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.
I'm selling a property through my LLC — does the buyer withhold on the LLC or on me personally?
Quick question. I'm a Mexican citizen selling a house in San Diego that's titled in my Wyoming single-member LLC. The buyer's escrow company is asking for my personal ITIN to process FIRPTA withholdin...
If I die while owning U.S. real estate through my LLC, does my family face FIRPTA AND estate tax?
Morbid question but important. I'm a 62-year-old citizen of Thailand with a rental property in Las Vegas held through a Wyoming SMLLC. My family is all in Thailand. If something happens to me, what ha...
I'm from Singapore — how does my U.S. LLC get taxed?
I'm a Singapore citizen and tax resident. I formed a Wyoming LLC for my software consulting business. I work from Singapore serving U.S. clients. Singapore has a territorial tax system — does that mea...
What is the trust fund recovery penalty and can it apply to foreign LLC owners?
My foreign-owned U.S. LLC has employees and I handle payroll. I fell behind on payroll tax deposits. Someone told me the IRS can hold me personally liable for the unpaid payroll taxes through somethin...
Are stablecoin transactions taxable for my foreign-owned LLC? USDC, USDT, DAI?
My LLC receives most of its client payments in USDC and sometimes swaps between USDC and USDT. I also park funds in DAI savings on MakerDAO. Since stablecoins are pegged to the dollar, I assumed these...
How does Thailand's new remittance tax rule affect my U.S. LLC income?
I used to keep my LLC profits in the U.S. and only bring money to Thailand the following year to avoid Thai tax. I heard the rules changed in 2024. Does this mean all my LLC profits are now taxed in T...
Why did my bank close my foreign LLC account and what compliance triggers should I watch for?
I just received a letter from my bank saying they're closing my foreign LLC's account in 30 days with no specific reason given. I've had this account for 18 months and never had any issues. My LLC is ...
Foreign Tax Credit Calculation: FTC Allowed Formula Explained (Ep. 23)
I'm trying to maximize my tax credits: Foreign Tax Credit Calculation: FTC Allowed Formula Explained. How do I calculate and claim these credits correctly?
Head of Household for NRA: Quick Decision Guide (Ep. 79)
I need help with my filing status: Head of Household for NRA: Quick Decision Guide. What are the rules and how do I determine what applies to my situation?
What is a PFIC and how does it affect U.S. persons investing in foreign companies?
I'm a U.S. citizen and I hold shares in a foreign investment fund that a friend recommended. I just learned about something called PFIC — Passive Foreign Investment Company — and the penalties for not...
Injured Spouse Allocation: Form 8379 Introduction (Ep. 60)
I believe I qualify as an injured spouse. I need help understanding: Injured Spouse Allocation: Form 8379 Introduction. How does the allocation process work?
Business vs Personal Expenses: The Grey Area of Tax Deductions (Ep. 12)
I'm new to U.S. taxes and need to understand: Business vs Personal Expenses: The Grey Area of Tax Deductions. Can someone explain this in straightforward terms?
Section 179 Carryover Rule: What Happens to Unused Deductions (Ep. 30)
I have questions about tax deductions: Section 179 Carryover Rule: What Happens to Unused Deductions. What are the limits and rules I need to follow?
B-2 tourist visa: can I manage my LLC while visiting?
I own a single-member LLC in Delaware and I am visiting the U.S. on a B-2 tourist visa. While here I have been responding to client emails and managing my LLC remotely from my laptop. A friend told me...
How do estimated tax payments work for foreign LLC owners?
I am a nonresident alien who owns a US LLC that generates effectively connected income. I understand that I may need to make estimated tax payments throughout the year rather than waiting until I file...
Life Changes That Affect Your Tax Return (Ep. 48)
My circumstances changed this year and I need to understand: Life Changes That Affect Your Tax Return. How does this affect my tax return?
Do I owe Australian CGT if I sell my U.S. LLC membership interest?
I've been running my U.S. LLC for three years and I'm considering selling a 50% membership interest to a business partner. The LLC has appreciated significantly in value. Will Australia tax the capita...
Introduction to Single Member LLC: Complete Tax Guide for U.S. Business Owners
I'm choosing a business structure and want to understand: Introduction to Single Member LLC: Complete Tax Guide for U.S. Business Owners. What are the tax and liability implications I should consider?
What is the IRS Voluntary Disclosure Practice and when should I use it instead of streamlined?
I intentionally did not file Form 5472 and FBARs because I thought the IRS would not find out. Now I am concerned about criminal prosecution. Someone told me about the IRS Voluntary Disclosure Practic...
Personal Information Preparation for Your Tax Return (Ep. 8)
I'm new to U.S. taxes and need to understand: Personal Information Preparation for Your Tax Return. Can someone explain this in straightforward terms?
What is the Trust Fund Recovery Penalty and can it hit me personally as a foreign LLC owner?
My attorney mentioned something terrifying called the Trust Fund Recovery Penalty (TFRP) related to payroll taxes. He said the IRS can go after me personally even though my LLC is supposed to protect ...
LLC with two foreign owners — is it still Form 5472 or something else?
My business partner and I are both non-US persons. We formed a two-member LLC. Someone told me multi-member LLCs don't file Form 5472 but Form 1065 instead. Is that right?
Qualified Foreign Taxes: What Counts for the Foreign Tax Credit (Ep. 22)
I'm trying to maximize my tax credits: Qualified Foreign Taxes: What Counts for the Foreign Tax Credit. How do I calculate and claim these credits correctly?
What are the penalties under IRC 6651 for filing late or paying late, and how do they apply to foreign LLC owners?
I'm a Nigerian business owner with a Wyoming LLC. I missed the April 15 deadline for filing my Form 5472 and pro forma 1120 last year. I also have some ECI that I owe tax on, and that payment is late ...
Form 5471: Reporting Foreign Corporation Ownership to the IRS (Ep. 41)
I have income from outside the U.S. and need guidance on: Form 5471: Reporting Foreign Corporation Ownership to the IRS. What are my reporting obligations and how do I stay compliant?
Who qualifies as a U.S. shareholder of a CFC and what are their reporting obligations?
I'm a U.S. citizen living abroad and I own 15% of a company incorporated in Singapore. Two other Americans each own 20%, and the rest is owned by Singaporean nationals. Am I a U.S. shareholder? What f...
Received a CP2000 Notice? Here's What to Do Next (Ep. 6)
I received a CP2000 notice from the IRS: Received a CP2000 Notice? Here's What to Do Next. What should I do and how do I respond properly?
How does Vietnamese personal income tax apply to my U.S. LLC distributions?
I regularly transfer USD from my U.S. LLC bank account to my Vietnamese bank account. My Vietnamese accountant is not sure how to categorize this — is it business income or investment income? The PIT ...
What are the tax implications of a Series LLC for foreign owners?
I have been reading about Series LLCs that allow you to create separate series within a single LLC, each with its own assets, liabilities, and members. As a foreign owner looking to hold multiple inve...
When do I use Form 8813 to make partnership withholding payments and how often?
Our U.S. partnership has two foreign partners and we're required to withhold under Section 1446. I understand we need to make estimated payments throughout the year. Do we use Form 8813 for each payme...
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