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 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...
I am in Singapore and the platform wants a W-8BEN-E, but I keep hearing there is no treaty. Does the form still matter?
I run a U.S. LLC from Singapore and one platform asked for a W-8BEN-E. Since everyone keeps telling me there is no comprehensive treaty with the U.S., I am confused about why the form still matters if...
I live in Mexico but spent two weeks closing deals in Texas. Should I expect more Form 8833 discussion now?
I run a U.S. LLC from Mexico City for enterprise software contracts. This year I spent about two weeks in Texas meeting prospects and helping close two accounts. The actual contracts were finalized af...
I live in the UAE. Why does my low-tax home country not help the U.S. side of the LLC more?
I formed a Delaware LLC while living in Dubai and assumed the low-tax environment at home would make the whole structure easier. Instead, I am learning that the U.S. still cares about income type, wit...
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...
I live in Indonesia and do everything from Jakarta. Is that the kind of fact pattern the treaty can actually support?
I use a U.S. LLC for a remote design subscription business. All services are delivered from Indonesia, there is no U.S. office, and I have not traveled to the U.S. this year. The clients are mostly Am...
I am in Thailand and one platform still pays me personally. Does that weaken the treaty file for the LLC?
I use a Delaware LLC for digital products and ad revenue from Bangkok. One platform pays the LLC correctly, but an older network still pays me personally because I never updated the tax profile. I kno...
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 am in Vietnam and one payer withheld 30%. Is that because I do not have a treaty path?
I run a U.S. LLC for online publishing and some licensing income from Ho Chi Minh City. A U.S. payer withheld at the full 30% rate, and my accountant says the lack of a treaty path is one of the main ...
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...
I am in Taiwan. Before I plan anything else, should I treat the current IRS treaty list as the ground truth?
There is a lot of confusing commentary online about Taiwan and cross-border tax arrangements. I run a U.S. LLC from Taipei for an online education business and I am trying to avoid building the whole ...
I am in Hong Kong and thought the U.S. LLC itself might unlock treaty treatment. Was that never realistic?
I earn platform revenue and consulting fees through a U.S. LLC from Hong Kong. I used to think the fact that the business was now a U.S. LLC would somehow make payers treat it more like a domestic com...
How should I book chargebacks and refunded sales tax in my Shopify store?
I run an online accessories store from the UAE through a Delaware LLC. We use Shopify Payments and some orders come through the Shop channel. Revenue is around $140,000, but chargebacks and partial re...
I am in Australia and keep funding the LLC personally. Does that matter only for Form 5472, or also for my Australian reporting?
I own a Wyoming LLC from Melbourne and keep paying early software and contractor costs personally before transferring money in and reimbursing myself later. My U.S. preparer keeps telling me to mainta...
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?
I live in France and my platform issued withholding paperwork under the LLC. Should my French accountant see all of it?
I run a U.S. LLC from France and earn ad revenue plus one small licensing arrangement. The U.S. side issued tax paperwork and withholding records that my U.S. preparer says are important, but I was no...
Some of my sales come through Shop and some through my Shopify website. Should I book them differently?
I run a skincare ecommerce store from Singapore through a Wyoming LLC. We have around $210,000 annual revenue. Some U.S. orders come through the Shop channel and some come through our own Shopify chec...
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?
My U.S. preparer calls them owner draws, but my Canadian adviser wants a different label. Should I worry?
I am a Canadian resident and my single-member U.S. LLC paid back some founder funding and also sent me a few owner withdrawals during the year. My U.S. preparer is comfortable calling them owner draws...
I refunded an eBay buyer outside the platform. Did I mess up the tax reporting?
I am a Brazilian seller using a Delaware LLC for U.S. eBay sales. One buyer complained after delivery, and I refunded them through PayPal instead of the eBay refund workflow because it felt faster. Th...
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...
Etsy says it remits U.S. sales tax for me. Do I still need to think about U.S. state filings at all?
I sell handmade products from Turkey through an Etsy shop using a New Mexico LLC. Etsy's help center says it automatically calculates, collects, and remits U.S. sales tax when marketplace rules apply....
I live in China but spent three weeks in the U.S. meeting clients. Does that put the treaty story at risk?
I run a Delaware LLC from Shanghai, but this year I spent about three weeks in the U.S. meeting enterprise clients and attending a conference. No office, no employees, and the contracts were signed la...
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 ...
My French accountant keeps saying the U.S. LLC treatment in France is the real issue. Is that normal?
I live in Paris and formed a U.S. LLC for a small online education company. The U.S. filings are fairly clear so far, but my French accountant barely talks about the U.S. return and keeps focusing on ...
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...
I live in Australia and run everything from Australia. Is that enough to support a no-U.S.-office treaty view?
I am an Australian resident using a Delaware LLC for a B2B SaaS product. We have U.S. customers, but no U.S. employees, no office, and no U.S. travel this year. All product work and contract approvals...
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