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 happens if my LLC had only $50 in the bank account the whole year?
My LLC literally only has $50 from the initial deposit. No revenue, no expenses beyond the registered agent fee. Do I still need to file Form 5472 for this?
What are Colorado's tax requirements for a foreign-owned LLC with Colorado sales?
I sell outdoor gear online and ship to Colorado customers. My LLC is in Wyoming and I'm a non-resident alien from Germany. Colorado sales were about $90,000 last year. I know about sales tax but are t...
What KYC/AML compliance do I need for my foreign-owned LLC's crypto exchange accounts?
I'm trying to open a Coinbase business account for my foreign-owned Wyoming LLC. They're asking for a ton of documentation — my passport, proof of address overseas, LLC formation documents, EIN letter...
Are cross-chain bridge transactions taxable events for my foreign-owned LLC?
My LLC bridges ETH from Ethereum to Arbitrum and Optimism to take advantage of lower gas fees for DeFi. I also bridge USDC between chains. When I bridge, I send ETH on one chain and receive wrapped ET...
What is IRC 881 and when does the 30% withholding tax apply to foreign corporations with U.S. income?
My LLC elected to be taxed as a corporation using Form 8832. I'm the sole owner and I live in Singapore. My tax advisor mentioned IRC 881 and said there could be a 30% withholding tax on certain types...
I heard foreign pension funds are exempt from FIRPTA — can I use my pension to invest in U.S. real estate tax-free?
I'm a financial advisor in London and I have several clients with substantial self-invested personal pensions (SIPPs) who want to invest in U.S. real estate. Someone mentioned that "qualified foreign ...
Does the generation-skipping transfer tax apply to NRAs with U.S. LLC assets?
I want to leave my U.S. LLC directly to my grandchildren (skipping my children). I'm a non-resident alien from France. Someone mentioned that there's a 'generation-skipping transfer tax' in the U.S. t...
Penalty abatement for Form 5472 — has anyone succeeded?
I got hit with the $25,000 penalty for not filing Form 5472 for 2024. I genuinely didn't know about the requirement. Has anyone successfully gotten this penalty reduced or removed? What was your appro...
Form 8379: Allocation Between Spouses on Joint Return (Ep. 62)
I believe I qualify as an injured spouse. I need help understanding: Form 8379: Allocation Between Spouses on Joint Return. How does the allocation process work?
How does the stepped-up basis work for inherited LLC interests from an NRA decedent?
My father was a non-resident alien who owned a 40% interest in a multi-member U.S. LLC that holds commercial real estate and stocks. He passed away recently and I'm inheriting his interest. I understa...
My LLC owns U.S. real estate — what is FIRPTA under IRC 897 and how does it affect me when I sell?
I'm a French citizen with a Wyoming LLC that holds a rental property in Texas. I'm thinking about selling the property next year. My real estate attorney mentioned FIRPTA and IRC 897, saying the buyer...
What is the GILTI high-tax exclusion, and how do I elect it?
My CFC is in a country with a 25% corporate tax rate. My tax advisor mentioned that there's a 'high-tax exclusion' for GILTI that could mean I don't have to include this income. How does it work? Is i...
Foreign Income Tax Overview: IRS Rules for U.S. Taxpayers (Ep. 36)
I have income from outside the U.S. and need guidance on: Foreign Income Tax Overview: IRS Rules for U.S. Taxpayers. What are my reporting obligations and how do I stay compliant?
SWIFT vs ACH: which should I use for payments as a foreign LLC owner?
I keep seeing ACH and SWIFT mentioned when talking about U.S. banking. I understand SWIFT is for international transfers and ACH is domestic, but I'm confused about when to use which. If I receive a ...
Form 8865 Introduction: Foreign Partnership Reporting (Ep. 43)
I have interests in a foreign partnership and need to understand: Form 8865 Introduction: Foreign Partnership Reporting. What are the filing thresholds and requirements?
Does BEAT apply to my foreign-owned U.S. corporation that pays royalties to its parent?
I'm the tax director of a U.S. corporation wholly owned by a Japanese parent company. We pay substantial royalties and management fees to our parent — about $80 million per year. Our total deductions ...
When do I file Form 940 for my foreign-owned LLC and what information do I need?
I just finished my first year of having employees in my foreign-owned LLC. I've been filing Form 941 quarterly but now I'm told I also need to file Form 940 for FUTA. How is this different from 941? W...
My bank mentioned 'Section 312 enhanced due diligence' for my LLC's international wire transfers — what is this?
I own a foreign-owned LLC that imports goods from Southeast Asia. My LLC receives wire transfers from my personal bank account in Singapore and also sends payments to suppliers in Vietnam and Thailand...
Form 6252 Calculation: How to Report Installment Sales (Ep. 35)
I'm considering an installment sale: Form 6252 Calculation: How to Report Installment Sales. How does Form 6252 work and how do I calculate the taxable gain?
TN visa (USMCA) and LLC ownership
I am a Canadian citizen working in the U.S. on a TN visa under the USMCA agreement. I work as a management consultant for my TN employer, but I also want to start my own consulting LLC on the side. Ca...
Section 179 Deduction Limits: Maximum Deduction and Phase-Out Rules (Ep. 29)
I have questions about tax deductions: Section 179 Deduction Limits: Maximum Deduction and Phase-Out Rules. What are the limits and rules I need to follow?
How do you calculate GILTI? What are tested income, QBAI, and net DTIR?
I understand GILTI at a high level but I'm struggling with the actual calculation. My CPA mentioned terms like 'tested income,' 'QBAI,' and 'net deemed tangible income return' and I got lost. I own a ...
QSS Eligibility: Not Remarried Requirement Explained (Ep. 72)
I need help with my filing status: QSS Eligibility: Not Remarried Requirement Explained. What are the rules and how do I determine what applies to my situation?
What is IRC 1441 withholding and when do my U.S. clients have to withhold 30% from payments to me?
I'm a South Korean graphic designer with a New Mexico LLC. A U.S. company I freelance for said they need to withhold 30% of my payments because I'm a foreign person and IRC 1441 requires it. Is this r...
My U.S. partnership has a foreign partner. Do we need to file Form 8804 for withholding?
I run a U.S. LLC taxed as a partnership with two partners — myself (a U.S. citizen) and a partner who lives in Germany and is not a U.S. person. The partnership earned about $200,000 in effectively co...
What is the SDN list and do I need to screen my LLC's clients against it?
I run a foreign-owned LLC that provides consulting services to small businesses. A colleague mentioned the 'SDN list' and said I could get in trouble if one of my clients is on it. I thought only bank...
My LLC changed registered agents. Do I need to file Form 8822-B with the IRS?
I'm a foreign owner of a Wyoming LLC and I recently switched registered agents from one provider to another. My mail forwarding address for the LLC has changed as a result. Do I need to notify the IRS...
Form 3800 Calculation Example: General Business Credit Step by Step (Ep. 27)
I'm trying to maximize my tax credits: Form 3800 Calculation Example: General Business Credit Step by Step. How do I calculate and claim these credits correctly?
What are totalization agreements and can they reduce my LLC's payroll tax obligations?
I'm from Germany and I own a U.S. LLC. I'm considering moving to the U.S. temporarily to work in my own business. A friend mentioned totalization agreements could help me avoid paying Social Security ...
Can a foreign LLC owner do a 1031 exchange to defer FIRPTA tax? Or does FIRPTA block it?
I own a rental duplex in Arizona through my foreign-owned SMLLC and want to sell it and buy a larger property. I've heard about 1031 exchanges where you can defer capital gains tax by reinvesting in a...
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