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 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...
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 NCTI (formerly GILTI) and how is it calculated for tax year 2026?
I own 100% of a controlled foreign corporation (CFC). My prior-year workpapers refer to GILTI and Form 8992, but I have heard the 2026 rules use NCTI. My CFC earned about $300,000 in income and has ab...
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...
Two years behind on Forms 3520 and 3520-A after immigrating — what order do I fix things in?
Classic mess: I funded a foreign trust before moving to the US, became a resident two years ago, and have filed regular income tax returns ever since — but never a 3520 or 3520-A. There have also been...
Why does my 1099-DA lump stablecoin and NFT sales together with no basis?
My LLC's activity on a US platform is mostly stablecoin conversions plus a handful of NFT sales. The platform's 1099-DA materials suggest these will show up aggregated — totals rather than transaction...
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