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.
Is swapping one cryptocurrency for another a taxable event for my foreign-owned LLC?
I traded ETH for BTC on Uniswap through my LLC. No USD was involved at all — it was purely a crypto-to-crypto swap. A friend told me this isn't taxable because I didn't convert to fiat, but I've also ...
First year with the LLC — what records should I be keeping?
I just formed my LLC this month. What records and documents should I start keeping from day one to make my Form 5472 filing easier next year?
Does my foreign-owned LLC need to pay the Texas franchise tax even though Texas has no income tax?
I keep hearing that Texas has no state income tax, which is why I formed my LLC there. But now my accountant is telling me about a "franchise tax" or "margin tax" that I might owe. I'm a Canadian citi...
I'm from France — how does my U.S. LLC get taxed?
I'm a French citizen and tax resident in Paris. I formed a Wyoming LLC for my design consulting business serving international clients. I work entirely from France. What are my obligations to the IRS ...
How does the India-U.S. DTAA apply to my disregarded LLC income?
I own a U.S. LLC that earns both consulting fees and some interest income from a U.S. bank account. I understand the India-U.S. DTAA should prevent double taxation, but I'm confused about how it works...
What is FUTA and how much does a foreign-owned LLC pay for federal unemployment tax?
I keep seeing references to FUTA when reading about employer taxes for my foreign-owned LLC. I understand FICA but FUTA is confusing me. Is this separate from state unemployment tax? How much is it? I...
How does the U.S.-China tax treaty affect Chinese owners of U.S. LLCs?
I am a Chinese tax resident who recently formed a single-member LLC in the United States to sell software services. I want to understand how the U.S.-China income tax treaty affects my withholding and...
How does IRC 163(j) business interest limitation affect my foreign-owned LLC that has a loan from its parent company?
I'm a UK citizen and my UK company lent $500,000 to my U.S. LLC at 6% interest. My CPA says IRC 163(j) might limit how much of that interest my LLC can deduct. She mentioned something about '30% of ad...
I'm from Thailand — how does my U.S. LLC get taxed?
I'm a Thai citizen and tax resident in Bangkok. I formed a Wyoming LLC for my content creation and social media management business. I serve international clients from Thailand. Thailand uses a remitt...
What makes a foreign corporation a Controlled Foreign Corporation (CFC)?
I've been told my foreign company might be a CFC, but I'm not sure I understand the definition. I'm a U.S. green card holder and I own 30% of a company incorporated in the UK. My brother, who is also ...
Does Bitcoin mining through my foreign-owned LLC create a U.S. trade or business?
I'm a foreign national who set up a Wyoming LLC to operate a small Bitcoin mining operation. The mining rigs are physically located in Texas (cheap electricity). I manage everything remotely from abro...
How does FICA tax work for foreign LLC employers — do I pay both employer and employee shares?
My foreign-owned LLC in Florida has two employees. I understand I need to pay FICA taxes but I'm confused about the split. Do I withhold the employee's portion from their paycheck AND pay a separate e...
How does Japan tax distributions from my U.S. LLC?
I transfer money from my U.S. LLC bank account to my Japanese personal bank account every month. My Japanese tax advisor says these are dividends from a foreign corporation and should be taxed as divi...
What is Massachusetts' corporate excise tax and does it apply to my foreign-owned LLC?
I have a client in Boston and I'm considering registering my LLC in Massachusetts. I'm a non-resident alien from Ireland. I've heard about a corporate excise tax but I'm not sure if it applies to LLCs...
Does PayPal count as a US bank account for FBAR purposes?
I have a PayPal business account linked to my LLC. It sometimes holds significant balances. Does this count toward the $10,000 FBAR threshold?
I received a Form 1042-S showing U.S. tax was withheld on my income. How do I get a refund?
I'm a UK resident and I received dividends from a U.S. company. They withheld 30% but I think the U.S.-UK treaty rate is only 15% for dividends. I got a Form 1042-S showing the withholding. How do I c...
Can a tourist form a U.S. LLC?
I am visiting the U.S. as a tourist on a B-2 visa and I want to form an LLC while I am here. I have heard that anyone can form an LLC in the U.S. regardless of citizenship. Is this true, and can I do ...
I'm from Mexico — how does my U.S. LLC get taxed?
I am a Mexican citizen living in Monterrey. I formed a New Mexico LLC for my online coaching business. I serve clients in the U.S. and Latin America but work entirely from Mexico. What are my tax obli...
Can I get a virtual debit card for my foreign LLC without a U.S. address?
I need a virtual debit card for my foreign-owned LLC to pay for online services like hosting, software subscriptions, and Google/Facebook ads. I have a Mercury account but I'm not sure if I can get a ...
Can I appoint someone in the U.S. to handle my foreign-owned LLC's payroll tax filings using Form 2678?
I'm a foreign owner of a U.S. LLC and I live overseas. Managing payroll tax deposits and filing Form 941 from abroad is difficult. I heard about Form 2678 that lets you appoint a fiscal agent to handl...
My CPA mentioned IRC 267 and said I can't deduct certain expenses paid to my own foreign company — why?
I'm a Brazilian citizen and I own both a consulting firm in Brazil and a Delaware LLC. My Brazilian company provides back-office services to the LLC and charges a monthly fee. My CPA said IRC 267 rest...
Amazon FBA seller — do I need Form 5472?
I'm a foreign seller on Amazon FBA. Amazon handles everything — warehousing, shipping, payments. Do I still need to file Form 5472 for my US LLC even though Amazon manages all the operations?
The IRS is auditing my LLC's transfer pricing — what should I expect and how do I prepare?
I received a letter from the IRS saying they want to examine my foreign-owned LLC's Form 5472 and related transfer pricing for the past two tax years. I've been paying my overseas company a service fe...
I'm from Spain — how does my U.S. LLC get taxed?
I'm a Spanish citizen and tax resident in Barcelona. I formed a Wyoming LLC for my online marketing business. I work from Spain serving international clients. What are my IRS and AEAT obligations? I'v...
How are NFT sales taxed for a foreign-owned U.S. LLC? Are NFTs treated like other crypto?
My LLC mints and sells NFT art on OpenSea. I'm the artist and I'm based in Brazil. The NFTs are sold for ETH and I also earn royalties on secondary sales. I've made about $30,000 worth of ETH from pri...
How does transfer pricing work for my e-commerce LLC when my overseas company handles fulfillment?
I have a U.S. LLC that sells products online through Shopify to American customers. The products are manufactured and shipped from my company in Vietnam. The Vietnam company handles sourcing, manufact...
What is the Limitation on Benefits (LOB) clause and how does it affect my treaty claim?
I am trying to claim treaty benefits on my Form W-8BEN-E, but I keep encountering references to the Limitation on Benefits clause. The form asks me to certify which LOB provision I satisfy. Can someon...
Can a foreign LLC owner build business credit in the U.S.?
I've heard that building business credit is important for U.S. companies. My foreign-owned LLC has been operating for about a year with consistent revenue. I don't have a personal U.S. credit history ...
I have an Etsy shop selling handmade goods through my foreign-owned LLC — what taxes do I owe?
I'm a German citizen living in Berlin. I opened a Wyoming LLC and started selling handmade jewelry on Etsy to U.S. customers. I make everything at home in Germany and ship internationally. Revenue is ...
Stripe vs PayPal vs direct bank deposit: what's best for receiving payments in my foreign LLC?
My foreign-owned LLC provides consulting services to both U.S. and international clients. Right now I'm invoicing manually and asking clients to wire money to my Mercury account, but some clients want...
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