owned LLC — what tax compliance do I need?
I'm from Australia and I have a Delaware LLC that runs a Shopify store selling custom phone cases to U.S. customers. I handle all orders from my home in Sydney — I use a U.S. 3PL (third-party logistic...
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...
What are my tax obligations as a foreign LLC owner selling on Amazon FBA?
I'm a non-US person from the UK running an Amazon FBA business through a Wyoming LLC. I source products from China and ship them to Amazon's fulfillment centers in the US. Last year I did about $180,0...
What is Form 1042 and who needs to file it?
I run a U.S. company that pays freelancers abroad, including payments to a foreign-owned LLC. I received notice that I may need to file Form 1042 as a withholding agent. What exactly is this form, wha...
Have a tax question?
ForeignLLCTax members can submit questions and get expert answers with IRS source citations. Join the community for $9.99/month.