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.
Is my YouTube money a royalty and my brand/affiliate money a service? How do I tell which is which?
I keep reading that 'character' decides everything for a foreign-owned LLC creator. My income is a mix: YouTube Partner Program, a couple of recurring sponsorships, affiliate links, and a Patreon. Whi...
I keep hearing about 'branch profits tax' for foreign-owned U.S. corporations — does it apply to a Delaware C-corp owned by an NRA?
I'm a non-resident alien sole shareholder of a Delaware C-corp (formed via Form 8832 election from a single-member LLC). My CPA mentioned 'branch profits tax' under §884. I thought BPT only applied to...
My foreign-owned LLC sells SaaS to overseas customers — does it qualify for the FDII deduction under Section 250?
I run a Delaware LLC (taxed as a C-corp) that sells software subscriptions to enterprise customers in Europe and Asia. About 85% of revenue is foreign customers. A friend mentioned the FDII deduction ...
Can my foreign-owned LLC file Form 7004 to extend the Form 5472 + pro forma 1120 deadline?
I missed the April 15 prep window for my foreign-owned single-member Wyoming LLC. I haven't filed Form 5472 + pro forma 1120 yet. Can I file Form 7004 to push the deadline to October 15? I've heard it...
Two of my LLC partners are foreign — what's the §1446 withholding cycle and which forms do we file?
Our U.S. LLC is taxed as a partnership and has four partners: two U.S. citizens, one Brazilian individual, and a German GmbH. We allocated $180,000 of effectively connected taxable income to the Brazi...
My foreign-owned LLC elected C-corp status with Form 8832 — do I now file Form 1120 or Form 1120-F?
I'm a Japanese non-resident running a Wyoming LLC. I filed Form 8832 last year to elect C-corporation classification (we needed a clean withholding posture for international clients). For the prior ye...
My foreign-owned LLC holds a small position in a Luxembourg-domiciled fund — does that pull in PFIC reporting?
I'm a non-resident alien sole owner of a New Mexico LLC (disregarded). For idle cash management, the LLC put about $25,000 into a Luxembourg SICAV (a mutual-fund-style vehicle). I'm not a U.S. person ...
My foreign-owned LLC paid two U.S. designers and a U.S. landlord — which 1099 goes to whom?
I'm a non-resident owner of a Delaware single-member LLC that does B2B web design. In 2025 the LLC paid two U.S.-based freelance designers $4,800 and $7,200 respectively, and also paid a U.S. landlord...
My foreign-owned LLC paid one royalty to its NRA owner — do I really have to e-file Form 1042-S now?
I run a small Wyoming LLC that elected to be taxed as a C-corp. In 2025 the corporation paid exactly one royalty distribution to me (the sole shareholder, an NRA in Portugal) and withheld 30%. That's ...
My customers are 80% mainland Chinese, 20% overseas Chinese. Do I really need a US LLC + Stripe?
I'm a Chinese founder selling consumer products. 80% of my customers are in mainland China and pay via Alipay/WeChat Pay. The remaining 20% are overseas Chinese in the US, Canada, Australia, and Singa...
Is there a checklist of the specific record categories the section 6038A safe harbor expects?
I'd rather get my recordkeeping right up front than guess. I've heard 1.6038A-3 has a 'safe harbor' that, if I keep certain categories of records, I'm deemed compliant. What are those categories, in p...
Does my U.S. LLC file Form 8938, or do I as the owner — when the foreign account is held by the LLC?
My foreign-owned single-member Wyoming LLC opened a bank account in Singapore for vendor payments. The account holds about $80,000 across the year. I'm a non-resident alien (the LLC's owner). Form 893...
Does logging into my U.S. LLC from a U.S. Airbnb during a tourist trip create ECI?
I'm a non-U.S. resident running a software-services LLC in Wyoming and I sometimes visit the U.S. on a B-1/B-2 visa for tourism. Last year I spent 11 days at an Airbnb in Austin and answered some clie...
BEAT $500M gross receipts test — am I really exempt as a small foreign-owned LLC?
I've been reading scary articles about the Base Erosion and Anti-Abuse Tax (BEAT) under §59A and worrying whether my foreign-owned U.S. LLC is exposed when it pays my foreign parent for services. The ...
Do I check 'Initial return' AND 'Final return' on the pro forma 1120 if my LLC was open for only one tax year?
I formed a Wyoming LLC in March 2025, never made significant revenue, and dissolved it with the state in late 2025. I'm preparing the pro forma Form 1120 (with Form 5472 attached) for tax year 2025. T...
How long is my Form W-8BEN-E valid, and when does my U.S. payor need a new one?
I gave Form W-8BEN-E to two U.S. clients three years ago when my Wyoming LLC started invoicing them. One just emailed asking for a new copy. Is there a hard expiration date for W-8BEN-E? Do I need to ...
I'm a Swiss tax resident with a U.S. single-member LLC — how does the Swiss tax authority treat it?
I live in Zurich and own a U.S. single-member LLC that I use for my U.S. consulting clients. The IRS treats the LLC as disregarded for federal tax purposes. I'm trying to figure out whether the Swiss ...
How do I confirm the IRS actually received my faxed Form 5472 + pro forma 1120?
I just sent my Form 5472 package by fax to 855-887-7737 from an online fax service and got a transmission receipt back. But the IRS itself never sent any acknowledgment. I'm a foreign owner abroad and...
Where do owner reimbursements go on Form 5472 Part IV — and do they always need a code?
I run a foreign-owned single-member Wyoming LLC and routinely pay for SaaS subscriptions, advertising, and small contractor invoices from my personal foreign card because the U.S. business card was sl...
What types of guidance can I rely on from the IRS?
The IRS provides various types of guidance to help taxpayers understand and comply with tax laws. However, not all guidance has the same level of authority. To ensure you're making informed decisions,...
Did the IRS confirm personal exemptions stay gone in 2026 under OBBBA?
TCJA eliminated personal exemptions, but with the sunset I wasn't sure for 2026. Did OBBBA make that elimination permanent, and is the IRS already operating under that?
Do U.S. tax treaties usually reduce U.S. tax for U.S. citizens or residents in 2026?
I started as a foreign owner but I'm now a U.S. resident for tax purposes. Do my home-country treaty benefits still help against U.S. tax in 2026?
Does California's $500,000 sales-tax nexus test include sales by related companies in 2026?
I have multiple related entities selling into California. Do California sales aggregate across related companies for the $500K nexus test in 2026?
If my LLC operates in multiple states, do I have multiple state-level recurring obligations in 2026?
My LLC is formed in Wyoming but I'm also registered to do business in California and Florida. Do I have separate state filings for each in 2026?
Can a domestic Section 721(c) partnership be treated as foreign for Form 8865 in 2026?
I keep seeing references to Section 721(c) partnerships being treated as foreign for 8865. What's the rule for tax year 2026?
Can Form 8805 be required even if no Section 1446 tax was paid for that partner in 2026?
We had a foreign partner but no tax was actually paid on their behalf — is Form 8805 still required for 2026?
When does the foreign payee have to receive Form 1042-S in 2026?
When does my foreign vendor need to actually receive their copy of Form 1042-S for tax year 2025 (filed in 2026)?
If a foreign company withdrew its U.S. registration, did the BOI filing duty disappear in 2026?
We registered our foreign company into a U.S. state, then withdrew the registration shortly after. Does that erase the BOI obligation under the current rule?
Does the FBAR still have to be filed electronically in 2026?
I'd prefer paper. Does the FBAR (FinCEN 114) still require electronic filing for 2026?
What should a foreign-owned U.S. disregarded entity write on Form SS-4 line 9a in 2026?
I'm filling out Form SS-4 for my foreign-owned LLC. Line 9a asks for entity type. What's the IRS-recommended wording for tax year 2026?
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