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 the section 6038A(e) 'authorization of agent' requirement and why is the 30-day deadline a trap?
Someone warned me that as a foreign owner of a US LLC, I might have to sign something making my LLC my 'agent' if the IRS examines us, and that there's a tight 30-day deadline. I don't fully understan...
Florida LLC annual report — what does the $400 late fee actually cost me if I miss May 1?
I formed a Florida LLC last year and my registered agent reminded me the annual report is due by May 1. I almost certainly cannot get it filed in time — I am abroad and the documents I need are still ...
Wyoming LLC online filing — how fast is 'immediate activation' really?
Every formation service tells me Wyoming LLCs are 'instant' — file online and you're done. Is that actually true for a foreign owner using a registered agent service? I want to file Monday and have a ...
Florida Sunbiz — which LLC member info ends up public, and what should I leave off?
I'm forming a Florida LLC and the Articles of Organization form asks for several names and addresses. I read that Florida is more disclosure-heavy than Wyoming. As a foreign owner, I want to be carefu...
Texas franchise tax — my foreign-owned LLC has $0 Texas activity. Am I still on the hook?
I formed a Texas LLC because I had a contractor based in Austin two years ago. He's gone. The LLC now has zero Texas customers, no Texas employees, no Texas property — but I'm still getting Texas fran...
What is the difference between 24% and 30% withholding on my creator income, and which one applies to me?
I've seen both 24% and 30% quoted as the rate a platform might withhold from a foreign creator. They are clearly not the same thing. What's the difference between them, when does each one apply, and h...
Why does a fake ITIN compromise all my Form 5472 filings, not just one year?
I'm trying to understand the scope of exposure if I've used a fabricated ITIN on multiple years of Form 5472. Does only the most recent filing have a problem, or all of them? And does this affect my u...
Colorado periodic report — Noncompliant vs Delinquent status and how to cure each
My Colorado LLC missed its periodic report. The SOS site shows the status changed from 'Good Standing' to 'Noncompliant' first, and now my registered agent says it's about to become 'Delinquent.' What...
Florida LLC reinstatement cost — same-year vs after January 1
My Florida LLC was administratively dissolved last September because I missed the May 1 annual report. I want to reinstate it. The Sunbiz form quotes $238.75 if I reinstate in December but $377.50 if ...
Nevada LLC reinstatement — the $825 math owners don't expect
I let my Nevada LLC lapse a year ago by missing the annual list and business license renewal. The SOS portal is quoting me almost $800 to reinstate. That seems high for a one-year lapse. What's the ac...
Delaware LLC $200 late penalty and the 3-year cancellation clock — how the math works
I missed the June 1 deadline on my Delaware LLC's $300 annual tax. Delaware Division of Corporations says there's a $200 late penalty plus 1.5% monthly interest. If I'm a year and a half late, what's ...
Wyoming LLC reinstatement — the 2-year window and what it actually costs
My Wyoming LLC got administratively dissolved last year because I missed two annual reports. The Wyoming SOS site is sparse on exactly what reinstatement requires. How long is the window, what's the t...
South Dakota LLC annual report fee — $55 online after the July 2025 increase?
I read that South Dakota raised its annual report filing fee in July 2025. I've also seen older guides quoting $50 and brand new guides quoting $55. What is the current fee, and is the paper-vs-online...
Montana LLC annual report — $20 by April 15 or $35 after the deadline?
I formed a Montana LLC last year because the formation costs looked friendly. My registered agent says I need to file an annual report. I keep seeing two different numbers — $20 and $35. Which is righ...
UK SaaS owner, US disregarded LLC — how does the US withholding actually equal $0?
I'm a UK resident running a B2B SaaS through a Delaware LLC. Annual receipts from US customers are about $300,000. I keep hearing 'no US withholding applies' but I don't understand the actual mechanic...
China treaty royalties — why does the IRS table show 'effectively 7%' for equipment rental?
I'm Chinese and my US LLC pays my Chinese parent company royalties for use of industrial equipment. The IRS Table 1 says the China treaty royalty rate is 10%, but a footnote says 'effectively 7%' for ...
Canada Article IV(7) — when does the anti-hybrid rule block my treaty claim through a US LLC?
I'm Canadian. I read that Canada Article IV(6) helps disregarded-entity owners claim the US-Canada treaty, but there's a related Article IV(7) that can block it. When does IV(7) kick in and how do I a...
Singapore and Brazil — do these countries have a US income tax treaty for my disregarded LLC?
I'm Singaporean and I'm forming a US LLC. My CPA says Singapore has a wide tax-treaty network so I should be fine. A friend who's Brazilian says he claimed Brazil-US treaty benefits and got reduced wi...
My SaaS revenue from US customers — does Treas. Reg. 1.861-19 classify it as a service or a royalty?
I run a B2B SaaS product from my home country through a US LLC. A withholding agent at a US enterprise customer wants to apply 30% withholding treating my fee as a royalty. I think the current cloud r...
My tax preparer cited 'Notice 2010-82' as authority for my LLC's treaty claim. Is that right?
I'm reviewing my CPA's memo on whether my disregarded LLC can claim the US-Canada treaty. The memo cites 'IRS Notice 2010-82' as the authority for owner-level treaty claims by disregarded entities. I ...
SaaS sales tax by state in 2026 — which states fully tax, partial, or exempt?
My SaaS company is hitting economic-nexus thresholds in multiple states and I need to know where SaaS is taxable. Some lists conflict — Maryland sometimes says yes, sometimes 'partial.' California, Fl...
Which US states tax services by default? Hawaii, New Mexico, South Dakota, West Virginia
Most US states only tax services if specifically listed. But I read that a few states tax services by default. Which states are these and what does it mean for my consulting business as a foreign-owne...
California digital software sales tax 2027 — is this current law I need to follow?
I saw news in May 2026 about California expanding sales tax to digital software and SaaS in 2027. My CFO is asking if we need to register California sales tax now. Is this a real change in current law...
Washington ESSB 5814 — what's now subject to sales tax after October 1, 2025?
I'm a foreign-owned LLC selling digital advertising services to Washington customers. Someone said Washington expanded sales tax to cover advertising and IT services in October 2025. What's the full l...
Maryland's July 1, 2025 IT services tax — what changed for my SaaS company?
I run a SaaS business selling to Maryland customers. I read that Maryland started taxing IT services at 3% on July 1, 2025, but my SaaS is still at 6%. Two rates seems strange. What's the rule and how...
What goes in the tax-ID field on Form 5472 if my related party has no ITIN and no foreign tax number?
I'm filling out Form 5472 to disclose a payment to a related party (a family member who provides services to my LLC). She doesn't live in the US, has no ITIN, and her home country doesn't issue indivi...
CP215 or CP15 — which IRS notice carries the Form 5472 penalty and how should I respond?
I just received an IRS notice about a Form 5472 penalty. Some sources online call this a CP15, others call it CP215. Are these different notices? Does the response procedure differ between the two? I ...
Can I e-file Form 5472 for tax year 2025 (returns filed in 2026)?
I much prefer e-filing to printing and faxing. Has the IRS opened up e-filing for Form 5472 with the pro forma Form 1120 for tax year 2025? Most tax software I have looked at says it cannot e-file thi...
How do I reconcile Stripe payouts to Mercury when QuickBooks shows different totals?
I'm seeing discrepancies between Stripe's gross sales for the month, Mercury's incoming deposits, and what QuickBooks shows. Some of it is timing (payouts in transit), some of it is fees, some of it i...
What is the agent-authorization rule under Reg 1.6038A-5 and when does it actually apply?
My CPA mentioned that my foreign parent company may need to authorize my U.S. LLC to act as its limited agent under Reg 1.6038A-5. I do not see any line for this on Form 5472 itself. Is this something...
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