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 app launched under my personal account last year. Now I want all 2026 revenue in the LLC. What has to change first?
I live in South Korea and my mobile app started as a solo project. Revenue was small at first, so I handled the platform accounts personally. Now the app is growing and I formed a U.S. LLC to run subs...
Apple wants tax forms in App Store Connect and I already used the wrong entity name. Can I fix it later without side effects?
I am in Japan and my iOS app now earns around $9,000 per month through a Delaware LLC, but my original Apple setup was rushed. The banking and tax side partly reflects the LLC and partly reflects my o...
I signed a renewal in Texas on the last day of a U.S. trip. Is that the kind of fact I need to flag separately?
I live in Australia and usually sell my software remotely through a Delaware LLC. I spent one week in Texas meeting an existing client and, on the last day, signed a renewal expansion that added anoth...
How is recurring subscription income taxed for my foreign-owned LLC?
I run an online membership community through my foreign-owned LLC. Members pay $29/month or $299/year for access to premium content, courses, and a private community. I'm based in Japan and the LLC is...
How does the late filing penalty under IRC 6651 work for LLC tax returns?
My foreign-owned LLC was supposed to file its pro forma Form 1120 by April 15 but I did not file until August. What is the late filing penalty calculation? Does it apply even if the LLC does not owe a...
People keep telling me to claim the R&D credit, but my LLC is disregarded and barely has U.S. tax. Is that advice even aimed at me?
I am in Canada and run a software startup through a New Mexico LLC. The engineering team is in Toronto and Montreal, and we are still early enough that my U.S. filing picture is mostly Form 5472 and b...
My broker withheld the full 30% on U.S. dividends even though Japan has a treaty. Is that just because the account setup was wrong?
I am in Japan and use a Delaware LLC as a holding vehicle for U.S. dividend stocks. This year the broker withheld the full 30% on dividends, even though I thought the U.S.-Japan treaty might allow a l...
A U.S. reseller wants to collect from my customers and pay my LLC. Is that cleaner or riskier for tax?
I live in Germany and my SaaS product is sold to manufacturing clients. A U.S. reseller wants to invoice U.S. customers directly and then pay my LLC after keeping its margin. From a commercial point o...
How does the U.S.-UK estate tax treaty help British LLC owners with U.S. property?
I'm a British citizen living in London and I own a U.S. LLC that holds two rental properties in Florida worth about $2 million combined. My worldwide estate is worth approximately $8 million. I know t...
My broker sent a 1042-S for dividend withholding. Do I need to do anything with it if I only invest passively?
I am in Canada and use a Delaware LLC for passive investing in U.S. dividend stocks. The broker issued a 1042-S showing dividend income and withholding. I am not doing anything active besides holding ...
My forex account is active, but most of the money movement is just me funding the LLC. Does that matter separately?
I am in Germany and use a Wyoming LLC for forex trading through a U.S. broker. Trading volume is high, but there are no employees or side businesses. Most of the non-trading activity is just me wiring...
I use my U.S. LLC for startup angel investments. What records matter beyond bank statements?
I am in the UAE and use a Delaware LLC for startup angel investments. Most positions are private SAFEs or direct equity subscriptions rather than public stocks. I have bank transfers and cap table ema...
E-1 Treaty Trader visa and LLC ownership
I operate an import-export business through a U.S. LLC and I am considering applying for an E-1 Treaty Trader visa. My trade is principally between the U.S. and my home country. How does LLC ownership...
Form 8865 Category 2 Filers Explained (Ep. 45)
I have interests in a foreign partnership and need to understand: Form 8865 Category 2 Filers Explained. What are the filing thresholds and requirements?
Can two LLCs share the same registered agent address?
I have two LLCs in Wyoming with the same registered agent. Is it okay for both to use the same address on their Form 1120? Or does this cause problems?
We import inventory and just hired one U.S. warehouse worker. Are customs and payroll now part of the same tax story?
I am in the Philippines and operate a U.S. LLC selling home products. We import inventory and recently hired one warehouse employee in Nevada. Before that, everything was managed by logistics provider...
Is opening a retail store materially different from just having a warehouse in the U.S.?
I am in Germany and run a product company through a Wyoming LLC. We already have a U.S. warehouse, and now a partner wants us to open a small customer-facing retail location in California. Revenue is ...
If my LLC manufactures products in the U.S., is it basically impossible to argue I am not in a U.S. trade or business?
I am a Canadian founder and my Delaware LLC is considering a small U.S. manufacturing setup with local staff and local production. Right now we only import finished goods, but the numbers suggest manu...
My European clients hate wires. Is Wise a normal collection method for a U.S. LLC, or should I force wires anyway?
I run a U.S. LLC from Argentina and most of my clients are in Europe. Larger companies can do wires, but smaller agencies and retainer clients keep asking for local transfer options or simpler invoice...
My U.S. LLC imports inventory, but my broker handles everything. Do I still need to care about customs records personally?
I run a product business from Singapore through a Delaware LLC and we have started importing small container shipments into the U.S. for resale. A customs broker handles the entries, duties, and paper...
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...
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