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.
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...
Is Colorado's periodic report just a formality, or does missing it create bigger problems?
I am in Portugal and set up a Colorado LLC because the filing process was straightforward. The business is still tiny, around $18,000 in affiliate revenue, and all work happens outside the U.S. The re...
I'm from Nigeria — how does my U.S. LLC get taxed?
I'm a Nigerian citizen living in Lagos. I formed a Wyoming LLC for my freelance software development business serving U.S. startups. I do all work from Nigeria. What are my IRS and FIRS obligations? N...
How do I actually file a dual-status return? Do I use Form 1040 and Form 1040-NR together?
My tax preparer quoted me $2,500 to prepare a dual-status return for the year I moved to the U.S. Before I pay that, I want to understand the mechanics. Do I literally file both Form 1040 and Form 104...
Do I really have to care about Nevada's annual list and business license if my LLC is just a holding company?
I am in the UAE and formed a Nevada LLC mainly to hold payment contracts and a U.S. bank account for an online education business. The real work is done outside the U.S. and the LLC has no employees. ...
My New York LLC paperwork feels heavier than the tax side. Is that normal?
I am based in France and formed a New York LLC for a niche media business because my co-founder is in Brooklyn. I expected a lot of tax work, but what is actually stressing me out is the administrativ...
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...
How does income apportionment work for a foreign-owned LLC with sales in multiple states?
My LLC earns income from clients in California, New York, Texas, and Florida. I'm a non-resident alien from Germany with a Wyoming LLC. Total revenue is $500,000. How do I determine how much income is...
I missed my Florida LLC annual report deadline while living abroad. Is this a tax problem or just a state cleanup problem?
I am a UK founder with a Florida LLC that runs an online lead generation business. The business itself is fine and the federal return is being prepared, but I realized I missed the Florida annual repo...
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...
Do I need a registered agent in every state where my foreign-owned LLC operates?
I have my LLC formed in Wyoming with a registered agent there. But I also sell to customers in California, Texas, and New York. Do I need registered agents in all of those states? What exactly does a ...
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...
My Wyoming LLC is tiny. Is the annual report still required if assets are basically zero?
I live in Singapore and formed a Wyoming LLC because several founders told me it was the simplest state for a remote business. The company has no employees and no U.S. office. It mostly just has a ban...
As a Canadian founder, can I rely on the treaty if I visit U.S. customers a few times a year?
I am a Canadian founder with a Delaware LLC selling annual B2B SaaS contracts. Revenue is about $310,000 and most customers are in the U.S. I do product and support from Toronto, but I also travel to ...
What is the $10,000 penalty for failing to file Form 5471?
I am a U.S. person with ownership in a foreign corporation and I also own a foreign LLC that does business in the U.S. I did not file Form 5471 for my foreign corporation. What penalties am I facing a...
Can I run GitHub Sponsors and consulting through the same foreign-owned LLC?
I am a maintainer in the UK and I have a Delaware LLC that I use for open source consulting. GitHub Sponsors is growing and should be around $18,000 this year. I also sell some private support and a f...
Understanding W-2, W-2G, and 1099 Forms: Income Reporting Basics (Ep. 11)
I'm new to U.S. taxes and need to understand: Understanding W-2, W-2G, and 1099 Forms: Income Reporting Basics. Can someone explain this in straightforward terms?
Stripe and PayPal keep asking for tax status on my LLC. Should I be giving W-9 or W-8 paperwork?
I am a Brazilian founder with a New Mexico single-member LLC selling a small SaaS product. Gross receipts are around $65,000 and I use both Stripe and PayPal. I do not have a U.S. SSN or ITIN, but the...
Form 8938 FATCA: Foreign Financial Assets Reporting Introduction (Ep. 39)
I have income from outside the U.S. and need guidance on: Form 8938 FATCA: Foreign Financial Assets Reporting Introduction. What are my reporting obligations and how do I stay compliant?
I'm leaving the U.S. and becoming a nonresident alien again — how do I preserve my LLC's tax benefits?
I've been a U.S. resident for 5 years (not long enough for exit tax) and I own an LLC that earns income from both U.S. and foreign clients. I'm moving back to Singapore and my residency will end this ...
What are the anti-inversion rules under IRC 7874 and how do they affect foreign-owned structures?
I've been reading about corporate inversions — companies moving their tax domicile overseas to reduce U.S. taxes. We are a foreign company considering acquiring a U.S. target, and our advisors warned ...
What is Form 8843 and do I need to file it if I'm a student or teacher in the U.S.?
I'm an international student on an F-1 visa and I've been told I need to file Form 8843 every year even though I have no U.S. income. I also started a small LLC for a side project. Does the LLC change...
How does the IRS late payment penalty work and does it apply to foreign LLCs?
My foreign-owned LLC had some effectively connected income (ECI) and owed tax, but I did not pay by the deadline. How is the late payment penalty calculated? Is there interest on top of the penalty? I...
What is Previously Taxed Income (PTI) and how does IRC 959 work for CFC distributions?
My CFC has been operating for several years and I've been including Subpart F and GILTI income on my U.S. tax return. Now the CFC is about to distribute a large dividend. My understanding is that I sh...
What is a Section 338(g) election and when is it used for foreign acquisitions?
Our U.S. parent is acquiring a foreign target company by purchasing all of its stock. Our M&A advisor mentioned we should consider a Section 338(g) election to treat the stock purchase as an asset pur...
What is Form 8288-A and why haven't I received my copy yet? It's been 3 months since closing.
I sold a property back in November through my foreign-owned LLC. The title company told me the FIRPTA withholding was submitted to the IRS, but I still haven't received Form 8288-A. My tax preparer sa...
Who counts as a 'beneficial owner' for BOI reporting — just me or also my spouse and business partners?
I am a South Korean citizen and I co-own a U.S. LLC with my wife (also Korean) and a Canadian business partner. We each own one-third. My wife handles the finances but is not listed on any formation d...
Does my foreign-owned LLC qualify for any BOI reporting exemption?
I have a foreign-owned LLC that earned about $200,000 last year. I have no U.S. employees — I work alone from France. I heard that some companies are exempt from BOI reporting. My registered agent cha...
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