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.
Do I have to withhold 30% when I take an owner draw from my disregarded LLC to myself as the foreign owner?
I'm the single foreign owner of a US LLC that is disregarded for tax. Every month I move profit from the LLC's bank account to my personal account abroad. Someone told me that because the money is goi...
I own a foreign holding company and a US LLC — do I need to file Form 3520 when I move to the US?
I'm the founder of a holding company in my home country that owns my operating business, plus a US LLC for the American market. I'm relocating to the US next year, and my accountant casually mentioned...
Buyer is paying $900k and taking over a $100k mortgage — what's the FIRPTA withholding?
Selling my US property as a non-resident. The buyer is paying me $900,000 in cash and also taking the property subject to my existing $100,000 mortgage. The buyer's lawyer says FIRPTA is 15% but I'm n...
Is the argument that Amazon is an independent agent enough to avoid a US trade or business?
A few sellers in my group insist that because Amazon is an independent contractor running its own business — not my employee or dependent agent — its FBA activities can't be attributed to me, so I don...
Why won't my CPA accept my QuickBooks books at year-end without redoing them?
I've been using QuickBooks all year with auto-sync from Mercury and Stripe. The books look clean to me. But my CPA wants raw bank CSVs and is essentially redoing the classification work. Is this just ...
Can my self-directed IRA take a 10% stake in a foreign-owned U.S. LLC without triggering UBTI?
I run a self-directed IRA and I'm considering a 10% stake in a Wyoming LLC majority-owned by a foreign founder and operating as an active e-commerce business. I've heard that an IRA's share of an acti...
How are foreign-currency gains and losses on my U.S. LLC's intercompany payable to me as the foreign owner treated under Section 988?
My U.S. LLC owes me $30,000 USD as the foreign owner; the payable is denominated in U.S. dollars. My home accounting is in euros. Between when the payable was booked and when it was paid, USD/EUR move...
What goes on Form 1042 Part III when my foreign-owned LLC made one royalty payment to its NRA owner?
My foreign-owned Delaware LLC paid one royalty of $8,000 USD to its NRA owner during 2025. I already filed Form 1042-S to report the payment to the IRS and to the owner. Now I have to file the annual ...
Form 8275 or Form 8275-R — which one do I file to disclose a tax position on my foreign-owned LLC return?
My CPA wants to take a position on my U.S. LLC's pro forma 1120 that he says goes against a Treasury regulation. He mentioned filing either Form 8275 or Form 8275-R but I don't really understand which...
How do I read Form 5471 Schedule J — what's the difference between accumulated E&P and PTEP?
I'm a U.S. shareholder of a foreign corporation that I own through my U.S. LLC, and my prior preparer left me with a Schedule J I can't decipher. There are columns for E&P, PTEP, and various sub-bucke...
What does SARS expect from a South African resident who owns a U.S. single-member LLC?
I'm a Cape Town resident running a Delaware LLC that I use to invoice U.S. consulting clients. South Africa taxes its residents on worldwide income, so I assume SARS wants to see the LLC's net income ...
How much underpayment interest does the IRS charge a foreign-owned LLC that paid corporate tax late in 2026?
My foreign-owned Delaware C-corp underpaid its 2025 estimated tax and now owes a balance after filing the 1120. The IRS notice mentions interest in addition to the penalty. I want to understand the ra...
What changed in the December 2024 revision of Form 5472 compared to the prior version?
I'm preparing my foreign-owned Wyoming LLC's 2026 Form 5472 and the IRS site now shows the current revision is dated December 2024. My prior return was filed on an older revision. Are there meaningful...
My US LLC buys finished goods from my foreign company and resells them — which IRC 482 method do I use, resale price or CPM?
The LLC imports finished inventory from a company I own abroad and resells it in the US. No manufacturing, no real product changes — just warehousing, order processing, customer service, and selling. ...
Are China Section 301 tariffs still in effect for my imports?
I keep reading conflicting things — that the 2025 China tariffs ended, but also that China tariffs are still alive. I import consumer goods made in China for FBA. Are the Section 301 China tariffs sti...
How do the 45-day and 180-day clocks work in a deferred exchange, and what if I transfer two properties on different dates?
I understand a deferred 1031 exchange has a 45-day window and a 180-day window, but I'm fuzzy on the details. When exactly do the clocks start? Does the identification have to be in writing? And I'm a...
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...
If I never foreign-qualified, do my contracts in that state become void?
I've been operating in a couple of states without registering as a foreign LLC. Now I'm worried that every contract I signed with customers and vendors in those states is automatically void or unenfor...
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...
I'm taking $150k cash boot in my exchange — why is withholding on the FULL $2.5M sale price, not just the boot?
My deferred exchange: I'm selling a property for $2.5M and buying a $2.35M replacement, so I get $150k back in cash. Only that $150k is taxable now. So why is everyone telling me FIRPTA withholding is...
Can I still ship my Shopify orders under the $800 de minimis to skip duties?
My old plan was to keep inventory at the factory and ship each Shopify order to the US customer under the $800 de minimis so it comes in duty-free. Someone told me that doesn't work anymore. Is the $8...
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