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 Japan — how does my U.S. LLC get taxed?
I am a Japanese citizen living in Tokyo. I formed a Delaware LLC for my e-commerce business selling digital products to U.S. customers. All operations are from Japan. What are my tax obligations to th...
When do I need to file Form 5471 for my foreign corporation as a U.S. shareholder?
I'm a U.S. green card holder and I own 60% of a company incorporated in Canada. The company has been operating for three years and generates about $500,000 in revenue annually. A friend who is also an...
Form 8938 vs FBAR: what exactly is the difference and do I need both?
I've been filing FBARs for my foreign bank accounts for years. Now my new tax preparer says I also need Form 8938. This seems like double reporting the same information. What is the actual difference ...
How does the Wayfair decision affect my foreign-owned LLC's sales tax obligations as an online seller?
I've been selling online through my foreign-owned LLC for 3 years and just learned about something called the 'Wayfair decision' that apparently changed everything about sales tax for online sellers. ...
What is GILTI and how do I calculate it on Form 8992?
I own 100% of a controlled foreign corporation (CFC) and my CPA says I need to file Form 8992 for GILTI. I roughly understand that GILTI taxes certain CFC income currently, but I don't understand the ...
F-1 OPT students with a U.S. LLC: tax rules
I am an international student on F-1 OPT working for a tech company. I also want to start a freelance web development business through a U.S. LLC. Can I operate an LLC while on OPT, and does the work ...
What is 'nexus' and when does my foreign-owned LLC have state tax obligations?
I keep hearing the term 'nexus' in discussions about state taxes. I'm a non-resident alien from Brazil with a Wyoming LLC that sells products online to customers across multiple U.S. states. How do I ...
How are capital gains taxed when a foreign owner sells an LLC?
I am a foreign national who owns a US LLC, and I have received an offer to sell my entire interest in the business. I want to understand how capital gains from the sale will be taxed. Is the gain trea...
I'm from China — how does my U.S. LLC get taxed?
I'm a Chinese citizen living in Shenzhen and I recently formed a single-member LLC in Wyoming for my e-commerce business selling to U.S. customers. I have no physical presence in the U.S. and have nev...
How should I plan succession for my foreign-owned U.S. LLC if I die unexpectedly?
I'm a non-resident alien from Mexico and I'm the sole owner of a U.S. LLC that runs an e-commerce business. If I die suddenly, my family won't know what to do with the LLC, the bank accounts, or the o...
My CPA mentioned IRC 7701(a)(30) — what does 'U.S. person' mean for my foreign-owned LLC?
I live in Germany and own a single-member LLC in Wyoming. My CPA keeps referencing IRC Section 7701(a)(30) when explaining why I file differently than a domestic owner. He says I'm not a 'U.S. person'...
I'm a foreign LLC owner hiring my first U.S. employee — what payroll taxes do I owe?
I own a single-member LLC registered in Delaware as a non-resident alien living in the UK. I just hired a full-time employee in Texas to handle customer support. This is my first hire and I have no id...
My foreign-owned LLC has remote employees in 4 states — how do I handle multi-state payroll?
I own a foreign LLC and my team is fully remote across the U.S. — I have employees in New York, Texas, Oregon, and Florida. Each state seems to have completely different payroll tax rules. Do I need t...
How do I send international wire transfers from my foreign LLC's U.S. bank account?
I have a Mercury account for my foreign-owned LLC and I need to send money to myself in my home country (Poland). What's the process for sending an international wire from Mercury? What information do...
C Corp vs S Corp — which one avoids double taxation and can a foreign owner use either?
I've been reading about corporations and I'm confused about the difference between C corps and S corps. Everyone says S corps avoid double taxation but I'm a foreign national (Indian citizen). Can I u...
Which states have no income tax and which is best for forming a foreign-owned LLC?
I want to form my LLC in a state with no income tax. I'm a non-resident alien from Japan. I know Texas, Florida, and Wyoming have no income tax, but there are others too. Can someone compare all the n...
Beyond the platform withholding, what does my foreign-owned creator LLC actually have to file with the IRS?
I think I understand the withholding side now. But what does my foreign-owned US single-member LLC actually file each year? I keep seeing Form 5472, pro forma 1120, and 1040-NR mentioned and I'm not s...
My US LLC does routine production for my foreign company — is cost-plus or CPM the right method?
Flip side of the importer question: here my US LLC actually makes/assembles goods for my foreign affiliate on a routine basis. It's contract-manufacturing style work, not designing or owning anything ...
I paid an LLC expense from my personal foreign account, then the LLC reimbursed me — what records does section 6038A want?
This happens a lot: I, the foreign owner, pay a vendor or a subscription from my personal account abroad because it's easier, and later the LLC reimburses me (or doesn't). There's no formal agreement....
I'm flying to the US for a few weeks to film sponsored content — does that change my LLC's US tax?
Normally I work from home abroad, but this year I'm spending a few weeks in the US filming sponsored deliverables and meeting brands in person. My foreign-owned LLC invoices the sponsors. Does physica...
Is a 'quiet disclosure' safer than Streamlined — just amend and pay without the paperwork?
Someone told me I could just quietly file the amended returns and late FBARs and pay what I owe, without doing the whole Streamlined certification. That sounds simpler. Is a quiet disclosure actually ...
I'm 'selling' my clip library but the buyer pays me based on how much it gets used — is that still a sale?
A media company wants to buy my back-catalog of clips. The deal is labeled a sale, but the price is paid out over time based on how much they monetize the footage in the US. My foreign-owned LLC holds...
How do I map my monthly bookkeeping to Form 5472 — which transactions go on Part IV vs Part V?
I want my bookkeeping to flow cleanly into Form 5472 instead of scrambling at filing time. For a foreign-owned disregarded LLC, which related-party transactions go in Part IV (the monetary lines) and ...
How do I register for sales tax with no US address or EIN — can I use Streamlined Sales Tax?
I've crossed the threshold in a few states and need to register for sales tax, but my LLC has no US mailing address and I don't have an EIN or SSN. Is there a way to register across multiple states at...
Foreign-corp branch vs US C-corp — which second-level tax is worse?
I'm deciding how to structure my US operations: run them directly through my foreign corporation as a branch, or set up a US C-corporation owned by my foreign parent. I understand the first level of t...
What treaty rate applies to my YouTube royalties? I'm in the UK — what about Canada, Germany, Australia, Korea, India?
I understand my YouTube US-viewer earnings are royalties that can be withheld. I'm in the UK and want to know my copyright-royalty treaty rate, and I'm comparing notes with creator friends in Canada, ...
If the IRS assesses an FBAR penalty, do I fight it in Tax Court — and is it separate from Form 8938?
Two things I can't figure out about cleaning up old foreign accounts. First, if the IRS hits me with an FBAR penalty, is that a Tax Court case like an income-tax dispute? Second, I've also heard about...
Can First-Time Abatement remove the accuracy penalty on my CP2000?
My CP2000 added a 20% accuracy penalty on top of the extra tax. I've never had a penalty before, so can I just ask for First-Time Abatement to get it removed? If not, what's the right way to fight the...
I have a large seller note — what are the section 453A interest charge and pledge rule?
I sold a US business and I'm carrying a big seller note. Someone mentioned a section 453A 'interest charge' and a 'pledge rule' if I borrow against the note. When do those kick in, and what happens if...
My LLC is taxed as a partnership and paid foreign tax — who claims the FTC, me or the LLC?
I'm one of two members in a US LLC taxed as a partnership. The LLC earned some foreign income and paid foreign tax, reported on Schedule K-3. Does the partnership claim the foreign tax credit, or do I...
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