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.
Stop Overpaying Taxes: Carryovers You're Missing and Filing Checklist (Ep. 14)
I'm new to U.S. taxes and need to understand: Stop Overpaying Taxes: Carryovers You're Missing and Filing Checklist. Can someone explain this in straightforward terms?
Does the branch profits tax apply to a foreign-owned U.S. LLC treated as a disregarded entity?
I'm a non-U.S. individual operating a consulting business through a U.S. single-member LLC. I understand the LLC is a disregarded entity for tax purposes. Does the branch profits tax apply to me? I th...
Can I file Form 5472 myself or do I absolutely need a CPA?
My LLC had zero revenue this year. It seems like the filing should be pretty simple for a zero-income LLC. Is it realistic to do this myself or is it too risky without professional help?
What is the accuracy-related penalty under IRC 6662 and when does it apply?
The IRS audited my foreign-owned LLC and says I understated my income. They are assessing a 20% accuracy-related penalty on top of the additional tax. What triggers this penalty and is there any way t...
Common AMT Triggers: Incentive Stock Options (ISO) Explained (Ep. 17)
I'm worried about the Alternative Minimum Tax: Common AMT Triggers: Incentive Stock Options Explained. How do I know if this affects me and what can I do about it?
What documents do I need to open a U.S. bank account for my foreign-owned LLC?
I'm a Canadian citizen and just formed an LLC in New Mexico. I have my EIN and articles of organization. My formation agent provided a basic operating agreement template that I signed. Is that enough...
QSS: Rent from Family Members (Ep. 77)
I need help with my filing status: QSS: Rent from Family Members. What are the rules and how do I determine what applies to my situation?
Do NRA LLC owners also owe state estate or inheritance tax on U.S. property?
I'm aware of the federal estate tax for NRAs, but I just learned that some U.S. states have their own estate or inheritance taxes. I own rental properties through my LLC in New York and New Jersey. Do...
How do the earnings stripping and interest limitation rules under IRC 163(j) affect foreign-owned U.S. entities?
Our U.S. company is funded largely through intercompany loans from our foreign parent. We pay about $15 million per year in interest to the parent. I've heard about 'earnings stripping' rules and Sect...
What do I need to know about filing Form 8621 for PFIC reporting?
I have investments in two foreign funds that I've now confirmed are PFICs. I've owned them for three years and never filed Form 8621. I'm terrified about the penalties. What information do I need to c...
Are joint U.S. bank accounts subject to estate tax when an NRA co-owner dies?
My father (a non-resident alien from the Philippines) and I (a U.S. citizen) have a joint bank account in the U.S. with about $150,000. We also jointly own a brokerage account with $400,000 in U.S. st...
My foreign-owned LLC runs a cash-intensive business — what extra AML requirements do I face?
I am a Mexican citizen with a U.S. LLC that operates food trucks in Houston. Most of my daily revenue is cash — usually $2,000 to $5,000 per day across three trucks. I deposit cash at the bank two or ...
Can a foreign-owned U.S. LLC be classified as a CFC?
I'm a foreign national and I own a U.S. LLC. I've heard about CFC rules and I'm confused — isn't a CFC supposed to be a foreign corporation? My LLC is a U.S. entity. Under what circumstances could my ...
What are the 'check-the-box' regulations under Treas. Reg. 301.7701-3 and how do they affect my LLC's tax classification?
I'm a UK citizen and I formed an LLC in New Mexico for a consulting business. My tax advisor mentioned something called the 'check-the-box' regulations and said my LLC could be classified as a disrega...
How do net operating loss carryforward rules work for foreign LLCs?
My US LLC had a loss year in its first year of operations. I want to understand how net operating losses work for foreign-owned LLCs. Can I carry the loss forward to offset income in future years? Are...
What U.S. property triggers gift tax when an NRA gives it away?
I'm a non-resident alien and I want to gift my U.S. LLC interest and some U.S. stocks to my children while I'm still alive. I've heard the gift tax rules are different from estate tax rules for NRAs. ...
What are the annual report requirements by state for a foreign-owned LLC?
I'm trying to compare the annual filing obligations across different states before I choose where to form my LLC. I'm from Nigeria and this will be my first U.S. LLC. I want to understand what I'll ne...
Is there a free way to check if my EIN is still active?
I formed an LLC 3 years ago and never used it. I want to start using it now but I'm not sure if the EIN is still valid. How can I check without paying someone?
What are the actual estate tax rates for non-resident aliens? Are they the same as for U.S. citizens?
I understand NRAs only get a $60,000 exemption, but what are the actual tax rates applied to U.S. situs assets above that amount? I own about $1.5 million in U.S. stocks and a $400,000 membership inte...
Innocent Spouse Qualification Part 1 (Ep. 63)
My spouse and I have a tax issue and I need to understand: Innocent Spouse Qualification Part 1. What relief options are available and how do I qualify?
Section 179 Deduction: What Is It and How Does It Work? (Ep. 28)
I have questions about tax deductions: Section 179 Deduction: What Is It and How Does It Work?. What are the limits and rules I need to follow?
Can I set up an installment agreement to pay IRS penalties over time?
I owe $75,000 in Form 5472 penalties and I cannot pay the full amount at once. Does the IRS offer installment agreements for penalty-only balances? What are the terms and how do I apply? Will interest...
IRS sent me a letter in Chinese — is this legit?
I got a letter from the IRS that's partially in Chinese about my LLC. It mentions Form 5472 and a penalty. Is this a scam or does the IRS actually send letters in other languages?
How is DeFi income from yield farming and liquidity pools taxed for my foreign-owned LLC?
My LLC provides liquidity to Uniswap and Aave pools and earns yield. I also do some yield farming on Curve Finance. The income comes in the form of various tokens — LP fees, governance token rewards, ...
Does my foreign-owned LLC need workers' compensation insurance for its employees?
I'm setting up my foreign-owned LLC to hire employees in multiple states. I know about FICA, FUTA, and state unemployment tax, but someone mentioned workers' compensation. Is this another tax? Is it m...
What are the cheapest ways to send money from my U.S. LLC to my home country?
I'm spending $40-60 per international wire transfer when you add up Mercury's fee, intermediary bank charges, and the receiving bank fee. I send money home twice a month so this adds up to nearly $1,0...
My CPA said IRC 871 governs how I'm taxed as a nonresident alien — what does this section actually cover?
I'm a Japanese citizen running an online marketing agency through a U.S. LLC. I live in Tokyo and have never set foot in the U.S. My CPA said Section 871 of the IRC is the main section that determines...
What is an Employer of Record (EOR) and when should a foreign-owned LLC use one?
I'm a non-resident alien who owns a U.S. LLC but I don't want to deal with registering as an employer, running payroll, or dealing with state taxes. Someone suggested using an EOR (Employer of Record)...
F-1 student FICA exemption and LLC self-employment
I am an F-1 student in my third year and I have an LLC for freelance graphic design work that I do under OPT. My W-2 employer does not withhold FICA taxes because of my F-1 status. But now my LLC is g...
Does Stripe count as a reportable transaction on Form 5472?
I receive payments through Stripe for my SaaS. Stripe deposits to my LLC's US bank account. Is each Stripe payout a reportable transaction? Or just the total for the year?
Have a tax question?
ForeignLLCTax members can submit questions and get expert answers with IRS source citations. Join the community for $9.99/month.