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.
When do I need to file Form 8992 for GILTI, and what schedules are required?
My accountant says I need to file Form 8992 because I'm a U.S. shareholder of a CFC. But I'm confused about when this form is actually required. Is it only needed if I have a positive GILTI amount, or...
Innocent Spouse Qualification Part 2 (Ep. 64)
My spouse and I have a tax issue and I need to understand: Innocent Spouse Qualification Part 2. What relief options are available and how do I qualify?
Does Minnesota tax foreign-owned LLCs on income from Minnesota clients?
I have a software development LLC formed in Delaware and I do contract work for a company in Minneapolis. I'm from Sweden and I work remotely. The contract is worth about $95,000/year. What Minnesota ...
How does the U.S.-Germany estate tax treaty treat LLC ownership?
I'm a German citizen living in Munich and I own a Wyoming LLC that operates an online business. The LLC has about $200,000 in assets including a U.S. bank account and some equipment. I also hold $800,...
What is a Suspicious Activity Report and can my bank file one on my LLC without telling me?
I overheard a conversation at my bank where someone mentioned 'SAR' in reference to another customer's account. I own a foreign-owned LLC and now I am paranoid. Can my bank file a Suspicious Activity ...
Are LLC membership interests considered U.S. situs property for estate tax?
I'm a Canadian citizen and I own a 50% membership interest in a multi-member LLC organized in Florida. The LLC operates an e-commerce business and holds some inventory in a U.S. warehouse. My partner ...
How do holding company structures work for foreign LLC owners?
I own multiple business interests in the US and I am considering setting up a holding company structure. As a foreign national, I want to understand how a holding company could help me manage assets, ...
How do multi-tier LLC structures optimize taxes for foreign owners?
I have seen advice suggesting that foreign LLC owners can benefit from multi-tier LLC structures where one LLC owns another. How does this actually work for tax purposes? Does adding layers of LLCs pr...
What are the actual risks of operating as a sole proprietorship vs forming an LLC?
I've been freelancing as a sole proprietor for 2 years now. My income is growing and I'm starting to worry about liability. A client threatened to sue me last month (over a disagreement, nothing serio...
Filing Status After Spouse Death (Ep. 57)
I need help with my filing status: Filing Status After Spouse Death. What are the rules and how do I determine what applies to my situation?
When to Choose MFS Filing Status (Ep. 68)
I need help with my filing status: When to Choose MFS Filing Status. What are the rules and how do I determine what applies to my situation?
Do I need to file Virginia state taxes for my foreign-owned LLC with Virginia clients?
I provide IT consulting to a government contractor in Virginia. I'm a non-resident alien from Ukraine living in Kyiv. My LLC is formed in Wyoming. The Virginia contract is worth about $120,000/year. D...
Form 8865 Category 1 Filers: Who Must Report? (Ep. 44)
I have interests in a foreign partnership and need to understand: Form 8865 Category 1 Filers: Who Must Report?. What are the filing thresholds and requirements?
My father was a non-resident alien who owned U.S. real estate. Do we need to file Form 706-NA?
My father recently passed away. He was a citizen of Mexico and never lived in the U.S., but he owned a vacation condo in Texas worth about $400,000. He also had a U.S. brokerage account with about $15...
How exactly is the BEAT calculated? Walk me through the minimum tax computation.
I understand BEAT conceptually but I'm struggling with the actual math. My U.S. corporation has $150 million in taxable income, $40 million in base erosion payments that are deductible, and $5 million...
How are hard forks and token splits taxed for my foreign-owned LLC?
My LLC held Bitcoin when Bitcoin Cash (BCH) was created through a hard fork years ago. I also have some tokens that went through chain splits and airdrops as part of protocol upgrades. I never claime...
Can I get an ITIN and EIN at the same time?
I need both an ITIN and an EIN for my new LLC. Can I apply for both simultaneously or do I need to get one before the other?
Reporting Tax Changes: Income, Adjustments, and Deductions (Ep. 49)
My circumstances changed this year and I need to understand: Reporting Tax Changes: Income, Adjustments, and Deductions. How does this affect my tax return?
What customs and import duty rules apply when my foreign LLC imports products for e-commerce?
My foreign-owned LLC (Florida) imports products from my home country (Vietnam) to sell in the U.S. I'm importing handmade furniture and home decor items. Some shipments are worth $5,000-$15,000. I'm ...
How does Taiwan tax distributions from my U.S. LLC?
I transfer profits from my U.S. LLC to my Taiwanese bank account quarterly. My accountant in Taiwan is unsure whether to report this as business income or dividend income. Taiwan's tax treatment is di...
Negative QBI Carryover: Tax Implications Explained (Ep. 32)
I need help with the Qualified Business Income deduction: Negative QBI Carryover: Tax Implications Explained. How does it work and what are the carryover rules?
Standard vs Itemized Deduction Gotchas Part 2 (Ep. 4)
I'm new to U.S. taxes and need to understand: Standard vs Itemized Deduction Gotchas Part 2. Can someone explain this in straightforward terms?
When should I use Form W-8ECI instead of W-8BEN-E for my LLC?
My U.S. LLC earns income that I believe is effectively connected with a U.S. trade or business. I have been filing W-8BEN-E, but someone told me I should be using Form W-8ECI instead. What is the diff...
MFS Introduction (Ep. 67)
I need help with my filing status: MFS Introduction. What are the rules and how do I determine what applies to my situation?
O-1 visa and passive LLC ownership
I hold an O-1 visa for extraordinary ability in the arts. I have a U.S. LLC that I use for my creative work and brand licensing. My O-1 is sponsored by an agent, and I perform work for various clients...
How does LLC taxation actually work? Does the LLC pay taxes or do I pay taxes personally?
I just formed a multi-member LLC with my business partner and we're confused about how taxes work. Our accountant mentioned 'pass-through taxation' but I don't fully understand. Does our LLC file its ...
IRC 6015(f) Equitable Relief (Ep. 66)
My spouse and I have a tax issue and I need to understand: IRC 6015 Equitable Relief. What relief options are available and how do I qualify?
QSS: Child Survivor Benefits Rules (Ep. 76)
I need help with my filing status: QSS: Child Survivor Benefits Rules. What are the rules and how do I determine what applies to my situation?
Can life insurance help my heirs pay U.S. estate tax on my LLC assets as an NRA?
I'm a non-resident alien from India (no estate tax treaty with the U.S.) and I own a U.S. LLC with about $2 million in assets, mostly U.S. real estate. I understand I'll face significant estate tax wi...
What is IRC 1446 withholding on foreign partners and why is the U.S. partnership withholding from my share?
I'm a German citizen who is a 40% partner in a U.S. LLC taxed as a partnership. The partnership operates a restaurant in New York. The managing partner told me the partnership has to withhold tax from...
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