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.
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?
How does the German Finanzamt treat U.S. disregarded entities?
My Steuerberater says Germany will tax my U.S. LLC as if it were a GmbH. But my U.S. CPA says the LLC is disregarded and I do not owe U.S. corporate tax. This mismatch means I am paying German corpora...
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 — ...
What bookkeeping records must my foreign-owned e-commerce LLC maintain?
I've been running my e-commerce business through a foreign-owned LLC for two years and my bookkeeping is a mess. I have sales on Amazon, Shopify, and eBay. Payments come through multiple processors. I...
Does Washington State's B&O tax apply to my foreign-owned LLC registered there?
I formed my LLC in Washington State because I have a friend there who helps me with my business. I'm from Australia and I provide marketing consulting services to clients worldwide. My LLC made about ...
How do tax treaties affect withholding on dividends from my U.S. LLC?
My U.S. LLC elected to be taxed as a corporation and now pays dividends to me as the sole foreign shareholder. The default 30% withholding is being applied. I am a resident of the Netherlands and I be...
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 ...
How is affiliate marketing income taxed in my foreign-owned LLC?
I run several niche websites through my foreign-owned Wyoming LLC. My revenue comes from affiliate commissions — Amazon Associates, CJ Affiliate, ShareASale, and some direct brand partnerships. I'm fr...
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...
How do I register for sales tax in multiple states as a foreign-owned e-commerce LLC?
I've figured out that I need to register for sales tax in about 8 states where I have either physical or economic nexus. My LLC is foreign-owned (I'm from South Korea) and registered in Texas. The pr...
I use Upwork and Fiverr through my foreign-owned LLC — what are my U.S. tax obligations?
I'm a web developer from Ukraine working through my Wyoming LLC on Upwork and Fiverr. I earn about $85,000/year from U.S. and international clients through these platforms. All work is done remotely f...
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 do state estimated tax payments work for a foreign-owned LLC?
I have a Wyoming LLC but I earn income from clients in New York and California. I'm a non-resident alien from Brazil. I know I need to make estimated tax payments to these states, but I'm confused abo...
How does Italian CFC legislation apply to my U.S. disregarded LLC?
My Italian commercialista says my U.S. LLC triggers Italy's CFC rules because it pays no U.S. tax. He says I have to pay IRPEF on the LLC's entire income even though I left most profits in the U.S. ba...
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...
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...
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