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.
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...
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 is California's $800 'tax trap' if I'm doing business there but never registered?
People keep warning me about a California $800 trap. My LLC is formed out of state and I've been doing some business with California customers but I never registered with the California Secretary of S...
How does the Form 8288-B withholding-certificate path work for a deferred 1031 exchange?
I'm doing a deferred like-kind exchange and I've been told to file Form 8288-B to reduce the FIRPTA withholding. How does that actually work? When do I file it relative to closing, how long does the I...
Single-entry vs continuous customs bond for recurring FBA replenishment — which do I need?
I'll be sending pallets into US ports every few weeks to replenish Amazon FBA, sometimes through different ports. My broker quoted me both a single-entry bond and a continuous bond and I don't know wh...
I just hired a remote employee who works from home in Washington — does that force me to foreign-qualify there?
My LLC is formed in New Mexico and I live abroad. I hired my first US employee, a developer who works from her home in Washington State. There's no office, no warehouse, nothing else in Washington — j...
If my sale is a 1031 exchange, does the FIRPTA 15% withholding still apply?
I keep getting conflicting answers. My closing agent says because it's a like-kind exchange, no FIRPTA withholding is needed. My CPA partner says it depends. Who is right? I'm a foreign person selling...
What is CBP Form 5106 and how do I get a CBP-assigned number with no EIN or SSN?
My freight forwarder mentioned a 'Form 5106' to set up my importer record, and something about a CBP-assigned number. I don't fully understand what 5106 does. My LLC is brand new and I'm still waiting...
Is foreign qualification the same thing as sales-tax nexus? My accountant and my lawyer seem to disagree.
My tax accountant keeps talking about 'economic nexus' and registering for sales tax in states where I cross a sales threshold. My business lawyer talks about 'foreign qualification' and certificates ...
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?
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