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.
I started doing U.S. implementation work in person. Does that mean my old W-8BEN-E may no longer fit?
I am based in Germany and originally ran everything remotely, so W-8BEN-E made sense to me. This year I spent a few weeks in the U.S. doing implementation workshops for two customers and I may do that...
I am in Singapore and there is no treaty. Why does the payer still want W-8BEN-E?
I use a U.S. LLC from Singapore and the payer asked for W-8BEN-E even though my adviser says there is no comprehensive U.S.-Singapore income tax treaty to claim. That made the whole thing feel pointle...
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...
I am in Argentina. Does my local adviser really need all the U.S. platform and withholding records?
I send my local adviser a P&L and bank totals, but they keep asking for the U.S. platform statements, withholding records, and owner-funding details too. I originally thought that was overkill because...
I am in Colombia. Should I fix the payee setup before worrying about the perfect bookkeeping system?
I am still early with my U.S. LLC and only recently realized some platforms are using the wrong legal payee details. I can already feel myself going down a bookkeeping rabbit hole, but my adviser says...
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 ...
I live in Poland and everything is remote. Is it enough to just say that, or do I need a formal facts file?
My U.S. LLC is fully remote from Warsaw and I have no U.S. staff, office, or inventory. Because the facts feel so simple, I was tempted to rely on the story itself instead of building a separate memo ...
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...
I am in the Netherlands. Is an owner-funding schedule really that important if the LLC is still small?
I have a small U.S. LLC from Rotterdam that only makes around $38,000 a year. Even so, both advisers keep pushing me to maintain a proper owner-funding and reimbursement schedule because they say cros...
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...
I live in Italy. Should both my U.S. and Italian advisers really use the same transaction map?
I own a Delaware LLC from Milan and my U.S. preparer wants a normal bookkeeping ledger, while my Italian adviser wants a separate schedule showing every contribution, reimbursement, and withdrawal in ...
I live in Portugal and one network still pays me personally. Does that weaken the residency-and-treaty file for the LLC?
My Delaware LLC receives most payments directly, but one old affiliate network still pays me personally in Portugal. I keep telling myself it is just a legacy platform issue, but my preparer says mixe...
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...
I'm from Italy — how does my U.S. LLC get taxed?
I'm an Italian citizen living in Milan. I formed a Delaware LLC for my design consulting business serving international fashion brands. I work entirely from Italy. What are my IRS and Agenzia delle En...
I am in Argentina and there is no treaty. Does that mean the home-country file matters more than usual?
I run a small U.S. LLC from Buenos Aires for digital products and subscriptions. Since Argentina is not on the current IRS treaty list, I am realizing that the U.S. side may be only half the work. My ...
I am in Colombia and there is no treaty. What are the first three things I should get right?
I own a U.S. LLC from Bogota for freelance analytics work. No U.S. office, no U.S. staff, and modest revenue so far. Because Colombia is not on the current IRS treaty list, I want to avoid the common ...
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...
I am in Poland. Is a monthly owner ledger really worth it for a small U.S. LLC?
I run a small design-subscription business through a Delaware LLC from Warsaw. Revenue is only around $48,000 a year, so a monthly owner-funding and reimbursement ledger feels like something a much bi...
I live in Portugal. Should I keep residency evidence with my U.S. LLC tax file?
I run a Delaware LLC from Lisbon and mostly think of the business as fully remote, but my accountant asked me to keep residency certificates, address evidence, and travel records with the U.S. file. T...
I live in Spain and made one short U.S. trip. Does that already belong in the treaty file?
I run a U.S. LLC from Madrid for online consulting and had one five-day trip to New York for meetings. No office, no staff, and no contract signing in the U.S. The trip felt too small to matter, so I ...
My Dutch adviser keeps pushing for better cash labels. Is that really worth the effort for a small LLC?
I live in Amsterdam and my U.S. LLC only makes around $55,000 a year from consulting. Even so, my Dutch adviser keeps insisting that every owner payment, reimbursement, and withdrawal be labeled preci...
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...
I am in the UAE and there is no treaty. Should I focus on payee setup before anything else?
I run a Delaware LLC from Dubai for online consulting and a few software subscriptions. Because there is no comprehensive U.S.-UAE treaty, I am trying to avoid wasting time on the wrong part of the st...
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 am in Hong Kong and there is no treaty. Does that make the home-country reporting file even more important?
I use a U.S. LLC from Hong Kong for digital marketing retainers. Since there is no comprehensive treaty path, my U.S. preparer keeps saying the local reporting and foreign tax side need to be thought ...
I live in Indonesia and keep funding the LLC personally. Is the owner-funding ledger worth keeping if the treaty may help anyway?
I own a Delaware LLC from Jakarta and keep paying small startup costs personally because the U.S. account is new. My U.S. preparer wants a full owner-funding ledger for Form 5472. I understand that pa...
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...
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