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.
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 Japanese accountant says my U.S. app income may not all be one category. Why does that matter for treaty withholding?
I am based in Tokyo and have a U.S. LLC that earns app store revenue, ad revenue, and one licensing deal for a software SDK. I had been treating the whole business as 'app income,' but my accountant s...
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...
I live in Germany and flew to the U.S. twice for demos. Do I need a treaty travel log now?
I run a Delaware LLC from Berlin and this year I made two short trips to New York and California for product demos and customer meetings. No U.S. office, no employees, and the contracts were still sig...
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...
Everyone says the UK has a treaty with the U.S. Why does my accountant still call the LLC 'hybrid' and complicated?
I live in London and own a Delaware LLC for a consulting and content business. The online advice made it sound like the treaty would make the U.S. side manageable, but my UK accountant immediately sta...
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?
What penalties do states impose on foreign-owned LLCs for late tax filing?
I missed filing my California LLC return and my New York nonresident return last year. I'm a non-resident alien from South Korea with LLCs in both states. How bad are the penalties? Can I still file l...
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?
My Montana LLC is tiny. Is the annual report still a big deal for a foreign owner?
I am in Israel and formed a Montana LLC for a small import coordination business. The company made only $14,000 last year and does not yet have a warehouse or employees in the U.S. A registered agent ...
Does Virginia's annual registration fee matter if my LLC barely touched Virginia this year?
I am based in Colombia and have a Virginia LLC because my U.S. partner used to live there. This year the company did only about $21,000 in consulting revenue and almost all work happened outside the U...
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 ...
My North Carolina LLC is remote except for one manager. Do I still treat the annual report as a major filing?
I live in Poland and own a North Carolina LLC for a small digital marketing agency. Revenue was about $58,000, and my only real U.S. connection is a manager based in Charlotte who handles client commu...
I forgot Georgia annual registration because I was focused on federal tax season. How risky is that?
I am in Nigeria and own a Georgia LLC that runs a small remote staffing business. The company made about $72,000 last year and I was so focused on Form 5472 that I completely overlooked the Georgia an...
For a New York LLC, do I still need a registered agent if the state can receive service of process?
I am in Italy and qualifying a New York LLC for a consulting business with a local partner. I noticed New York has its own service-of-process rules through the Department of State, which made me wonde...
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 the BOI reporting requirement from reading this forum. Nobody told me about this when I f...
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...
My Texas LLC had almost no revenue. Do I still deal with the Texas public information report?
I am in Turkey and formed a Texas single-member LLC for software contracting, but the company only made around $7,000 last year. There are no Texas employees and I worked entirely from Istanbul. My pr...
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...
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