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.
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...
I'm from Vietnam — how does my U.S. LLC get taxed?
I'm a Vietnamese citizen living in Ho Chi Minh City. I formed a Delaware LLC for my graphic design freelancing business. I work from Vietnam for U.S. and international clients. What are my tax obligat...
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 ...
Do I need to make quarterly estimated tax payments for my foreign-owned e-commerce LLC?
My foreign-owned LLC does about $250,000/year in e-commerce sales. I've been told that U.S. businesses need to make quarterly estimated tax payments, but I'm not sure if this applies to me as a foreig...
What is Form 1042-S and how does it affect me as a foreign LLC owner?
I received a Form 1042-S from a U.S. company that paid my foreign-owned LLC last year. I am not sure what this form represents or how to use it when filing my U.S. tax return. Is it similar to a 1099?...
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...
What makes someone a 'long-term resident' for exit tax purposes? My green card is exactly 8 years old.
I received my green card in 2018 and I'm considering surrendering it in 2026. That would be exactly 8 years. I've heard the exit tax only applies to 'long-term residents' who have had a green card for...
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 marketplace facilitator laws and how do they affect my foreign LLC's sales tax obligations?
I keep seeing the term 'marketplace facilitator' but I don't fully understand what it means for me as a foreign LLC owner selling on multiple platforms. I sell on Amazon, my own Shopify site, and some...
What are state voluntary disclosure programs and should my foreign-owned LLC use one?
I've been selling online in the U.S. for three years through my Wyoming LLC without collecting sales tax in any state. I'm a non-resident alien from France. I recently learned about economic nexus and...
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...
Can Chinese nationals claim U.S.-China tax treaty benefits on LLC income?
I heard there is a tax treaty between China and the U.S. that could lower my withholding rate. My Wyoming LLC receives royalty payments from a U.S. company for software I developed. Can I claim the re...
Does Pennsylvania's corporate net income tax apply to my foreign-owned LLC?
I have clients in Pennsylvania and I'm wondering if I need to pay Pennsylvania's corporate net income tax. I heard it's one of the highest in the country. My LLC is formed in Wyoming but I sell softwa...
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?
I'm from Israel — how does my U.S. LLC get taxed?
I'm an Israeli citizen and tax resident in Tel Aviv. I formed a Delaware LLC for my cybersecurity consulting business. I work from Israel serving U.S. clients. What are my IRS and Israel Tax Authority...
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...
I'm from Russia — how does my U.S. LLC get taxed?
I'm a Russian citizen living in Moscow. I formed a Wyoming LLC for my software development business. I work remotely from Russia serving international clients. What are my IRS and Russian Federal Tax ...
Will PayPal send a 1099-K for my foreign-owned LLC business account?
I have a PayPal business account linked to my foreign-owned LLC (Wyoming). I'm from Mexico and I use PayPal to receive payments from U.S. clients for freelance design work and some product sales. I su...
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