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 elected corporate treatment 2 years ago via Form 8832. Can I switch back to disregarded entity?
Two years ago I filed Form 8832 to have my single-member LLC taxed as a corporation. It turns out the corporate tax treatment isn't working well for my situation and I want to go back to being a disre...
What bookkeeping do I need to maintain for my foreign LLC's bank account?
I've been running my foreign-owned LLC for about six months and I've been pretty lax about bookkeeping. I have a Mercury account with maybe 50-60 transactions total — mostly client payments and a few ...
Who Qualifies as Injured Spouse? Form 8379 Guide (Ep. 61)
I believe I qualify as an injured spouse. I need help understanding: Who Qualifies as Injured Spouse? Form 8379 Guide. How does the allocation process work?
How do at-risk limitation rules affect foreign LLC members?
I am a foreign national who is a member of a US LLC that recently took on significant debt to finance business expansion. I have been told that at-risk rules may limit my ability to deduct losses from...
What specific categories of income are considered Subpart F income?
My CFC earns a mix of income — some from selling products, some from licensing IP, some from investing excess cash, and some from providing consulting services to related companies. I need to figure o...
Upwork clients do not send me 1099s, but one direct U.S. client says they will. Is that normal?
I am a graphic designer in Mexico using a Delaware LLC. About $40,000 comes from Upwork and another $28,000 comes from one U.S. direct client outside Upwork. Upwork says clients do not need to file 10...
My U.S. clients pay a monthly retainer even when they do not use all my hours. Does that change the tax analysis?
I am a strategy consultant in Brazil with a New Mexico LLC and two U.S. clients on monthly retainers worth $6,000 and $4,000. Some months they use all the time, but other months they barely use any. I...
What are the W-2 reporting obligations for a foreign-owned LLC with employees?
My foreign-owned LLC had two employees in 2025. I know I need to issue W-2s but I have several questions. What's the deadline? Do I send copies to the IRS too? I've heard about the W-3 transmittal for...
Foreign Income Filing Obligations: What U.S. Taxpayers Must Report (Ep. 37)
I have income from outside the U.S. and need guidance on: Foreign Income Filing Obligations: What U.S. Taxpayers Must Report. What are my reporting obligations and how do I stay compliant?
Should I close my US LLC before year-end to avoid another filing?
I'm not using my LLC anymore. If I close it before December 31, do I avoid having to file Form 5472 for this year? Or is there still a final return required?
If I receive client money into my personal foreign account before moving it to the LLC, does the LLC still have an FBAR problem?
I am in Argentina and my U.S. LLC is still new, so some clients keep paying into my personal business account in Buenos Aires before I transfer the money to the Delaware LLC. I know this is not ideal ...
My company is formed in the UK and registered in New York. Does that still make me a BOI filer even though domestic LLCs are exempt now?
I am a UK resident and my business is a UK company that registered to do business in New York instead of forming a new U.S. LLC. After the 2025 BOI rule changes, I got confused because everyone now ta...
My foreign-owned LLC collects payments from customers and pays freelancers — am I a money transmitter?
I own a foreign-owned LLC that runs a freelance marketplace platform. Clients pay my LLC for projects, and then my LLC pays the freelancers after taking a commission. A lawyer friend warned me that th...
Can I route X creator subscriptions into my LLC the same way as my sponsorship deals?
I am a Canadian creator and currently receive most of my revenue from sponsorships and newsletter referrals, but I may turn on creator subscriptions and ad revenue features on X. I already use a Delaw...
Does my registered agent need to know about Form 5472?
My registered agent only handles state compliance stuff. Do they need to be involved in my federal tax filing at all? Or is Form 5472 completely separate?
Relay mentions I may use a registered agent address in some cases. Is that actually reliable for a foreign founder?
I am in Germany and considering Relay instead of Mercury because I want better cash buckets and bookkeeper access. Relay's help center says a registered agent address may be usable in some situations,...
Spotify says it may issue 1042-S to my podcast LLC. What does that mean if I also sell my own sponsor packages?
I host a business podcast from Dubai and route revenue through a Delaware LLC. Spotify monetization is about $32,000 this year and direct sponsor packages add another $27,000. Spotify's tax page says ...
I have YouTube, TikTok, and direct sponsors in one LLC. How should I separate them for tax?
I am based in India and use a Delaware LLC for my creator business. This year I expect around $55,000 from YouTube AdSense, $18,000 from TikTok rewards, and about $40,000 from direct brand deals plus ...
MFS Pros and Cons (Ep. 69)
I need help with my filing status: MFS Pros and Cons. What are the rules and how do I determine what applies to my situation?
How do I file Form 7004 to extend my foreign-owned LLC's Form 1120 deadline?
My foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 attached. The deadline is April 15 but I'm not going to be ready in time because my bookkeeper is behind. Can I file Form ...
I missed the BOI filing deadline for my LLC — what happens now and how much will the penalty be?
I formed my single-member LLC in Delaware in March 2024 as a non-resident from Australia. I just learned about BOI reporting from reading this forum. Nobody told me about this when I formed my LLC. I ...
Apple and Google are both showing Brazil withholding on my app sales. How should I think about that with my LLC?
I run a mobile app studio from Mexico and use a Delaware LLC as the publishing entity. Both Apple and Google have meaningful sales in Brazil for us, and I can see withholding-related information in th...
What is the statute of limitations for IRS penalties on foreign information returns?
My foreign-owned LLC did not file Form 5472 for 2019, 2020, and 2021. Is there a statute of limitations that might protect me from penalties on the older years? I heard that the statute of limitations...
AdMob asked for U.S. tax info even though all my work is in Japan. If they do not send 1042-S, am I done?
I run a small mobile app company in Tokyo and all app development, support, and ad operations are done in Japan. I use a Delaware LLC for publishing and receive around $9,000 per month from AdMob. Goo...
Should I publish my app personally or through my U.S. LLC if I am trying to keep tax simple?
I am a French indie developer and currently have a Delaware single-member LLC that I formed to look more professional with vendors and payment processors. I have not launched yet. Apple and Google acc...
Unity Ads asked for tax forms and mentioned 1042-S. What does that mean for a Korean game studio?
We are a Korean mobile game studio using a U.S. LLC as the publishing entity. Unity Ads asked us to complete the payout profile and select a tax form. I also saw references to 1042-S and electronic de...
All my app servers are in Virginia, but I run the company from Hong Kong. Is that enough for U.S. tax?
I am based in Hong Kong and run an AI API business through a Delaware LLC. We do about $150,000 per year and all infrastructure is on AWS us-east-1 for latency reasons. No employees or contractors are...
When to Find a Tax Professional: Filing Deadline Tips (Ep. 53)
I'm confused about tax deadlines: When to Find a Tax Professional: Filing Deadline Tips. When exactly do I need to file and what extensions are available?
I hired a U.S. sales engineer for demos. Did my foreign-owned SaaS LLC become a U.S. business?
I live in Dubai and own a Delaware LLC for an API SaaS business doing around $420,000 annual revenue. I recently hired a part-time sales engineer in Texas as an independent contractor. He joins enterp...
What is the accuracy-related penalty under IRC 6662 and when does the IRS impose it on foreign LLC owners?
I just received a letter from the IRS saying they're proposing a 20% accuracy-related penalty on an adjustment they made to my LLC's tax return. They said I understated my income by not properly repor...
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