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.
If members paid formation costs that were capitalized, can the Form 1065 no-filing exception still apply?
Our domestic two-member LLC had no revenue and no transactions through its company bank account. The members personally paid formation, registered-agent, and state costs. We believe those amounts were...
Two foreign partners, no ITINs, and no activity: can we file Form 1065 ourselves?
Our Delaware LLC was formed in August 2025 and is taxed as a partnership. It has two individual members, both citizens and tax residents of North Macedonia. Neither member is a U.S. citizen or residen...
What does a realistic, low-cost annual transfer pricing file look like for a one-person foreign-owned LLC?
I'm convinced I need SOMETHING, but I can't justify a full economist report every year for a small LLC with a couple of related-party items. If I want a proportionate annual package that still holds u...
After Bittner, is the non-willful FBAR penalty once per year or per account?
I had four foreign accounts under my LLC and missed FBARs for two years. Before, I read the penalty could be per account, which terrified me. Did the Bittner decision change that? If I had four accoun...
What exactly goes in the section 6662 transfer pricing documentation, and is it really due to the IRS within 30 days?
I keep hearing that 'contemporaneous documentation' protects me from the transfer pricing penalty, and that I have to hand it over within 30 days if the IRS asks. What are the actual contents — is the...
My foreign company owns the brand and charges my US LLC a royalty — how do I set it, and what is 'commensurate with income'?
My home-country company owns the trademark and some software, and licenses them to my US LLC for a royalty. The US LLC is also spending heavily on US marketing to grow the brand here. How do I set a d...
Farhy v. Commissioner — can I use it to argue the IRS can't assess my Form 5472 penalty?
I read that Farhy held the IRS lacked assessment authority for Form 5471 penalties under section 6038(b). My case is a Form 5472 penalty under section 6038A(d). Can I use Farhy as an authority for arg...
Bittner v. United States — does the 2023 Supreme Court ruling cap my non-willful FBAR exposure?
I missed FBAR filings for 4 years and held 8 foreign accounts each year. The IRS first proposed stacking penalties per account per year — that would have been a six-figure number. A friend mentioned B...
My BVI company is registered to do business in Delaware — am I still exempt from BOI?
I formed a company in the British Virgin Islands and then registered it as a foreign LLC in Delaware so I could open US bank accounts. I read that domestic entities are exempt from BOI in 2026, so I a...
BOI litigation timeline 2024-2026 — NSBU, Texas Top Cop Shop, Smith, Supreme Court, and the March 2025 IFR
I keep reading conflicting things about the Corporate Transparency Act. First it was enforced, then enjoined, then back on, then exempted. Can someone lay out the actual timeline so I know what's happ...
Why is fintech onboarding stricter in 2026? The Synapse/Evolve story
I opened a Mercury account in 2022 with just my passport and an EIN letter. A friend tried to open one in 2026 with similar documents and got asked for source-of-funds, US-operations details, and a re...
Citi's 2024 branch checklist for nonresident aliens — why two government IDs?
I'm flying to New York and plan to open a Citi business account in person. A friend mentioned Citi's checklist for nonresident aliens says I need to bring TWO different government IDs, not just my pas...
What interest rate do I have to charge on a loan from me (the foreign owner) to my US LLC?
I wired money into my US LLC to fund operations and we're calling it an owner loan. What interest rate keeps the IRS happy under the section 482 rules? Is there a safe range tied to the AFR I can just...
I missed Form 5472 last year — how do I avoid the $25,000 penalty?
I formed my foreign-owned US LLC in 2024 but never filed Form 5472 for the 2024 tax year. I just learned this exists and I'm panicking about the $25,000 penalty. I haven't received any notice from the...
Texas 2026 franchise tax — I'm below the $2.65M no-tax-due threshold. Do I still file the PIR?
My Texas LLC had about $40,000 of revenue in 2025 — way below any Texas franchise-tax threshold I've seen. I read that for 2026 the no-tax-due threshold is $2.65 million. Does that mean I file nothing...
California suspended LLC — how many years before the FTB cancels it permanently?
My California LLC has been suspended for about 3 years because I stopped paying the $800 annual tax when the business wound down. A friend says California will eventually cancel it administratively bu...
Streamlined Sales Tax (SSTRS) — how do I register if I have no SSN or FEIN?
I'm a foreign individual planning to sell digital products to US customers but I don't yet have an SSN, ITIN, or even a US EIN. Multiple states' sales tax portals require one of these to register. Som...
Which states removed the 200-transaction sales tax threshold in 2024-2026?
I sell a low-priced digital product so I cross 200 transactions quickly even when revenue is small. I've heard several states quietly removed the 200-transaction threshold and now only use a revenue t...
Which Form 5472 exceptions don't apply to my foreign-owned single-member LLC?
I keep reading about Form 5472 exceptions — Form 5471 with Schedule M substituting, foreign sales corporation exceptions, foreign-to-foreign with no U.S. tax effect, and the small-corporation safe har...
Does the April 2026 IRS guidance (CCA 202617012) help reduce my $25,000 Form 5472 penalty?
I missed filing Form 5472 for my Wyoming LLC in 2023 — I genuinely did not know the form existed. I just received an IRS notice with $25,000 in penalties. Someone in a forum mentioned the IRS issued n...
I funded a foreign family trust in 2023 and become a US resident in 2026 — is there really a deemed transfer on day one?
Three years ago, while I was still a nonresident, I moved shares of my company into a foreign family trust for succession planning. Next year I'm relocating to the US for good. A cross-border advisor ...
Can my foreign company charge my US LLC for bookkeeping and IT support at cost with no markup?
I personally handle the LLC's bookkeeping, payroll coordination, and IT help-desk stuff through my company back home, and I want to invoice the LLC for it. An accountant said I have to add a profit ma...
Is paying my non-resident spouse a consulting fee through my foreign-owned LLC actually deductible?
I run a foreign-owned single-member US LLC and my wife (also non-US resident) helps me with bookkeeping and customer service work that I'd otherwise have to outsource. I'd like the LLC to pay her a co...
Buyer is purchasing 100% of my single-member LLC — is that a company sale or an asset sale for US tax?
I'm a non-US founder with a single-member Wyoming LLC (disregarded entity, I file Form 5472 with a pro forma 1120 every year). A US buyer wants to acquire 100% of my membership interest. My lawyer dra...
My US LLC is foreign-owned — will the exchange send a Form 1099-DA on my crypto sales?
I am a nonresident founder with a single-member Wyoming LLC (disregarded, no corporate election). The LLC has an account at a large US custodial exchange and sold some BTC and ETH during 2025. Everyon...
I never knew foreign accounts had to be reported — am I eligible for the Streamlined Procedures?
I'm a non-resident who has owned a US LLC and a couple of foreign bank accounts for years. I just found out about FBAR and Form 8938 and realized I should have been reporting. I genuinely didn't know....
My single-member LLC is disregarded — so who is the employer when it hires, me or the LLC?
I'm a nonresident in Portugal and my Wyoming single-member LLC is about to hire its first US-based support employee. Here's what confuses me: every accountant I've talked to says the LLC is 'disregard...
I'm a foreign owner with no US office or employees — am I exempt from US sales tax?
My LLC is owned by me, a non-resident, and I have no office, staff, or property anywhere in the US. I ship products to US customers from overseas. Surely I don't owe US sales tax since I have no prese...
I missed the Form 8832 deadline for my LLC's C-corp election — can I still get the date I wanted?
I wanted my single-member US LLC taxed as a C corporation effective January 1, but I only got around to filing Form 8832 several months later. Is the January 1 date just lost, or is there a way to fix...
My US property sits in a single-member LLC — for FIRPTA, is the LLC the seller or am I?
I'm a non-US person and my Florida rental is titled in a single-member LLC that's disregarded for US tax. We're about to sell, and the buyer's title company keeps asking who the 'foreign transferor' i...
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