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.
If my LLC signs a U.S. commercial lease before the store opens, does that already create U.S. tax risk?
I am based in Brazil and plan to open a small showroom in Florida through my Delaware LLC. The lease would start a few months before the store actually opens so I can renovate and set up inventory. Re...
If my clients are outside the U.S., should I still collect through the U.S. LLC or just invoice from home?
I live in Portugal and most of my clients are in Europe. I formed a U.S. LLC because I want one global operating company, but now I am second-guessing whether it is worth routing foreign-client paymen...
Has anyone used ForeignLLCTax.com to file their 5472? How was the experience?
I just found out about the $25k penalty for not filing Form 5472 and I'm kind of panicking. Has anyone here used the self-filing tool on this site? Was it straightforward? I'm not great with tax forms...
What does a strong reasonable cause timeline actually look like for a foreign LLC filing mistake?
I am in South Korea and am trying to draft a penalty relief request after a missed filing for my Delaware LLC. People keep saying to provide a timeline, but I do not know how detailed it needs to be. ...
The IRS says audits can happen by mail or in person. Does that change how I prepare my Form 5472 records?
I am in Israel and trying to build a stronger compliance binder after hearing more stories about Form 5472 exams. The IRS audit pages mention correspondence exams, office audits, and field audits. Sin...
Can I use the streamlined procedures to fix the LLC's missed Form 5472 itself?
I am in the UK and my bigger headache is a missed Form 5472 for an older year. Someone in a founder group told me to just use the IRS streamlined procedures because they worked for missed foreign fili...
The IRS denied my penalty relief request. Is there still a next step?
I am in Australia and already submitted a written request to remove a penalty related to my foreign-owned LLC. The IRS denied it. I am now unsure whether that means I have reached the end of the road ...
If the phone line cannot fix my penalty, do I have to use Form 843 or can I just send a letter?
I am in Mexico and trying to clean up a penalty issue for my U.S. LLC. The IRS phone guidance was not very helpful and now I am deciding what to send in writing. Some people say Form 843 is the right ...
People keep telling me to ask for first-time abatement. Should I do that before arguing reasonable cause?
I am in Singapore and my Delaware LLC received a filing penalty related to our first year of U.S. compliance. Various people online say to ask for first-time abatement first because it is easier than ...
I missed U.S. personal filings tied to the LLC. Can I use the streamlined procedures even though the business is an LLC?
I live in Canada and the LLC itself has its own compliance file, but my bigger issue is that I may have missed owner-level U.S. filings and FBARs tied to the way I used the structure. Someone mentione...
I got my EIN already, but now the ownership and mailing address changed. Do I need to update the IRS?
I am based in the UAE and formed my LLC last year. We already have an EIN, but since then the mailing address changed and my co-founder bought out the other founder, so the responsible party changed t...
What is the difference between line 1f and line 1g on Form 5472?
I am in Nigeria and helping my preparer organize data for a Delaware LLC's Form 5472. The instructions for line 1f and line 1g both seem to ask for total values, and I do not understand why there are ...
This is my LLC's first year filing Form 5472. Does checking the first-year box help with penalties if we make a mistake?
I am in Germany and my Delaware LLC is filing Form 5472 for the first time. I noticed the instructions mention a line asking whether this is the first year the reporting corporation has filed the form...
My preparer wants to fax the Form 5472 package instead of mailing it. Is that really allowed?
I am a UK founder with a Delaware LLC and my preparer says the foreign-owned disregarded entity package can be faxed to the IRS instead of mailed. I had assumed tax returns always had to be mailed phy...
Married filing separately — will this affect my spouse's immigration case?
My spouse is applying for a green card and we're wondering if filing separately vs jointly has any impact on the immigration process. Our tax situation makes MFS more advantageous but we don't want to...
People keep calling affiliate income passive. Does that actually matter if I run SEO sites actively?
I am a Canadian affiliate marketer with a Wyoming LLC. I spend all day building content, testing offers, running SEO, and buying ads. Revenue is about $140,000 and comes from several software and ecom...
One affiliate network pays me personally and another pays my LLC. Is that a problem?
I am in Singapore and run niche websites through a Delaware LLC. Most revenue is affiliate commissions. One older program still pays me personally because I signed up before forming the company, but n...
What is the branch profits tax under IRC 884 and does it apply to my foreign corporation doing business in the U.S.?
I have a Japanese corporation that operates a trading office in Los Angeles. My U.S. tax advisor mentioned a 'branch profits tax' under IRC 884 that would apply on top of the regular corporate income ...
A network asked for tax forms after I already earned commissions. Did I wait too long?
I am based in the UAE and use a Delaware LLC for affiliate campaigns. One network let me earn commissions for months and only now asked for tax information. Revenue on that one network is about $16,00...
If I live in different countries each year, where do IRS notices for Form 5472 actually go?
I am based in Singapore now but may move again next year. My Delaware LLC files Form 5472 and I am worried about missing IRS notices because my personal location keeps changing. I know the LLC has a r...
Why Does the Alternative Minimum Tax Exist? History and Purpose (Ep. 16)
I'm worried about the Alternative Minimum Tax: Why Does the Alternative Minimum Tax Exist? History and Purpose. How do I know if this affects me and what can I do about it?
I do not have one permanent home address anymore. How should I handle tax filings for my LLC?
I am originally from Hong Kong but have been moving between short-term rentals in Thailand, Japan, and Europe while operating a Delaware LLC. I do not really have a permanent residential address right...
I moved from Bali to Portugal midyear. Can I still show a closer connection outside the U.S.?
I am a digital nomad with a New Mexico LLC. I spent the first half of the year living in Bali and then moved to Portugal. I also spent around 90 days total in the U.S. during the year. My online busin...
My broker files the customs paperwork. If something is wrong, is my LLC still responsible?
I am based in the UAE and sell products into the U.S. through a Delaware LLC. We recently started importing small batches for faster fulfillment, and a customs broker handles the entries. Revenue is a...
My supplier sends samples and paid inventory shipments differently. Should duties be tracked separately?
I am based in India and use a U.S. LLC for an ecommerce brand. We import product samples one way and later larger commercial shipments another way. My broker handles the customs side, but our accounti...
Etsy collects sales tax for marketplace orders, but what about my Shopify site for the same products?
I am in the Philippines and sell the same handmade products through Etsy and Shopify using one Delaware LLC. Etsy clearly says it remits U.S. sales tax for qualifying marketplace orders, but Shopify i...
I used to ship direct from Asia but now I am considering FBA. Is that basically a tax line in the sand?
I am based in Taiwan and run an ecommerce brand through a Delaware LLC. So far we have shipped everything directly from Asia, but Amazon FBA could improve conversion and delivery times. Annual revenue...
If I never store inventory in the U.S., is my dropshipping LLC usually safer from ECI?
I am in Nigeria and run a small dropshipping business through a New Mexico LLC. Products ship from China to U.S. customers and I do not keep inventory in the U.S. Revenue is only about $60,000 for now...
QSS Eligibility: Entitled to File Requirement (Ep. 73)
I need help with my filing status: QSS Eligibility: Entitled to File Requirement. What are the rules and how do I determine what applies to my situation?
Key IRS Tax Forms and Due Dates Every Taxpayer Must Know (Ep. 9)
I'm new to U.S. taxes and need to understand: Key IRS Tax Forms and Due Dates Every Taxpayer Must Know. Can someone explain this in straightforward terms?
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