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.
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've been hearing about a new excise tax on remittances that may take effect in 2026. I'm a non-resident alien with a U.S. LLC and I regularly wire money from my LLC bank account to my personal bank a...
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...
What is Section 1446 withholding and how does it apply to foreign LLC members?
I am a foreign partner in a multi-member LLC that is treated as a partnership for U.S. tax purposes. I was told that the LLC must withhold tax on my share of the partnership's effectively connected in...
Is the Section 199A QBI deduction available to foreign LLC owners?
I have heard about the qualified business income deduction under Section 199A that allows eligible business owners to deduct up to 20% of their qualified business income. As a nonresident alien who ow...
Why can't foreign LLC owners elect S-Corp status?
I keep reading that S-Corp status is a great tax-saving strategy for small business owners in the US. As a foreign national who owns a US LLC, I tried to look into electing S-Corp but was told I canno...
What does 'trade or business within the United States' mean under IRC 864(b)? My tax advisor says this determines everything.
I'm an Australian freelance developer with a Wyoming LLC. I do all my work remotely from Melbourne but have U.S. clients who pay my LLC. My tax advisor says whether I'm engaged in a 'trade or business...
What are the Delinquent International Information Return Submission Procedures?
I missed filing Form 5472 for my foreign-owned LLC but I do not have any unreported income or unpaid tax. My accountant says I might be able to file the late forms without penalty using the Delinquent...
What is the Section 962 election and why would an individual CFC shareholder make it?
I'm a U.S. citizen who owns a CFC through a personal holding structure (not through a U.S. corporation). My CPA says I should consider a 'Section 962 election' to reduce my tax on GILTI and Subpart F ...
ITIN vs SSN for LLC owners on different visa types
I am confused about whether I need an ITIN or SSN for my U.S. LLC. I have been told that some visa types qualify for an SSN while others require an ITIN. What determines which tax identification numbe...
What are the transfer pricing penalties for foreign-owned LLCs?
My U.S. LLC receives management services from my company overseas and pays fees for those services. The IRS is questioning whether the prices are at arm's length. What transfer pricing penalties could...
Does cryptocurrency trading through my foreign-owned LLC create effectively connected income (ECI)?
I'm a foreign national living in Singapore and I own a single-member LLC in Delaware. The LLC's main activity is actively trading cryptocurrencies — buying and selling on U.S. exchanges like Coinbase ...
I filed Form 8832 and selected 'foreign eligible entity' — but I'm a foreign owner of a US LLC. Did I make a mistake?
I'm a German citizen who formed an LLC in Delaware. I wanted to elect corporate tax treatment so I filed Form 8832. Since I'm a foreign person, I selected 'foreign eligible entity' on the form. My acc...
I'm from the UK — how does my U.S. LLC get taxed?
I'm a UK citizen and tax resident living in London. I set up a Wyoming LLC for my online consulting business. I work entirely from the UK and bill U.S. clients through the LLC. What are my U.S. and UK...
Which address should I use on Form 5472 and pro forma 1120 — registered agent or personal foreign address?
I'm a non-resident owner of a U.S. single-member LLC (disregarded entity) and I'm preparing my annual Form 5472 filing with the pro forma Form 1120. My real business address is overseas, but internati...
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