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.
When does my foreign-owned LLC trigger California sales tax nexus in 2026?
We sell physical products to California customers from outside the state. Do we hit California sales tax nexus, and if so, at what threshold?
Can my foreign-owned U.S. LLC trigger an FBAR in 2026 if it opens a bank account abroad?
My U.S. LLC needs a foreign bank account to receive payments in EUR. If I open one and the balance crosses $10,000, does the LLC have to file an FBAR for 2026?
Where do I check whether my country has a U.S. income tax treaty in force for 2026?
Different sources give different answers about whether my country has a U.S. tax treaty. What's the official, primary source I should be checking before claiming a treaty rate?
Our joint refund was taken for my spouse's student loan. Is Form 8379 the right fix or is that only for tax debts?
I am from France and filed a joint return with my spouse. We were expecting about a $6,400 refund, mostly from my wage withholding and our child-related credits. Instead, the entire refund disappeared...
When does my foreign-owned LLC actually have to file Form 1042 for 2026?
I keep seeing Form 1042 mentioned but I can't tell when it actually applies to my LLC. Foreign ownership alone? Or only when we pay foreign people? What's the trigger for 2026?
I just got my first IRS collection letter on a joint return problem. Does that start the two-year Form 8857 clock?
I am originally from India and filed a joint return with my former spouse while we were still together. The balance due was tied mostly to her business income, and I recently received the first IRS co...
Did the One Big Beautiful Bill Act actually become law before tax year 2026?
I keep seeing references to OBBBA / H.R. 1. Is it law, or still pending? Does it affect tax year 2026 planning?
I claimed Section 179 on a vehicle, but business use fell sharply this year. Do I have to give some of it back?
I bought a vehicle for my business and claimed a Section 179 deduction in the first year because the business-use percentage was well above 50%. This year my circumstances changed and personal use is ...
I relinquished U.S. citizenship years ago, never filed, and only recently learned about Form 8854. Can the former-citizen relief procedures still help?
I am living in Portugal and gave up U.S. citizenship after 2010. I never filed U.S. returns because I genuinely did not understand that I still had annual obligations while I was abroad. My finances a...
I am surrendering my green card after many years abroad. Does Form I-407 automatically finish the tax side, or do I still need Form 8854?
I am from Argentina and held a U.S. green card for years, although I lived outside the United States for much of that time. I am now planning to file Form I-407 because I do not intend to keep the gre...
I live abroad and got a CP2000. What is the actual response window and what should go into the first packet?
I am based in Hong Kong and received a CP2000 tied to my 2024 U.S. return. The notice is already stressful enough, but the harder part is knowing how much time I really have from outside the United St...
A non-U.S. customer wants to use crypto to pay us from a Russia-linked wallet. Do sanctions rules still apply even though the payment is not in dollars?
We are a U.S.-touching crypto business and a customer is trying to settle in virtual currency from a wallet that raises Russia-related sanctions concerns. One manager suggested that because no U.S. do...
Our startup only buys and sells crypto for its own treasury. Are we a FinCEN money transmitter or just a user?
We are a crypto startup with a U.S. entity, but the business model right now is not customer-facing. We buy and sell digital assets only for the company's own account and do not accept customer funds ...
We pay a U.S. freelancer in USDT. Do we still need a W-9 and backup withholding review?
Our foreign-owned LLC pays one U.S. contractor in USDT because they prefer it, and someone internally argued that because the payment is in digital assets we do not need the usual W-9 and backup withh...
My LLC only bought Bitcoin and held it. Do I still answer 'Yes' to the digital assets question on the return?
I run a foreign-owned Wyoming LLC and during the year we bought Bitcoin as a treasury asset, but we never sold it, exchanged it, or paid anyone with it. We also did not receive any staking rewards or ...
My foreign company made profit but paid me nothing. Can I still have GILTI on Form 8992?
I am a U.S. individual shareholder of a foreign company that retained all earnings this year to fund growth. There were no dividends, no shareholder loans, and no personal withdrawals. That made me as...
Two U.S. founders each own 45% of a foreign corporation, and a foreign angel owns the other 10%. Is it a CFC?
My cofounder and I are both U.S. taxpayers, and we each own 45% of a foreign corporation. A foreign angel investor owns the remaining 10%. No one person owns more than 50%, which made us think we migh...
I own 80% of a foreign startup directly. Do I file Form 5471 as Category 4, Category 5, or both?
I am a U.S. person living in California and directly own 80% of a foreign software company in Singapore. The company is early-stage, has no distributions, and most of the discussion so far has been ab...
I want to transfer cash to my spouse in 2026, but my spouse is not a U.S. citizen. Is there still a limit even if we are married?
I am a nonresident donor and my spouse also is not a U.S. citizen. Family members keep assuming that spouse transfers are automatically unlimited because they are thinking about the normal marital ded...
My father lived in Argentina and owned assets worldwide, but only some were in the U.S. Does Form 706-NA look only at the U.S. property?
My father was not a U.S. citizen and did not live in the United States, but he did own a Florida condo, some U.S. securities, and other assets entirely outside the U.S. Family members keep mixing dome...
What are the penalties if my foreign-owned LLC is late on payroll tax deposits or filings?
I'm behind on payroll tax deposits for my foreign-owned LLC. I missed two monthly EFTPS deposits and I'm panicking. How bad are the penalties? I've heard the IRS is extremely aggressive about employme...
The buyer says FIRPTA should be 15% of my profit, not 15% of the sales price. Is that right?
I am selling a condo in Florida as a nonresident seller from Germany. The buyer is trying to be cooperative, but they are also using internet summaries that seem to blend final tax with FIRPTA withhol...
H-1B visa holders owning a U.S. LLC
I am on an H-1B visa working for a tech company. I have a side business idea and want to form a U.S. LLC. I have heard conflicting information about whether H-1B holders can own an LLC. Can I form and...
A U.S. tax preparer told me to elect S corporation status for payroll savings, but I am still a nonresident alien. Is that even allowed?
I am a founder from Turkey with a New Mexico LLC. The business is profitable enough that people keep bringing up the classic S-corp strategy for reducing self-employment tax, but every time I read the...
How do I report cryptocurrency income earned through my foreign-owned U.S. LLC?
I'm a non-resident alien who owns a single-member LLC in Wyoming. The LLC receives crypto payments from clients for freelance consulting work. Some payments are in Bitcoin, some in USDC. I convert mos...
If I file a nonresident return with ECI, can my nomad health insurance even belong in the deduction conversation?
I live in the UAE and carry international health insurance because I move around a lot. This year I may have a nonresident U.S. return with effectively connected income, and I am trying to understand ...
I became a U.S. resident during the year but was resident on December 31. Is a dual-status return still the right frame?
I live in Canada and used to think of the whole year as nonresident, but after reviewing my travel I realized I became a U.S. resident partway through the year and was still one on the last day of the...
I bounce between Bali, Bangkok, and short U.S. stays. At what point do I start looking like an itinerant with no clear tax home?
I spend a lot of time moving between Bali, Bangkok, and occasional trips to the United States. I run everything through a U.S. LLC and work online, so from a business perspective it feels efficient. T...
I spent 170 days in the U.S. and the rest in Portugal. Is Form 8840 my main defense now?
I live mostly in Portugal and run a Delaware LLC remotely. This year I spent about 170 days in the United States for travel, family visits, and a few work trips, which is more than I am comfortable wi...
I paid several LLC bills personally and never reimbursed myself. Does that still need a clean Form 5472 story?
I live in Colombia and my Delaware LLC was underfunded for most of the year, so I kept paying subscriptions, contractors, and filing fees from my personal foreign cards. I never reimbursed myself beca...
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