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.
Form 8832 asks about number of owners — how does that affect my classification options?
I'm filling out Form 8832 for my LLC and line 3 asks if I have more than one owner. I'm the only owner. How does answering 'No' change what classifications I can elect? Also, if I add a partner later,...
AMT Credit: How to Recover Your Alternative Minimum Tax (Ep. 20)
I'm worried about the Alternative Minimum Tax: AMT Credit: How to Recover Your Alternative Minimum Tax. How do I know if this affects me and what can I do about it?
What is FDDEI (formerly FDII) on Form 8993 for tax year 2026?
My U.S. C corporation provides software services to foreign clients. Prior workpapers call the section 250 deduction FDII and refer to GILTI. I have heard the 2026 rules use FDDEI and NCTI. What chang...
Form 8865 Category 3 Filers Explained (Ep. 46)
I have interests in a foreign partnership and need to understand: Form 8865 Category 3 Filers Explained. What are the filing thresholds and requirements?
How do passive activity loss rules affect foreign LLC owners?
I own a US LLC that invests in rental real estate and I also have a separate active business. I have heard that passive activity loss rules can limit my ability to deduct rental losses against my busi...
I gave my U.S. LLC an interest-free loan — what does IRC 7872 say about below-market loans between related parties?
I'm a French entrepreneur and I lent my Delaware LLC $200,000 at 0% interest to fund its operations. A friend who is a CPA told me this could create tax problems under IRC 7872 — something about the I...
I contributed cash and equipment to my foreign partnership. Do I need Schedule O of Form 8865?
I'm a U.S. person and I contributed $100,000 in cash and some computer equipment (worth about $20,000) to a foreign partnership that I'm a 40% partner in. My tax advisor mentioned Schedule O of Form 8...
I'm buying a property from a foreign-owned LLC — what are MY obligations as the buyer for FIRPTA?
I'm a U.S. citizen buying a house from someone who I think is a foreign national (they have a foreign-sounding name and the property is in a Wyoming LLC). I'm not sure if FIRPTA applies or what I need...
What is the FinCEN whistleblower program and should I be worried about former employees reporting my LLC?
I recently had a disagreement with a contractor who worked for my foreign-owned LLC. He threatened to 'report me to FinCEN' for money laundering. My LLC is a legitimate software company and I have nev...
MFJ: Both Spouses Must Agree (Ep. 56)
I need help with my filing status: MFJ: Both Spouses Must Agree. What are the rules and how do I determine what applies to my situation?
Filing from outside the US — do I mail Form 5472 internationally?
I live in Germany and need to send my completed Form 5472 to the IRS. Do I mail it to a US address? Is there an international mailing address? Can I e-file?
What is IRC 6038C and how is it different from IRC 6038A for my foreign corporation doing business in the U.S.?
I'm a Chinese citizen and I have a foreign corporation (registered in Hong Kong) that operates a U.S. branch. My accountant says I need to comply with IRC 6038C for information reporting. I already kn...
What Is a Pass-Through Entity? QBI Deduction Basics (Ep. 31)
I need help with the Qualified Business Income deduction: What Is a Pass-Through Entity? QBI Deduction Basics. How does it work and what are the carryover rules?
How do I handle state tax filing in multiple states for my foreign-owned LLC?
My foreign-owned LLC (formed in Wyoming) sells physical products to customers in all 50 states. I'm from Singapore. I use a 3PL fulfillment center in California and ship nationwide. Sales are about $8...
Which states charge a franchise tax on LLCs and how do the rates compare?
I want to understand which states have a franchise tax that would apply to my foreign-owned LLC. I'm from the UK and I'm choosing between several states for formation. Can someone explain which states...
Standard vs Itemized Deduction Gotchas Part 1 (Ep. 3)
I'm new to U.S. taxes and need to understand: Standard vs Itemized Deduction Gotchas Part 1. Can someone explain this in straightforward terms?
I dropship through a foreign-owned LLC — products ship directly from China to U.S. customers. What are my tax obligations?
I'm from Turkey and I have a Wyoming LLC for my dropshipping business. I use Shopify for the store and AliExpress suppliers ship directly to my U.S. customers from China. I never touch the products — ...
Foreign-Owned LLC with No U.S. Income? You Still Must File Form 5472
I'm a foreign owner of a U.S. LLC and I'm trying to understand: Foreign-Owned LLC with No U.S. Income? You Still Must File Form 5472. Can someone break this down in simple terms? I want to make sure I...
Can I file Form 4868 for an extension on my 1040-NR as a non-resident alien?
I'm a non-resident alien with U.S. rental income and I'm still waiting for some documents from my property manager. April 15 is coming up fast. Can I file Form 4868 to get an extension? Also, I've hea...
Standard Deduction vs Itemized Deduction: Which Should You Choose? (Ep. 2)
I'm new to U.S. taxes and need to understand: Standard Deduction vs Itemized Deduction: Which Should You Choose?. Can someone explain this in straightforward terms?
Can my foreign LLC hold balances in multiple currencies? How do multi-currency accounts work?
I run a foreign-owned LLC that has clients in the U.S. (paying in USD), Europe (paying in EUR), and Japan (paying in JPY). Currently I'm converting everything to USD when I receive it, which costs me ...
My foreign-owned LLC hired a non-resident alien employee — are there special withholding rules?
My foreign-owned LLC just hired someone on an H-1B visa to work in our New York office. They told me they are a non-resident alien for tax purposes since they just arrived in the U.S. Are there differ...
Is cryptocurrency staking income taxable for my foreign-owned LLC? When do I recognize it?
I stake ETH through my LLC's Coinbase account and also run an Ethereum validator at home overseas. The staking rewards appear in my account periodically. I've heard conflicting information: some say s...
How long does it actually take to get an EIN by fax?
I faxed my SS-4 three days ago and haven't heard back. Is this normal? The bank is pressuring me to provide my EIN.
Tax Return Due Dates for Decedent and Estate Returns (Ep. 51)
I'm confused about tax deadlines: Tax Return Due Dates for Decedent and Estate Returns. When exactly do I need to file and what extensions are available?
J-1 exchange visitors and LLC tax obligations
I am on a J-1 exchange visitor visa as a research scholar at a U.S. university. I have a side LLC that I formed to license some software I developed. My J-1 program allows me to earn supplemental inco...
How does my foreign-owned LLC file Form 1099-NEC for independent contractor payments?
My foreign-owned single-member LLC paid three independent contractors in the U.S. during 2025 — a graphic designer ($4,500), a content writer ($12,000), and an accountant ($3,200). Do I need to issue ...
Can I use an Offer in Compromise to settle foreign LLC penalties?
My foreign-owned LLC has accumulated over $100,000 in Form 5472 penalties across multiple years. I cannot afford to pay the full amount. Can I submit an Offer in Compromise (OIC) to settle for less? W...
What exactly is 'effectively connected income' under IRC 864(c)? How do I know if my LLC income qualifies?
I'm a Brazilian business owner with a Florida LLC that sells digital products online. Some sales go to U.S. customers, some to international customers. My CPA says I need to figure out what income is ...
What is Form 8288 and who is responsible for filing it — the buyer or the seller?
I just sold my rental property in Nevada through my foreign-owned LLC. The title company handled closing but they mentioned something about Form 8288 and withheld $75,000 from my proceeds. Now I'm con...
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